BETTER ENVIRONMENT

THROUGH
ENERGY EFFICIENCY

PROJECT ASSIGNMENT
SUBJECT: ENVIRONMENTAL LAW

POST GRADUATE DIPLOMA IN ENVIRONMENTAL LAW (PGDEL)

SUBMITTED BY

R.L. BHUTIANI
I.D. NO.EL/702/07-08
C/O ENGINEERS INDIA LIMITED
BANGALORE – 21
 DECLARATION

‘BETTER ENVIRONMENT THROUGH ENERGY EFFICIENCY’

Certified that this Project Work is my original work and that I have
not taken or borrowed any material from other’s work nor have I
presented this partly or fully to any other institution / College /
University. I have complied with all the formalities prescribed in
this regard.

RAMESH LAL BHUTIANI

I.D. NO.EL/702/07-08

Date : 28 April 2008

Place : Bangalore
CONTENT
Chapter 1 Introduction
 Chapter 1
Introduction

1.1 ENERGY SCENARIO

The global primary energy consumption at the end of 2002 was equivalent to 9405
million tonnes of oil equivalent (Mtoe). The Figure 1.3 shows in what proportions the
sources mentioned above contributed to this global figure.

Figure 1.3 Global Primary Energy Consumption

The primary energy consumption for few of the developed and developing countries is
shown in Table 1.1. It may be seen that India’s absolute
th th th
primary energy consumption is only 1/29 of the world, 1/7 of USA, 1/1.6 time of
Japan but 1.1, 2.9, 1.3, 1.5 times of Canada, Australia, France and U.K respectively.
 Table 1.1 Primary Energy Consumption by fuel (2002) in Million
Tonnes Oil Equivalent (Mtoe)

Oil Natural Coal Nuclear Hydro Total Share of

Gas Total
USA 894.3 600.7 553. 185.8 58.2 2293.0 24.4%
8
Canada 89.7 72.6 30.7 17.0 78.6 288.7 3.1%
France 92.8 38.5 12.7 98.9 15.0 258.0 2.7%
Russian 122.9 349.6 98.5 32.0 37.2 640.2 6.8%
Federation
United 77.2 85.1 36.5 19.9 1.7 220.3 2.3%
Kingdom
China 245.7 27.0 663. 5.9 55.8 997.8 10.6%
4
India 97.7 25.4 180. 4.4 16.9 325.1 3.5%
8
Japan 242.6 69.7 105. 71.3 20.5 509.4 5.4%
3
Malaysia 22.5 24.3 3.3 - 1.7 51.8 0.6%
Pakistan 17.9 18.8 2.1 0.4 4.6 43.8 0.5%
Singapore 35.5 1.6 - - - 37.1 0.4%
TOTAL 3522.5 2282.0 2397.9 610.6 592.1 9405.0
WORLD

Energy Distribution Between Developed And Developing Countries

 Figure 1.4: Energy Distribution Between Developed and Developing
Countries

Although 80 percent of the world’s population lies in the developing countries (a fourfold
population increase in the past 25 years, their energy consumption amounts to only 40
percent of the world total energy consumption. The high standards of living in the
developed countries are attributable to high-energy consumption levels. Also, the rapid
population growth in the developing countries has kept the per capita energy consumption
low compared with that of highly industrialized developed countries.
The world average energy consumption per person is equivalent to 2.2 tonnes of coal. In
industrialized countries, people use four to five times more than the world average, and
nine times more than the average for the developing countries. An American uses 32
times more commercial energy than an Indian.

1.6 Indian Energy Scenario

Coal dominates the energy mix in India, contributing to 55% of the total primary energy
production. Over the years, there has been a marked increase in the share of natural gas in
primary energy production from 10% in 1994 to 13% in 1999. There has been a decline in
the share of oil in primary energy production from 20% to 17% during the same period.
 Energy Supply

Coal Supply
India has huge coal reserves, at least 84,396 Million tonnes of proven recoverable
reserves (at the end of 2002). This amounts to almost 8.6% of the world reserves and it
may last for about 235 years at the current Reserve to Production (R/P) ratio. In contrast,
the world’s proven coal reserves are expected to last only for 204 years at the current R/P
ratio. India is the fourth largest producer of coal and lignite in the world. Coal production
is concentrated in these states (Andhra Pradesh, Bihar, Madhya Pradesh, Maharashtra,
Orissa, Jharkhand, West Bengal).

Oil Supply
Oil accounts for about 33 % of India's total energy consumption. While India has invested
considerable resources in this sector, the crude oil production has stagnated at around 32-
33 million metric tonnes per year over the past decade. The majority of India's roughly
5.4 billion barrels in oil reserves are located in the Bombay High, upper Assam, Cambay,
Krishna-Godavari, and Cauvery basins. India's average oil production level for 2002 was
793,000 barrels per day. The consumption continues to outstrip production and. about
70% of the total petroleum product demand is met by imports imposing a heavy burden
on foreign exchange. India had net oil imports of over 1.2 million barrels per day in 2002.
India’s annual current oil import bill is around Rs.80,000 crores. In terms of sector wise
petroleum product consumption, transport accounts for 53% followed by domestic and
industry with 18% and 17% respectively.

Natural Gas Supply

Natural gas accounts for about 8 per cent of energy consumption in the country. The
current demand for natural gas is about 96 million cubic metres per day (mcmd) as
against availability of 67 mcmd. By 2007, the demand is expected to be around 200
mcmd. Natural gas reserves are estimated at 660 billion cubic meters.

Electrical Energy Supply

The all India installed capacity of electric power generating stations under utilities was
st
1,07,973 MW as on 31 March 2003, consisting of 26,910 MW- hydro, 76,607 MW -
thermal and 2,720 MW- nuclear and 1,736 MW- wind (Ministry of Power). The gross
generation of power in the year 2002-2003 stood at 531 billion units (kWh).

Nuclear Power Supply

Nuclear Power contributes to about 2.5 per cent of electricity generated in India. India has
ten nuclear power reactors at five nuclear power stations producing electricity. More
nuclear reactors have also been approved for construction.

Hydro Power Supply

India is endowed with a vast and viable hydro potential for power generation of which
only 15% has been harnessed so far. The share of hydropower in the country’s total
st
generated units has steadily decreased and it presently stands at 25% as on 31 March
2003. It is assessed that exploitable potential at 60% load factor is 84,000 MW.

Final Energy Consumption

Final energy consumption is the actual energy demand at the user end. This is the
difference between primary energy consumption and the losses that takes place in
transport, transmission & distribution and refinement. The actual final energy
consumption (past and projected) is given in Table 1.2.

Table 1.2 Demand for Commercial Energy for Final Consumption (BAU
Scenario)
Source Units 1994-95 2001-02 2006-07 2011-12
Electricity Billion 289.36 480.08 712.67 1067.88
Units
Coal Million 76.67 109.01 134.99 173.47
Tonnes
Lignite Million 4.85 11.69 16.02 19.70
Tonnes
Natural Gas Million 9880 15730 18291 20853
Cubic
Meters
Oil Products Million 63.55 99.89 139.95 196.47
Tonnes
Source: Planning Commission BAU:_Business As Usual
Sector wise Energy Consumption in India
The major commercial energy consuming sectors in the country are classified as shown in
the Figure 1.5. As seen from the figure, industry remains the biggest consumer of
commercial energy and its share in the overall consumption is 49%. (Reference year:
1999/2000)

Figure 1.5 Sector Wise Energy Consumption (1999-2000)

India’s Energy Needs

Economic growth is desirable for developing countries, and energy is essential for
economic growth. However, the relationship between economic growth and increased
energy demand is not always a straightforward linear one. For example, under present
conditions, a 6% increase in India's Gross Domestic Product (GDP) would impose an
increased demand of 9 % on its energy sector.
In this context, the ratio of energy demand to GDP is a useful indicator. A high ratio
reflects energy dependence and a strong influence of energy on GDP growth. It is
worthwhile to note that developed countries − by focusing on energy efficiency and lower
energy-intensive routes − maintain their energy to GDP ratios at values of less than 1. The
ratios for developing countries tend to be much higher.

Long Term Energy Scenario-India

Coal
Coal is the primary energy source for power production in India, generating
approximately 70% of total domestic electricity. Energy demand in India is expected to
increase over the next 10-15 years; although new oil and gas plants are planned, coal is
expected to remain the dominant fuel for power generation. Despite significant increases
in total installed capacity during the last decade, the gap between electricity supply and
demand continues to increase. The resulting shortfall has had a negative impact on
industrial output and economic growth. However, to meet expected future demand,
indigenous coal production will need to be greatly expanded. Production currently stands
at around 290 Million tonnes per year, but coal demand is expected to more than double
by 2010. Indian coal is typically of poor quality; Coal imports will also need to increase
dramatically to satisfy industrial and power generation requirements.

Oil
India's demand for petroleum products is likely to rise from 97.7 million tonnes in 2001-
02 to around 139.95 million tonnes in 2006-07, according to projections of the Tenth
Five-Year Plan. The plan document puts compound annual growth rate (CAGR) at 3.6 %
during the plan period. Domestic crude oil production is likely to rise marginally from
th
32.03 million tonnes in 2001-02 to 33.97 million tonnes by the end of the 10 plan period
(2006-07). As shown in the figure 1.8, around 92% of India’s total oil demand by 2020
has to be met by imports.
 Figure 1.8 India’s Oil Balance

Natural Gas
India's natural gas production is likely to rise from 86.56 million cmpd in 2002-03 to
103.08 million cmpd in 2006-07. It is mainly based on the strength of a more than
doubling of production by private operators to 38.25 mm cmpd.

Electricity
India currently has a peak demand shortage of around 14% and an energy deficit of 8.4%.
Keeping this in view and to maintain a GDP (gross domestic product) growth of 8% to
10%, the Government of India has very prudently set a target of 215,804 MW power
generation capacity by March 2012 from the level of 100,010 MW as on March 2001,
that is a capacity addition of 115,794 MW in the next 11 years (Table 1.3).
In the area of nuclear power the objective is to achieve 20,000 MW of nuclear generation
capacity by the year 2020.

Table 1.3 India’s Perspective Plan For Power For Zero Deficit Power By 2011/12
(Source Tenth And Eleventh Five-Year Plan Projections)
Thermal (Coal) Gas / LNG /
Nuclear (MW) Hydro (MW) Total(MW)
(MW) Diesel (MW)
Installed
Gas: 10,153
capacity as on 61,157 2720 25,116 100,010
Diesel: 864
March 2001
Additional
capacity 53,333 20,408 9380 32,673 115,794
(2001-2012)
Total capacity
114,490 31,425 57,789
as on March 12,100 (5.6%) 215,804
(53.0%) (14.6%) (26.8%)
2012

1.12 Energy Security

The basic aim of energy security for a nation is to reduce its dependency on the imported
energy sources for its economic growth.
India will continue to experience an energy supply shortfall throughout the forecast
period. This gap has been exacerbated since 1985, when the country became a net
importer of coal. India has been unable to raise its oil production substantially in the
1990s. Rising oil demand of close to 10 percent per year has led to sizable oil import
bills. In addition, the government subsidises refined oil product prices, thus compounding
the overall monetary loss to the government.
Imports of oil and coal have been increasing at rates of 7% and 16% per annum
respectively during the period 1991–99. This dependence on energy imports is projected
to increase in the future. Estimates indicate that oil imports will meet 75% of total oil
consumption requirements and coal imports will meet 22% of total coal consumption
requirements in 2006. At present, India does not import any natural gas, but demand is
supply constrained and imports of gas and LNG (liquefied natural gas) are likely to arise
in the coming years. This energy import dependence implies vulnerability to external
price shocks and supply fluctuations, which threaten the energy security of the country.
Increasing dependence on oil imports means reliance on imports from the Middle East, a
region susceptible to disturbances and consequent disruptions of oil supplies. This calls
for diversification of sources of oil imports. The need to deal with oil price fluctuations
also necessitates measures to be taken to reduce the oil dependence of the economy,
possibly through fiscal measures to reduce demand, and by developing alternatives to oil,
such as natural gas and renewable energy.
Some of the strategies that can be used to meet future challenges to their energy security
are

 Building stockpiles

 Diversification of energy supply sources

 Increased capacity of fuel switching

 Demand restraint,

 Development of renewable energy sources.

 Energy efficiency

 Sustainable development

Although all these options are feasible, their implementation will take time. Also, for
countries like India, reliance on stockpiles would tend to be slow because of resource
constraints. Besides, the market is not sophisticated enough or the monitoring agencies
experienced enough to predict the supply situation in time to take necessary action.
Insufficient storage capacity is another cause for worry and needs to be augmented, if
India has to increase its energy stockpile.
However, out of all these options, the simplest and the most easily attainable is reducing
demand through persistent energy conservation efforts.

1.13 Energy Efficiency and its Importance

Coal and other fossil fuels, which have taken three million years to form and these are
likely to deplete soon. In the last two hundred years, we have consumed 60% of all
resources. For sustainable development, we need to adopt energy efficiency measures.
Today, 85% of primary energy comes from non-renewable, and fossil sources (coal, oil,
etc.). These reserves are continually diminishing with increasing consumption and will
not exist for future generations (see Figure 1.15).

Figure 1.15

Energy Conservation Vs Energy Efficiency?

Energy Conservation and Energy Efficiency are separate, but related concepts. Energy
conservation is achieved when growth of energy consumption is reduced, measured in
physical terms. Energy Conservation can, therefore, be the result of several processes or
developments, such as productivity increase or technological progress. On the other hand
Energy efficiency is achieved when energy intensity in a specific product, process or area
of production or consumption is reduced without affecting output, consumption or
comfort levels. Promotion of energy efficiency will contribute to energy conservation and
is therefore an integral part of energy conservation promotional policies.

Energy efficiency is often viewed as a resource option like coal, oil or natural gas. It
provides additional economic value by preserving the resource base and reducing
pollution. For example, replacing traditional light bulbs with Compact Fluorescent Lamps
(CFLs) means you will use only 1/4th of the energy to light a room. Pollution levels also
reduce by the same amount. Nature sets some basic limits on how efficiently energy can
be used, but in most cases our products and manufacturing processes are still a long way
from operating at this theoretical limit. Very simply, energy efficiency means using less
energy to perform the same function.

Although, energy efficiency has been in practice ever since the first oil crisis in 1973, it
has today assumed even more importance because of being the most cost-effective and
reliable means of mitigating the global climatic change. Recognition of that potential has
led to high expectations for the control of future CO2 emissions through even more energy
efficiency improvements than have occurred in the past. The industrial sector accounts for
some 41 per cent of global primary energy demand and approximately the same share of
CO2 emissions.

In this paper terms Energy Conservation & Energy Efficiency are used
interchangeably.

The benefits of Energy conservation for various players are given below

 Industry - Reduced energy bills, Increased Competitiveness, Increased

productivity, Improved quality, Increased profits!

 Nation - Reduced energy imports, Avoided costs can be used for poverty
reduction, Conservation of limited resources, Improved energy security

 Globe - Reduced GHG and other emissions, Maintains a sustainable environment

1.2 Energy and Environment

Air Pollution

The usage of energy resources in industry leads to environmental damages by polluting

the atmosphere. Few of examples of air pollution are sulphur dioxide (SO2), nitrous oxide
(NOX) and carbon monoxide (CO) emissions from boilers and furnaces, chloro-fluro

carbons (CFC) emissions from refrigerants use, etc. In chemical and fertilizers industries,
toxic gases are released. Cement plants and power plants spew out particulate matter.
Sources of major pollutants in air and average composition of pollutants are given in
Table 1.4 and Table 1.5 respectively.

Table 1.4 Major Pollutants in Air Sources

S.No. Source %
1 Fuel 42
combustio
n
in
transport
2 Industry 35
3 Forest fire 8
4 Solild 5
waste
disposal
5 Miscellan 10
eous

Table 1.5 Composition of Major Pollutants in Air

S. No. Pollutant %
1 Carbon 47
Monoxide
2 Hydro 15
Carbons
3 Sulphur 15
Oxides
4 Nitrogen 10
Oxides
5 Particulates 13

9.3 Global Warming

Over the last 100 years, it was found out that the earth is getting warmer and warmer,
unlike previous 8000 years when temperatures have been relatively constant. The present
o
temperature is 0.3 - 0.6 C warmer than it was 100 years ago.

Global Warming and Climate Change

Climate change, also called global warming, refers to the long-term fluctuations in
temperature, precipitation, wind and other elements of the earth’s climate system. The
energy use has attracted huge attention in present times due to its associated global
climatic impacts.

Figure 1.11 The Greenhouse Effect

Increasing fossil fuel use has led to increasing carbon dioxide emissions leading to
greenhouse effect and global warming (see Figure. 1.11). The heating up of earth’s
atmosphere due to trapping of long wavelength infrared rays (reflected from the earth’s
surface) by the carbon dioxide layer in the atmosphere is called green house effect. The
name greenhouse effect comes from the fact that this effect is used usefully in horticulture
for the growing green plants in a enclosure made of glass or some other transparent
material to act as a heat trap. Scientists generally believe that the combustion of fossil
fuels and other human activities are the primary reason for the increased concentration of
carbon dioxide. Plant respiration and the decomposition of organic matter release more
than 10 times the CO2 released by human activities; but these releases have generally

been in balance during the centuries with carbon dioxide being absorbed by terrestrial
vegetation and the oceans.

The key greenhouse gases driving global warming are shown in Figure 1.12. Carbon
dioxide (54%), whose increase is largely produced by the burning of fossil fuels, is the
primary global warming gas. CFC's (21%), even though they exist in very small
quantities, are significant contributors to global warming. And, (while not shown in
Figure 1.12), perfluorocarbons (PFC's), sulfur hexafluoride (SF6) and hydro
fluorocarbons (HFC's) are other growing contributors.

Carbondioxide, one of the most prevalent greenhouse gases in the atmosphere, has two
major anthropogenic (human-caused) sources: the combustion of fossil fuels and changes
in land use (see figure:1.13). Net releases of carbon dioxide from these two sources are
believed to be contributing to the rapid rise in atmospheric concentrations since pre-
industrial times.

Because estimates indicate that approximately 80 percent of all anthropogenic

carbondioxide emissions currently come from fossil fuel combustion, world energy use
has emerged at the center of the climate change debate.
International accords, began in Rio de Janeiro in 1992 (Rio Earth Summit), wherein
developed nations were asked to reduce GHG emission to 1990 levels by the year 2000.
New levels of commitment were taken in the third Conference of Parties (COP) on “The
Framework Convention on Climate Change”, held at Kyoto in 1997 (Kyoto Protocol),
which made GHG reductions mandatory for 38 developed nations with average reduction
of 5.2% below 1990 levels by 2012. The emergence of the Clean Development
Mechanism (CDM) as a framework for the involvement of industrialized countries in the
developing world may lead to financing opportunities for energy efficiency projects.

Table 1.6 Climate has Changed and Will Continue to Change

o
– Global mean temperature is increasing- 0.3
o – Projected temperature increase of 2 C by
to 0.6 C year 2100
– Global sea level has risen: 10 to 25 cm – Projected sea level rise of 50 cm by year
2100

Acid Rain
Acid rain is caused by release of SOX and NOX from combustion of fossil fuels, which

then mix with water vapour in atmosphere to form sulphuric and nitric acids respectively.
The effects of acid rain are as follows:

 Acidification of lakes, streams, and soils

 Direct and indirect effects (release of metals, For example: Aluminum which
washes away plant nutrients)
 Killing of wildlife (trees, crops, aquatic plants, and animals)
 Decay of building materials and paints, statues, and sculptures
 Health problems (respiratory, burning- skin and eyes)
Figure 1.14

Global Warming (Climate Change) Implications

Human activities are releasing greenhouse gases into the atmosphere

Carbon dioxide is produced when fossil fuels are used to generate energy and when
forests are cut down and burned. Methane and nitrous oxide are emitted from agricultural
activities, changes in land use, and other sources. Man-made chemicals called
halocarbons (CFCs, HFCs, PFCs) and other long-lived gases such as sulphur hexafluoride
(SF6 ) are released by industrial processes. Ozone, at ground level, is released indirectly
by automobile exhaust fumes and other sources.
Rising levels of greenhouse gases are already changing the climate
Observations show that global temperatures have risen by about 0.6 °C over the 20th
century. There is new and stronger evidence that most of the observed warming over the
last 50 years is attributable to human activities. Climate models predict that the global
temperature will rise by about 6 °C by the year 2100.
Climate change is likely to have a significant impact on the global environment.
In general, the faster the climate changes, the greater will be the risk of damage. The
mean sea level is expected to rise 9 - 88 cm by the year 2100, causing flooding of low
lying areas and other damage.
Human society will face new risks and pressures
Food security is unlikely to be threatened at the global level, but some regions are likely
to experience food shortages and hunger. Water resources will be affected as precipitation
and evaporation patterns change around the world.
India could be more at risks than many other countries
o
Models predict an average increase in temperature in India of 2.3 to 4.8 C for the
benchmark doubling of Carbon-dioxide scenario. Temperature would rise more in
Northern India than in Southern India, without protection approximately 7 million people
2
would be displaced, 5700 km of land and 4200 km. of road would be lost, and wheat
yields could decrease between 2.8 to 6.8%.

Many options for limiting emissions are available in the short- and medium-term
Policymakers can encourage energy efficiency and other climate-friendly trends in both
the supply and consumption of energy. Key consumers of energy include industries,
homes, offices, vehicles, and agriculture. Efficiency can be improved in large part by
providing an appropriate economic and regulatory framework for consumers and
investors. This framework should promote cost-effective actions, the best current and
future technologies, and innovative solutions that make economic and environmental
sense irrespective of climate change. Taxes, regulatory standards, tradable emissions
permits, information programmes, voluntary programmes, and the phase-out of
counterproductive subsidies can all play a role. Changes in practices and lifestyles, from
better urban transport planning to personal habits such as turning out the lights, are also
important.

9.4 Climatic Change Problem - United Nations Framework Convention on Climate

Change (UNFCCC)
Climate change is considered to be among the most serious threats to the sustainability of
the world's environment, the health and well-being of its people and the global economy.
Mainstream scientists agree that the Earth's climate is being affected by the build-up of
greenhouse gases, such as carbon dioxide, caused by human activities, including
electricity generation, agriculture and transportation. In spite of some lingering
uncertainties, a majority of scientists believe preventive and prompt action is necessary.

The international response to climate change took shape with the development of the
United Nations Framework Convention on Climate Change (UNFCCC). Agreed to in
1992, the UNFCCC set out a framework for action to control or cut greenhouse gas
emissions. The UNFCC was signed by most nations, including a voluntary pledge that the
developed countries would reduce their emissions to 1990 levels by the year 2000. With
scientific evidence pointing towards increasing destructive contribution of human
activity, It became clear that most countries would be unable to uphold their promises. All
the nations, who initially ratified the UNFCC, reconvened in form of Conference of
Parties (COP) at Berlin in 1995 with a goal of entering into negotiations on a protocol to
establish legally binding limitations or reductions in emissions. The event was called
COP-1 and was the first session of what became an annual meeting to analyse the
efficacy of climatic change program, review scientific data and monitor the emission
commitments declared by certain countries.
Since the UNFCCC entered into force in 1994, five meetings of the Conference of the
Parties have taken place, as well as numerous workshops and meetings of the UNFCCC's
subsidiary bodies. A Protocol to the Convention was adopted in 1997 at the Third
Conference of the Parties, held in Kyoto. Although it has yet to enter into force, the
UNFCCC's Kyoto Protocol commits industrialized countries to achieve quantified targets
for decreasing their emissions of greenhouse gases.

9.5 Global Climate Change Treaty: The Kyoto Protocol

As scientific consensus grew that human activities are having a discernible impact on
global climate systems, possibly causing a warming of the Earth that could result in
significant impacts such as sea level rise, changes in weather patterns and health effects--
and as it became apparent that major nations such as the United States and Japan would
not meet the voluntary stabilization target by 2000--Parties to the treaty decided in 1995
to enter into negotiations on a protocol to establish legally binding limitations or
reductions in greenhouse gas emissions. It was decided by the Parties that this round of
negotiations would establish limitations only for the developed countries, including the
former Communist countries (called annex A countries).
Negotiations on the Kyoto Protocol to the United Nations Framework Convention on
Climate Change (UNFCCC) were completed December 11, 1997, committing the
industrialized nations to specify, legally binding reductions in emissions of six
greenhouse gases. The 6 major greenhouse gases covered by the protocol are carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).
Following completion of the Protocol in December of 1997, details of a number of the
more difficult issues remained to be negotiated and resolved in spite of periodic
conferences.
Major Provisions of the Kyoto Protocol
As of February 2000, 84 countries had signed the treaty, including the European Union
and most of its members, Canada, Japan, China, and a range of developing countries.
Some 22 countries were reported by the UNFCCC Secretariat to have ratified the treaty.
Nations are not subject to its commitments unless they have ratified it and it enters into
force.
The major commitments in the treaty are as follows:

Emissions Reductions
The United States would be obligated under the Protocol to a cumulative reduction in its
greenhouse gas emissions of 7% below 1990 levels for three greenhouse gases (including
carbon dioxide), and below 1995 levels for the three man-made gases, averaged over the
commitment period 2008 to 2012.
The Protocol states that “developed countries are committed, individually or jointly, to
ensuring that their aggregate anthropogenic carbon dioxide equivalent emissions of
greenhouse gases do not exceed amounts assigned to each country” in Annex A to the
Protocol, "with a view to reducing their overall emissions of such gases by at least 5%
below 1990 levels in the commitment period 2008 to 2012.
39 nations have signed the protocol, including the United States, the European Union plus
the individual EU nations, Japan, and many of the former Communist nations. The
amounts for each country are listed as percentages of the base year, 1990 and range from
92% (a reduction of 8%) for most European countries--to 110% (an increase of 10%) for
Iceland.
Developing Country Responsibilities
Another problematic area is that the treaty is ambiguous regarding the extent to which
developing nations will participate in the effort to limit global emissions. The original
1992 climate treaty made it clear that, while the developed nations most responsible for
the current buildup of greenhouse gases in the atmosphere should take the lead in
combating climate change, developing nations also have a role to play in protecting the
global climate. Per Capita CO2 emissions are small in developing countries and developed

nations have altered the atmosphere the most as shown in the figures 9.2 & 9.3.
The Kyoto Protocol does call on all Parties--developed and developing--to take a number
of steps to formulate national and regional programs to improve "local emission factors,"
activity data, models, and national inventories of greenhouse gas emissions and sinks that
remove these gases from the atmosphere. All Parties are also committed to formulate,
publish, and update climate change mitigation and adaptation measures, and to cooperate
in promotion and transfer of environmentally sound technologies and in scientific and
technical research on the climate system.
India has ratified the contentious Kyoto Protocol in August 2002. However, the Kyoto
Protocol does not set any binding limits on developing nation emissions, nor does it
establish a mechanism or timetable for these countries to take on such limits voluntarily.
On the other hand, the Protocol does establish a so-called Clean Development
Mechanism, which allows developed countries to invest in projects in developing
countries that reduce greenhouse gas emissions and receive credit for the reductions. The
intent is to help developing nations minimize their emissions even as they develop their
energy sectors and expand their economies.

India’s Greenhouse Gas Emissions

India has experienced a dramatic growth in fossil fuel CO2 emissions, and the data
compiled by various agencies shows an increase of nearly 5.9 % since 1950. At
th
present India is rated as the 6 largest contributor of CO2 emissions behind China,
nd
the 2 largest contributor. However, our per capita CO2 of 0.93t per annum is well

below the world average of 3.87t per annum. Fossil fuel emissions in India continue
to result largely from coal burning. India is highly vulnerable to climate change as
its economy is heavily reliant on climate sensitive sectors like agriculture and
 forestry. The vast low-lying and densely populated coastline is susceptible to rise in
sea level.
The energy sector is the largest contributor of carbon dioxide emissions in India. The
national inventory of greenhouse gases under ALGAS (Asia-Least Cost Greenhouse Gas
Abatement Strategy) project (funded by the Asian Development Bank, Global
Environment Facility and United Nations Development Program) indicates that 55% of
the total national emissions come from energy sector. These include emissions from road
transport, burning of traditional bio-mass fuels, coal mining, and fugitive emissions from
oil and natural gas. Agriculture sector constitutes the next major contributor, accounting
for nearly 34%. The emissions under this sector include those from enteric fermentation
in domestic animals, manure management, rice cultivation, and burning of agriculture
residues. Emissions from Industrial sector mainly came from cement production. India is
the fourth largest producer of cement after China, Japan and the United States. The
ALGAS study presents the latest set of projections of greenhouse gas emissions from
India.

