Challenges 

to Low Carbon Energy 
Challenges to Low Carbon Energy
Development in India
Development in India
Thinking
g Long
g Term on Climate Policy
y
A dialogue between research and policy
International Seminar on Climate Change
New Delhi
1-2 November, 2010

Nandakumar Janardhanan
The Institute for Global Environmental Strategies (IGES)
Hayama,
Hayama Japan
janardhanan@iges.or.jp
India’s growing energy demand…
g g gy
• The growing demand for
energy is met by a mix of
fuels including oil, natural
gas, coal, nuclear power,
y p
and hydropower

• The total primary energy

demand for the country in
2009 is estimated to be
about 450 million tons of
oil equivalent
q ((Mtoe).
) The
demand was less than 300
Mtoe in the year 2000.

Million tons oil equivalent

janardhanan@iges.or.jp
Key Economic goals….
y g
• Ensuring economic development and maintaining close to 10%
GDP growth
• Eradicating poverty
• Deliver a sustained growth rate through 2030 and beyond and
to meet the lifeline energy needs of all citizens
• Increase Power generation capacity
• Meet the demand for energy services of all sectors at
competitive
titi prices.
i

janardhanan@iges.or.jp
In Search of the right energy mix…
g gy
• What is the  Petroleum • Industrial  Activities
• Transportation sector
right energy 
mix for the  • Clean coal to be used for electricity 
Clean coal to be used for electricity
country? C l
Coal generation

• To serve the existing power supply 
h l
Hydro systems
• What energy 
sectors to
sectors to  • Emerging regions with more power 
serve which  Nuclear demand, Special Economic Zones(SEZ)

demand
demand 
• More focus to be given to rural areas 
zones? Alternative for distributed power systems

janardhanan@iges.or.jp
 Low Carbon Energy Development

• India has one of the lowest per capita energy consumption 
p p gy p
and energy related emission among the leading economies
• Balancing a low carbon growth with high economic growth 
Balancing a low carbon growth with high economic growth
targets is a key challenge to India
• Fossil fuel constitutes a significant share of the total 
Fossil fuel constitutes a significant share of the total
primary energy consumption
• A prominent perception is that wide range of low carbon 
A i t ti i th t id fl b
energy sources and technologies need to be adopted in the 
country’s energy mix to sustain a low carbon economic 
t ’ i t t i l b i
growth and also to ensure its energy security

janardhanan@iges.or.jp
Clean Energy Development and Climate Concerns

Energy Transition is a Strategic Necessity 
f dd i li t h
for addressing climate change concerns

•Transition from conventional fossil fuel burning to cleaner

technologies is a necessary step towards reducing
energy
energ related emissions

•Energy
Energy transition needs to take into account domestic
constraints regarding availability of technology, financial
support and the scale of economic growth planned to
meet the developmental goals

janardhanan@iges.or.jp
 Key Factors influencing Low Carbon Energy
Development

Challenges/Conce Low carbon technologies in  Nuclear Renewable Energy

rns Fossil Fuel sector
Fossil Fuel sector

Public  Energy efficiency measures  Concerns on radiation and  Awareness, Public participation is 

Perception need to be promoted, costly  waste management critical
measures
Institutional  Energy efficiency measures  Domestic nuclear energy  Implementation of low tech 
Factors are fragmented, need to be  sector management programs, Need for better R&D, 
g
strengthened p y g
capacity building
Technological  Availability of low cost tech,  Dependency on external  Lack of availability of low cost 
Factors For Industrial Applications technology technologies suited to local 
conditions
Commercial  Conventional coal usage  Potential rise in power  Unviable commercially at the 
factors cheaper for Power units price initial stages of development
Reliability  Better technology? Concern  Dependency on external  Post‐sale services for renewable 
Factors about Sustainability of clean  supply sources equipments
techs
Financial barriers Large funds required Huge Capital cost Huge Capital cost

janardhanan@iges.or.jp
 Financial Viability in Clean Energy Technology
Development

World Development Report 2010

janardhanan@iges.or.jp
Low Carbon Energy Development: Observations

• Energy efficiency measures will continue to be the most viable 
practice towards low carbon growth
• Three key pillars of Low carbon energy development are 
yp gy p
promoting energy efficiency, developing nuclear power and 
developing renewable sources
• Technological maturity and financial viability are the key 
qualifications for any low carbon energy sources  or technology 
to be accepted in India
• Low Carbon Energy Development needs to be integrated 
globally with maximum support of technologically advanced 
countries

janardhanan@iges.or.jp
Thank You