Indian Response to Climatic Change

India signed the UNFCCC on 10 June 1992 and ratified it on 1 November 1993. Under
the UNFCCC, developing countries such as India do not have binding GHG mitigation
commitments in recognition of their small contribution to the greenhouse problem as well
as low financial and technical capacities. The Ministry of Environment and Forests is the
nodal agency for climate change issues in India. It has constituted Working Groups on the
UNFCCC and Kyoto Protocol. Work is currently in progress on India's initial National
Communication (NATCOM) to the UNFCCC.
Current initiatives in India to improve understanding of climate change, and comply with
the requirements of the UNFCCC.

9.7 Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM), provided for under Article 12 of the Kyoto
Protocol, enables developing countries to participate in joint greenhouse gas (GHG)
mitigation projects. Under this Protocol, countries (developed countries and economies in
transition) are required to reduce GHG emissions to below their 1990 levels.
The CDM enables these countries to meet their reduction commitments in a flexible and
cost-effective manner. It allows public or private sector entities to invest in GHG
mitigation projects in developing countries. In return the investing parties receive credits
or Certified Emission Reductions (CERs), which they can use to meet their targets under
the Kyoto Protocol.
While investors profit from CDM projects by obtaining reductions at costs lower than in
their own countries, the gains to the developing country host parties are in the form of
finance, technology, and sustainable development benefits.
The basic rules for the functioning of the CDM were agreed on at the seventh Conference
of Parties (COP-7) to the UNFCCC held in Marrakesh, Morocco in October-November
2001. Projects starting in the year 2000 are eligible to earn CERs if they lead to "real,
measurable, and long-term" GHG reductions, which are additional to any that would
occur in the absence of the CDM project. This includes afforestation and reforestation
projects, which lead to the sequestration of carbon dioxide.
At COP-7, it was decided that the following types of projects would qualify for fast-track
approval procedures:
 Renewable energy projects with output capacity up to 15 MW
 Energy efficiency improvement projects which reduce energy consumption on the
supply and/or demand side by up to 15 GWh annually
 Other project activities that both reduce emissions by sources and directly emit less
than 15 kilotons CO2 equivalent annually.

The CDM will be supervised by an executive board, and a share of the proceeds from
project activities will be used to assist developing countries in meeting the costs of
adaptation to climate change.

Indian Initiatives on CDM

Government of India has been willing to fulfill its responsibility under the CDM. It has
developed an interim criterion for approval of CDM project activities, which is now
available to stakeholders. It has undertaken various capacity building activities like
holding of workshops, initiation of various studies, and briefing meeting with the
stakeholders. India has been actively participating in the CDM regime and has already
approved projects for further development.
Under CDM, projects such as energy efficient hydrocarbon refrigerators, modernization
of small scale foundry units and renovation, modernization of thermal power stations etc.
are being taken up.
Case Example
In a power plant rehabilitation and modernization programme by replacing plant
equipment which are prone to wear and tear over a period of time, such as boilers and
auxiliaries, turbine blades, HP governor valves and station auxiliaries which include
material handling equipment, water treatment, pulverisers, ash handling plant, ESP etc
resulted in CO2 emission reduction from 1.20 kg/kWh to 1.11 kg/kWh. The details are
shown in the Table 9.2:

Table 9.2 Efficiency Improvement and Emission Reduction

in a Power Plant Modernisation Programme.
Parameters Before the programme After the programme
Gross heat rate (kcal/KWh) 2700 2500
Net efficiency (%) 28 30
Specific coal consumption 0.77 0.71
Total CO2 emissions 1435336 1329015
(tones/year)
CO2 emissions (kg/ kWh) 1.20 1.11

9.8 Prototype Carbon Fund (PCF)

Recognizing that global warming will have the most impact on its borrowing client
countries, on July 20th, 1999 the Executive Directors of the World Bank approved the
establishment of the Prototype Carbon Fund (PCF). The PCF is intended to invest in
projects that will produce high quality greenhouse gas emission reductions that could be
registered with the United Nations Framework Convention on Climate Change
(UNFCCC) for the purposes of the Kyoto Protocol. To increase the likelihood that the
reductions will be recognized by the Parties to the UNFCCC, independent experts will
follow validation, verification and certification procedures that respond to UNFCCC rules
as they develop.
The PCF will pilot production of emission reductions within the framework of Joint
Implementation (JI) and the Clean Development Mechanism (CDM). The PCF will invest
contributions made by companies and governments in projects designed to produce
emission reductions fully consistent with the Kyoto Protocol and the emerging framework
for JI and the CDM. Contributors, or "Participants" in the PCF, will receive a pro rata
share of the emission reductions, verified and certified in accordance with agreements
reached with the respective countries "hosting" the projects.
Size of Market for Emissions Reductions
 All estimates of market volume are speculative at this early stage in the market’s
development.
 One way of looking at the potential size of the market is to assume that about one
billion tonnes of carbon emissions must be reduced per year during the
commitment period of 2008-2012 in order for the industrialized countries to meet
their obligations of a 5% reduction in their 1990 levels of emissions.
Under Prototype carbon fund programme of the World Bank. Government of India has
approved a municipal solid waste energy project 'SWERF' in 2001 for implementation by
EDL India Limited in Chennai, which proposes to use the state of art technology for
extracting energy from any solid waste irrespective of the energy content.

9.9 Sustainable Development

The World Commission on Environment and Development (the Brundtland Commission)
defined sustainable development as "development that meets the needs of the present
without compromising the ability of future generations to meet their own needs." In other
words, development is essential to satisfy human needs and improve the quality of human
life. At the same time, development must be based on the efficient and environmentally
responsible use of all of society's scarce resources - natural, human, and economic.
Sustainable development has multiple objectives. In planning for development, there must
be deliberate consideration of how to maintain the quality of the environment, human
well-being, and economic security. The Brundtland Commission, in Our Common Future,
and subsequently Agenda 21 set out recommendations for developed and developing
nations regarding sustainable development strategies concerning clean air and water,
water supply, energy, land use, housing, waste treatment, transportation, and health care.
The same advice applies locally. Just as the economic development of a country is linked
to its environment and citizens, a community takes into account this interconnectedness in
planning for the future.

Mainstreaming Climate Change in Sustainable Development

Government initiatives for the diffusion of renewable energy and energy-efficient
technologies, joint forest management, water resources management, agricultural
extension services, web-enabled services for farmers and rural areas, and environmental
education in schools and colleges represent a broad spectrum of efforts to integrate
climate change concerns in sustainable development. This integration is institutionalized
through specialized institutions, such as the Ministry of New & Renewable Energy, the
Bureau of Energy Efficiency, and the Technology Information, Forecasting &
Assessment Council, with specific mandates to promote climate friendly technologies.

The National Environment Policy, 2006, provides the basis for the integration of
environmental considerations in the policies of various sectors. The Policy Statement for
Abatement of Pollution, 1992, stresses the prevention of pollution at the source based on
the “polluter pays” principle.
The Forest Policy, 1988, highlights environmental protection through preservation and
restoration of the ecological balance. The policy seeks to substantially increase the forest
cover in the country through afforestation programs.

The Ministry of New & Renewable Energy, the Bureau of Energy Efficiency, and the
Technology Information Forecasting & Assessment Council, have specific mandates to
promote clean energy technologies.

The statutory framework for the environment and energy efficiency includes the Indian
Forests Act, 1927, the Water (Prevention and Control of Pollution) Act, 1974, the Air
(Prevention and Control of Pollution) Act, 1981, the Forest (Conservation) Act, 1980, and
the Environment Protection) Act, 1986. Other enactments include the Public Liability
Insurance Act, 1991, the National Environment Tribunal Act, 1995, the National
Environment Appellate Authority Act, 1997, the Energy Conservation Act, 2001, and the
Electricity Act, 2003. The courts have also elaborated on the concepts relating to
sustainable development, and the ‘polluter pays’ and ‘precautionary’ principles. In India,
matters of public
interest, particularly pertaining to the environment, are articulated effectively through a
vigilant media, an active NGO community, and through the judicial process which has
recognized the citizen’s right to a clean environment as a component of the right to life
and liberty.

Addressing climate change mitigation and adaptation involves many stakeholders, cuts
across short and long timeframes, and requires that all development projects be assessed
for their sensitivity to climate concerns. This integration of climate concerns in the
development process
has been mainstreamed in India through high-level multi stake holder committees.

The National Committee to Assess the Impacts of Climate Change is chaired by the
Principal Scientific Advisor to the Prime Minister, and includes meteorologists, climate
modelers, hydrologists, energy economists, as well as representatives of key Ministries.
The Committee is evaluating the impact of climate change on key development activities,
and assessing options to mitigate climate risks.

Climate change is integrated into the national development planning process, and
overseen by the Prime Minister’s Council on Climate change, which includes
representation of key Ministries, as well as experts, and representatives of industry and of
media. The Council provides overall strategic guidance on mainstreaming climate change
in development, identifies key intervention priorities, and monitors the implementation of
these interventions.

Chapter 2
Energy Security & Environment

Enabling Access to Clean Energy

Poverty reduction and economic growth are the prime objectives of national policy.
Energy is the sine qua non of development. India, with over a billion people, today only
produces 660 billion KWh of electricity and over 600 million Indians, a population equal
to the combined population of USA and EU, have no access to electricity, and limited
access to other clean, modern fuels such as LPG and kerosene. Per capita consumption of
Energy in India is less than 500 kgoe, compared to global average of over 1800 kgoe.
This constrained energy access is reflected, as shown in Figure 1, in the relatively low
Human Development Index of India. Enhancing energy supply and access is therefore a
key component of the national development strategy.
Fig.1: Energy consumption is a prime driver of the Human Development Index

India faces formidable challenges in meeting its energy needs and providing adequate
energy of desired quality in various forms to users in a sustainable manner and at
reasonable costs. India needs to sustain a 8% to 10% economic growth to eradicate
poverty and meet its economic & human development goals. Such economic growth
would call for increased demand for energy and ensuring access to clean, convenient and
reliable energy for all to address human evelopment. To deliver a sustained growth of 8%
through 2031, India would, in the very least, need to grow its primary energy supply by 3
to 4 times and electricity supply by 5 to 7 times of today's consumption. Along with
quantity the quality of energy supply has to also improve. The energy challenge is of
fundamental importance to India's economic growth imperatives.

1.14 Energy Strategy for the Future

The energy strategy for the future could be classified into immediate, medium- and long-
term strategy. The various components of these strategies are listed below:

Immediate-term strategy:

• Rationalizing the tariff structure of various energy products.

• Optimum utilization of existing assets

 • Efficiency in production systems and reduction in distribution losses, including
those in traditional energy sources.

• Promoting R&D, transfer and use of technologies and practices for environmentally
sound energy systems, including new and renewable energy sources.

Medium-term strategy:

• Demand management through greater conservation of energy, optimum fuel mix,

structural changes in the economy, an appropriate modal mix in the transport
sector, i.e. greater dependence on rail than on road for the movement of goods and
passengers and a shift away from private modes to public modes for passenger
transport; changes in design of different products to reduce the material intensity
of those products, recycling, etc.

• There is need to shift to less energy-intensive modes of transport. This would

include measures to improve the transport infrastructure viz. roads, better design
of vehicles, use of compressed natural gas (CNG) and synthetic fuel, etc.
Similarly, better urban planning would also reduce the demand for energy use in
the transport sector.

• There is need to move away from non-renewable to renewable energy sources viz.
solar, wind, biomass energy, etc.

Long-term strategy:

 Efficient generation of energy resources

 Efficient production of coal, oil and natural gas

 Reduction of natural gas flaring

 Improving energy infrastructure

 Building new refineries

 Creation of urban gas transmission and distribution network

 Maximizing efficiency of rail transport of coal production.

 Building new coal and gas fired power stations.

 Enhancing energy efficiency

 Improving energy efficiency in accordance with national, socio-

economic, and environmental priorities

 Promoting of energy efficiency and emission standards

  Labeling programmes for products and adoption of energy efficient
technologies in large industries

 Deregulation and privatization of energy sector

 Reducing cross subsidies on oil products and electricity tariffs

 Decontrolling coal prices and making natural gas prices

competitive

 Privatization of oil, coal and power sectors for improved

efficiency.

 Investment legislation to attract foreign investments.

• Streamlining approval process for attracting private sector participation in

power generation, transmission and distribution .

1.3 APPROACH TO SELECTION OF PROJECTS FOR 11TH PLAN

Keeping in view the lessons learnt from 10th plan while planning for capacity addition
during 11th Plan, cautious approach have been adopted while choosing
projects for commissioning in the 11th plan. It has been the endeavour to include
only such projects as have high degree of certainty of implementation during 11th
Plan.
The approach adopted for selection of Hydro, Thermal and Nuclear projects have
been as follows:

1.3.1 Hydro
India is duly concerned about climate change and efforts are on to promote
benign sources of energy. Hydro Power is one such source and is to be accorded priority
also from the consideration of energy security. Irrespective of size and nature of hydro
projects, whether ROR or Storage projects, these are all renewable technologies.
However, execution of hydro projects requires thorough Survey and Investigation,
preparation of DPR, development of infrastructure, EIA and other preparatory works,
which are time consuming and require two to three years for their preparation. It would
take about 5 years to execute a hydro project after the work is awarded for construction.
Thus in order to achieve completion of a hydro project during 11th plan, the project
should either be already under construction or execution should start at the beginning of
the plan. The broad criteria adopted for selection of hydro projects for 11th plan are as
under:

• Those hydro projects whose concurrence has been issued by CEA and
order for main civil works is likely to be placed by March 2007.
• Apart from the above, a few hydro projects of smaller capacity which are
ROR type having surface power houses and where gestation period is
expected to be less than 5 years have also been included. These projects
would need to be rigorously followed up for completion during the 11th
Plan.
Keeping in view the preparedness of various hydro projects, a capacity addition
of 15, 585 MW is envisaged for 11th Plan.
1.3.2 Nuclear
Nuclear is environmentally benign source of energy and over a period of time, its
proportion in total capacity should increase. Keeping in view the availability of fuel, a
moderate capacity addition of 3,160 MW nuclear plants has been programmed during the
11th Plan by the Nuclear Power Corporation. All projects are presently under
construction. However, in view of the recent developments in the Nuclear Sector,
capacity addition in nuclear plants during 12th Plan is expected to be much higher.

1.3.3 Thermal
Gas
Although gas is relatively a clean fuel, at present there is uncertainty about
the availability, period of availability and price of gas. Only 2,114 MW gas
based capacity has been planned for 11th Plan where gas supply has already
been tied up. This does not include NTPC’s gas based projects at Kawas and
Gandhar, totalling to 2,600 MW, for which NTPC says that it has the gas
supply contract but the matter is sub-judice. However more gas based
projects could be taken up for construction as and when there is more clarity
about availability and price of gas.
 Coal & Lignite based Thermal plants
Coal is expected to be main stay of power generation in the years to come.
The following criteria have been adopted for identifying the coal and lignite
based projects for inclusion in the 11th plan.
• Such projects as have already been taken up for execution in the 10th Plan period itself
and are due for commissioning in the 11th Plan period.
• Those thermal projects whose LOA has already been placed by the State and Central
Public Sector Corporations, other inputs also being in place.
• Those thermal projects whose LOA has already been placed and the financial closure
achieved by private developers.
• Those thermal projects whose LOA is expected to be placed by 30th Sept, 2008 and
commissioning is expected during the 11th Plan keeping in view the normal gestation
period, the size of the plant & the type(green field/expansion).

After discussion with the various State Government and Central Generating
Companies, thermal projects with total capacity of 46,635 MW of coal based and
1375 MW lignite based capacity have been identified for capacity addition during
11th plan.

1.4 CAPACITY ADDITION DURING 11TH PLAN (2007-12)

Based on the preparedness of the projects, it was envisaged that a capacity of
about 68,869 MW is feasible for addition during 11th plan period. The sector wise
break-up of feasible capacity addition during 11th plan is given in Table below:

SECTOR HYDRO TOTAL THERMAL BREAK UP NUCLEAR TOTAL

THERMAL COAL LIGNITE GAS PERCENTAGE
/
LNG
CENTRAL 9685 23810 22060 1000 750 3160 36655 (53.2%)
STATE 2637 20352 19365 375 612 - 22989 (33.4 %)
PRIVATE 3263 5962 5210 0 752 - 9225 (13.4%)
ALL- 15585 50124 46635 1375 2114 3160 68869 (100%)
INDIA

Further, a capacity of 13,500 MW has been planned under renewable as per

information given by MNRE.
As can be seen from the above profile of capacity addition plan, central sector
will play a lead role with capacity addition of more than half of the capacity
addition target. There has been a good response from states on the need for

1.5 FUEL REQUIREMENT

The requirement of various fuels for the thermal plants during the terminal year of
the 11th Plan (2011-12) at normative generation parameters (PLFs and specific
fuel consumption is summarised in the table below. This is based on a thermal
capacity addition of 20,387MW and 50,124MW during the 10th and 11th Plan
respectively.

Fuel Requirement (Tentative) during 2011-12

FUEL F

* From domestic sources, total coal availability is expected to be 482 MT per

annum by 2011-12. Accordingly, imported coal of the order of 40MT,
equivalent to 63 MT of Indian coal, may have to be organised. This quantity
may reduce provided production of domestic coal is increased.
** 89 MMSCMD of gas requirement at 90% PLF has been projected in 2011-
12. At present, the availability of gas is of the order of 40 MMSCMD and
therefore not sufficient to meet the requirement of even existing plants

1.6 INITIATIVES DURING 11TH PLAN

1.6.1 High Hydro Development
50,000 MW Hydro Initiative was launched in 2003 and Preliminary Feasibility
Report (PFRS) of 162 projects totalling to 48,000 MW were prepared. Out of this
77 projects with total capacity of about 37000 MW for which first year tariff is
expected to be less than Rs.2.50/unit were selected for execution. Hydro projects have
longer gestation period and therefore there is a need to formulate a 10 year plan for hydro
projects. In 11th plan a capacity addition of over 15,500 MW has been targeted keeping
in view the present preparedness of these projects. Projects totalling to a capacity of
30,000 MW have been identified for 12th Plan on which necessary preparations have to
be made from now onwards to ensure their commissioning during 12th Plan. Thus the
effect of 50,000 MW initiative would be visible in 12th Plan period. Preparation of DPR
and various clearances and approval etc for these projects are to be obtained during the
first two years of 11th Plan. It is recommended that CEA should closely monitor the
progress of preparedness of DPR of these projects and their further execution.

1.6.2 Initiatives in Thermal Power Development:

Efforts were made to bring in highly efficient super critical technology in the country for
thermal power plants and execution of six super critical units of 660 MW capacity each
was taken up during the 10th Plan period. The first unit of 660 MW based on super
critical technology is likely to be commissioned during the first year of 11th Plan i.e.
2007-08. The 11th Plan feasible capacity addition of
coal based plants includes 12 units based on super critical technology with a
capacity of 8060 MW which is about 18% of total coal capacity planned for 11th
Plan. More and more power projects based on super critical technology are
under planning stage and they would yield benefit during the 12th Plan period.
It is envisaged that more than 50-60% of capacity addition of thermal plants
during 12th plan period would be based on super critical units. This would also
help in reducing the Carbon dioxide emission from new coal fired capacity.
1.6.3 Ultra Mega Power Projects (UMPP):
Ministry of Power in the year 2006 has launched an initiative of development of
coal based ultra mega projects with a capacity of 4,000 MW each on tariff based
competitive bidding. Ultra Mega Power projects are either pit head based projects having
captive mine block or coastal projects based on imported coal.
Sasan UMPP, a pithead plant in Chattisgarh based on domestic fuel and Mundra
UMPP in Gujrat based on imported coal have already been awarded for execution to the
respective developers. According to the bids submitted by these developers only one unit
of 660 MW is expected to be commissioned during the
11th Plan and the remaining unit during 12th Plan. Other projects where considerable
progress has been made are coastal projects in Andhra Pradesh and Tamil Nadu and a pit
head based project in Jharkhand. Further the projects under consideration include pit head
projects in Orissa and Chatisgarh and coastal projects in Maharashtra and Karnataka.
1.6.4 Nuclear Power Development:
11th Plan power programme includes 3160 MW of nuclear power plants all of which are
under construction. Recently, agreement has been signed with USA in respect of nuclear
co-operation which is expected to improve the supply of nuclear fuel for nuclear power
plants. It is also expected that execution of
nuclear projects will also be opened up to enable participation by other PSUs and
private sector. The effect of this is likely to be visible in 12th Plan period. Nuclear
Power Corporation of India has indicated a capacity addition of about 11,000 MW
during 12th plan. In addition, NTPC have also expressed their intention to enter
into the nuclear power arena and have proposed an addition of 2,000 MW during
12th plan period.

1.6.5 Merchant Power Plants:

A merchant power plant does not have long term PPA for sale of its power and is
generally developed on the balance sheet of developers. Government of India has
reserved coal block with reserves of 3.2 Billion Tons of coal for allotment by Screening
Committee of Ministry of coal for merchant and captive plants. About
10,000 MW capacity is expected to be developed through this initiative. This capacity has
not been taken into account while working out the capacity required in the 9.5% growth
in generation scenario. Capacity addition through this route would further contribute to
better economic growth, better reliability of power, more spinning reserve and above all
would promote creation of competition in the electricity market.
1.10 NEW AND RENEWABLE ENERGY SOURCES
The Ministry of New and Renewable Energy Sources (MNRE) have chalked out plan of
adding 13,500 MW of renewable power in the country during 11th Plan period. This
would make total installed capacity of these plants at 23,500 MW by the year 2011-12
which is detailed as below:
Wind - 17000 MW
Bio Mass - 3200 MW
Small Hydro- 3300 MW
Although installed capacity of the plants is high but on an average plant load factor of
wind turbine plants is only of the order of 15-20% and as such this capacity can generate
about 41 billion units at the maximum.

2.1 INTEGRATED ENERGY POLICY

There are no projections world-wide that show a lowering of dependence on fossil fuels
by 2031-32. Oil and gas are forecast to remain in a tight demand-supply balance and the
likelihood is that most new oil and gas will come from a politically uncertain middle-east.
Such a global backdrop as resulted in high price volatility for oil & gas. Further, energy
security concerns are driving key consumers such as the US, China and Japan (that
together account for some 40% of the world's primary energy consumption) to seek coal -
the world's most abundant fossil fuel. This has also led to a push world-wide for clean
coal technologies, carbon sequestration coal to liquids and the zero emission initiative.
Coal shall remain India's most important energy source till 2031-32 and possibly beyond.
India will need to take a lead in seeking clean coal technologies and, given its growing
demand, new coal extraction technologies such as in-situ gasification to tap its vast coal
reserves that are difficult to extract economically using conventional technologies.

The broad vision behind the energy policy is to reliably meet the demand for energy
services of all sectors including the lifeline energy needs of vulnerable households, in all
parts of the country, with safe and convenient energy at the least cost in a technically
efficient, economically viable and sustainable manner.

Meeting this vision would require that India pursues all available fuel options and forms
of energy, both conventional and non-conventional, as well as new and emerging
technologies and energy sources.

Some key recommendations by the Committee on Draft Integrated Energy Policy are
summarised below:

(i) Coal Shall Remain India's Primary Energy Source till 2031-32, Current shortages are a
oncern. Coal accounts for over 50% of India's commercial energy consumption and some
78% of domestic coal production is dedicated to power generation.

(ii) Natural Gas needs significant investments in pipelines or, alternatively, in

liquification, cryogenic shipping & regasification. Should a scenario wherein gas
becomes 15%-20% of India's energy mix materialise by 2031-32; some 60% to 80% of
the gas supply would be used for power generation. This would mean that beyond the
level of gas consumption in the fertiliser, petrochemical, automotive and domestic sectors
gas must compete with coal, the key alternative for power generation.

(iii) Power Sector Reforms must focus on control over Aggregate Technical and
Commercial (AT&C) losses of state power utilities. To control AT&C losses the
Committee recommends that the existing Accelerated Power Development and Reform
Programme (APDRP) be restructured to ensure energy flow auditing at the distribution
transformer level through automated meter reading, geographical information system
(GIS) mapping of the network and consumers and separation of feeders for agricultural
pumps. This will fix accountability and provide a baseline which is an essential
prerequisite to privatisation.

The Committee feels that it is essential to separate the cost of the pure wires business
(carriage) from the energy business (content) in both transmission & distribution.
Electricity Act 2003 recognises such separation for the transmission

(iv) Reduce Cost of Power: In terms of purchasing power parity, power tariffs in India for
industry, commerce & large households are among the highest in the world.

(v) Rationalise Fuel Prices: Relative prices play the most important role in choice of fuel
and energy form. They are thus the most vital aspect of Integrated Energy Policy that
promotes efficient fuel choices and facilitates appropriate substitution. In a competitive
set up, the marginal use value of different fuels, which are substitutes, is equal at a given
place and time and the prices of different fuels at different places do not differ by more
than the cost of transporting the fuels. Then the resulting inter-fuel choices would be
economically efficient.
(vi) Central and State taxes on commercial energy supplies need to be rationalized to
yield optimal fuel choices and investment decisions. Relative prices of fuels can be
distorted if taxes and subsidies are not equivalent across fuels. The equivalence should be
in term of effective calorie. In other words they should be such that producer and
consumer choices as to which fuel and which technology to use are not affected by the
taxes and subsidies.

Environmental taxes and subsidies, however, are levied to affect choices. Differential
taxes can be justified here if they appropriately reflect environmental externalities. A
consistent application of polluter pays principle or consumer pays principle should be
made to attain environmental objectives at least cost.

(vii) Energy Efficiency and Demand Side Management: Lowering energy intensity of
GDP growth through higher energy efficiency is key to meeting India's energy challenge
& ensuring its energy security.

Over the past decade, gains in both poverty reduction and economic growth have been
significant, and supported by energy growth, which has been significantly lower than the
economic growth. This reduced energy intensity of the economy, in the period since
2004, has been marked by an economic growth rate of over 9% per annum, which has
been achieved with an energy growth of less than 4% per annum.

These policies have been driven by the imperatives of sustainable development, and have,
as a co-benefit, led to a decline in the intensity of energy use and carbon dioxide
emissions as well.

Figure 2(a) illustrates the declining trend in energy use and CO2 emissions intensities,
and Figure 2 (b) highlights that the energy intensity of the Indian economy compares
favourably with those of other major economies.
Fig. 2(a): Emissions and Energy Intensity Trends in India
 Fig. 2(b): Total Primary Energy Intensities of the Major Economies

Thus, clearly there is room to improve and energy intensity can be brought down
significantly in India with current commercially available technologies. India would need
to and must succeed in achieving much lower energy intensity compared to its current
level. Lowering energy intensity through higher efficiency is like creating a virtual source
of untapped domestic energy. It may be noted that a unit of energy saved by a user is
greater than a unit produced, as it saves on production losses, as well as transport,
transmission and distribution losses. Thus a "Megawatt", produced by reducing energy
need saves more than a Megawatt generated. The Committee feels that upto 25 percent
reduction in India's energy intensity is possible overn current levels.

Efficiency can be increased in energy extraction, energy conversion, energy

transportation, as well as in energy consumption. Further, the same level of service can be
provided by alternate means requiring less energy. The major areas where efficiency in
energy use can make a substantial impact are mining, electricity generation, electricity
transmission, electricity istribution, pumping water, industrial production processes,
haulage, mass transport, building design, construction, heating ventilation & air
conditioning, lighting and household appliances.
Enhancing Sustainable Development and Mitigating Climate Change

This reduced energy intensity, at the relatively low level of India’s per-capita GDP, has
been made possible by a range of factors, including India’s historically sustainable
patterns of consumption, enhanced competitiveness, proactive policies to promote energy
efficiency, and more recently, the use of the Clean Development Mechanism to accelerate
the adoption of clean energy technologies.

(a) Patterns of Consumption

Food habits and recycling processes have mitigated growth in energy demand and GHG
emissions. The specific GHG emissions from food production and processing are much
lower in India than in developed countries, as seen in Figure 3.

Fig. 3: CO2 Emissions from the Food Sector – from field (Production) to
Table (processed food), excluding cooking

The high ratio of recycling in India, compared to that of other major economies in Figure
4, has also limited the growth in energy use, and GHG emissions, because of the lower
demand for virgin material such as steel, aluminum and copper.
 Fig. 4: Recycling Ratios in Major Economies

(b) Increased Industrial Energy Efficiency

Over the past decade, energy efficiency in Indian industry has increased steadily. In the
major energy-consuming industrial sectors, such as cement, steel, aluminum, fertilizers,
etc., average specific energy consumption has been declining because of energy
conservation in
existing units, and (much more) due to new capacity addition with state-of-the-art
technology. For example, as shown in Figures 5(a) and (b), the specific energy
consumption of Indian cement plants and of Indian iron & steel plants has been declining
rapidly. In the cement
sector, the specific energy consumption of the mostefficient plants is now comparable to
that of the most efficient plants in the world.
 Figure 5(a): Trends in thermal specific energy consumption in the Indian
cement sector

Figure 5(b): Trends in specific energy consumption in the Indian iron &
steel sector

(c) Policies to Promote Energy Efficiency and Renewable Energy

(i) Electricity from Renewables:
The Electricity Act, 2003, requires State Electricity Regulatory Commissions to specify a
percentage of electricity that the electricity
distribution companies must procure from renewable sources. Several Commissions have
already operationalized this mandate, and also notified preferential prices for electricity
from renewables. This has contributed to an acceleration in renewable-electricity capacity
addition, and over the past three years, about 2,000 MW of renewable-electricity capacity
has been added in India every year, bringing the total installed
renewable capacity to over 11,000 MW. Of this, a little over 7,000 MW is based on wind
power; India now has the fourth largest installed wind capacity in the world. The National
Hydro Energy Policy has resulted in the accelerated addition of hydropower in India,
which is now over 35,000 MW.

(ii) Enhancing Efficiency of Power Plants:

Coal is the mainstay of India’s energy economy, and coal-based power plants account for
about two-thirds of the total electric generation installed capacity of about 135,000 MW.
In addition, the Electricity Regulatory Commissions are also linking tariffs to efficiency
enhancement, thus providing an incentive for renovation and modernization. New plants
are being encouraged to adopt more efficient and clean coal technologies, and four new
plants under construction have adopted the more-efficient supercritical technology for
power generation.

(iii) Introduction of Labeling Program for Appliances:

An energy-labeling program for appliances was launched in 2006, and comparative star-
based labeling has been introduced for fluorescent
Tube lights, air conditioners, and distribution transformers. The labels provide
information about the energy consumption of an appliance, and thus enable consumers to
make informed decisions. The labeling program now covers about two-thirds of the
refrigerators and air conditioners and almost all fluorescent tube lights sold in India.

(iv) Energy Conservation Building Code:

An Energy Conservation Building Code (ECBC) was launched in May, 2007, which
addresses the design of new, large commercial buildings to optimize the building’s
energy demand. Commercial buildings are one of the fastest growing sectors of the Indian
economy, reflecting the increasing share of the services sector in the economy. Nearly
one hundred buildings are already following the Code, and compliance with it has also
been incorporated into the Environmental Impact Assessment requirements for large
buildings.

(d) Accelerated Introduction of Clean Energy Technologies through the CDM

The CDM National Designated Authority has approved over 700 CDM projects, and
about 300 of these have been registered by the CDM Executive Board. The registered
projects have already resulted in over 27 million tones of certified CO2 emissions
reductions, and directed investment in renewable energy and energy projects by reducing
the perceived risks and uncertainties of these new technologies, thereby accelerating their
adoption.
As the Indian economy opens up to international competition, it would become more
energy efficient. This is well demonstrated by India's steel & cement industry. However,
following policies are recommended, some of which can be implemented through
voluntary targets undertaken by industry associations as opposed to external inspection
and enforcement.
(a) Increase coal use efficiency in power generation from the current average of 30.5
percent to 39 percent for all new plants.
(b) Promote urban mass transport, freight movement by railways, and energy efficient
vehicles. Enforce minimum fuel efficiency, standards for all vehicles.
(c) Force the pace of energy efficiency improvement in energy using appliances and
equipment and fiscal incentive to the firm which commercialises equipment that exceeds
energy efficiency target. Enforce labelling with major financial repercussions if
equipment fails to deliver stated efficiencies. In extreme cases resort to black listing of
errant suppliers at consumer information web sites and for government procurement.
(d) Promote minimum life cycle cost purchases instead of minimum initial cost
procurement.
(e) Require industry with a turnover in excess of say 50 crores to employ at least one
certified internal energy auditor reporting directly to the board/owner like the current
internal auditor. For smaller industries achieve the same by clubbing a group of them
together or requiring each industrial estate to provide such services collectively for a fee.
Annual audits must include energy audits for all specified energy intensive industries and
industries with a turnover exceeding say Rs.100 crores.
(f) Establish benchmarks of energy consumption for all energy intensive sectors.
(g) Disseminate information, support training and reward best practices with national
level honours in energy efficiency & energy conservation.
(h) Institute specialisations in energy efficiency / energy conservation and environment in
all technical colleges and commence certification of such experts.
(i) Augmenting Resources: India's energy resources can be augmented till 2031-32 by
exploration to find more of coal, oil and gas, or by recovering a higher percentage of the
in-place reserves. Developing the thorium cycle for nuclear power and exploiting non-
conventional energy, especially solar, offer possibilities for India's energy independence
beyond 2050.
At a growth rate of 5% in domestic production, currently extractable coal resources will
be exhausted in about 40 years. However, only about 45% of the potential coal bearing
area has currently been covered by regional surveys. Further, it is felt that both regional
as well as detailed drilling can be made more comprehensive. Covering all coal bearing
areas with
comprehensive regional & detailed drilling could make a significant difference to the
estimated life of India's coal reserves. Finally, India's extractable coal resources can be
augmented through in-situ coal gasification which permits using coal deposits which are
at greater depth or not easily extracted by conventional methods. Similarly extracting coal
bed methane before and during mining can augment the country's energy resources.
Again, enhanced oil recovery and incremental oil recovery technologies can improve the
proportion of in-place reserves that can be economically recovered from
abandoned/depleted fields. Finally, isolated deposits of all hydro carbons including coal
may be tapped economically through sub leases to the private sector.
(j) Role of Hydro and Nuclear: It is seen that even if India succeeds in exploiting its full
hydro potential of 150,000 MW, the contribution of hydro to the energy mix would be
around 5-6%. Similarly, even if a 20-fold increase takes place in India's nuclear power
capacity by 2031-32, the contribution of nuclear energy to India's energy mix is also, at
best, expected to be 5-6%.
Though its contribution to energy requirement is small, hydro electricity's flexibility and
suitability as a peaking power make it valuable. Moreover, hydro development especially
storage schemes are critical for India as India's per capita water storage is the lowest
among all its comparators. Creating such storages is critical to India's water security,
flood control and drought control.
Nuclear, on the other hand, theoretically offers India the most potent means to long-term
energy security. India has to succeed in realising the three-stage development process
described in the main report and thereby tap its vast thorium resource to become truly
energy independent beyond 2050. Continuing support to the three-stage development of
India's nuclear potential is considered essential.
(k) Role of Renewables: Renewables are unlikely to make a major impact on India's
energy mix till 2031-32. Even with a 20-fold increase in capacity, renewables cannot
account for more than 5-7% of India's energy mix. However, from a longer-term
perspective and the need to maximally develop domestic supply options as well as the
need to diversify energy sources, renewables remain important to India's energy sector. It
would not be out of place to mention that
solar power could be an important player in India attaining energy independence beyond
2050.
Subsidy for renewables may be justified on several grounds. A renewable energy source
may be environmentally benign. It may be locally available making it possible to supply
energy earlier than a centralized system. Grid connected renewables could provide system
benefits by generating energy at the lagging ends of the grid. Further, renewables may
provide employment and livelihood to the poor. However, the subsidies should be given
for a well-defined period or upto a well-defined limit and should be linked to outcomes
(energy generated), and not just outlays (capacity installed).
Power Regulators must create alternative incentive structures such as mandated feed-in-
laws or differential tariffs to encourage utilities to integrate wind, small hydro,
cogeneration etc. into their systems. A subsidy could also be given in the form of a
Tradable Tax Rebate Certificates (TTRC) based on energy generated. The rebate claim
becomes payable depending upon the amount of electricity/energy actually certified as
having been supplied.
An annual renewable energy report should be published providing details of actual
performance of different renewable technologies at the state and national level. This
would include actual energy supplied from different renewable options, availability,
actual costs, operating and maintenance problems etc. It should also report on social
benefits, employment created, women participation and empowerment.
Policies for promoting many specific alternatives are suggested in the main text. These
include fuel wood plantations, bio-gas plants, wood gasifier based power plants, solar
thermal, solar water heaters, solar photovoltaics, bio-diesel and ethanol.

2.2 DEMAND SIDE MANAGEMENT AND ENERGY EFFICIENCY

4.0 INTRODUCTION
In rapidly growing economy of India, the energy requirements have been increasing
at a very fast pace. Indian economy has been gradually reforming itself with the
developments taking place in the dynamic global energy scenario as well as with the
advancements in technologies worldwide. The Government of India at the highest
level is giving top priority to the attainment of nation’s long-term energy security.
India ranks 5th in the world in terms of primary energy consumption, accounting for
about 3.5% of the world commercial energy demand in the year 2003. The total
commercial energy consumption of various sectors stood at 218 million toe (2003-
04). If it perseveres with sustained economic growth, achieving 8-10% of GDP growth
per annum through 2030, its primary energy supply, at a conservative estimate, will need
to grow 3 to 4 times and electricity supply by 5 to 7 times of present consumption. Its
power generation would increase to 780,000 MW from a current level of about
120,000 MW and annual coal demand would be in excess of 2000 million tons from a
current level of 350 million tons. This extraordinary growth in energy demand will
place great stress on the financial, managerial and physical resources of the country.
For meeting desired growth rate of the economy, the country faces formidable
challenges in meeting its energy needs and in providing adequate energy in various
forms to users in a sustainable manner and at reasonable costs. While it is essential
to add new power generation capacity as well as ensure availability of substantial
commercial fuels to meet the nation’s growing energy requirements, it is equally
important to look out for options that help in reducing energy demand by various end use
sectors. The need for enhancing energy conservation efforts has become very
important.
4.1 THE ENERGY CONSERVATION ACT
The planning process so far has been leaning heavily towards the supply side
strategies. Efforts made to implement DSM, energy conservation and energy
efficiency measures were symbolic, lacked continuity due to absence of a well knit
institutional mechanism at the national and state levels. The 10thplan period (2002-
07) is marked by enactment of the Energy Conservation Act, 2001 and setting up of
the Bureau of Energy Efficiency (BEE) at the national level. The Act has given
mandate to BEE to implement the provisions of the Act, and spearhead the
improvement in energy efficiency of the economy through various regulatory and
promotional measures. Some key activities that BEE is pursuing include the
development of energy efficiency labels for refrigerators and other mass produced
equipment, certification of energy managers and auditors, assisting industry in the
benchmarking of their energy use, and energy audits of prominent government
buildings. A beginning has been made by the State Governments in designating
agencies to oversee implementation of the Energy Conservation Act and deliver
energy efficiency services including through public-private partnership.

Integrated Energy Policy (IEP) laid out a vision of providing energy security to all
citizens. IEP emphasizes energy efficiency & demand side management as essential
components of the natural energy strategy.

4.3 ENERGY CONSERVATION STRATEGY IN THE 11TH FIVE-YEAR PLAN

The basic aim of the energy conservation strategy in the 11th Five Year Plan will be to
prioritize and implement the provisions under the EC Act 2001 by decentralizing the
energy conservation programmes at the State level. The strategy will strengthen the
existing institutional linkages, and pursue the task of consolidating the energy
conservation information, trends and achievements and create a market for energy
conservation and for energy efficient goods and services.
Keeping in view the provisions of the Act, an appropriate institutional mechanism and
energy database will be developed in the 11th Plan by BEE. As a part of the mechanism,
a fully dedicated ‘Energy Conservation Information Centre’ (ECIC) with Information
Technology facilities will be set up within BEE and Central Energy Conservation Fund as
mandated under EC Act will be established by the Government of India. Collection of
such information is a mammoth task and requires systematic handling and coordination of
efforts of various agencies.

4.3.3 Institutional Network

BEE will strengthen its existing institutional linkages with SDAs, and formalize its
association with various other national level institutions such as PCRA, NPC, TERI,
CEA, energy centres in academic institutes/universities, etc. with a view to utilize their
expertise and knowledge in the field of energy conservation. In its institutional network,
BEE will also include a number of sector specific associations and research institutions,
and private organizations in various states, and will delegate specific tasks to facilitate the
implementation of energy conservation programmes.
4.3.4 Energy Conservation Programmes in the Targeted Sectors
In the 11th Five Year Plan, BEE will focus energy conservation programmes in the
following targeted sectors:
(a) Industrial Sector (Energy Intensive Industries).
Industry sector offers maximum potential for energy conservation. The Government
of India has recognized this when a number of energy intensive industries have been
included as designated consumers in the EC Act. To bridge the efficiency gaps in the
various units within the same industrial sub sector, BEE in association with SDAs,
industry associations and research institutions, will develop 15 industry specific
energy efficiency manuals/guides for the following sectors: Aluminum, Fertilizers, Iron
&Steel, Cement, Pulp & Paper, Chlor Alkali, sugar, textile, chemicals, Railways, Port
trust, Transport Sector ( industries and services), Petrochemical &Petroleum
Refineries, Thermal Power Stations &hydel power stations , electricity transmission
companies & distribution companies. The manuals will cover Specific energy
consumption norms as required to be established under the EC Act, energy efficient
process and technologies, best practices, case studies etc. Follow up activities will be
undertaken in the States by SDAs. and manuals will be disseminated to all the concerned
units in the industries.
(b) Small and Medium Enterprises (SMEs)
Many of the energy intensive SMEs clusters located in various states of the country are
said to have large potential for energy savings. In quantitative terms, there is very little
authentic information and data is available with respect to their energy consumption and
energy saving opportunities. SDAs in consultation with BEE will initiate diagnostic
studies in 25 number of SMEs clusters in the country, including 4-5 priority clusters in
North East Region, and develop cluster specific energy efficiency manuals/booklets, and
other documents to enhance energy conservation in SMEs.
(c) Commercial Buildings and Establishments
Government and public buildings constitute a very large sub-sector but so far very little
organized efforts have been put in to save energy in the same. In the 11th Plan, BEE will
initiate comprehensive studies in selected buildings/establishments such as office
buildings, hotels, hospitals and shopping malls to prepare building specific energy
efficiency manuals covering Specific energy consumption norms, energy efficient
technologies, best practices, case studies, model energy performance contracts, model
monitoring and verification protocol for implementation of ESCO projects etc. As a
follow up, SDAs in association would initiate energy audits and their implementation in
10 Government buildings in each state and 1-2 buildings at UT level. BEE will also assist
SDAs in the establishment and promulgation of energy conservation building codes
(ECBC) in the States, and facilitate SDAs to adapt ECBC to the local conditions and
make them ready for implementation at municipal levels. In addition, BEE will also
strengthen a few test laboratories for testing of
building materials and building utility systems for ECBC compliance.

(d) Residential/Domestic sector

BEE has been working to introduce energy efficiency standards and labeling programme
to facilitate consumers in selecting energy efficient domestic appliances. For promoting
energy efficiency programmes in this sector, SDAs will actively involve Electric Utilities/
Distribution Companies. Emphasis would be to encourage the consumers to adopt energy
efficient lighting systems, air conditioners, refrigerators, water heating systems and other
domestic appliances. BEE will enlarge its on-going energy labeling programme for ‘frost
free refrigerators’ and ‘tubular fluorescent lamps’ to 10 other appliances - Air
conditioners , Ceiling Fans , Agricultural pump-sets , Electric motors ( general purpose) ,
CFLs, FTL – 61cm (2ft) , Television sets , Microwave ovens, Set top boxes , DVD
players , Desk top monitors
To facilitate this, 10 testing laboratories will be strengthened, and consumer awareness
will be enhanced nation wide.

(e) Street Lighting & Municipal Water Pumping

Street lighting and municipal water pumping put excessive pressure on electric utilities.
Quite a few of studies/projects have been successfully demonstrated in some states. In the
11th Plan, such projects will be identified, documented and disseminated nation wide.
Further, to promote such projects in various states, SDAs in association with State
utilities will initiate pilot energy conservation projects in selected municipal water
pumping systems and street lighting to provide basis for designing state level
programmes.
(f) Agriculture Sector
Increasing energy consumption trend is being seen in irrigation systems in the sector. Due
to low power tariff for the sector in majority of the States, it is not in the farmers’
financial interest to buy efficient pumps, but it may be in the utility’s interest to promote
their use.
In the 11th Plan, SDAs will collect, document and disseminate information on successful
projects implemented by some states, launch awareness campaign in all regional
languages in print and electronic media and follow up work in initiating state level
programmes along with utilities.
SDAs with assistance of concerned institutions will also develop suitable energy
conservation models which will take into consideration measures like introduction of
subsidy in replacement of inefficient pump sets with efficient ones, power factor
improvement by installation of capacitor banks, rebate for optimum usage of pumps,
energy efficiency labeling of pumps, etc. These models will be subsequently promoted
through the electricity utilities/distribution companies and SDAs with
involvement of State Regulatory Commissions.
(g) Transport Sector
The sector is mainly dependent on the petroleum products. In the 11th Five-Year Plan,
SDAs will develop linkages with State Road Transport Undertakings and private
enterprises owning large fleet of trucks/buses to establish the status of energy
consumption and conservation in the sector. SDAs with assistance of concerned
institutions/agencies will conduct diagnostic studies to support urban bodies and transport
research organizations in adopting multi modal public transport system which shall shift
demand from personalized to public transport. SDAs will develop linkages with the state
transport undertakings to establish the status of energy consumption and conservation
potential and support studies to promote public transportation systems. BEE will also set
up norms for specific fuel consumption for a few automobile and Transport models
(Services/ Public transport).
4.3.6 Demand Side Management Programmes
DSM programmes driven by State Utilities has made a beginning in India, though these
are yet to pick up momentum. In the 11th Plan, BEE in association with SDAs will
facilitate State Utilities to pursue DSM options more intensely by focusing on the
following:
• Orientation workshops for awareness building on DSM amongst the State Electricity
Regulatory Commissions (SERCs) and the chief executives and senior engineers of
utilities/ DISCOMs.
• Setting up of DSM cells in utilities to conceive and implement DSM programs.
• Support load research and studies to rationalize the tariff structures to encourage options
such as time-of-use rates or interruptible rates to capture the needs and opportunities of
different market segments.
• Initiation of DSM programmes especially in the sectors (such as residential, agricultural
pumping, municipal water works & street lighting) where customers are paying tariff far
below the marginal cost of power
• Utilization of private sector energy service providers to market DSM program to
consumers to maximize uptake, participation and Implementation of DSM programmes
through ESCO route
• Development of pilot tariff based incentive schemes to reward utilities/DISCOMs
through Megawatt (Watts saved) through Ministry of Power for Megawatt savings
implemented (actual realized after implementation & verification by SERCs).
• Utilities that have established appropriate DSM cells would be rewarded by state
electricity regulators for initiatives involved in DSM bidding, load research studies,
impact monitoring while fixing tariffs. • For supplementing DSM programs, supply side
initiatives such as segregation of feeders, high voltage distribution system (HVDS), etc
will be taken up with
support under the state funding and other programs such as Accelerated
Power Development and Reform Program (APDRP) on a case-to-case basis.
ESCO route for implementing the programs. Details are
furnished in Cl.4.5

4.3.7 Human Resource Development Programmes

There is a vast potential for energy savings through human intervention. BEE and SDAs
have a major responsibility for stimulating a major change in the energy efficiency ethos
and practices (energy modesty) by directing the national energy conservation campaign as
a mass movement and seeking wide support. In the 11th Plan, BEE will continue with
their campaigns. In addition Central government will partially fund the SDAs for their
respective campaigns in the States.
The following initiatives will be taken in the area of HRD:
I. Capacity building: a) Officials of BEE & SDAs in abroad/ India; b) Core officials from
SDAs , urban & municipal bodies for promoting & enforcement of energy conservation
building codes; c) Orientation programs every year for senior officials from Central &
State Govt. departments to review the achievements, impediments and strategies to step
up the tempo of energy conservation.
II. Capacity building for new breed of professionals: a) energy managers/auditors being
developed under the EC Act from 2003 by BEE through National Certification
Examination by offering Refresher training modules for life long training for Energy
Auditors & Managers; b) Tutorial /help-line support for prospective candidates in the
national examination for energy managers/auditors.
III. Demonstration centers in 2 industrial estates to show case and convince the
entrepreneurs & plant engineers/technicians for industrial energy efficiency products
/technologies
IV. Orientation workshops on energy efficiency for top management , middle level
executives and shop floor operating personnel
V. Farmers training by display of energy efficient pump-sets & other relevant products
VI. Training to drivers in road transport on fuel efficient driving
VII. Nationwide campaigns: a) through media; b) awareness programs for general public
& institutions in state capitals and other locations; c) painting competition for school
children; d) Eco clubs activities for youth clubs
VIII. Introduction of the modules on energy efficiency/ DSM in the curricula of a)
schools
b) technical institutes engineering colleges c) other degree/ post graduate courses
including MBA programs.
4.4 POLICY RESEARCH FOR ACCELERATING ADOPTION OF ENERGY
EFFICIENCY AND DSM PROGRAMS
The energy conservation Act does not have specific provisions regarding an Energy
Efficiency Policy Research. Such a program, however would complement the other
provisions and thereby support the basic objective of the Act itself. Key among these
includes legislative amendments, establishing norms, policy interventions including
fiscal and non- fiscal measures. Among key result areas include:
4.4.1 Legislative measures
So far, enforcement of the EC Act has not been pursued during the tenth five year plan.
These efforts would have to be intensified during the eleventh five year plan. There is a
perceived need to have a fresh look at the EC Act to review the implementation of various
provisions. A review committee consisting of professionals, legal experts and concerned
agencies /stake holders will be constituted by BEE to look into this. It may be established
on a continuing basis with a mechanism to receive feedback from the stake holders on the
EC act and suggestions for improvement. BEE will also adequately support the activities
to establish &review energy consumption norms for the notified designated consumers.
4.4.2 Identify the barriers for improving energy efficiency and propose fiscal and
other measures
Business firms often claim that that they do not have the financial means to implement
the EC measures and consequently the government should provide financial assistance.
Lack of access to capital, perceived uncertainty concerning savings, a high private
discount rate and limited avenues to vet the energy efficiency measures and inadequacy
of a reliable measurement and verification regime are the major barriers impeding
implementation of energy efficiency projects.
Customers are unwilling to invest their own funds in what is considered a “non-core”
activity. Financial institutions are unfamiliar with energy efficiency investments and
perceive them as risky. Energy services organizations are inadequately funded.
Creation of an energy efficiency fund can provide needed resources to implement pilot or
demonstration energy efficiency projects, help reduce risk perceptions, stimulate the
ESCO market, and fund projects in the public sector.
Financing and information programs can play a central role in promotion of energy
efficiency. To promote energy efficiency, there is an imperative need to create an
appropriate set of incentives through pricing and other policy measures. For a chronically
electricity-short situation, short-turnover-period technologies should be the primary
candidates for implementation followed by the planting of energy efficiency seeds that
will yield longer term benefits. Short term measures can be supported by public policy
measures such as information & demonstration, standards and labeling, R&D, market
transformation, taxes/tariffs. Long term measures can be fostered & promoted on business
line by demonstration/pilots, Energy Performance Contracting in Govt. buildings,
aggregation of projects (similar to approach being followed for bundling small CDM
projects), emonstration / pilots and standard ESCO contracts. Financial institutions would
be roped in for promoting
ESCO businesses.
Among non- fiscal measures may be award schemes similar to national energy
conservation awards recognizing performing units. A rating scheme may also be evolved
to rank the performance of units other than best performers and publicize the same to the
share holders of the company.
4.4.3 Other strategies
Among other strategies include the following:
• Track emerging trends in energy efficient technologies and device plans to support
research, development and deployment by end users in the designated consumer and other
sectors
• Encourage planners & regulators related to energy sector to adopt integrated resource
planning in the entire value chain of activities, right from extraction or procurement,
conversion to final end use.
• Rationalizing pricing for various forms/sources of energy to encourage promoting efficient choices and
appropriate substitution in tune with the Electricity Policy, Tariff Policy and Rural Electrification (RE
Policy ) of Govt. of India.
4.6 RECOMMENDATIONS
The target of additional electricity savings which may accrue to the national economy at
the end of 11th Five year plan as a consequence of intensive energy conservation and
DSM drive is expected to be about 5% of the anticipated energy consumption level in the
beginning of 11th Plan. BEE will device a suitable mechanism for assessing these
savings. The outlay for various strategies and programs as proposed is Rs. 652 Crores. for
effective implementation of EC Act. These initiatives will also seek funding support from
state governments, other complementary programs, user industry, financial institutions,
and other donor agencies besides innovative financing options.

2.3 ENERGY SAVED IS ENERGY GENERATED

Recommendations of Two-Day All India Seminar on "Save Energy for Global Energy
Security" 11th and 12th November 2006

Conclusions:
As a pleasant coincidence, Shri R.V. Shahi, Secretary, Ministry of Power, Govt. of India
delivered Dr. Narla Tata Rao Endowment lecture on, "Technology Solutions to Power
Sector Problems" on the first day of the seminar from the same platform. The following
observations made by him corroborate the sentiments of the seminar participants.

"While on one hand we need to expand our generation capacity base from about 1,28,000
MW (as in year 2006) to about 8,00,000 MW in the next 25 years, indigenous resources
are not unlimited - hydroelectric potential -1,50,000MW, coal based capacity can be
much larger, but coal reserves - particularly, exploitable reserves - do put question mark.
Support from petroleum fuel like gas could be only marginal. Nuclear is a good option,
but even for present about 3,000MW capacity fuel is an issue".

"Solar energy could also be a great potential. But so far, technological advancements have
not reached a stage that the capital cost is anywhere near the affordable range. Indian
Climatic conditions are highly favorable to harnessing this huge potential. We have to go
beyond photovoltaic systems and harness this energy in a bigger way".

"It must be recognized that while India faces about 11% of peaking shortages, it is also
the ground reality that the consumption of electricity in the country is one of the most
inefficient. Approximately 23% of electricity is wasted because of inefficient methods of
consumption".

Recommendations:
General :
Task forces should be constituted by the Central and State Governments under the
respective Power Ministries to prevent the impending disaster of extinguishing
conventional energy resources and ensure lasting Energy Security.
For sustained Energy Security, the desired energy mix of the total estimated requirement
of 800,000MW of power for India by 2030 is approximately 25% each of conventional
energy, energy efficiency, solar energy and other renewable energies.
Planning Commission should include items of Renewable Energy & Energy Efficiency in
exclusive slots in 5 Year Plans and meticulously monitor them for compliance. A 5%
addition in each 5-year Plan could achieve the desired 25% by 2030.
Renewable Energy:
Globally, solar energy generating stations should be set up. Simultaneously, R&D activity
should be intensified to bring down the cost of solar installations to affordable levels.
USAID, World Energy Council and other International Energy Agencies should
undertake this responsibility.
World Energy Council and other Internal Energy Agencies should also hasten up the
R&D to develop fuel cell and other promising renewable energies, post haste. Results of
R&D should be shared with all countries, world over.
Deserts and other best locations with abundance of solar insolation should be identified
by the world energy bodies and assistance should be rendered to the countries concerned
to set up massive solar thermal installations.
Being abundantly blessed with solar energy free, India should assume leadership in Solar
Power Generation and avail it as a business opportunity as in the IT field.
High cost of solar power generation is a mind-set. Cost will come down with R&D and
volumes, as in the case of electronics. Government should break the vicious circle of
costs and volumes by determination and will to take the first stride to the goal of Energy
Security.
To begin with, one unit of an existing thermal power plant should be hybridized with
backup integration of solar steam generating equipment. With power generating
equipment and all other infrastructure already in place, the additional solar equipment and
its integration should be affordable. 20-25% saving in coal during solar-mode operation
of the power plant in the daytime could justify the investment.
A competent consulting organization such as TERI should be immediately commissioned
to prepare a feasibility report for a Power plant owned by NTPC or any other Utility.
TERI could immediately send a questionnaire to all major power plants to identify the
best suitable site.
NTPC, State Utilities and all major players in power generation Industry should add solar
thermal power plants to the tune of 5% of the capacity of their installations. Taking the
advantage of 100% depreciation in the first year on Solar Power Plants the incremental
cost of average generation (the difference between increase in fixed cost and decrease in
variable cost) would be nominal. Soft loans could decrease the burden of investment
available for such installations; Carbon credit could further slash the cost down to
affordable level. Reduction in the cost of pollution control (e.g. Electrostatic
precipitation, ash disposal etc.) is also a favourable factor of economy for Solar Thermal
Power Plants.
Govt. should forth-with establish an R&D center for Solar Energy Research
independently or in the fold of CSIR. IIT's could be utilized as satellite facilities for this
center.
Big industrial houses like Tata, Reliance, Suzlon, ITC etc. should focus on measurable
R&D work of Renewable energy sources viz. Solar, Wind and Bio-fuels on a time-bound
basis.
According to Economic Times - Nov 2, 2006, "a quarter of fresh global research
investments is flowing into India and the country is now favourite R&D hub for
multinationals". This situation could be exploited to setup a Global R&D center for Solar
Energy in India funded by multinationals / NRI's.
Fuel cell is recognized as a promising renewable energy resource. BHEL is presently
conducting research in this area. This needs to be intensified with time-bound targets.
56% of Rural India is still far from electricity. Distributed generation by bio-gas / bio-
fuels and Solar-Wind Hybrid Plants is the best answer to electrify Rural India.
Demonstration Plants should be installed in every State through Center-State
collaboration. Private parties can also be encouraged to set up Distributed Power
Generation Plants.

Energy Efficiency:
The US-India Energy Efficiency Technology Conference organized by the Ministry of
Power, Govt. of India, in May 2006 proposed the establishment of 6 Nos. Regional
Energy Efficiency Centers in the country. Bangalore having been chosen for one of the
two centers proposed for southern region, Hyderabad merits the choice for the second
center. Energy Conservation Mission, an integral wing of The Institution of Engineers
(India) AP State Center, is already working as a voluntary center for energy efficiency
and can provide the basic infrastructure for REEC at Hyderabad.
23% of energy saving potential equivalent to twice the quantum, as deemed generation,
should be treated as a regular Power-House and operated for sustained energy security.
This generation is possible at much less cost and time. Intensified DSM measures should
be implemented by all Utilities.
Energy Smartness is more than energy efficiency. Energy Smart Labeling of Industry /
Commercial Establishment, analogous to Labeling of products can motivate them to
embrace energy efficiency and beyond. Energy Smart Standard-2006 drafted by ECM
was presented to the seminar and is expected to be released during the Energy
Conservation Week in December 2006. Center and States should recognize star
performers certified by the ESS-2006 for incentives and concessions.
The Energy conservation Act must be implemented in letter and spirit, Standards for
priority items already identified for S&L programme must be finalized immediately.
Notification for enforcement of the act effective March 1, 2007, as envisaged under the
act, must be issued forthwith.
The present level of consumption of 15% for lighting should be brought down to 10%.
Budget concession for CFL & LED lights and other energy saving items should be taken
up with Finance Ministry for incorporation in the ensuing Budget.
All Utilities should have exclusive energy Conservation cell with specific targets for
reduction of T&D losses by 5% every year and implement DSM measures to reduce
Agricultural consumption by 5% every year.

Chapter 3
Electric Power
Working Group on Power for 11th Plan

The Planning Commission constituted a Working Group on Power to formulate

the power program for 11th Plan.
The Sub-Groups deliberated on various issues as per the terms of reference
regarding Demand Projection, Generation, Transmission,
Distribution including Households & Rural Electrification, Demand Side
Management & Energy Efficiency Issues, Research & Development.
Manpower Planning & Training and Fund Requirement.
The salient points of the approach and recommendations of the Working Group
on Power Could be briefly outlined as follows:
Consequent upon inadequate capacity addition during the 8th and 9th Plans, the
power sector could present only about 3.1 - 3.2% of growth in electricity
generation toward the end of 9th Plan and beginning of 10th Plan. This improved to
5.1 – 5.2% during 2002-03 to 2005-06. An unprecedented growth of more than
7.6% has been achieved during April - January 2006- 07.
With the capacity additions which have happened in the recent past and are
likely to happen in coming few months, during the 11th Five Year Plan, in the
beginning a growth of more than 8% increasing to almost about, 10% could be
expected.
Access to power for all by 2012 is an achievable goal and must be ensured.
11th Plan is being prepared on the basis that per capita consumption of electricity
should rise to 1000 kWh by 2011-12 and the power sector would grow at an
average rate of 9.5% during the 11th Five Year Plan. This should be sufficient to
support the targeted economic growth rate of 9.5% during the 11th Plan. In the
initial years of the 11th Five Year Plan, a 1:1 co-relation between economic growth
rate and electricity generation growth is anticipated. But with improved energy
efficiency measures, this co-relation could reduce to 0.9 toward the end of XI
Plan and during XII Plan.
There are constraints in manufacturing capacity of BHEL and other
manufacturing companies which is adversely affecting capacity addition
programs in the country.
.For the 11th Five Year Plan, the capacity projected is of the order of 68,870 MW
consisting of 16,000 MW (Hydro), 46,600 MW (Coal), 1,400 MW(Lignite), 2,100
MW (Gas) and 3,160 MW (Nuclear) In addition, from non-conventional energy
sources, capacity addition of 13,500 MW is also expected. Central Sector would
contribute 53%, State Sector 34% and Private Sector 13%.
The thrust of the recommendations is for upgrading the generation technology
to larger number of super-critical systems, bringing about
competitive tariff structure in generation through promotion of Ultra Mega Power
Projects and Merchant Power. Plants. Improved capacity utilization through better
operation and maintenance practices and through renovation & modernization,
wherever required.
Since coal is going to be the most dominant fuel, all efforts are required to be
made to use cost-effective clean coal technologies.
Transmission system planning is undergoing, both quantitative and qualitative
changes. Hybrid system of HVDC and AC, and up gradation to 765 KV to larger
extent, is being planned and necessary preparations are already being done for
the same. Inter-Regional Transmission capacity is planned to be increased from
16,500 MW (end of X Plan) to 37,000 MW by 2011-12.
On distribution side, thrust is to continue on a bigger scale. There have been
positive results for ‘The Accelerated Power Development and Reforms Program
(APDRP)’ for towns, and therefore, this scheme needs to be pursued but with
modifications. APDRP program is required to be restructured with major thrust on
milestones based assistance and incentive.
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) has taken off very well.
As compared to about 24,000 villages which were electrified in a period of ten
years in the 8th & 9th Plans, already more than 33,000 villages have been
electrified in the 11th Plan and 23,000 villages are at the advanced stage of
completion.

In the sub-Group on Legislative and Policy Issues a number of suggestions

were generated. As many as about 50 specific recommendations have been
made for implementation to make various segments of the electricity sector more
effective. Some of them are outlined below:
(i) There is need to streamline and standardize the procedure to shorten time
cycle for obtaining environmental/forest clearance with greater
emphasis on compliance with laid down standards and conditions.
(ii) Exploration capacity of CMPDIL may be augmented and also it may be given
more autonomy. Number of agencies having authorization to
undertake exploration of coal blocks should be increased. Coal blocks to be used
for captive coal mining by power projects should be explored fully at the earliest.
Coal linkages should be freely available for power project developers.
(iv) Appropriate cut-off, say 3000 kilo calorie per unit, can be considered for
identifying inefficient old power plants say more than 25 years old
and the sites could be released for setting-up plants of more efficient and large
sized units depending on the scope of expansion available
and with due cost benefit analysis. Coal linkages of the old power plants should
be transferred to new generating units.
(v) In the interests of larger competition aimed at consumer benefits, procurement
from non-conventional energy sources should not be
restricted to within the State but suppliers from outside State should also be
allowed to compete.
ix) For Tariff Policy envisages a National Transmission Tariff Framework
sensitive to distance and direction and related to quantum of power
offered. CERC is in the process of developing such a Framework which needs to
be done expedited. This would be a necessary prerequisite
for promoting open access and power trading.
(x) As long as there is shortage of natural gas and the two major users of gas
fertilizer and power work in a regulated cost plus environment,
price of domestic gas and its allocation should be independently regulated on
cost plus basis including reasonable returns.
(xi) Exemption of import duties available to generation projects under Mega
Policy should be available to all important transmission projects
where imported components form large part of the project cost.
(xii) High loss making feeders may be franchised by distribution companies.
Towns having ATC losses higher than 35% may be franchised on input energy
basis immediately. Towns having losses between 25-30% should be observed for
improvement for 6 months and if there is no improvement, these towns should
also be franchised.
Demand Side Management (DSM) and energy efficiency must get the rightful
place. Bureau of Energy Efficiency (BEE) must step up, at a much higher pitch,
its programs and activities. Year wise specific target of reduction in energy
consumption, based on efficiency would be an important strategy.
Technology advancements and research & development must be properly
addressed. Major organizations like 'NTPC, NHPC,
POWERGRID, on the generation side and BHEL, ABB, SIEMENS on the
manufacturing side must enhance substantially their budget allocations for
research & development.
Coal requirement by 2011-12 will be of the order of 544 Million Tonnes;
domestic availability is estimated at 482 Million Tonnes. For a gap of 62 Million
Tonnes, import of the order of 40 Million Tonnes may be required. Augmentation
in the railway transport system, port infrastructure, transport infrastructure etc
About 90 MCMD of gas is required for 90% PLF of gas based capacity in
operation and being planned. At present availability is only 40 MCMD.
Substantial expansion of BHEL's capacity, which is not at all adequate for the
type of expansion that this sector is -
likely to experience in the 11th Plan. Manufacturing must have competition to
meet the challenge and also to bring down the cost.
Projected the fund requirement for the 11th Plan period in all the fields of
activities like generation, transmission and distribution, is of the
order of RS.9.00 lakh crores. It should be possible to arrange the fund.
 Availability of adequately trained human resources is going to be very critical.
Training and development for utilities on generation,
transmission and distribution should occupy the centre stage.

Chapter 4
Industry
Energy Intensive Industries

Gazette of India Notification Extraordinary Part II – Section 3 – Sub-section –(ii) No. 288 Dated March 19,
2007

In exercise of powers conferred under section (e) & (f) of the Section 14 of The Energy
Conservation act, 2001 the Central Government in consultation with Bureau of Energy
Efficiency hereby alters the list of Energy Intensive Industries and theother
establishments specified in the schedule of the said Act, namely

1. Thermal Power Stations – 30,000 MTOE per year & above

2. Fertilizer – 30,000 MTOE per year & above
3. Cement – 30,000 MTOE per year & above
4. Iron & Steel – 30,000 MTOE per year & above
5. Chlor Alkali – 12,000 MTOE per year & above
6. Aluminium – 7,500 MTOE per year & above
7. Railways – (a) Electric Traction Sub – Section (TSS) (as per list), (b) Loco –
Sheds(as per list), (c) all six production units (as per list) & (d) Workshops of
Indian Railways – 30,000 MTOE per year & above
8. Textiles - 3,000 MTOE per year & above
9. Pulp & Paper - 30,000 MTOE per year & above

Chapter 5
Oil & Gas, Transport

Conservation of Oil & Gas

PETROLEUM STATISTICS
(Excerpts from Ministry of Petroleum web-site (http://petroleum.nic.in/) visited on
10.04.08)
In the mechanised and the fast-moving world of today the consumption of petroleum
products has become an important yardstick of a country's prosperity.

Some very informative statistics regarding status of Indian Economy & Petroleum &
Natural Gas have been furnished by Ministry of Petroleum & Natural Gas in their official
web-site http://petroleum.nic.in/petstat.pdf visited on 10 April, 2008. Same are reproducd
as pdf document in attached sheets. On analysis, following observations may be noted.

Despite the discovery of new sources of unconventional energy, petroleum remains the
primary energy source in India, and even more so, all over the world. The consumption of
petroleum in the world, which started as a few tonnes a year around 140 years ago, has
touched almost 4000 Million metric tonnes (MMT) per year! Even in India, it is
increasing at a very steep rate from 3.5 MMT in 1950-51 to 150 MMT in 2006-2007.

Out of the known reserves, only a part may be technically economically feasible to
explore. This fact, coupled with the present and expected consumption rates implies that
these reserves may not last beyond the next 30 years. For India, the situation could be
even more difficult. Given our limited reserves, our present known stocks may not last
even 10 years at the current consumption rate. Our present indigenous production has
levelled to about 33 -34 MMT and is less than 50% of our annual requirement.

As a result of situation in the Middle East, weakening of US Dollar and uncertainties over
demand & supply, international price of crude has risen to exhorbiant level of over 100
US Dollars per barrel. Total value of imports of crude crude oil during 2007 –08 may
have exceeded Rs. 2500 Billions which is over one third of India’s total exports. Needless
to say that this is putting tremendous strain on Indian economy.

CONSERVATION OF PETROLEUM PRODUCTS

In order to to reduce ever increasing gap between demand for and indigenous supply of
crude oil and petroleum products, very high priority is required for the conservation of
petroleum products by its judicious use, substituting it by other resources wherever
feasible and restricting its use only to the essential needs.

Petroleum Conservation, then becomes our joint responsibility be it the industries,

individual citizens, organisations, Oil Companies or the Government. Each one of us has
specific and significant roles to play.
Overall Strategy of Promoting Oil Conservation :

Government has initiated various steps to promote conservation of petroleum products in

the transport, industrial, agricultural and domestic sectors. These include adoption of
measures and practices which are conducive to increase fuel efficiency and training
programme in the transport sector; modernisation of boilers, furnaces and other oil
operated equipments with efficient ones and promotion of fuel efficient practices and
equipment in the industrial sector; standardisation of fuel officient irigation pumpsets and
rectification of existing pumpsets to make them more energy efficient in the agricultural
sector and development as well as promotion of the use of fuel efficient equipment and
appliances like kerosene and LPG stoves in the household sector. These activities are
promoted and coordinated by the Petroleum Conservation Research Association (PCRA)
and Oil Marketing Companies under the guidance and supervision of Ministry of
Petroleum & Natural Gas.

CONSERVATION OF PETROLEUM PRODUCTS

Oil and gas conservation means their better and more efficient use with regard to
economic, social or environmental costs and benefits, resulting in attainment of higher
energy use efficiencies, minimization of wasteful practices and wastage and protection of
the environment.
Following specific activities are taken up from time to time.

IN HOUSE CONSERVATION IN UPSTREAM AND REFINING SECTORS

A) Effective and result-oriented conservation methods adopted by the upstream

undertakings in the oil sector include reduction of gas flaring by re-injection of gas to
underground reservoir, installation of waste heat recovery systems and close monitoring
of all conservation efforts by ONGC and OIL. Energy audits, efficiency upgradation of
equipment and appliances; substitution of diesel with Natural Gas, deployment of solar-
powered illumination panel, battery operated vehicles, Bio-gas etc., are other steps being
taken.
B) The oil refineries implement various schemes like revamp and replacement of low
efficiency furnaces and boilers, installation of heat exchangers, economizers and co-
generation equipment, and adoption of improved house keeping practices. They
benchmark energy consumption levels with international pacesetters for improvement.
They also implement ‘ENCON’ (Energy Conservation) schemes like heat integration and
technology upgradation for yield-energy optimization, vapour recovery system to arrest
the avoidable escape of gases through flare, tank seal etc.

C) Action Plan is implemented to produce and sell high grade lubricants to the extent of
about 2.5 lakh tonnes per year to replace the lubricants of lower efficiency, in a phased
manner and constantly upgrade lubricants in line with the international developments
meeting Euro Standards. Multi-grade railroad engine oils with diesel saving potential
have been developed for introduction in Indian Railways.

D) Although transport losses are inevitable while moving the petroleum products by
import tankers and coastal tankers over sea routes and at ports of unloading, a number of
steps taken by the Ministry to keep the loss down to the lowest level have led to a
progressive reduction.

PETROLEUM CONSERVATION RESEARCH ASSOCIATION (PCRA)

As a part of the Government’s response to the oil crisis of early seventies, the PCRA was
set up in 1976 to undertake studies to identify the potential and to make recommendations
for achieving conservation of petroleum products in various sectors of the economy.
It’s Mission Statement is “Efficient energy utilisation and environment protection
leading to improvement in quality of life”
Main objectives of PCRA are given below:-
 To formulate strategy and promote measures for accelerating conservation of
petroleum products leading to environment protection, energy security and
sustainable development.
 To create awareness among masses about the importance, benefits and methods of
conserving petroleum products and clean environment by enhancing information
and capacity building.
  To promote research, development and deployment efforts aimed at petroleum
conservation & environment protection, support and facilitate efforts for adoption
& dissemination of energy efficient technologies and substitution of petroleum
products with alternate fuels and renewables.
 To establish synergistic institutional linkages at the national & internatiopnal level
in the area of petroleum conservation and environment protection.
 To provide training and technical advisory services, designed to use economy &
efficiency in use of petroleum products for cleaner environment.
 To function as Think Tank to The Govt. Of India for proposing policies and
strategies on petroleum conservation and environemnt protection aimed at
reducing excessive dependence on oil.
It sponsors R&D activities for the development of fuel-efficient equipment / devices and
organizes multi-media campaigns for creating mass awareness for the conservation of
petroleum products. Fuel oil utilization studies, energy audits, boiler modernization
scheme, introduction of equipment bank concept, use of energy vans, development of oil
consumption norms, model depot projects, driver training programs, demonstration
clinics/ workshops/ exhibitions, consumer meets, education films/TV spots, hoarding/
electronic display, distribution of printed literature, R&D projects are other activities.

MULTI MEDIA MASS AWARENESS PROGRAMME

Multi-media campaigns to create mass awareness about the need for conserving
petroleum products and motivating users to take concrete steps to actually conserve are
undertaken by PCRA and the Oil Marketing Companies through various media such as
TV, Radio, Press, printed literature, outdoor publicity. Extensive use of Publicity Van of
the Government Field Publicity Department of the States is made for increasing the reach
amongst the consumers in the semi-urban and rural segments.

OIL CONSERVATION FORTNIGHT

The success of the first Oil Conservation Week organized in January, 1991 has led to its
continuance in the subsequent years and finally, an extension to Oil Conservation
Fortnights from 1997. These are organized by the entire Oil Sector in close coordination
with the concerned Ministries / Departments of the Union and State Governments, Public
Sector Undertakings, Chamber of Commerce etc., with PCRA acting as the nodal
coordinating agency. Mass awareness and educational programmes and various sectoral
activities are undertaken. Inaugural functions are presided over by dignitaries such as
Union Ministers, Governors, Chief Ministers, etc. and the Fortnight ends with a
Valedictory function in every State.

END USERS OF PETROLEUM PRODUCTS AND CONSERVATION EFFORTS

In addition to the activities of PCRA detailed above, sectoral conservation steps taken by
it are as follows:
TRANSPORT SECTOR
Adoption of practices conducive to increased fuel-efficiency
Training programmes
INDUSTRIAL SECTOR
Replacement of old and inefficient boilers, furnaces and other oil-operated equipment
with efficient ones
Promotion of fuel-efficient practices and equipment.
AGRICULTURAL SECTOR
Standardization of fuel-efficient irrigation pumpsets
Rectification of existing pumpsets to make them more energy efficient
HOUSEHOLD SECTOR
Development as well as promotion of the use of fuel-efficient equipment and appliances
like kerosene and LPG stoves
Action Group meetings and adoption of States has been introduced to give further
impetus to the oil conservation movement and for focussed attention at the State level.

R&D PROJECTS

(i) RECOVERY OF KEROSENE IN TEXTILE PRINTING

In view of the large-scale losses of kerosene used in the drying section of the textile
pigment-printing machine, an R&D project was successfully commissioned to recover
kerosene vapors. Under this project at one plant 180 KL of kerosene worth Rs. 14.4 lakhs
is being recovered and recycled per annum. The technology developed is being promoted
in the textile sector.

(ii) BATTERY OPERATED VEHICLES

Battery operated vehicles around Taj Mahal area run by Agra Development Authority
(ADA) have operated satisfactorily for the last six years leading to a savings in diesel and
reduction in pollution. To provide thrust and to promote the operation of BOV’s, PCRA
has sponsored two BOV’s to be operated by Airline Authorities at IGI Airport for
transportation of passengers from terminal to Aircraft and back as a demonstration
project. Moreover, to encourage and support the operation of BOV’s on a larger scale a
subsidy of Rs. 1 lakh per BOV is being provided by PCRA, in addition to the subsidy
(upto 50% of the cost of vehicle) being provided by MNES.

(iii) SYNCHRONIZATION OF TRAFFIC SIGNALS

A study undertaken at Delhi in 1996 revealed a wastage per day of petrol and diesel of 3
lakh and 1 lakh litres respectively by vehicles while waiting for green signal at the traffic
intersections, amounting to a financial loss of Rs. 246 crores per annum. The study
brought out a scope for MS & HSD saving by synchronization of traffic signals and
reducing the waiting period for the vehicles.
To demonstrate, projects in 5 cities viz. Delhi, Calcutta, Pune, Bangalore and Chennai
were taken up for synchronization. Project at Calcutta has since been successfully
completed with the result that City and State administration, Traffic Police, PWD etc. are
convinced about benefits of synchronization of traffic signals. Projects in other towns are
in advanced stage of completion.

FURTHER TIPS FOR CONSERVATION TO BE TAKEN BY INDIVIDUALS

(A) CONSERVATION AT HOME

a) Customers are recommended a switchover to Nutan gas stove or Nutan wick stove
developed by Indian Oil and aimed at fuel conservation
b) While cooking use wide bottom vessels with covers
c) Allow food articles taken out of the refrigerators to attain room temperature before
cooking them
d) Soak cereals and dals for sometime before cooking them to reduce the cooking
time as well as the fuel consumption.
e) Use just sufficient water for cooking
f) Pressure cookers used with separators lead to substantial fuel saving.
 g) Reduce flame by bringing the burner knob to the simmer position as soon as the
water starts boiling
h) Try to eat together to avoid repeated warming of food. This not only saves fuel but
also preserves the nutritional value of food
i) Light the flame only after all preparations have been made and the vessel is ready
to be put on the stove.
j) Use hot water from solar water heaters for cooking if the facility is available
k) Try to use a solar cooker, if facility and time permit
l) In the rural sector, use of gobar gas plants, would be an excellent fuel
conservation technique
m) If feasible, the use of electric hot plates could also be a fuel-saving tip.
(B) KEROSENE FOR ILLUMINATION
a) Switch-over to Nutan Hurricane Lanterns developed by Indian Oil both for better
illumination & fuel conservation is recommended
b) The use of electric lamps or solar lanterns, if feasible.

Indian Oil R&D's " Rashmi Nutan " A fuel efficient lamp
Indian Oil R&D's "Nutan"

(C) CONSERVATION ON ROADS

a) The first rule of fuel conservation would be to travel judiciously and curtail
wasteful driving
b) Wherever possible/ available and convenient, use public transport instead of using
personal transport
c) Matching the size of the vehicle to your need would also go a long way in
conserving fuel. For instance if you have the option of a personal car and a
scooter, then use the scooter when only two persons have to travel, and the car if
more persons have to travel or heavy luggage needs to be transported.
d) Car pooling to work will not only conserve fuel but will also improve social
relations with your colleagues
e) Following traffic signals will help avoid traffic jams and reduce lower gear
driving and idling.
f) As far as possible, avoid idling the vehicle, be it a car, scooter or any other
mechanized transport.
g) The criteria for choosing the vehicle you are going to buy should be its fuel
efficiency.
h) There is no substitute for timely attention, servicing and tuning of the vehicle in
fuel conservation and emission control. This should include checking of injectors
and spark plugs, correct tyre pressure, re-greasing, topping up or renewal of
lubricants for engine and gear boxes.
i) The use of quality lubricant is extremely important. There should not be any
compromise on this aspect.
 j) Correct driving habits are important for conservation. Try to avoid sudden
speeding, braking & stopping, clutch riding, idling, over- speeding, and over-
loading
k) Have your vehicle checked for emission control regularly – not only because
defaulters are fined, but because it leads to fuel conservation and pollution control,
which as citizens of India, is our moral duty. It is time we inculcate these
measures to become a part of our daily routines. Only by practising and preaching
these conservation tips can we think of future progress. Given the difficult times
ahead, it becomes our responsibility to spread this awareness, particularly amongst
it the youth who will be citizens of tomorrow. Good habits taught early will
salvage the oil shortage to a great extent.

ROLE OF OIL INDUSTRY TO PROMOTE OIL CONSERVATION

a) Soft loan and subsidies are given by Oil Industry (OIDB) for conducting energy
audits, purchase of energy audit equipments/ instruments, upgradation of
maintenance facilities at garage, LIP rectification, foot valve replacement,
upgradation of testing facilities to foot valve manufacturers for promoting oil
conservation.
b) The Oil Industry is also promoting the use of alternate sources of energy to the
maximum extent possible. Many petrol pumps are provided with SPV system.
Some Oil Company colonies have solar water heaters, solar cookers, solar
lanterns, gobar gas plants, improved choolhas, efficient kerosene stoves &
lanterns. In some select villages in the districts of Solan, Sultanpur and Jaisalmer
Wind mills are also being considered. All these will act as stimuli for other to
emulate.

Petroleum Conservation, then becomes our joint responsibility be it the industries,

individual citizens, organizations, Oil Companies or the Government. Each one of us
has a specific and significant role to play.

INTER FUEL SUBSTITUTION

COMPRESSED NATURAL GAS (CNG)
Compressed Natural Gas (CNG) is used as a fuel in transport sector in many countries. It
is a safe, clean burning and environment friendly fuel. It has been established that exhaust
emissions like hydrocarbons and carbon monoxide are significantly reduced as compared
to other fuels. Toxic emissions such as lead and sulphur are completely eliminated.
Existing petrol vehicles can use CNG by fitting a conversion kit. The CNG converted
vehicles have the flexibility of operating either on petrol or on CNG.

An experimental programme to use CNG as fuel in transport sector in the country was
initiated by GAIL in 1992, whereby CNG was made available in Delhi, Mumbai and
Baroda. The supply of CNG in Mumbai and Delhi are managed by two joint ventures viz.
Mahanagar Gas Nigam Ltd. and Indraprastha Gas Limited respectively. The average cost
of converting a petrol car to CNG is about Rs.35,000.

Judiciary has been very pro-active in this area. On the insisitence of Supreme Court of
india, DTC buses were converted to CNG. Similarly High Court of Mumbai forced all
Taxies and Auto Rickshawas to be converted to clean fuels i.e. CNG.

USE OF LPG AS AUTOMOTIVE FUEL

LPG is recognized as superior fuel to petrol and diesel in terms of the vehicular
emissions. To abate pollution caused by vehicles, a number of countries in the World
have been using LPG as auto fuel for more than last 30 years.
In India, the use of LPG as auto fuel has been permitted by Motor Vehicles Act since .
The availability of LPG from the public sector as well as private sector has also been
increasing through indigenous production as well as imports.

FEASIBILITY OF ETHANOL / METHANOL AS AUTOMOTIVE FUEL

Exploration of the feasibility of using alcohol-blended fuel has also received attention in
this Ministry. Recommendations of Technical Committee studying this issue have
testified to the safe usage of blended alcohol upto 5% with gasoline, which does not
require any modification of engine design, the only stipulation being that the alcohol
should be of anhydrous variety. Rising oil prices have made biofuels a viable
alternative.
Excerpts from Ministry of Petroleum web-site (http://petroleum.nic.in/gaznew.pdf)
visited on April 10, 2008
Gazette Notification G.S.R.705(E) dated 27th October,2004 reg. Ethanol blended
fuel
1. In exercise of powers conferred by section 3 of the Essential Commodities Act, 1955
(10 of 1955) read with clause 3(F) of the Motor Spirit and High Speed Diesel (Regulation
of Supply and Distribution and Prevention of Malpractices) Order, 1998, Central
Government hereby directs that 5% ethanol-blended petrol, as per Bureau of Indian
Standards specifications, shall be sold in the following States and Union Territories if the
price of sourcing indigenous ethanol for supply of ethanol-blended petrol is comparable
to the price of indigenous ethanol for alternative uses, and the delivery price of ethanol at
the location is comparable to the import parity price of petrol at that location and the
indigenous ethanol industry is able to maintain the availability of ethanol for ethanol-
blended petrol programme at such prices:-
States Union Territories
1. Andhra Pradesh (except Chittor and Nellore districts) 1. Daman and Diu
2. Goa 2. Dadra and Nagar Haveli
3. Gujarat 3. Chandigarh.
4. Haryana
5. Karnataka
6. Maharashtra
7. Punjab
8. Tamil Nadu (only in districts Coimbatore, Dindigul, Erode, Kanayakumari, Nilgiri,
Ramanathpuram, Tirunelveli, Tuticorin and Virudhunagar)
9. Uttar Pradesh
10. Uttaranchal.

2. The Central Government may, suo motu, or on a reference made to it, after due
consideration of facts, by an order, modify the areas, and the percentage of ethanol in the
ethanol blended petrol that may be supplied, and specify the period for the same.
[F.No. P-45018/28/2000-CC]

Ethanol Vs. Methanol: US President George W Bush announced a huge thrust to

replace fossils with bio-fuels in his State of the Union address in January, 2006 leading to
US administration announcing a 51 Cents per Gallon subsidy on the sale price of Ethanol.
Total government support for biofuels in the United States reached approximately $ 6.3–$
7.7 billion in 2006, the majority of which was directed to ethanol. Total support is
projected to reach around $ 13 billion in 2008 and almost $ 16 billion by 2014. Under
existing policies, the industry will, in aggregate, obtain subsidies worth more than $ 92
billion over the 2006–2012 time frame. These estimates should be viewed as
conservative, given that they do not incorporate many state subsidies now in effect nor
the cost of a more stringent renewable fuels consumption mandate. The ethanol industry
added 1.1 billion gallons of capacity in 2006 and nearly 700 million gallons more through
July 2007. Over six billion gallons of additional capacity are planned or under
development, with scheduled completion before the end of 2009. Once all these plants
come on-line, capacity will exceed 17 billion gallons per year.
This all has resulted in large scale switch over of farm acreages from soya to corn which
is raw material for ethanol. As a chain reaction, food prices have risen by over 60%
between Jan 2006 and Feb 2008. Also there is a doubt in scientific circles over the
efficacy of ethanol route in reduction of GHG emissions.
However, it is suggested that methanol has higher energy content than ethanol and is a
better alternative. It’s combustion qualities are so much superior to gasoline that it was ,
for decades, fuel of choice in motor racing. Also, methanol can be produced from any
bio-mass of existing crop residues. Agricultural waste which contributes almost 15% of
CO2 generated can be easily converted into transport fuel thus saving equivalent amount
of gasoline. In a high pressure gassifier that uses Oxygen, one tonne of a typical bio-mass
yields 1.4 – 1.6 tonnes of methanol. According to Food & Agriculture Organisation
(FAO), global residues available from just five industries e.g. bagasse from sugar cane,
wheat and rice straw, wood waste from timber mills and black liquor from paper mills
was sufficient to produce 20% more transport fuel (in energy terms) than worlds’s
consumption in 2006. Based upon data for Indian sugar mills, the sales revenue of sugar
mill that produces sugar from the cane juice and methanol from bagasse will be at least
four times as much as revenue from sugar alone.
STEPS TAKEN BY THE MINISTRY ON ENVIRONMENTAL ISSUES
(A) INTRODUCTION OF UNLEADED PETROL
In pursuance of the need for reduction of environmental pollution due to emissions from
vehicles, from April,1995 the Oil Companies have made available unleaded petrol in the
in the city of Agra and the four metros of Delhi, Mumbai, Calcutta, Madras and radial
routes emanating from these metros. Petrol with reduced lead content of 0.15g/ltr.
(maximum) was made available all over the country from December, 1996. With the
introduction of unleaded petrol (Lead content 0.013 g/ltr max) limits of lead has still
been brought down throughout country. Same is targetted below 0.005 g/ltr by 2010.
(B) SUPPLY OF LOW SULPHUR HSD
The sulphur in diesel has considerable potential to pollute the air and damage human
health, especially with regard to respiratory disorders caused by high level of respirable
particulate matter. Hence, Low Sulphur Diesel i.e., containing 0.5% sulphur by weight as
against the normal proportion of 1% by weight was supplied w.e.f. April, 1996 in metros
and Taj Trapezium. Supply of diesel with still further reduction of sulphur content upto
only 0.25% by weight has been envisaged w.e.f. January 2000 in the entire country. It
was, however, introduced in Taj Trapezium w.e.f. 1.9.1996 and in Delhi from 14.8.1997.
Again as per Supreme court orders, investment of Rs. 5600 crores was made to set up a 8
no’s diesel hydro desulphurization plants in the country. A further reduction in the
sulphur content to 0.05% in diesel in compliance of Supreme Court orders to adopt Euro
II norms in the country has been adopted. Target for 2010 is below 0.035 % w/W.
(C) SPECIFICATION OF 2-T OILS FOR 2-STROKE ENGINES
To address the environmental issues relating to emissions from 2/3 wheelers, Synthetic 2-
stroke engine oils meeting JASO, FC, Japan have been introduced w.e.f. 1.4.1999. These
environment friendly oils reduce visible smoke and lead to fuel conservation.
(D) RESTRICTIONS IN BENZENE CONTENT
The benzene content in gasoline is to be restricted to a maximum of 3% by volume in
metro cities and 5% by volume in other cities as required under the notification of the
Central Pollution Control Board from the year 2000. In Delhi, this has already been
implemented.
(E) TECHNOLOGY TRENDS FOR FUEL EFFICIENCY & EMISSION CONTROL
GHG emissions from transportation sector is an area of major concern. In May 2007
Ministry of Petroleum & Natural Gas during the ministrerial conference on ‘Energy in the
Changing World’ at UNESCO headquarters in Paris shared the view that the
transportation sector in India accounts for 30% of total GHG emissions. Transport
demand in India has grown at the rate of 1.2 times that of GDP growth rate. According to
motor vehicle statistics, the total number of registered vehicles has increased dramatically
during the last two decades from 10.6 millions in 1986 to 80 millions in the year 2006.
The annual growth rate of vehicles in India is 16% which is close to 18% rate of China.
With the introduction of Tata’s ‘NANO’ mass production of small cars will get further
boosted up and many two wheeler owners may migrate to four wheelers. GHG reduction
from the transportation sector in India shall pose a serious challenge. Therefore, urgent
steps are needed to develop fuel economy regulations to reduce energy & climate impact
of vehicles. Many countries e.g. USA, European Union, Japan, South Korea, Canada,
Australia, China, Taiwan with major share of vehicles market have set up their own
vehicle fuel economy & GHG emission norms.
The Auto Fuel Policy of 2003 has recommended mandatory declaration of fuel economy
(km/liter) for each model. Regulating fuel economy of vehicles is a very new area of
policy initiative. At present there is no specific legislation providing for fuel regulation
for vehicles. Currently, emissions standards for vehicles are covered under the Motor
Vehicle Act, 1988 and Central Motor vehicle Rules 1989 that are administered by the
Ministry of Road, Transport & Shipping under the umbrella regulation of Environmental
Protection Act. This Act primarily does not require regulation for fuel economy of CO2
emissions. The regulation that comes closest to the need for fuel economy regulations is
the Energy Conservation Act, 2001. Under this act, Bureau of Energy Efficiency (BEE)
has powers to specify norms for processes and energy consumption standards for any
equipment, appliance, which consumes, generates, transmits or supplies energy. BEE sets
standards & Labels the energy intensity of various electrical equipments and appliances
of common use under National Energy Labeling Program. The ongoing policy
discussions indicate that efficiency standards for vehicles can be developed under the
aegis of Energy Conservation Act. PCRA is responsible for fuel conservation measures in
the country and may co-ordinates the efforts to set the fuel efficiency standards.
It is suggested to set regulation based on three complimentary strategies:
 Fuel efficiency standards to set up bench marks for efficient engine technology.
 Fuel economy labeling of vehicles
 Fiscal incentives linked to the fuel efficiency

AUTO FUELS POLICY, 2003:

In Auto Fuel Policy report headed by Dr. Mashalkar, road map for vehicular emission
norms as well as Auto-fuel quality have been laid down. EU countries have implemented
EURO IV norms w.e.f. 2005. Auto Fuel Policy stipulates for new vehicles (except 2/3
wheelers) as tabulated below:
 From 1 April, 2005 From 1 April, 2010
Cities of Delhi / NCR, Mumbai, Euro III (equivalent) Euro IV (equivalent)
Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad,Pune,
Surat, Kanpur and Agra,
Entire Country Bharat Stage –II Euro III (equivalent)

CPCB have laid out following Standards for Auto Fuel Quality and Air Exhaust. Same
may be viewed from CPCB web-site (visited on 11 April, 2008).
http://www.cpcb.nic.in/Environmental%20Standards/Vehicular_Exhaust.html

BIO – DIESELS

Government has decided to permit of mixing of 10% bio-fuel with diesel. This has opened up new
opportunities for employment and wealth generation. We have nearly 63 million hectares of wasteland
available in the country, out of which 33 million hectares of wasteland have been allotted for tree
plantation. Certain multi-purpose trees such as Jatropha can grow well in wasteland with very little input.
Once grown the crop has a fifty years of life. Fruiting can take place in this plant in less than two years. It
yields oil seeds up to five tonnes per hectares per year and produces two tonnes of bio-diesel. Presently, the
cost of bio-diesel through the plant is approximately Rs. 17 to Rs. 19 per liter which can be substantially
reduced through choice of right size of the plant and using high yield variety plantation. Bio-diesel plants
grown in 11 million hectares of land can yield a revenue of approximately Rs. 20,000 crore a year and
provide employment to over 12 million people both for plantation and running of the extraction plants. This
is a sustainable development process leading to large scale employment of rural manpower. Also, it will
reduce the foreign exchange outflow paid for importing crude oil, the cost of which is continuously rising in
the international market. Moreover, use of Bio-diesel is CO2 emission free. This oil can also be used for
soap and candle industries. De-oiled cake is a raw material for composting. Also Jatropha plantation
provides a good environment for honey production. We should absorb best of the technologies available
worldwide and start commercial operation soon, instead of staying at pilot plant levels.

Bio-diesel is an eco-friendly, alternative diesel fuel prepared from domestic renewable

resources i.e. vegetable oils (edible or non- edible oil) and animal fats. These natural oils
and fats are made up mainly of triglycerides. These triglycerides when processed have
striking similarity to petroleum derived diesel and are called "Bio-diesel". As India is
deficient in edible oils, non-edible oil may be material of choice for producing bio diesel .
For this purpose Jatropha curcas considered as most potential source for it. Bio diesel is
produced by transesterification of oil obtains from the plant.
Jatropha Curcas has been identified for India as the most suitable Tree Borne Oilseed for production of bio-
diesel both in view of the non-edible oil available from it and its presence throughout the country. The
capacity of Jatropha Curcas to rehabilitate degraded or dry lands, from which the poor mostly derive their
sustenance, by improving land's water retention capacity, makes it additionally suitable for up-gradation of
land resources. Presently, in some Indian villages, farmers are extracting oil from Jatropha and after settling
and decanting it they are mixing the filtered oil with diesel fuel. Although, so far the farmers have not
observed any damage to their machinery, yet this remains to be tested and PCRA is working on it. The fact
remains that this oil needs to be converted to bio-diesel through a chemical reaction - trans-esterification.
This reaction is relatively simple and does not require any exotic material. IOC (R&D) has been using a
laboratory scale plant of 100 kg/day capacity for trans-esterification; designing of larger capacity plants is
in the offing. These large plants are useful for centralized production of bio-diesel. Production of bio-diesel
in smaller plants of capacity e.g. 5 to 20 kg/day may also be started at decentralized level in villages.

1.Technical Feasibility

Can be blended in any ratio with petro-diesel.

Existing storage facilities and infrastructure for petro-diesel can be used with minor
alteration.
From environment and emissions point of view it is superior to petro-diesel.
It can provide energy security to remote and rural areas.
It has good potential for employment generation

2.Sources of Bio-diesel
All Tree Bearing Oil (TBO) seeds - edible and non edible.

Edible: Soya-bean, Sun-flower, Mustard Oil etc. Edible seeds can't be used for bio-diesel
production in our country, as its indigenous production does not meet our current
demand.
Non-edible: Jatropha Curcas, Pongemia Pinnata, Neem etc. Among non-edible TBO,
Jatropha Curcas has been identified as the most suitable seed for India.

3.Advantages of Jatropha
Jatropha Curcas is a widely occurring variety of TBO
It grows practically all over India under a variety of agro climatic conditions.
Can be grown in arid zones (20 cm rainfall) as well as in higher rainfall zones and even
on the land with thin soil cover.
Its plantation can be taken up as a quick yielding plant even in adverse land situations viz.
degraded and barren lands under forest and non-forest use, dry and drought prone areas,
marginal lands, even on alkaline soils and as agro-forestry crops.
It grows as a tree up to the height of 3 - 5 mt.
It is a good plantation for Eco-restoration in all types wasteland.

4.State-wise area undertaken by NOVOD for Jatropha Plantation

State Area (ha)

Andhra Pradesh 44

Bihar 10

Chhatisgarh 190

Gujarat 240

Haryana 140

Karnataka 80

Madhya Pradesh 260

Maharashtra 150

Mizoram 20

Rajasthan 275

Tamil Nadu 60

Uttaranchal 50

Uttar Pradesh 200

5. Economics (as per Planning Commission Report on Bio-fuels, 2003)

Activities Rate(Rs. / Kg) Quantity(Kg) Cost(Rs.)

Seed 5.00 3.28 16.40

Cost of collection & oil

2.36 1.05 2.48
extraction

Less cake produced 1.00 2.23 (-) 2.23

 Trans-esterification 6.67 1.00 6.67

Less cost of glycerin produced 40 to 60 0.095 (-) 3.8 to 5.7

Cost of Bio-diesel per kg 19.52 to 17.62

Cost of Bio-diesel per litre (Sp.

16.59 to 14.98
Gravity 0.85)

6. Employment potential (as per Planning Commission report on bio-fuels, 2003)

Likely demand of petro diesel by 2006-07 will be 52 MMT and by 2011-12 it will
increase to 67 MMT.
5% blend of Bio-diesel with petro diesel will require 2.6 MMT of Bio-diesel in 2006-07
By 2011-12, for 20% blend with Petro-diesel, the likely demand will be 13.4 MMT.
To meet the requirement of 2.6 MMT of bio-diesel, plantation of Jatropha should be done
on 2.2 - 2.6 million ha area.
11.2 - 13.4 million ha of land should be covered by 2011 - 12 for 20% bio-diesel blending

It will generate following no. of jobs in following areas.

Operation of BD
Year No. of jobs in plantation In maintenance
units

2006-07 2.5 million 0.75 million 0.10 million

2011-12 13.0 million 3.9 million 0.30 million

It is the displacement of alcohol from an ester by another alcohol in a similar process to

hydrolysis. Vegetable Oil i.e. the triglyceride can be easily trans-esterified in the presence
of alkaline catalyst at atmospheric pressure and at temperature of approximately 60 to 70
DegC with an excess of methanol. If 100 gm of vegetable oil is taken, 1 gm of the
alkaline catalyst (Potassium Hydroxide), and 12 gm of Methanol would be required

As a first step, the alkaline catalyst is mixed with methanol and the mixture is stirred for
half an hour for its homogenization. This mixture is mixed with vegetable oil and the
resultant mixture is made to pass through reflux condensation at 65oC. The mixture at the
end is allowed to settle. The lower layer will be of glycerin and it is drain off. The upper
layer of bio-diesel (a methyl ester) is washed to remove entrained glycerin. The excess
methanol recycled by distillation. This reaction works well with high quality oil. If the oil
contains 1% Free Fatty Acid (FFA), then difficulty arises because of soap formation. If
FFA content is more than 2% the reaction becomes unworkable. Methanol is inflammable
and Potassium Hydroxide is caustic, hence proper and safe handling of these chemicals
are must.

7. Agencies & Institutes working in the field of bio-diesel

1) National Oil seeds and Vegetable Oil Board (NOVOD), Gurgaon
2) PCRA - Petroleum Conservation Research Association (MOP&NG)
3) IOC (R&D) Centre, Faridabad
4) Delhi College of Engineering
5) IIT, Delhi
6) IIP, Dehradun
7) Downstream National Oil Companies
8) Indian Institute of Chemical Technology, Hyderabad
9) CSIR
10) Ministry of Non-conventional Energy Sources
11) Central Pollution Control Board
12) Bureau of Indian Standards
13) Indian Renewable Energy Development Agency

8. States, which have made some lead

Uttranchal: Uttaranchal Bio-fuel Board (UBB) has been constituted as a nodal agency for
bio-diesel promotion in the state. It has undertaken Jatropha plantation in an area of 1
lakh hectare. UBB has established Jatropha Gene Bank to preserve high yielding seed
varieties. UBB has ambitious plan to produce 100 million liters of bio-diesel.
Andhra Pradesh: Govt. of AP (GoAP) to encourage Jatropha plantation in 10 rain shadow
districts of AP. Task force for it has been constituted at district and state level. GoAP
proposed Jatropha cultivation in 15 lakh acres in next 4 years. Irrigation to be dovetailed
with Jatropha cultivation. 90% drip subsidy is proposed. Jatropha cultivation to be taken
up only in cultivable lands with existing farmers. Crop and yield insurance is proposed.
Chhattisgarh: 6 lakh saplings of Jatropha have been planted with the involvement of
State's Forest, Agriculture, Panchayat and Rural Development Departments. As per the
Deputy Chairman, State Planning Board, the state has the target to cover 1 million ha of
land under Jatropha plantation. Ten reputed bio-diesel companies, including the UK-
based D1 Oils, have offered to set up Jatropha oil-extraction units or to buy the produce
from farmers in Chhattisgarh. Companies like Indian Oil, Indian Railways and Hindustan
Petroleum have each deposited Rs 10 lakh as security for future MoUs with the state
government.

9. Farmers' Initiatives in Haryana:

Farmers in Haryana have formed NGOs and cooperatives for promotion of Jatropha plantation. These
NGOs and cooperatives are raising nurseries for Jatropha plantation and supplying saplings to others for
further cultivation. They have been blending directly Jatropha Oil into diesel fuel and successfully using
this blend in their tractors and diesel engines without any problems. These NGOs and cooperatives are also
organizing the practical demonstration of this usage in their demonstration workshops. They are organizing
local seminars, workshops and conferences etc. to promote the usage of Jatropha oil. NGOs have also
printed some booklets on Jatropha plantation.

10. Current usages of bio-diesel / Trials & testing of bio-diesel: Usages of bio-diesel
are similar to that of petro-diesel.
1) Shatabadi Express was run on 5% blend of bio-diesel from Delhi to Amritsar on
31st Dec. 2002 in association with IOC.
2) Field trials of 10% bio-diesel blend were also done on Lucknow-Allahabad Jan
Shatabdi Express also through association with IOC.
3) HPCL is also carrying out field trials in association with BEST.
4) Bio-Diesel blend from IOC (R&D) is being used in buses in Mumbai as well as in
Rewari, in Haryana on trial basis .
5) CSIR and Daimler Chrysler have jointly undertaken a successful 5000 km trial run
of Mercedes cars using bio-diesel as fuel.
6) NOVOD has initiated test run by blending 10% bio diesel in collaboration with
IIT, Delhi in Tata Sumo & Swaraj Mazda vehicles.

11. Pu rch ase p ri ce of B i o - d i esel - Decl ared b y M O P & NG

On 09th October 2005, on the occasion of "Inaugration of Hydrogen - CNG Mix
dispenser and signing of MOU between Panchayats and M/s D1 Oil for Biodiesel" at
Indian Oil,R & D Center Faridabad Shri Mani Shankar Ayer, Honrable Minister for
Petroleum & Natural Gas and Panchayati Raj has declared the purchase price of Biodiesel
as Rs25 per liter. Details of Bio-Diesels Purchase Policy can be seen at MoP&NG web-
site http://petroleum.nic.in/Bio-Diesel.pdf (seen on 10 April, 2008).
Extracts from the Report of the Committee on Development of Biofuel
(2003) Planning Commission(Govt. of India)
Following website (visited on 11 April, 2008) contains useful information on Bio-diesels.
http://www.wbbiotech.nic.in/wbbiotech/html/intro_biofuel.htm#economics

The Energy Resource Institute (TERI) commissioned a project report on National

Mission on Biofuel on behalf of The Ministry of Rural Development. Same can be noted
from TERI web-site http://www.teriin.org/projects/ES/jatropha.pdf ( 11 April, 2008).

Chapter 6
Buildings
ENERGY EFFICIENT BUILDINGS
Buildings, as they are often designed and built today, contribute to serious environmental
problems. This is because energy-intensive methods are used to construct a building and
meet its demands for heating, cooling, ventilation, and lighting. These methods lead to
severe depletion of the precious environmental resources. However, buildings can be
designed in such a way that they meet the occupants’ needs for thermal and visual
comfort at reduced levels of energy and resources consumption. Adopting an integrated
approach to building design can bring about energy efficiency in new constructions.
The primary steps in this approach are listed below.
1) Incorporate solar passive techniques in building design to minimize load on
conventional systems (heating, cooling, ventilation, and lighting).
2) Design energy-efficient lighting and HVAC (heating, ventilation, and air-
conditioning) systems.
3) Use renewable energy systems (solar photovoltaic systems/solar water heating
systems) to meet a part of the building load.
4) Use low energy materials and methods of construction.
In brief, an energy-efficient building balances all aspects of energy use in a building –
lighting, space-conditioning, and ventilation – by providing an optimized mix of passive
solar design strategies, energy-efficient equipment, and renewable sources of energy.
Climate and architecture : India is divided into six climatic zones based on different
climatic conditions. Knowledge of climate at a given location can help in the design of
solar passive buildings that eliminate the adverse effects of climate, yet simultaneously
take advantage of effects that are beneficial. For instance, in a place like Mumbai, a
building can be designed in such a way that appropriate shading prevents solar radiation
and adequate ventilation reduces humidity. In a place like Shimla, where the climate is
cold and cloudy, a building can be designed to make maximum use of sunlight, and
thereby keep its interiors as warm as possible. The various climatic factors that affect the
solar passive design are listed below:
1) Wind velocity
2) Ambient temperature
3) Relative humidity
4) Solar radiation
Solar passive techniques: Various concepts and techniques are used to design energy-
efficient buildings. Some of these are described below.
Direct heat gain: The direct heat gain technique is generally used in cold climates. The
basic principle is that sunlight is admitted into the living spaces directly through openings
or glazed windows to heat walls, floors, and inside air. The glazed windows are generally
located facing south to receive maximum sunlight during winter. They are usually
double-glazed, with insulating curtains to reduce heat loss during the night. During the
day, heat is stored in walls and floors; it is released during the night to warm the interior.
Thermal storage walls: In this approach, a thermal storage wall is placed between the
living space and the glazing. This prevents solar radiation from directly entering the
living space. The radiation is absorbed by the storage wall, and then transferred into the
living space. Thermal storage walls include: Trombe walls, water walls, transwalls, etc.
Evaporative cooling: Evaporative cooling is a passive cooling technique, generally
employed in hot and dry climates. It works on the principle that when warm air is used to
evaporate water, the air itself becomes cool, and in turn cools the living space of a
building.
Passive desiccant cooling: Passive desiccant cooling method is effective in a warm and
humid climate. Natural cooling of the human body through sweating does not occur in
highly humid conditions. To decrease the humidity level of the surroundings, desiccant
salts or mechanical de-humidifiers are used.
Induced ventilation: Passive cooling by induced ventilation can be most effective in hot
and humid climates as well as in hot and dry climates. This method involves the heating
of air in a restricted area through solar radiation, thus creating a temperature difference
and causing air movements or drafts. The drafts cause hot air to rise and escape from the
interior, drawing in cooler air and thereby effecting cooling.
Earth berming: Earth-berming technique is used for both passive cooling and heating of
buildings. It is based on the fact that the earth acts like a massive heat sink. Thus,
underground or partially sunk buildings would provide both cooling in summer and
heating in winter to the living spaces within.
In addition to the above concepts, there are many other solar passive techniques such as
wind towers, earth air tunnels, curved roofs, and air vents, which can be incorporated
according to the requirements of the buildings. There are design features that enable
maximum use of daylight inside the building.
Advantages of solar passive buildings: With the incorporation of solar passive concepts
into a building, a large quantity of energy can be saved. Furthermore, these concepts help
in providing comfortable living conditions to the inhabitants in an eco-friendly manner.
However, they cannot totally eliminate the use of conventional energy for modern
facilities such as air conditioning.

Cost and payback period : The cost of a building may increase by

about 5%–15% because of incorporation of solar passive
concepts. However, the investment may be recovered within a
period of five to seven years due to savings in energy.
Financial support: As part of its national programme on solar thermal energy in the
country, the MNES provides financial support for construction of solar passive buildings
for government/semi-government organizations as well as for non-governmental
institutional buildings. The MNES provides up to Rs 1 lakh for the preparation of DPRs
(detailed project reports). It also provides a financial support of 10% of the total cost of
the building, subject to a maximum limit of Rs 10 lakhs. Financial assistance is also
provided for organization of seminars, workshops, and awareness programmes.
Potential for energy-efficient buildings: Every year, thousands of new buildings are
constructed in the country for use as residences, offices, hospitals, hotels, and commercial
centres. Hence, vast potential exists for construction of solar passive energy-efficient
buildings. Such buildings would help in reducing the requirement of conventional
electricity.
Success stories: A number of buildings incorporating solar passive architecture have
been constructed in the country. Some of them are listed below:
1) Solar Energy Centre, Gwal Pahari, Gurgaon
2) Office buildings for the Himachal Pradesh Energy Development Agency, Shimla
3) Buildings of the Himachal Pradesh State Cooperative Bank, Shimla, and the State
Bank of Patiala, Shimla
4) A hostel for trainees at Leh
5) Office building of the West Bengal Renewable Energy Development Agency,
Kolkata
6) Office-cum-laboratory building of the West Bengal Pollution Control Board,
Kolkata
7) An audio-visual studio at the School of Energy and Environmental Studies, Devi
Ahilya Vishwavidyalaya, Indore
8) Punjab Energy Development Agency, Chandigarh
9) Centre for Wind Energy Technology, Chennai
10) Buildings of the Sardar Swaran Singh National Institute of
11) Renewable Energy, Kapurthala, Punjab (under construction)

Energy use in buildings is increasing rapidly. According to Construction Industry

Development Council (CIDC), in 2004-5 residential / commercial construction accounted
for 19.25 / 21.50 million square meters with a YOY growth of over 10%. Most
commercial construction is air – conditioned. Average use of energy in commercial
buildings is 200 kwh/sq mtr/year.

There are strong disincentives to energy efficiency in buildings as enumerated below:-

 Builders incur first costs of energy efficiency and users reap benefits.
 Higher costs of energy efficient products
 Lack of availability
 Lack of equipment testing & certification
 Lack of awareness, information & tools (energy expertise)
 Electricity rate structures / rural subsidies
Energy Conservation Building Code (ECBC) : ECBC is essential to ensure building
energy efficiencies. The Government has introduced Energy Conservation Codes for
commercial buildings. ECBC addresses local design conditions and building practices. It
lays emphasis on daylighting and natural ventilation. Extensive data collection was
carried out for construction types and materials, glass types, insulating materials, lighting
& HVAC equipments. Emphasis was laid on energy efficiency and lif-cycle cost analysis.

Initially, implementation of the codes will be voluntary but will be made mandatory soon
under the Energy Conservation Act 2001 for the buildings having connected load of 500
kw or more. The implementation of the codes will reduce energy consumption from 25%
to 40% and will yield annual saving of about 1.7 billion kwh units.
The codes sets a minimum efficiency standards for external wall, roof, glass structure,
lighting, heating, ventilation and air conditioning of the commercial buildings in all the
five climatic zones in the country. The State Government will have the flexibility to
amend these codes to suit local or regional needs and notify them accordingly.
Salient features of ECBC – 2007 are given below:-
Energy Conservation Building Code – 2007
1. PURPOSE. Purpose1. Purpose
The purpose of this code is to provide minimum requirements for the energy-efficient
design
and construction of buildings.
2. SCOPE
The code is mandatory for commercial buildings or building complexes that have a
connected load of 500 kW or greater or a contract demand of 600 kVA or greater. The
code is also applicable to all buildings with a conditioned floor area of 1,000 m2 or
greater.
The code applies to new constructions and additions to old buildings with above
parameters.
2.1 Applicable Building Systems
The provisions of this code apply to:
(a) Building envelopes, except for unconditioned storage spaces or warehouses,
(b) Mechanical systems and equipment, including heating, ventilating, and air
conditioning,
(c) Service hot water heating,
(d) Interior and exterior lighting, and
(e) Electrical power and motors.
2.2 Exemptions
The provisions of this code do not apply to:
(a) Buildings that do not use either electricity or fossil fuel,
(b) Equipment and portions of building systems that use energy primarily for
manufacturing processes, and
(c) Multi-family buildings of three or fewer stories above grade, and single-family
buildings.
2.3 Safety, Health and Environmental Codes Take Precedence
Where this code is found to conflict with safety, health, or environmental codes, the
safety,
health, or environmental codes shall take precedence.
3. ADMINISTRATION & ENFORCEMENT
Compliance with the requirements of this energy code shall be mandatory for all
applicable
Buildings.
3.1.2 New Buildings
New buildings shall comply with either the provisions of this code or the Energy Budget
Method.
3.1.3 Additions to Existing Buildings
Where the addition plus the existing building exceeds the conditioned floor area threshold
of
Clause 2 above, additions shall comply with the provisions.
4. BUILDING ENVELOPE
Fenestration : Mandatory requirements area specified for
 U-Factors
 Solar Heat Gain Coefficient (SHGC)
 Air Leakage

Opaque Construction
Building Envelope Sealing
The following areas of the enclosed building envelope shall be sealed, caulked, gasketed,
or
weather-stripped to minimize air leakage:
(a) Joints around fenestration and door frames,
(b) Openings between walls and foundations and between walls and roof and wall panels,
(c) Openings at penetrations of utility services through, roofs, walls, and floors
(d) Site-built fenestration and doors,
(e) Building assemblies used as ducts or plenums, and
(f) All other openings in the building envelope.
In addition, there are Prescriptive requirements for. roof, opaque walls, vertical
fenestration, skylight etc. are specified. There is a provision for Building Envelope Trade-
Off Option.

5. HEATING, VENTILATION & AIR CONDITIONING

Natural Ventilation
Natural ventilation shall comply with the design guidelines provided for natural
ventilation in the National Building Code of India 2005 Part 8, 5.4.3 and 5.7.1.1

Minimum Equipment Efficiencies

Cooling equipment shall meet or exceed the minimum efficiency requirements presented
in
values given in Code. Heating and cooling equipment not listed here shall comply with
ASHRAE 90.1-2004 § 6.4.1.

Controls
All mechanical cooling and heating systems shall be controlled by a time clock.
All heating and cooling equipment shall be temperature controlled.
All cooling towers and closed circuit fluid coolers shall have either two speed motors,
pony motors, or variable speed drives controlling the fans.

Piping and Ductwork

Piping for heating systems with a design operating temperature of 60°C or greater shall
have specified insulation. Similarly, piping for cooling systems with a design operating
temperature less than 15°C (59°F), and refrigerant suction piping on split systems shall
have insulation. Insulation exposed to weather shall be protected by aluminum sheet
metal and painted or covered with canvas / plastic cover.

System Balancing
Both Air System and Hydraulic Systems shall be balanced in a manner to first minimize
throttling losses.

Condensers
Care shall be exercised in locating the condensers in such a manner that heat sink is free
of
interference from heat discharge by devices located in adjoining spaces and also does not
interfere with such other systems installed nearby.
All high-rise buildings using centralized cooling water system shall use soft water for the
condenser and chilled water system
Suitable Air / Water Economizers and Variable Flow Hydraulic Systems are also
prescribed.

6. SERVICE, HOT WATER & PUMPING

Solar Water Heating

Residential facilities, hotels and hospitals with a centralized system shall have solar water
heating for at least 1/5 of the design capacity.

Equipment Efficiency
Service water heating equipment shall meet or exceed the minimum efficiency
requirements as specified.

Supplementary Water Heating System

Supplementary heating system shall be designed to maximize the energy efficiency of the
system and shall incorporate the following design features in cascade:
(a) Maximum heat recovery from hot discharge system like condensers of A/C units,
(b) Use of gas fired heaters wherever gas is available, and
(c) Electric heater as last resort.

Piping Insulation
The entire hot water system including the storage tanks, pipelines shall be insulated
conforming to the relevant IS standards on materials and applications.
 Heat Traps
Vertical pipe risers serving storage water heaters and storage tanks not having integral
heat
traps and serving a non-recirculating system shall have heat traps on both the inlet and
outlet piping as close as practical to the storage tank.

Swimming Pools
Heated pools shall be provided with a vapor retardant pool cover on or at the water
surface.

7. LIGHTING

The lighting requirements in this section shall apply to:

(a) Interior spaces of buildings,
(b) Exterior building features, including facades, illuminated roofs, architectural features,
entrances, exits, loading docks, and illuminated canopies, and,
(c) Exterior building grounds lighting that is provided through the building's electrical
service.

Lighting Control
Mandatory requirements are specified as below:-

Automatic Lighting Shutoff

Interior lighting systems in buildings larger than 500 m2 (5,000 ft²) shall be equipped
with an
automatic control device. Within these buildings, all office areas less than 30 m2 enclosed
by walls or ceiling-height partitions, all meeting and conference rooms, all school
classrooms, and all storage spaces shall be equipped with occupancy sensors. For other
spaces, this automatic control device shall function on either
(a) A scheduled basis at specific programmed times.
(b) Occupancy sensors that shall turn the lighting off within 30 minutes of an occupant
leaving the space.

Space Control
Each space enclosed by ceiling-height partitions shall have at least one control device to
independently control the general lighting within the space. Each control device shall be
activated either manually by an occupant or automatically by sensing an occupant.

Exit Signs
Internally-illuminated exit signs shall not exceed 5 W per face.

Exterior Building Grounds Lighting

Lighting for exterior building grounds luminaires which operate at greater than 100 W
shall
contain lamps having a minimum efficacy of 60 lm/W unless the luminaire is controlled
by a
motion sensor.
Interior Lighting Power
The installed interior lighting power for a building or a separately metered or permitted
portion of a building shall be calculated and shall not exceed the interior lighting power
allowance determined in accordance with either of following methods.
Building Area Method
Space Function Method
Exterior Lighting Power
For building exterior connected lighting power shall not exceed the specified lighting
power limits specified for each of these applications.

8. ELECTRIC POWER

Transformers
Power transformers of the proper ratings and design must be selected to satisfy the
minimum
acceptable efficiency at their full load rating. In addition, the transformer must be selected
such that it minimizes the total of its initial cost in addition to the present value of the cost
of
its total lost energy while serving its estimated loads during its respective life span.
Transformers used in buildings shall be constructed with high quality grain oriented low
loss
silicon steel and virgin electrolytic grade copper and the manufacturer’s certificate to this
effect shall be obtained.
Energy Efficient Motors
Motors shall comply with the following:
(a) All permanently wired polyphase motors of 0.375 kW or more serving the building
shall have a minimum acceptable nominal full load motor efficiency not less than that
specified in relevant BIS for energy efficient motors.
(b) Motor horsepower ratings shall not exceed 200% of the calculated maximum load
being served.
(c) Motor nameplates shall list the nominal full-load motor efficiencies and the full-load
power factor.
Power Factor Correction
All electricity supplies exceeding 100 A, 3 phase shall maintain their power factor
between
0.98 lag and unity at the point of connection.

Check-Metering and Monitoring

(a) Buildings whose maximum demand is greater than 250 kVA shall have the electrical
distribution system with their energy consumption being check-metered.
(b) Services exceeding 1000 kVA shall have permanently installed electrical metering to
record demand (kVA), energy (kWh), and total power factor. The metering shall also
display current (in each phase and the neutral), voltage (between phases and between each
phase and neutral), and total harmonic distortion (THD) as a percentage of total current.
(c) Services not exceeding 1000 kVA but over 65 kVA shall have permanently installed
electric metering to record demand (kW), energy (kWh), and total power factor (or
kVARh).
(d) Services not exceeding 65 kVA shall have permanently installed electrical metering to
record energy (kWh).

Power Distribution Systems

All the power junction boxes and main power distribution board and cable termination
points shall be provided with temperature monitoring mechanism comprising of sensors
in the enclosed chambers and properly visible temperature indicators outside. Record of
temperature during commissioning and subsequently on a daily basis shall be maintained.
The power cabling shall be adequately sized as to maintain the distribution losses not to
exceed 1% of the total power usage. Record of design calculation for the losses shall be
maintained.
 IMPACT OF ECBC
 Market developments for EE products e.g. building insulations, energy efficient
windows (frames & glass), HVAC equipments, Solar water heaters.
 Improved design practices in lighting / day lighting, natural ventilation and
cooling systems
 Improved performance and power factor.
 Low lfe cycle cost

ECBC DEVELOPMENT : NEXT STEPS

 Testing & Certification systems for equipments & systems.
 Capacity building of state & municipal implementation agencies.
 Design manulas, software, training & technical support for Architects, Engineers
& code officials.

IMPLEMENTATION OF EE IN BUILDINGS – SOME EXAMPLES

Karnataka state government issued a notification on November 13, 2007 for efficient use of energy
and it’s conservation. The notificationhas made use of solar water heating systems mandatory for
industries, hospitals, nursing homes, including government hospitals, hotels, guest houses, jails,
cnteens, housing complexes / establishment by group housing societies, / boards residential buildings
on 600 sq. ft. loor area or site area of 1200 sq. ft. That comes within the limits of municipal committes
/ corporations, all government buildings, residential schools, universities, community centres,
marriage halls.
The departments of Urban Development, Public Works, Housing, Health & Family Welfare,
Agriculture & Horticulture have also been directed to amend their rules / by-laws within two months
and make the use of solar water heating systems mandatory.
The departments will have to designate a district and a state –level nodal officer to monitor and
report the progress of the enforcement to Karnataka Renewable Energy Development Ltd. (KREDL)
on a quarterly basis.
The notification has also made use of (Compact Fluoroscent lamps) CFL mandatory in the new
government buildings, government aided institutions /boards / corporations. In the existing buildings,
defective incandescent lamps should be replaced only by CFLs. The power utilities shall affect
necessary modficationsin the load demand notices within two months to promote the use of CFLs
instead of conventional bulbs while releasing / sanctioninf new connections / loads.
Even the use of ISI marked motor pumpsets, power capactors, foot / reflux valves in the agriculture
sector has been made mandatory. All the electricity supply companies and Karnataka Power
transmission Corporation Ltd. has been directed to make the amendments in the load demand
notices for tube well connections within two months.
In a move to promote energy efficient building design, all the buildings to be constructed in
government and govt. aided sector will have to incorporate energy efficient design concepts including
renewable energy technologies.
The Department of Public Works has been directed to examine the new buiding plans / drawings and
designate a nodal officer for co-ordinating and monitoring these measures.
(Excerpted from HINDU, Friday November 23, 2007)
This is very progressive step, indeed!!!
ENERGY EFFICIENT BUILDINGS
Buildings, as they are often designed and built today, contribute to serious environmental
problems. This is because energy-intensive methods are used to construct a building and
meet its demands for heating, cooling, ventilation, and lighting. These methods lead to
severe depletion of the precious environmental resources. However, buildings can be
designed in such a way that they meet the occupants’ needs for thermal and visual
comfort at reduced levels of energy and resources consumption. Adopting an integrated
approach to building design can bring about energy efficiency in new constructions.
The primary steps in this approach are listed below.
5) Incorporate solar passive techniques in building design to minimize load on
conventional systems (heating, cooling, ventilation, and lighting).
6) Design energy-efficient lighting and HVAC (heating, ventilation, and air-
conditioning) systems.
7) Use renewable energy systems (solar photovoltaic systems/solar water heating
systems) to meet a part of the building load.
8) Use low energy materials and methods of construction.
In brief, an energy-efficient building balances all aspects of energy use in a building –
lighting, space-conditioning, and ventilation – by providing an optimized mix of passive
solar design strategies, energy-efficient equipment, and renewable sources of energy.
Climate and architecture : India is divided into six climatic zones based on different
climatic conditions. Knowledge of climate at a given location can help in the design of
solar passive buildings that eliminate the adverse effects of climate, yet simultaneously
take advantage of effects that are beneficial. For instance, in a place like Mumbai, a
building can be designed in such a way that appropriate shading prevents solar radiation
and adequate ventilation reduces humidity. In a place like Shimla, where the climate is
cold and cloudy, a building can be designed to make maximum use of sunlight, and
thereby keep its interiors as warm as possible. The various climatic factors that affect the
solar passive design are listed below:
5) Wind velocity
6) Ambient temperature
7) Relative humidity
8) Solar radiation
Solar passive techniques: Various concepts and techniques are used to design energy-
efficient buildings. Some of these are described below.
Direct heat gain: The direct heat gain technique is generally used in cold climates. The
basic principle is that sunlight is admitted into the living spaces directly through openings
or glazed windows to heat walls, floors, and inside air. The glazed windows are generally
located facing south to receive maximum sunlight during winter. They are usually
double-glazed, with insulating curtains to reduce heat loss during the night. During the
day, heat is stored in walls and floors; it is released during the night to warm the interior.
Thermal storage walls: In this approach, a thermal storage wall is placed between the
living space and the glazing. This prevents solar radiation from directly entering the
living space. The radiation is absorbed by the storage wall, and then transferred into the
living space. Thermal storage walls include: Trombe walls, water walls, transwalls, etc.
Evaporative cooling: Evaporative cooling is a passive cooling technique, generally
employed in hot and dry climates. It works on the principle that when warm air is used to
evaporate water, the air itself becomes cool, and in turn cools the living space of a
building.
Passive desiccant cooling: Passive desiccant cooling method is effective in a warm and
humid climate. Natural cooling of the human body through sweating does not occur in
highly humid conditions. To decrease the humidity level of the surroundings, desiccant
salts or mechanical de-humidifiers are used.
Induced ventilation: Passive cooling by induced ventilation can be most effective in hot
and humid climates as well as in hot and dry climates. This method involves the heating
of air in a restricted area through solar radiation, thus creating a temperature difference
and causing air movements or drafts. The drafts cause hot air to rise and escape from the
interior, drawing in cooler air and thereby effecting cooling.
Earth berming: Earth-berming technique is used for both passive cooling and heating of
buildings. It is based on the fact that the earth acts like a massive heat sink. Thus,
underground or partially sunk buildings would provide both cooling in summer and
heating in winter to the living spaces within.
In addition to the above concepts, there are many other solar passive techniques such as
wind towers, earth air tunnels, curved roofs, and air vents, which can be incorporated
according to the requirements of the buildings. There are design features that enable
maximum use of daylight inside the building.
Advantages of solar passive buildings: With the incorporation of solar passive concepts
into a building, a large quantity of energy can be saved. Furthermore, these concepts help
in providing comfortable living conditions to the inhabitants in an eco-friendly manner.
However, they cannot totally eliminate the use of conventional energy for modern
facilities such as air conditioning.

Cost and payback period : The cost of a building may increase by

about 5%–15% because of incorporation of solar passive
concepts. However, the investment may be recovered within a
period of five to seven years due to savings in energy.
Financial support: As part of its national programme on solar thermal energy in the
country, the MNES provides financial support for construction of solar passive buildings
for government/semi-government organizations as well as for non-governmental
institutional buildings. The MNES provides up to Rs 1 lakh for the preparation of DPRs
(detailed project reports). It also provides a financial support of 10% of the total cost of
the building, subject to a maximum limit of Rs 10 lakhs. Financial assistance is also
provided for organization of seminars, workshops, and awareness programmes.
Potential for energy-efficient buildings: Every year, thousands of new buildings are
constructed in the country for use as residences, offices, hospitals, hotels, and commercial
centres. Hence, vast potential exists for construction of solar passive energy-efficient
buildings. Such buildings would help in reducing the requirement of conventional
electricity.
Success stories: A number of buildings incorporating solar passive architecture have
been constructed in the country. Some of them are listed below:
12) Solar Energy Centre, Gwal Pahari, Gurgaon
13) Office buildings for the Himachal Pradesh Energy Development Agency, Shimla
14) Buildings of the Himachal Pradesh State Cooperative Bank, Shimla, and the State
Bank of Patiala, Shimla
15) A hostel for trainees at Leh
16) Office building of the West Bengal Renewable Energy Development Agency,
Kolkata
17) Office-cum-laboratory building of the West Bengal Pollution Control Board,
Kolkata
 18) An audio-visual studio at the School of Energy and Environmental Studies, Devi
Ahilya Vishwavidyalaya, Indore
19) Punjab Energy Development Agency, Chandigarh
20) Centre for Wind Energy Technology, Chennai
21) Buildings of the Sardar Swaran Singh National Institute of
22) Renewable Energy, Kapurthala, Punjab (under construction)

Energy use in buildings is increasing rapidly. According to Construction Industry

Development Council (CIDC), in 2004-5 residential / commercial construction accounted
for 19.25 / 21.50 million square meters with a YOY growth of over 10%. Most
commercial construction is air – conditioned. Average use of energy in commercial
buildings is 200 kwh/sq mtr/year.

There are strong disincentives to energy efficiency in buildings as enumerated below:-

 Builders incur first costs of energy efficiency and users reap benefits.
 Higher costs of energy efficient products
 Lack of availability
 Lack of equipment testing & certification
 Lack of awareness, information & tools (energy expertise)
 Electricity rate structures / rural subsidies

Energy Conservation Building Code (ECBC) : ECBC is essential to ensure building

energy efficiencies. The Government has introduced Energy Conservation Codes for
commercial buildings. ECBC addresses local design conditions and building practices. It
lays emphasis on daylighting and natural ventilation. Extensive data collection was
carried out for construction types and materials, glass types, insulating materials, lighting
& HVAC equipments. Emphasis was laid on energy efficiency and lif-cycle cost analysis.

Initially, implementation of the codes will be voluntary but will be made mandatory soon
under the Energy Conservation Act 2001 for the buildings having connected load of 500
kw or more. The implementation of the codes will reduce energy consumption from 25%
to 40% and will yield annual saving of about 1.7 billion kwh units.
The codes sets a minimum efficiency standards for external wall, roof, glass structure,
lighting, heating, ventilation and air conditioning of the commercial buildings in all the
five climatic zones in the country. The State Government will have the flexibility to
amend these codes to suit local or regional needs and notify them accordingly.
Salient features of ECBC – 2007 are given below:-
Energy Conservation Building Code – 2007
1. PURPOSE. Purpose1. Purpose
The purpose of this code is to provide minimum requirements for the energy-efficient
design
and construction of buildings.
2. SCOPE
The code is mandatory for commercial buildings or building complexes that have a
connected load of 500 kW or greater or a contract demand of 600 kVA or greater. The
code is also applicable to all buildings with a conditioned floor area of 1,000 m2 or
greater.
The code applies to new constructions and additions to old buildings with above
parameters.
2.1 Applicable Building Systems
The provisions of this code apply to:
(a) Building envelopes, except for unconditioned storage spaces or warehouses,
(b) Mechanical systems and equipment, including heating, ventilating, and air
conditioning,
(c) Service hot water heating,
(d) Interior and exterior lighting, and
(e) Electrical power and motors.
2.2 Exemptions
The provisions of this code do not apply to:
(a) Buildings that do not use either electricity or fossil fuel,
(b) Equipment and portions of building systems that use energy primarily for
manufacturing processes, and
(c) Multi-family buildings of three or fewer stories above grade, and single-family
buildings.
2.3 Safety, Health and Environmental Codes Take Precedence
Where this code is found to conflict with safety, health, or environmental codes, the
safety,
health, or environmental codes shall take precedence.
3. ADMINISTRATION & ENFORCEMENT
Compliance with the requirements of this energy code shall be mandatory for all
applicable
Buildings.
3.1.2 New Buildings
New buildings shall comply with either the provisions of this code or the Energy Budget
Method.
3.1.3 Additions to Existing Buildings
Where the addition plus the existing building exceeds the conditioned floor area threshold
of
Clause 2 above, additions shall comply with the provisions.
4. BUILDING ENVELOPE
Fenestration : Mandatory requirements area specified for
 U-Factors
 Solar Heat Gain Coefficient (SHGC)
 Air Leakage

Opaque Construction
Building Envelope Sealing
The following areas of the enclosed building envelope shall be sealed, caulked, gasketed,
or
weather-stripped to minimize air leakage:
(a) Joints around fenestration and door frames,
(b) Openings between walls and foundations and between walls and roof and wall panels,
(c) Openings at penetrations of utility services through, roofs, walls, and floors
(d) Site-built fenestration and doors,
(e) Building assemblies used as ducts or plenums, and
(f) All other openings in the building envelope.
In addition, there are Prescriptive requirements for. roof, opaque walls, vertical
fenestration, skylight etc. are specified. There is a provision for Building Envelope Trade-
Off Option.

5. HEATING, VENTILATION & AIR CONDITIONING

 Natural Ventilation
Natural ventilation shall comply with the design guidelines provided for natural
ventilation in the National Building Code of India 2005 Part 8, 5.4.3 and 5.7.1.1

Minimum Equipment Efficiencies

Cooling equipment shall meet or exceed the minimum efficiency requirements presented
in
values given in Code. Heating and cooling equipment not listed here shall comply with
ASHRAE 90.1-2004 § 6.4.1.

Controls
All mechanical cooling and heating systems shall be controlled by a time clock.
All heating and cooling equipment shall be temperature controlled.
All cooling towers and closed circuit fluid coolers shall have either two speed motors,
pony motors, or variable speed drives controlling the fans.

Piping and Ductwork

Piping for heating systems with a design operating temperature of 60°C or greater shall
have specified insulation. Similarly, piping for cooling systems with a design operating
temperature less than 15°C (59°F), and refrigerant suction piping on split systems shall
have insulation. Insulation exposed to weather shall be protected by aluminum sheet
metal and painted or covered with canvas / plastic cover.

System Balancing
Both Air System and Hydraulic Systems shall be balanced in a manner to first minimize
throttling losses.

Condensers
Care shall be exercised in locating the condensers in such a manner that heat sink is free
of
interference from heat discharge by devices located in adjoining spaces and also does not
interfere with such other systems installed nearby.
All high-rise buildings using centralized cooling water system shall use soft water for the
condenser and chilled water system
Suitable Air / Water Economizers and Variable Flow Hydraulic Systems are also
prescribed.
6. SERVICE, HOT WATER & PUMPING

Solar Water Heating

Residential facilities, hotels and hospitals with a centralized system shall have solar water
heating for at least 1/5 of the design capacity.

Equipment Efficiency
Service water heating equipment shall meet or exceed the minimum efficiency
requirements as specified.

Supplementary Water Heating System

Supplementary heating system shall be designed to maximize the energy efficiency of the
system and shall incorporate the following design features in cascade:
(a) Maximum heat recovery from hot discharge system like condensers of A/C units,
(b) Use of gas fired heaters wherever gas is available, and
(c) Electric heater as last resort.

Piping Insulation
The entire hot water system including the storage tanks, pipelines shall be insulated
conforming to the relevant IS standards on materials and applications.

Heat Traps
Vertical pipe risers serving storage water heaters and storage tanks not having integral
heat
traps and serving a non-recirculating system shall have heat traps on both the inlet and
outlet piping as close as practical to the storage tank.

Swimming Pools
Heated pools shall be provided with a vapor retardant pool cover on or at the water
surface.

7. LIGHTING

The lighting requirements in this section shall apply to:

(a) Interior spaces of buildings,
(b) Exterior building features, including facades, illuminated roofs, architectural features,
entrances, exits, loading docks, and illuminated canopies, and,
(c) Exterior building grounds lighting that is provided through the building's electrical
service.

Lighting Control
Mandatory requirements are specified as below:-

Automatic Lighting Shutoff

Interior lighting systems in buildings larger than 500 m2 (5,000 ft²) shall be equipped
with an
automatic control device. Within these buildings, all office areas less than 30 m2 enclosed
by walls or ceiling-height partitions, all meeting and conference rooms, all school
classrooms, and all storage spaces shall be equipped with occupancy sensors. For other
spaces, this automatic control device shall function on either
(a) A scheduled basis at specific programmed times.
(b) Occupancy sensors that shall turn the lighting off within 30 minutes of an occupant
leaving the space.

Space Control
Each space enclosed by ceiling-height partitions shall have at least one control device to
independently control the general lighting within the space. Each control device shall be
activated either manually by an occupant or automatically by sensing an occupant.

Exit Signs
Internally-illuminated exit signs shall not exceed 5 W per face.

Exterior Building Grounds Lighting

Lighting for exterior building grounds luminaires which operate at greater than 100 W
shall
contain lamps having a minimum efficacy of 60 lm/W unless the luminaire is controlled
by a
motion sensor.
Interior Lighting Power
The installed interior lighting power for a building or a separately metered or permitted
portion of a building shall be calculated and shall not exceed the interior lighting power
allowance determined in accordance with either of following methods.
Building Area Method
Space Function Method
Exterior Lighting Power
For building exterior connected lighting power shall not exceed the specified lighting
power limits specified for each of these applications.

8. ELECTRIC POWER

Transformers
Power transformers of the proper ratings and design must be selected to satisfy the
minimum
acceptable efficiency at their full load rating. In addition, the transformer must be selected
such that it minimizes the total of its initial cost in addition to the present value of the cost
of
its total lost energy while serving its estimated loads during its respective life span.
Transformers used in buildings shall be constructed with high quality grain oriented low
loss
silicon steel and virgin electrolytic grade copper and the manufacturer’s certificate to this
effect shall be obtained.
Energy Efficient Motors
Motors shall comply with the following:
(a) All permanently wired polyphase motors of 0.375 kW or more serving the building
shall have a minimum acceptable nominal full load motor efficiency not less than that
specified in relevant BIS for energy efficient motors.
(b) Motor horsepower ratings shall not exceed 200% of the calculated maximum load
being served.
(c) Motor nameplates shall list the nominal full-load motor efficiencies and the full-load
power factor.
Power Factor Correction
All electricity supplies exceeding 100 A, 3 phase shall maintain their power factor
between
0.98 lag and unity at the point of connection.

Check-Metering and Monitoring

(a) Buildings whose maximum demand is greater than 250 kVA shall have the electrical
distribution system with their energy consumption being check-metered.
(b) Services exceeding 1000 kVA shall have permanently installed electrical metering to
record demand (kVA), energy (kWh), and total power factor. The metering shall also
display current (in each phase and the neutral), voltage (between phases and between each
phase and neutral), and total harmonic distortion (THD) as a percentage of total current.
(c) Services not exceeding 1000 kVA but over 65 kVA shall have permanently installed
electric metering to record demand (kW), energy (kWh), and total power factor (or
kVARh).
(d) Services not exceeding 65 kVA shall have permanently installed electrical metering to
record energy (kWh).

Power Distribution Systems

All the power junction boxes and main power distribution board and cable termination
points shall be provided with temperature monitoring mechanism comprising of sensors
in the enclosed chambers and properly visible temperature indicators outside. Record of
temperature during commissioning and subsequently on a daily basis shall be maintained.
The power cabling shall be adequately sized as to maintain the distribution losses not to
exceed 1% of the total power usage. Record of design calculation for the losses shall be
maintained.

IMPACT OF ECBC
 Market developments for EE products e.g. building insulations, energy efficient
windows (frames & glass), HVAC equipments, Solar water heaters.
 Improved design practices in lighting / day lighting, natural ventilation and
cooling systems
 Improved performance and power factor.
 Low lfe cycle cost

ECBC DEVELOPMENT : NEXT STEPS

 Testing & Certification systems for equipments & systems.
 Capacity building of state & municipal implementation agencies.
 Design manulas, software, training & technical support for Architects, Engineers
& code officials.

IMPLEMENTATION OF EE IN BUILDINGS – SOME EXAMPLES

Karnataka state government issued a notification on November 13, 2007 for efficient use of energy
and it’s conservation. The notificationhas made use of solar water heating systems mandatory for
industries, hospitals, nursing homes, including government hospitals, hotels, guest houses, jails,
cnteens, housing complexes / establishment by group housing societies, / boards residential buildings
on 600 sq. ft. loor area or site area of 1200 sq. ft. That comes within the limits of municipal committes
/ corporations, all government buildings, residential schools, universities, community centres,
marriage halls.
The departments of Urban Development, Public Works, Housing, Health & Family Welfare,
Agriculture & Horticulture have also been directed to amend their rules / by-laws within two months
and make the use of solar water heating systems mandatory.
The departments will have to designate a district and a state –level nodal officer to monitor and
report the progress of the enforcement to Karnataka Renewable Energy Development Ltd. (KREDL)
on a quarterly basis.
The notification has also made use of (Compact Fluoroscent lamps) CFL mandatory in the new
government buildings, government aided institutions /boards / corporations. In the existing buildings,
defective incandescent lamps should be replaced only by CFLs. The power utilities shall affect
necessary modficationsin the load demand notices within two months to promote the use of CFLs
instead of conventional bulbs while releasing / sanctioninf new connections / loads.
Even the use of ISI marked motor pumpsets, power capactors, foot / reflux valves in the agriculture
sector has been made mandatory. All the electricity supply companies and Karnataka Power
transmission Corporation Ltd. has been directed to make the amendments in the load demand
notices for tube well connections within two months.
In a move to promote energy efficient building design, all the buildings to be constructed in
government and govt. aided sector will have to incorporate energy efficient design concepts including
renewable energy technologies.
The Department of Public Works has been directed to examine the new buiding plans / drawings and
designate a nodal officer for co-ordinating and monitoring these measures.
(Excerpted from HINDU, Friday November 23, 2007)
This is very progressive step, indeed!!!

HARYANA MAKES SOLAR WATER HEATING

COMPULSORY
Solar water heating system would be mandatory for all residential, commercial, industrial,
and institutional buildings, made on 500-square-yard plot or above from 1 April 2007, in
the state of Haryana. Additional deputy commissioner T L Satyaprakash informed that the
buildings found violating the law after the prescribed deadline would be punished under
the Energy Conservation Act 2001. As per the gazette notification No. 22/52/2005-5P, the
Haryana government has made solar water heating system compulsory for industries,
hospitals, nursing homes, hotels, banquet halls, jail barrack, canteen, group housing
societies, academic institutions, tourism spots, and so on, constructed on plots measuring
500 square yard or above falling in municipal areas and different sectors, floated by
HUDA (Haryana Urban Development Authority).
To implement the scheme, the state government has directed the nationalized banks and other financial
institutional to provide loans to these establishments for installing solar water heating system in their
premises. Domestic consumers of DHBVNL (Dakshin Haryana Bijli Vitran Nigam Ltd) are also being
encouraged by providing them concessions for three years. The DHBVNL would rebate on domestic
electricity bill per month at the rate of Rs 100 for 100 LPD (litre per day), Rs 200 for 200 LPD, and Rs 300
for 300 LPD for three years from the date of installation of solar water heating system in their premises.
The state government took the initiative to save the electricity being used heavily for water heating system.
The Energy Conversation Act 2001 is an act to provide for efficient use of energy and its conservation.
Buildings, as they are designed today, contribute to serious energy and environmental
problems because of excessive consumption of resources: energy, water, and land.
Studies show that the residential and commercial sectors in India together account for
25% of the country’s total electricity consumption. Energy-efficient solar buildings are
the need of the hour and solar passive architecture needs to be integrated into the planning
and design process of all buildings, added an expert on solar energy.
THE TRIBUNE, 11 MARCH 2007

U.S. Treasury and IRS Provide Guidance on Energy Credit To Home Builders

(http://www.irs.gov/newsroom/article/0,,id=154658,00.html)

The Internal Revenue Service of united States has provided guidance regarding the
energy efficient homes credit available under the Energy Policy Act of 2005. Under the
new provision, an eligible contractor who constructs a qualified new energy efficient
home may qualify for a credit of up to $2,000. The credit is available for all new homes,
including manufactured homes constructed in accordance with the Federal Manufactured
Homes Construction and Safety Standards.
The home qualifies for the credit if:
 It is located in the United States;
 Its construction is substantially completed after August 8, 2005;
 It meets the statutory energy saving requirements, and
 It is acquired from the eligible contractor after December 31, 2005, and before January 1, 2008, for
use as a residence.
In general, to meet the energy saving requirements, a home must be certified to provide a
level of heating and cooling energy consumption that is at least 30 to 50 percent in the
case of manufactured homes, and 50 percent for other homes below that of a comparable
home constructed in accordance with the standards of the 2004 International Energy
Conservation Code. It must also have building envelope component improvements
providing a level of heating and cooling energy consumption that is at least 10 percent
below that of a comparable home.
Manufactured homes can also qualify for the credit by meeting Energy Star standards.
Site-built homes qualify for a $2,000 credit if they reduce energy consumption by 50
percent relative to the International Energy Conservation Code standard.
Manufactured homes qualify for a $1,000 or $2,000 credit depending on the level of
energy savings achieved. The guidance provides information about the certification
process that a builder must complete to qualify for the credit. The guidance also provides
for a public list of software programs that may be used in calculating energy consumption
for purposes of obtaining a certification.
Related links:
Notice 2006-27 provides guidances for the credit for building energy efficient homes
other than manufactured homes.
Notice 2006-28 provides guidance for the credit for building energy efficient
manufactured homes.

Chapter 7
Renewable Energy
Renewable Energy in India
Energy is a basic requirement for economic development. Every sector of Indian
economy – agriculture, industry, transport, commercial, and domestic – needs inputs of
energy. The economic development plans implemented since independence have
necessarily required increasing amounts of energy. As a result, consumption of energy in
all forms has been steadily rising all over the country.
This growing consumption of energy has also resulted in the country becoming
increasingly dependent on fossil fuels such as coal and oil and gas. Rising prices of oil
and gas and potential shortages in future lead to concerns about the security of energy
supply needed to sustain our economic growth. Increased use of fossil fuels also causes
environmental problems both locally and globally.
Against this background, the country urgently needs to develop a sustainable path of
energy development. Promotion of energy conservation and increased use of renewable
energy sources are the twin planks of a sustainable energy supply.
Fortunately, India is blessed with a variety of renewable energy sources, the main ones being biomass,
biogas, the sun, wind, and small hydro power. (Large hydro power is also renewable in nature, but has been
utilized all over the world for many decades, and is generally not included in the term ‘new and renewable
sources of energy’). Municipal and industrial wastes can also be useful sources of energy, but are basically
different forms of biomass. Advantages of renewable energy are that it is
 Perennial
  Available locally and does not need elaborate arrangements for transport
 Usually modular in nature, i.e. small-scale units and systems can be almost as
economical as large-scale ones
 Environment-friendly
 Well suited for decentralized applications and use in remote areas.
The Ministry of Non-Conventional Energy Sources has been implementing
comprehensive programmes for the development and utilization of various renewable
energy sources in the country. As a result of efforts made during the past quarter century,
a number of technologies and devices have been developed and have become
commercially available. These include biogas plants, improved wood stoves, solar water
heaters, solar cookers, solar lanterns, street lights, pumps, wind electric generators, water-
pumping wind mills, biomass gasifiers, and small hydro-electric generators. Energy
technologies for the future such as hydrogen, fuel cells, and bio-fuels are being actively
developed.
India is implementing one of the world’s largest programmes in renewable energy. The
country ranks second in the world in biogas utilization and fifth in wind power and
photovoltaic production. Renewable sources already contribute to about 5% of the total
power generating capacity in the country. The major renewable energy sources and
devices in use in India are listed in Table 1 along with their potential and present status in
terms of the number of installations or total capacity.

Table –1

Renewable energy in India at a glance

Source/System Estimated potential Cumulative
installed
capacity /
number*

Wind Power 45000 MW 3595 MW

Biomass Power 16000 MW 302.53 MW
Bagasse cogeneration 3500 MW 447 MW
Small Hydro (up to 25 MW) 15000 MW 1705.63 MW
Waste to energy
 Municipal solid Waste 1700 MW 17 MW
 Industrial Waste 1000 MW 29.50 MW
Family-size biogas plants 12 million 3.71 million
Improved chulhas 120 million 35.20 million
Solar street lighting systems
Home lighting systems
Solar lanterns
Solar photovoltaic power plants
Solar water heating systems
Box-type solar cookers
Solar photovoltaic pumps
Wind Pumps
Biomass gasifiers
* as on 31 March 2005
- 54795
- 342607
- 560295
- 1566 kWp
140 million sq. mtrs. 1 million sq. mtrs.
of collector area of collector area
- 575000
- 6818
- 1087
- 66.35 MW

National Electricity Policy 2005

The National Electricity Policy aims at achieving the following objectives.

1) Access to Electricity – available for all households in the next five years.
2) Availability of Power – demand to be fully met by 2012. Energy and peaking
shortages to be overcome and spinning reserve to be available.
3) Supply of reliable and quality power of specified standards in an efficient manner
and at reasonable rates.
4) Per capita availability of electricity to be increased to over 1000 units by 2012.
5) Minimum lifeline consumption of 1 unit/household/day as a merit good by 2012.
6) Financial turnaround and commercial viability of electricity sector.
7) Protection of consumers’ interests.

The Electricity Act 2003

The Electricity Act contains the following provisions pertaining to non conventional
energy sources.

Sections 3(1) and 3(2)

Under Sections 3(1) and 3(2), it has been stated that the Central Government shall, from
time to time, prepare and publish the National Electricity Policy and Tariff Policy, in
consultation with the state governments and authority for development of the power
system based on optimal utilization of resources such as coal, natural gas, nuclear
substances or material, hydro and renewable sources of energy.

Section 4
Section 4 states that the Central Government shall, after consultation with the state
governments, prepare and notify a national policy, permitting stand-alone systems
(including those based on renewable sources of energy and other non-conventional
sources of energy) for rural areas.

Section 61
Section 61, 61(h) and 61(i) state that the appropriate commission shall, subject to the
provision of this Act, specify the terms and conditions for the determination of tariff, and
in doing so, shall be guided by the following, namely, the promotion of cogeneration and
generation of electricity from renewable sources of energy; and the National Electricity
Policy and Tariff Policy.

Section 86(1)
Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following
functions, namely, promote cogeneration and generation of electricity from renewable
sources of energy by providing, suitable measures for connectivity with the grid and sale
of electricity to any person, and also specify, for purchase of electricity from such
sources, a percentage of the total consumption of electricity in the area of a distribution
license.

‘Energy is an important input for economic development. Since exhaustible energy

sources in the country are limited, there is an urgent need to focus attention on
development of renewable energy sources and use of energy efficient technologies. The
exploitation and development of various forms of energy and making energy available at
affordable rates is one of our major thrust areas.’

Dr Manmohan Singh Prime Minister of India

‘Today India is one of the few leading countries in the development and utilization of
renewable energy. The country is blessed with various sources of non-conventional
energy and I hope the efforts of Ministry of Non-Conventional Energy Sources will
promote viable technologies that can reach the benefits of such sources to the poorest
people in the far-flung regions of the country.’
Smt. Sonia Gandhi Chairperson, National Advisory Council

1. BIOGAS
Biogas represents an alternative source of energy, derived mainly from organic wastes. In
India, the use of biogas derived from animal waste, primarily cow dung, has been
Promoted for over three decades now.
According to the 1997 Livestock Census, the cattle population in the country is about
290 million. The estimated potential of household biogas plants based on animal waste in
India is 12 million. Till December 2004, under the National Biogas Programme, over 3.7
million biogas plants in the capacity of 1–6 m3 had been installed. Larger units have also
been set up in many villages, farms, and cattle houses. The estimated biogas production
from these plants is over 3.5 million m3 per day, which is equivalent to a daily supply of
about 2.2 million m3 of natural gas.
These plants usually provide gas for cooking and lighting, the latter through specially
designed mantles. By replacing up to 75% of the diesel in dual-fuel engines with biogas,
mechanical and electrical power is also generated. Efforts are now under way to introduce
small capacity engines to efficiently generate electricity from biogas in a decentralized
mode. Standardized models of biogas plants – suitable for individual households and
institutions/communities – are thus available.
Along with development of plants and related infrastructure, a large pool of skilled
manpower has been trained and deployed for plant construction and maintenance. The
technology involved – anaerobic digestion – has been successfully extended to treat
industrial and urban wastes on a large scale. This holds potential as a solution to
numerous environmental problems, including waste and manure handling, water
pollution, and carbon dioxide emission.

Biogas Technology
Biogas is a clean fuel produced through anaerobic digestion of a variety of organic
wastes: animal, agricultural, domestic, and industrial.
Anaerobic digestion comprises three steps.
1) Decomposition (hydrolysis) of plant or animal matter to break down complex
organic materials into simple organic substances
2) Conversion of decomposed matter into organic acids
3) Conversion of acids into methane gas
As the process temperature affects the rate of digestion, it should be maintained in the
mesophilic range (30 °C–40 °C) with an optimum of 35 °C. It is also possible to operate
plants in the thermophilic range (55 °C–65 °C) under controlled conditions. Apart from
temperature, the rate of biogas production also depends on factors such as the carbon :
nitrogen ratio, hydraulic retention time, solid concentration, and types of feedstock.
Biogas consists of methane, carbon dioxide, and traces of other gases such as hydrogen,
carbon monoxide, nitrogen, oxygen, and hydrogen sulphide. The gas mixture is saturated
with water vapor and may contain dust particles. The relative percentages of these gases
depend on the quality of feed material and the process conditions. The percentage of
methane in the gas determines its calorific value as the other constituents do not
contribute to the energy content. The methane content of biogas is appreciably high, at
60%. This provides a calorific value high enough to find use in many energy applications,
including power generation. Table 2 provides a comparison of the calorific values of
various fuels.

Table 2
Comparison of the calorific values of various fuels
Fuel Calorific value (approximate)

Natural gas 8600 kcal per m3

Liquefied petroleum gas 10 800 kcal per kg

Kerosene 10 300 kcal per kg

Diesel 10 700 kcal per kg

Biogas 5000 kcal per m3

Applications: Cooking Biogas can be used for cooking in a specially designed burner. A
biogas plant of 2 m3 capacity is sufficient for providing cooking fuel to a family of four
to five.
 Lighting Gas lamps can be fuelled by biogas. To power a 100 candle lamp (60 W),
the biogas required is 0.13 m3 per hour.
 Power generation Biogas can be used to operate a dual-fuel engine and can
replace up to 75% of the diesel.

Biogas Digested Slurry: The use of biogas digested slurry as organic manure can
supplement the usage of chemical fertilizers. The effluent manure does not produce
any odour and hence does not create any pollution. The biogas slurry is rich in nitrogen,
the essential nutrient for plant growth. Moreover, this nitrogen is in water-soluble form
and can be easily absorbed by the plants.
The biogas slurry can also be mixed with biomass and composted. The slurry being full of
bacteria (which can break down vegetable matter) makes excellent composting material.
When a large mass of biomass waste with high carbon : nitrogen ratio is available, the
slurry helps stimulate decomposition by acting as a nitrogen primer. Earthworms could
either be cultured in dry sludge or in a compost pit.

Benefits: Provides a non-polluting and renewable source of energy

 Efficient way of energy conversion (saves fuel wood)
 Saves women and children from drudgery of collection and carrying of firewood,
exposure to smoke in the kitchen, and time consumed for cooking and cleaning of
utensils
 Produces enriched organic manure, which can supplement chemical fertilizers
 Leads to improvement in the environment, and sanitation and hygiene
 Provides a source for decentralized power generation
 Leads to employment generation in the rural areas

Cost-effectiveness: The lifespan of a biogas plant is estimated to be over 15 years.

However, taking into account the utilization pattern, socio-economic aspects, and climatic
factors, the practical average life of family-type biogas plants installed in the country may
be estimated at about 10 years. Based on a life-cycle analysis, the cost estimated for
generation of 1 m3 biogas from a family type biogas plant is Rs 3. A comparison of cost
with diesel and kerosene based on energy value shows that biogas is cost-effective.
It is estimated that the construction of 1 million biogas plants generates about 30 million
man-days of employment for skilled and unskilled workers and 1.2 million tonnes of
organic manure per year. Anaerobic digestion of cow dung and effective utilization of
biogas also substantially contribute to the abatement of greenhouse gas emissions.

Strategy for Promoting the Technology: The MNRE provides central financial
assistance for construction and maintenance of biogas plants, development of skilled
manpower, training for use and maintenance, awareness creation, and support to
implementing agencies and technical centers for implementation of the programme.
2. BIOMASS

Introduction
Biomass has been one of the main energy sources for the mankind ever since the dawn of
civilization, although its importance dwindled after the expansion in use of oil and coal in
the late 19th century. There has been a resurgence of interest in the recent years in
biomass energy in many countries considering the benefits it offers. It is renewable,
widely available, and carbon-neutral and has the potential to provide significant
productive employment in the rural areas.
Biomass is also capable of providing firm energy. Estimates have indicated that 15%–
50% of the world’s primary energy use could come from biomass by the year 2050.
Currently, about 11% of the world’s primary energy is estimated to be met with biomass.
For India, biomass has always been an important energy source. Although the energy
scenario in India today indicates a growing dependence on the conventional forms of
energy, about 32% of the total primary energy use in the country is still derived from
biomass and more than 70% of the country’s population depends upon it for its energy
needs. Biomass power generation in India is an industry that attracts investments of over
Rs 600 crores every year, generating more than 5000 million units of electricity and
yearly employment of more than 10 million man-days in the rural areas. The three main
technologies being promoted by the MNES for productive utilization of biomass are:-
1) Bagasse-based cogeneration in sugar mills,
2) Biomass power generation,
3) Biomass gasification for thermal and electrical applications.
1. Bagasse-based Cogeneration
Technology: In simple terms, cogeneration is the process of using a single fuel to
produce more than one form of energy in sequence. Cogeneration of steam and electricity
can significantly increase the overall efficiencies of fuel utilization in process industries.
A minimum condition for cogeneration is the simultaneous requirement of heat and
electricity in a favourable ratio, which is well fulfilled in the sugar industry. The
thermodynamics of electricity production necessitates the rejection of a large quantity of
heat to a lower temperature sink. In normal electricity generation plants, this heat
rejection takes place in condensers where up to 70% of heat in steam is rejected to the
atmosphere. In cogeneration mode, however, this heat is not wasted and is instead used to
meet process heating requirement. The overall efficiency of fuel utilization can thus be
increased to 60% or even higher in some cases. Capacity of cogeneration projects can
range from a few kilowatts to several megawatts of electricity generation a long with
simultaneous production of heat ranging from less than a hundred kWth (kilowatts
thermal) to many MWth (megawatts thermal).
Cogeneration in sugar industry: The sugar industry across the world has traditionally
used bagasse-based cogeneration for achieving self-sufficiency in steam and electricity as
well as economy in operations. In India, almost all sugar mills have been practising some
form of cogeneration. This is true even for mills that were set up 70–80 years ago.
Technologies are now available for high-temperature/high-pressure steam generation
using bagasse as a fuel. These technologies make it possible for sugar mills to operate at
higher levels of energy efficiency and generate more electricity than what they require.
For example, when steam generation temperature/pressure is increased from 400 ºC/32
bar to 485 ºC/66 bar, more than 80 kWh (kilowatt-hour) of additional electricity can be
generated from each tonne of cane crushed.
Revenues from sale of surplus electricity can go a long way in improving the viability of
sugar mills. It has been estimated that ‘optimum cogeneration’ can result in an additional
net value addition of Rs 70–100 per tonne of cane crushed at current typical electricity
sale prices.
The MNES has been promoting bagasse-based cogeneration in sugar mills through policy
support and financial incentives/subsidies for over a decade now. The capital costs of
installed bagasse-based cogeneration projects in sugar mills are known to range between
Rs 3 crores/MW and Rs 4 crores/MW. It has been seen that for a typical sugar mill having
an average crushing season of 160 days, investments for additional power generation
through cogeneration will turn out to be beneficial in the long term.
The potential for cogeneration projects is estimated at 3500 MW of additional power
generation from the country’s existing functional sugar mills.
Achievements:- India, today, is perhaps the world leader in the implementation of
modern cogeneration projects in sugar mills. The achievements merit attention not only
because of the additional grid-connected power generation capacity but also because of
the large number of sugar mills, which have implemented these projects. This is
noteworthy because of the diverse nature of operating conditions across these mills. An
additional power generation capacity of 447 MW has been commissioned in 58 sugar
mills as of March 2005. A further capacity addition of about 313 MW in 34 sugar mills is
reported to be under implementation.
The technology for bagasse-based cogeneration has become fairly well established in the
country. The main equipment required for these projects comprise high-pressure bagasse-
fired boilers, steam turbines, and grid-inter-phasing system. All these equipment are
manufactured indigenously. An extremely competent and experienced group of technical
professionals capable of providing comprehensive project and operational services has
also been developed in the country to support bagasse-based cogeneration projects.
Financial incentives:- The present levels of interest subsidy offered by the MNES for
various categories of bagasse-based cogeneration projects are detailed in he MNES
website <www.mnes.nic.in>.
Sale of electricity:- Almost all major sugar-producing states have announced policies in
support of cogeneration in sugar mills. Support to these projects by state governments
includes purchase of additional electricity at attractive rates through long-term power
purchase agreements (PPAs), facilities for wheeling and banking in many states, prompt
payments for purchased electricity, etc.
Case study : A progressive sugar mill in Uttar Pradesh, crushing 11 000 tonnes of cane
per day, has deployed state-of-the-art, 87 bar/525 ºC steam configuration to cogenerate
over 18 MW of surplus electricity. The technology used is totally indigenous. Biogas
generated in its distillery is also used as supplementary fuel. In addition, rice husk and
bagasse procured from an adjoining sugar mill are also used to extend the power
generation period. The cost of the project was about Rs 50 crores, and interest subsidy
was provided by the MNES on the term loan provided by ICICI. The project is expected
to supply over 70 million units of electricity to the state grid every year and provide direct
employment to about 70 persons.
2. Biomass-based Power Generation
India produces a huge quantity of biomass material in its agricultural, agro-industrial, and
forestry operations. According to some estimates, over 500 million tonnes of agricultural
and agro-industrial residue alone is generated every year. This quantity, in terms of heat
content, is equivalent to about 175 Mtoe. A portion of these materials is used for fodder
and fuel in the rural economy. However, studies have indicated that at least 150–200
Mtoe of this biomass material does not find much productive use, and can be made
available for alternative uses at an economical cost. These materials include a variety of
husks and straws. This quantity of biomass is sufficient to generate 15 000–25 000 MW
of electrical power at typically prevalent plant load factors. In addition, electricity can
also be generated from biomass grown on wastelands, road and rail trackside plantations,
etc. The quantum of electricity that can be produced from such biomass has been
estimated to be in excess of 70 000 MW. Thus, the total electricity generation potential
from biomass could reach a figure of about 100 000 MW.
The technology for generation of electricity from these biomass materials is similar to the
conventional coal-based thermal power generation. The biomass is burnt in boilers to
generate steam, which drives a turbo alternator for generation of electricity.
Advantages
 These projects can be designed to match the electric loads as biomass can be
stored and used according to demand.
 Equipment for these projects is similar to that for coal-based thermal power
projects and hence, no new technological developments are required.
 Due to their proximity to the rural areas, these projects are likely to improve
quality of electricity supply there.
 A variety of biomass materials can be used in the same plant, providing flexibility
of operations.
The technology for use of biomass for power generation is fairly well established in the
country. The equipment required for these projects comprises mainly of boilers, turbines,
and grid inter-phasing systems. Recent innovations include the use of air-cooled
condensers to reduce consumptive use of water. All these items of equipment are
available indigenously. Typical capital costs for biomass power projects range from Rs 3
crores/MW to Rs 4 crores/MW. Costs of generation depend upon the cost of biomass, the
plant load factor, and the efficiencies of conversion.
Achievements:- A power-generation capacity of about 302 MW has been commissioned
through 54 projects, as on March 2005. A further capacity addition of
about 270 MW through 39 projects is reported to be under implementation. The biomass
materials that have been used for power generation in these projects include rice husk,
cotton stalk, mustard stalk, Prosopis juliflora (Vilayati babul), poultry litter, bagasse,
cane trash, etc.
Case study:- A power project in Karnataka utilizes a mix of agricultural wastes such
as rice husk, groundnut shell, coconut fronds/waste cotton stalks, bark and roots of trees,
cane trash, arecanut shells, etc., as fuel to generate about 20 MW electricity and sell it to
the grid. The project has minimized its use of water by resorting to air-cooled condensers.
The loans for the project were financed by the PFC and the State Bank of India. The
project has generated direct employment opportunities for about 70 persons and indirect
employment for over 800 persons.
3. Biomass Gasification for Thermal and Electrical Applications
Biomass gasification is thermo-chemical conversion of solid biomass into a combustible
gas mixture (producer gas) through a partial combustion route with air supply restricted to
less than that theoretically required for full combustion. Typical composition of Producer
Gas is as follows:-
Carbon monoxide - 18%–20%
Hydrogen - 15%–20%
Methane - 1%–5%
Carbon dioxide - 9%–12%
Nitrogen - 45%–55%
Calorific value - 1000–1200 kcal/m3

Why gasify biomass?

 Producer gas can be used as a fuel in place of diesel in suitably designed/adopted
internal combustion (IC) engines coupled with generators for electricity
generation.
 Producer gas can replace conventional forms of energy such as oil in many
heating applications in the industry.
 The gasification process renders use of biomass relatively clean and acceptable in
environmental terms.
 Large monetary savings can accrue through even partial substitution of diesel in
existing diesel generator (DG) sets.
Most commonly available gasifiers use wood/woody biomass; some can use rice husk as
well. Many other non-woody biomass materials can also be gasified, although gasifiers
have to be specially designed to suit these materials and the biomass may have to be
compacted in many cases. Gasifiers can be of ‘updraft’ or ‘downdraft’ types. The
working of biomass gasification systems can be explained by considering a typical
downdraft gasifier. In this type of gasifier, fuel and air move in a co-current manner. In
updraft gasifiers, on the other hand, fuel and air move in counter-current manner.
However, the basic reaction zones remain the same. Fuel is loaded into the reactor from
the top. As the fuel moves down, it is subjected to drying and pyrolysis. Air is injected
into the reactor in the oxidation zone, and through the partial combustion of pyrolysis
products and solid biomass, the temperature rises to 1100 °C. This helps in breaking
down heavier hydrocarbons and tars. As these products move downwards, they enter the
reduction zone where producer gas is formed by the action of carbon dioxide and water
vapour on red-hot charcoal. The hot and dirty gas is passed through a system of coolers,
cleaners, and filters before it is sent to engines.
The clean producer gas can be used for electrical power generation, either through dual-
fuel IC engines (where diesel oil is replaced to an extent of 60%–80%), or through 100%
gas-fired spark ignition engines. The producer gas can also be used for heating
applications to replace conventional forms of energy in many applications. Such heating
applications may include small boilers, furnaces, hot air generators, dryers, etc.
Biomass gasifier-based systems are being made in capacities ranging from a few
kilowatts to a megawatt of electricity equivalent. For heating applications, the current
upper limit on the unit size is equivalent to 200–300 kg/h of oil consumption.
Costs
The typical costs of biomass gasifier-based electricity generation systems range from Rs 4
crores/MWe to Rs 4.5 crores/MWe. The cost of power generation depends on cost of
biomass, plant load factor, etc., and is estimated to be between Rs 2.50/kWh and Rs
3.50/kWh. For thermal applications, the capital costs are estimated to be about Rs 0.5–0.7
crores for each 1 million kcal capacity.
Achievements: The biomass gasifier-based thermal and electricity generation
applications are at a ‘take off ’ stage in the country. The MNES has so far provided partial
financial support for installation of about 1900 biomass gasification systems in the
country. Many systems have also been installed without support by the MNES, reflecting
the improving commercial viability of the technology, especially in niche applications.
A few megawatt-scale projects have also been planned by independent power producers,
and are likely to come on line in the coming years.

Case studies:-
1 Ceramics is an industry sector where biomass gasifiers have been very successfully
used. The production of ceramic ware requires that raw items be baked for a pre-specified
period at a temperature of 900–1300 oC. Typically, this is carried out in tunnel kilns,
which operate almost continuously for 365 days a year. Oil or other suitable fuels are
fired into the kilns to raise temperature. Typically, kerosene, diesel or LPG are used as
fuels. These can be replaced by producer gas generated in biomass gasification systems.
The typical oil consumption of ceramic factories is 2000–3000 litres/day. After
installation of biomass gasifiers, oil consumption could be reduced to less than 30%,
resulting in huge money savings to the users. It is estimated that ceramic industry
consumes 0.3–0.5 million tones of oil per year. Seventy per cent savings on this figure
would imply savings of 0.20–0.35 million tonnes of oil. About 100 ceramic factories out
of the estimated 500 are reported to have switched over to biomass gasifiers.
2 An independent power producer has set up the single largest capacity, fixed-bed
biomass gasifier-based electricity generation system of 1 MW in grid-connected mode.
The project is located near Coimbatore in Tamil Nadu and uses coconut shells or other
types of wood for electricity generation. The system uses two gasifiers of 750 kg/h
biomass gasification capacity each and five engines of 250 kW nominal capacity each.
The engines are suitable for 100% producer gas operation. Air-cooled radiators have been
used in the installation to reduce use of water. This 100% producer gas engines are
operating successfully. The project has utilized indigenously developed state-of-the-art
technology with fully automatic controls and auxiliary systems.
3 Odanthurai is a remote village of Block Karamadai in Coimbatore, Tamil Nadu, having
135 houses with 540 inhabitants. The electricity supply system of Odanthurai was most
unreliable due to its topographical and isolated location. To provide a reliable drinking
water supply system and provide lighting facilities for community uses, the District Rural
Development Agency, Coimbatore, installed a 9-kWe biomass gasifier project coupled
with 100% producer gas engines. The system selected was most appropriate for operation
by local persons. The project cost was Rs 5.90 lakhs. The biomass requirement of 100%
producer gas engine system is about 1.5–1.6 kg/kWh. If the installed system operates for
12 hours, biomass requirement would be about 150 kg per day. Thus, annually, there
would be a requirement of about 60 tonnes of biomass. As Odanthurai has a large number
of coconut trees and plenty of other biomass, the supply of the required quantity is not a
problem. Every unit of electricity generated is likely to cost about Rs 2.42. It is expected
that revenue generation from water supply and illumination will more than compensate
the power generation cost.
3.0 SOLAR HEATING SYSTEMS
 Solar Thermal Energy
India lies in the sunny regions of the world. Most parts of India receive 4–7 kilowatt
hours of solar radiation per square metre per day with 250–300 sunny days in a year. The
highest annual radiation energy is received in western Rajasthan while the north-eastern
region of the country receives the lowest annual radiation.
Solar energy, experienced by us as heat and light, can be used through two routes: the
thermal route uses the heat for water heating, cooking, drying, water purification, power
generation, and other applications; the photovoltaic route converts the light in solar
energy into electricity, which can then be used for a number of purposes such as lighting,
pumping, communications, and power supply in unelectrified areas.
Energy from the sun has many features, which make it an attractive and sustainable
option: global distribution, pollution-free nature, and the virtually inexhaustible supply.
Energy in the form of heat (thermal energy) is required for many purposes in the
domestic, agricultural, industrial, and commercial sectors of the economy. Solar thermal
energy can meet many of these needs in a cost-effective and reliable manner. A solar
thermal system basically absorbs the heat in solar energy and transfers it to a medium
such as water or air. When used for purposes such as heating of water, cooking, drying of
various commodities and products, and distillation of water, solar thermal systems can
partially or fully replace the conventional fuels such as coal, oil, and electricity. Solar
thermal technology has a tremendous potential for saving conventional energy in India.

Solar Water Heating Systems

A solar water heating system is a device that uses solar energy to heat water for domestic,
commercial, and industrial needs. Heating of water is the most common application of
solar energy in the world. The smallest solar water heater available has a capacity of 100
litres per day, which is sufficient for a family of four or five members. It costs Rs 15 000
to Rs 18 000, and can save about 1500 units of electricity per year. So far, about 1 million
square metres of collector area has been installed in the country.
Domestic solar water heating system: Most domestic solar water heaters are provided
with electrical back-up. Electrical heating elements are usually placed in the storage tank
and can be switched on during cloudy days. In some cases, the solar-heated water is led
into an existing electric geyser; the geyser needs to be switched on only in cloudy
conditions. Most domestic systems are in the capacity range of 100– 500 litres of hot
water per day.
Advantages of solar water heaters
 Hot water is available 24 hours a day depending on the use and system capacity.
 A solar water heater pays back its cost in 3–4 years.
 Solar water heaters last a long time (15–20 years) and require only simple
maintenance.
Soft loan scheme on solar water heaters: A soft loan scheme has been introduced by the
MNES. The MNES offers interest subsidy through IREDA and banks. Soft loans are
available at an interest rate of 5% for non-commercial users and 7% for commercial
organizations. These loans are available for up to 85% of the cost of the system, and can
be repaid over five years. Some manufacturers act as intermediaries of the Indian
Renewable Energy Development Agency (IREDA) and offer similar financing
arrangements. IREDA provides loans of up to 80% of the system cost, to be repaid over
six years including one year of moratorium. Latest information may be obtained from the
MNES website <www.mnes.nic.in>.

Solar Cooking
Cooking is a common application of solar energy in India. A variety of solar cookers are available to suit
different requirements. The MNES has been implementing a programme for promoting the use of solar
cooking in the country for over two decades. The programme also supports the development and
demonstration of new types of cooking
systems.
Advantages of solar cooking
 Solar cooking involves no recurring expenses on fuel. If used regularly, a solar
cooker can save three or four LPG cylinders per year.
 It saves time. You are free to do other things while food cooks in the solar cooker.
 There is no fear of scorching the food.
 Solar cooking is a slow process, and hence ensures better and more nutritious
cooked food.
 It does not pollute the environment, and conserves conventional energy.
  Solar cookers are durable and simple to use.
Box solar cooker: A box solar cooker cooks food with the help of solar energy, and
helps save conventional fuels. It supplements cooking fuel but does not replace it totally.
It is an ideal device for domestic cooking during most of the year except on cloudy days.
This cooker can be used for the preparation of rice, dal, kadhi, vegetables, meat and fish
dishes, snacks, soups, sweets, desserts, sauces, jams, pickles, biscuits, cakes, puddings,
etc. However, it cannot be used for frying or for making chapatis. The cost of a box solar
cooker varies from Rs 1200 to Rs 2500 depending on its size and features. A normal-size
box cooker is sufficient for a family of four or five members. It has a life of 10–12 years.
Its payback period is 2–3 years depending upon the extent of use and place of use.

Dish solar cooker: A dish solar cooker uses a parabolic dish to concentrate the incident
solar radiation and is useful for homes and small establishments. The cooker can deliver
power of about 0.6 kW, which can boil two to three liters of water in half-an hour.
The temperature achieved at the bottom of the vessel could reach 350–400 °C, which is
sufficient for roasting, frying, and boiling. This cooker can meet the needs of about 15
people, and can be used for eight to nine hours during the day. The cost of a dish solar
cooker may vary from Rs 4300 to Rs 5000 depending on the type of reflector and
supporting structure.
The dish solar cooker can save up to 10 liquefied petroleum gas (LPG) cylinders per year
upon full use at small establishments. Its payback period ranges from 2–3 years,
depending on the extent of its use and the place of use. The life of this cooker is estimated
at about 20 years for the metallic structure. However, the reflecting sheets may have to be
replaced once in five years due to degradation in their reflectivity. At present, the
MNES provides an incentive of up to 50% of the cost of the cooker to encourage its use.
Community solar cooker for indoor cooking: Like the dish solar cooker, the
community solar cooker too is a parabolic reflector cooker. The unique feature of this
cooker is that it makes possible to cook using solar energy within the kitchen itself. The
cooker has a large reflector ranging from 7 to 12 m2 of aperture area. The cooker is
provided with a mechanical clockwork arrangement that rotates the primary reflector
outside to automatically track the sun This reflector is placed outside the kitchen so that it
reflects solar rays into the kitchen through an opening in its north wall. A secondary
reflector further concentrates the rays on to the bottom of the pot/frying pan (painted
black to absorb maximum heat). The temperature attained is so high (up to 400 °C) that
the food can be cooked quickly. Thus, the community solar cooker works like a
conventional cooking device, with the difference that instead of using a conventional fuel
like gas or firewood, it uses solar energy inside the kitchen. Cooking for about 40–50
persons is possible with this cooker. The cooker works nicely in areas where solar
radiation is good during most part of the year. In such areas, it is possible to cook two
meals a day with this cooker. Due to the high temperature attained with this cooker, it is
suitable for making almost all traditional dishes, including chapatis, purees, dosas, etc.
When not in use for cooking, the cooker can be used to heat/boil water.The community
solar cooker can be useful to schools, institutional kitchens, canteens, religious ashrams,
hotels, hospitals, police and armed forces’ kitchens, etc. The cost of this cooker is about
Rs 50 000. The payback period is 4–5 years.

Solar steam generating system for cooking : It is possible to cook large quantities of
food using the steam generated by solar heat. A solar steam generating system comprises
automatically tracked parabolic concentrators, steam header assemblies with receivers,
steam pipelines, feed water piping, steel structures and civil works, instrumentation like
pressure gauges and temperature indicators, steam separators, steam traps, etc. The
system is generally hooked up with a conventional steam generating system already
available with the user, to make it reliable under all climatic conditions.
The world’s largest solar steam generating system for cooking has been installed by the
Tirumala Tirupathi Devasthanam (TTD), at Tirumala, Andhra Pradesh, under a
demonstration scheme of the MNES. The steam thus generated is used for cooking
purposes in the TTD kitchen. The system can supply enough steam to prepare food for 15
000 people each day. Smaller systems of this type have been installed at Mount Abu,
Shirdi, Hubli, Gurgaon, and other places.
Support from MNES: The MNES provides financial support to users of solar cookers,
as listed below.

Type of solar cooker Support to users (Rs)

Dish solar cooker 50% of total cost, limited to

Rs 2500 per cooker

Community solar cooker for indoor 50% of eligible capital cost, limited to
cooking Rs 25 000 per cooker

Steam cooking systems 50% of eligible capital cost, as agreed

upon by the MNES
Note This support is subject to change.

Solar Drying Systems

Many agricultural and industrial products need drying in order to reduce their moisture content as part of
processing or for preservation. While open sun drying may be the most inexpensive and extensively used
option for many of the products, the process is unhygienic and time-consuming. One option is to use a
conventional fuel such as biomass, oil, or electricity for drying applications. However, such fuels are
expensive, and their use causes pollution. With the rising costs of conventional fuels and increasing
awareness of the dangers of pollution, solar dryers are becoming a technically and economically viable
option in many industrial and agricultural applications.
Solar energy can be used to heat air to temperatures needed for most of the drying
applications. Solar dryers use air heated through solar energy collectors, which can be
installed in modules according to the requirements of hot air. Drying is basically a heat
and mass transfer process: moisture from the surface and inside of the product is
vaporized, and the vapour is removed by flowing hot air.
Important factors affecting the drying process are listed below.
 Relative humidity and temperature of air
 Airflow rate
 Initial moisture content of the product
 Final desired moisture content of the product
Uses : Solar dryers can be utilized for various domestic purposes. They also find
numerous applications in industries such as textiles, wood, fruit and food processing,
paper, pharmaceutical, and agro-industries.

Advantages
 Solar dryers are more economical compared to dryers that run on conventional
fuels/electricity.
  The drying process is completed in the most hygienic and eco friendly way.
 Solar drying systems have low operation and maintenance costs.
 Solar dryers last longer. A typical dryer can last 15–20 years with minimum
maintenance.

Limitations
 Drying can be performed only during sunny days, unless the system is integrated
with a conventional energy-based system.
 Due to limitations in solar energy collection, the solar drying process is slow in
comparison with dryers that use conventional fuels.
 Normally, solar dryers can be utilized only for drying at 40–50 ºC.
Cost: The cost of a solar dryer of 50-kg capacity ranges from about Rs 30 000 to Rs
50000. Larger industrial-scale systems may cost between Rs 4 lakhs and Rs 10 lakhs.
Subsidies. The MNES is implementing a national programme on solar thermal energy,
which provides interest subsidy in the form of soft loans available through IREDA and
banks. The MNES also provides capital subsidy of up to 50% of the project cost for a
specific demonstration project that is based on new technology and or is located in a new
area. There are a few manufacturers in India who are capable of supplying solar dryers for
specific purposes and in specific sizes. Larger systems for industrial establishment have
to be designed and installed on a project-by-project basis.
Potential for solar dryers: There is vast potential for solar dryers in the country: for
drying agro products and also for use in the fruit and food processing industries. Solar
drying systems can also be installed for drying a variety of industrial products such as
chemicals, leather, salt, plywood, and textiles.
Success stories
Solar drying systems have been installed in many places in the country.
Listed below are some locations where the systems are being used.
Produce / material being dried Location
Fruits and vegetables Sham Fruits and Vegetable Growers Co-
operative Marketing Society Ltd, Nimoo (30
km from Leh), J & K

Clothes Apollo KH Hospital, Ranipet, TN

Tea Parkside Tea Factory, Coonoor, TN
Tea Glendale Tea Factory, Coonoor, TN
Spices Eastern Condiments (P) Ltd, Theni, TN
Coriander Shakti Masala (P) Ltd, Erode, TN
Fish District Fisheries Youth Welfare
Association, Visakhapatnam, AP
Leather M A Khizar Hussain & Sons, Ranipet, TN
Dal (gram) Dal Mills at Theni, TN
Salt Sahayamatha Refinery, Tuticorin, TN

4. SOLAR PHOTO VOLTAIC ELECTRICICY

Solar Photo voltaics: Solar photovoltaics (SPV) is the process of converting solar
radiation (sunlight) into electricity using a device called solar cell. A solar cell is
a semi-conducting device made of silicon or other materials, which, when exposed to
sunlight, generates electricity. The magnitude of the electric current generated depends on
the intensity of the solar radiation, exposed area of the solar cell, the type of material used
in fabricating the solar cell, and ambient temperature. Solar cells are connected in series
and parallel combinations to form modules that provide the required power.
Crystalline solar cells: Most solar cells are made of a single crystal or multi-crystalline
silicon material. Silicon ingots are made by the process of crystal growth, or by casting in
specially designed furnaces. The ingots are then sliced into thin wafers. Single crystal
wafers are usually of 125 × 125 mm or larger sizes with ‘pseudo-square’ shape; multi-
crystalline wafers are typically square-shaped with a dimension of 100 × 100 mm or
larger. Using high temperature diffusion furnaces, ‘impurities’ like boron or phosphorous
are introduced into the silicon wafers to form a p–n junction. The silicon wafers are thus
converted into solar cells. When exposed to sunlight, a current is generated in each cell.
Contacts are attached to the top and bottom of each solar cell to enable inter-connections
and drawing of the current.
Thin-film solar cells: Thin-film solar cells are made from amorphous silicon (a-Si),
copper indium selenide/cadmium sulphide (CuInSe2/CdS) or cadmium telluride/cadmium
sulphide (CdTe/CdS), by using thin-film deposition techniques. These technologies are at
various stages of development and have not yet reached the maturity of crystalline silicon.
Production of thin-film PV modules is also limited.
PV module: PV modules are usually made from strings of crystalline silicon solar cells.
These cells are made of extremely thin silicon wafers (about 300 micron) and hence are
extremely fragile. To protect the cells from damage, a string of cells is hermetically
sealed between a layer of toughened glass and layers of ethyl vinyl acetate (EVA). An
insulating tedlar sheet is placed beneath the EVA layers to give further protection to the
cell string. An outer frame is attached to give strength to the module and to enable easy
mounting on structures. A terminal box is attached to the back of a module; here, the two
ends (positive and negative) of the solar string are welded or soldered to the terminals.
This entire assembly constitutes a PV module. When the PV module is in use, the
terminals are connected either directly to a load, or to another module to form an array.
Single PV modules of capacities ranging from 10 Wp to 120 Wp can provide power for
different loads. For large power applications, a PV array consisting of a number of
modules connected in parallel and/or series is used.
The wattage output of a PV module is rated in terms of peak watt (Wp) units. The peak
watt output power from a module is defined as the maximum power output that the
module could deliver under standard test conditions (STC). The STC conditions used in a
laboratory are
 1000 watts per square metre solar radiation intensity
 Air-mass 1.5 reference spectral distribution
 25 °C ambient temperature.
SPV modules of various capacities are available, and are being used for a variety of
applications. Theoretically, a PV module of any capacity (voltage and current) rating can
be fabricated. However, the standard capacities available in the country range from 5 Wp
to 120 Wp. The voltage output of a PV module depends on the number of solar cells
connected in series inside the module. In India, a crystalline silicon module generally
contains 36 solar cells connected in series.
The module provides a usable direct current (DC) voltage of about 16.5 V, which is
normally used to charge a 12-V battery. In an SPV system, the components other than the
PV module are collectively known as ‘balance of system’ (BoS), which includes batteries
for storage of electricity, electronic charge controller, inverter, etc. These batteries are
charged during the daytime using the DC power generated by the SPV module. The
battery/battery bank supplies power to loads during the night or non-sunny hours. An
inverter is required to convert the DC power from the PV module or battery to AC power
for operating the load. Some loads such as DC pumps do not require an inverter or even a
battery bank.
Testing and Certification of SPV: The Ministry of Non-Conventional Energy Sources
MNES) has established facilities for testing of solar cells, PV modules, and systems at its
Solar Energy Centre (SEC) in Gurgaon, Haryana. Apart from the SEC, some facilities for
the testing of PV modules and SPV-based lighting systems are available at the Electronic
Testing and Development Laboratory (ETDC), Bangalore; the Electronics Regional
Testing Laboratory (ERTL-East), Kolkata; and the Central Power Research Institute
(CPRI), Thiruvananthapuram. While the ETDC has facilities to test PV modules, the
ERTL-East and the CPRI are mainly meant to test SPV-based lighting systems. The
Ministry provides design/performance guidelines for SPV systems being promoted under
its programmes. The test centres carry out tests on a sample SPV system and provide a
test report on its performance based on the specifications laid down by the Ministry. India
has currently about 14 PV companies that manufacture PV modules, and over 45
companies that manufacture SPV systems. Manufacturers have to get their samples tested
either by the SEC or by other test centres mentioned above for supply under the
Ministry’s schemes.
Advantages of SPV Systems: The major advantages of using SPV systems are as follows.
 Abundant solar radiation is available in most parts of India. Hence, SPV systems
can be used anywhere in the country.
 SPV systems are modular in nature. Hence, they can be expanded as desired and
used for small and large applications.
 There are no running costs associated with SPV systems, as solar radiation is free.
 Electricity is generated by solar cells without noise.
 PV systems have no moving parts. Hence, they suffer no wear and tear.
 As most of the components of SPV systems are pre-fabricated, these systems can
be installed quickly. Hence, PV projects have short gestation periods.
 SPV modules have long-life, and require no maintenance. Only BoS components
such as batteries and inverters require minor maintenance.
SPV Lighting Systems: SPV lighting systems are becoming popular in both the rural and
urban areas of the country. In rural areas, SPV lighting systems are being used in the form
of portable lanterns, home-lighting systems with one or more fixed lamps, and street-
lighting systems. Applications in urban areas include glow-sign display systems on the
streets, traffic signalling, message display systems ased on light-emitting diodes (LEDs),
and systems to illuminate advertisement hoardings.
Solar lantern: The solar lantern is a portable lighting system. Being light in weight, it is
easy to carry around and therefore ideal for both indoor and outdoor usage. A typical
solar lantern consists of a PV module of 8 Wp to 10 Wp capacity, a sealed maintenance-
free battery of 12 V, 7 AH (ampere hours) capacity, and a compact fluorescent lamp
(CFL) of 5 W or 7 W rating. A solar lantern is usually meant to provide light for three to
four hours daily, and designed to have a three-day ‘autonomy’, that is, to function in this
manner for three days without sunlight.
Solar home system: A solar home system (SHS) provides a comfortable level of
illumination in one or more rooms of a house. There are several SHS models featuring
one, two, or four CFLs. It is also possible to run a small DC fan or a 12-V DC television
with the system. The SHS consists of a PV module of 18, 37 or 74 Wp capacity; a sealed,
maintenance-free, or flooded lead–acid battery of 12 V and 20, 40 or 75 AH capacity; and
CFLs of 9 W or 11 W rating. The system is designed to provide service for three to four
hours daily, with an autonomy of three days, that is, the system can function for three
cloudy days.
The cost of an SHS depends on the load to be supported, the capacity of the PV modules used to
meet the load requirement, and the capacity of the battery to meet the required autonomy. The
indicative costs of five different SHS models are listed below.
Model I (one 9 W CFL) : Rs 6000
Model II (two 9 W CFLs) : Rs 10000
Model III (one 9 W CFL and one fan) : Rs 11000
Model IV (two 9 W CFLs and a fan/TV) : Rs 18500
Model V (four 9 W CFLs) : Rs 17500
The cost of the fan/TV is not included in the above costs.
Solar street lighting system: A solar street-lighting system (SLS) is an outdoor lighting
unit used to illuminate a street or an open area usually in villages. A CFL is fixed inside a
luminaries which is mounted on a pole. The PV module is placed at the top of the pole,
and a battery is placed in a box at the base of the pole. The module is mounted facing
south, so that it receives solar radiation throughout the day, without any shadow falling on
it. A typical street-lighting system consists of a PV module of 74 Wp capacity, a flooded
lead–acid battery of 12 V, 75 AH capacity, and a CFL of 11 W rating. This system is
designed to operate from dusk to dawn (that is, throughout the night). The CFL
automatically lights up when the surroundings become dark and switches off around
sunrise time. The cost of an SLS is about Rs 19 000. The Ministry provides financial
assistance for the promotion of some of the above solar lighting systems among eligible
categories of users.
Solar-powered traffic signal systems: Conventional signal systems to control and
regulate traffic are based on incandescent lamps, and are powered by the normal city
supply. Failures in power supply often lead to chaos at traffic junctions. These
conventional systems can be replaced by solar-powered traffic signaling systems, which
use LEDs and work without interruption during power failures. Switching to solar-
powered systems would help conserve large amounts of conventional electrical power.
Besides consuming much less power, LED-based lights last much longer than
conventional filament-based lamps. Hence, routine maintenance costs would be reduced.
The design of these systems depends on the number of lights to be operated at a junction.
A PV array of about 1 kWp capacity would be required for a four-road junction, along
with an appropriately sized battery bank based on the site conditions. This system does
not require an inverter. In case of need, the system can also work with conventional grid
supply. The system has programmable logic controllers for setting parameters such as
through time, peak time, on/off time, etc. Its features include ‘auto’, ‘on/off ’, and ‘blink’.
The cost of a solar-powered lighting system depends on its components, including PV
array, battery bank, and electronic controller. For a four-road junction, the cost would be
about Rs 6.40 lakhs. Such systems are presently being used in Bangalore, Delhi, and other
major cities in the country.
SPV-based information display systems: LED-based information display systems,
powered by SPV, are now being installed at road junctions, on the roofs of prominent
buildings, and other places. These systems vary in size, and display useful information
pertaining to population, road safety, AIDS, ambient conditions, etc. Such systems are
slowly replacing traditional neon tube-based systems; the latter are not only expensive,
but also consume much more energy. Such SPV-powered display systems can be installed
in urban areas and along highways. Depending on their levels of power consumption,
SPV information display systems are provided electricity by stand-alone SPV power
plants. For a typical LED information system of size about 1 × 2 m and consuming about
300 watts of energy, an SPV module of about 2 kWp capacity is required to enable it to
operate all through the night. The battery bank size would depend on the desired
autonomy, and on the number of hours of operation required. The cost of such a system
depends on the sizes of the SPV array and battery bank. These, in turn, depend on the
power requirement of the display board. For a 300-watt system requiring 15 hours of
operation, the approximate cost can be about Rs 7 lakhs.
SPV power plants: In an SPV power plant, electricity is centrally generated. This
electricity is either made available to users through a local grid in a ‘stand-alone’ mode,
or connected to the conventional power grid in a ‘grid-interactive’ mode. Stand-alone
power plants provide grid-quality power locally to people to meet their requirements for
lighting and other needs. Power plants are preferred over individual SPV systems if a
number of users are in close proximity. The cost of power may be of the order of Rs 15
per kWh for a grid-interactive power plant and higher for stand-alone power plant.
Stand-alone SPV power plant: A stand-alone SPV power plant is typically designed for
specific requirements. The capacity of a stand-alone power plant varies from 1 kWp to 25
kWp, and in some cases even higher. These systems are used where conventional grid
supply is not available, or is erratic or irregular. A stand-alone power plant functions like
an uninterrupted power supply system (UPS) and provides a constant, stable, and reliable
supply to the loads. These power plants can also be used in areas where grid supply is
available; in such places the power plants operate like a hybrid power plant, working with
grid, as well as with SPV. The capacity of its battery bank depends on user requirements.
The most common use for such plants is the electrification of remote villages. Other uses
include power for hospitals, hotels, communications equipment, railway stations, border
outposts, etc., Stand-alone SPV power plants comprise PV array, battery bank, inverter,
and charge controller. Depending on the system voltage, SPV modules are arranged in
series and parallel combinations. The standard combinations are 2, 4, 6, 10, 20 or more
modules. The corresponding system voltages are in the range of 24 to 240 V. The size of
the battery bank is determined by the system voltage and ampere-hour requirements of
the load. The inverter is selected based on the system voltage and peak-load capacities.
Other components such as junction boxes, distribution boxes, and cables are selected
according to the maximum amount of current to be handled by them. The cost of a stand-
alone power plant depends on the PV array size, battery bank capacity, inverter, etc. The
approximate cost of a standalone power plant is between Rs 3.00 lakhs and Rs 3.50 lakhs
per kW of PV capacity. Distribution costs (such as in a village) may be extra.
Solar Generators: A solar generator is a small capacity, stand-alone SPV power system
based on a PV array, connected to a battery bank and an inverter of appropriate size. This
system is designed to supply power to limited loads (such as lights and fans) for a period
of two to three hours daily in situations such as conventional power failure or load-
shedding. The MNES currently promotes four models of solar generators, with capacities
of 150, 350, 450, and 600 Wp. These solar generators are mainly meant to replace the
conventional small-capacity petrol-based generators that are used during routine load-
shedding periods in urban areas by shops, clinics, and other small establishments. The
components of a typical solar generator are a small SPV array connected to a battery bank
of appropriate size and an inverter based on 12, 24, or 48 V. The system is designed to
supply power to loads such as lights, fans, credit-card operating machines, and personal
computers for a period of two to three hours. The cost of the four solar generator models
promoted by the MNES varies from Rs 35 000 to Rs 145 000.
Building-integrated PV Systems: In a building-integrated photovoltaic (BIPV) system,
PV panels are integrated into the roof or façade of a building. BIPV systems are
becoming common in Europe, the USA, and Japan. The SPV panels generate electricity
during the daytime, which is used to meet a part of the electrical energy needs of the
building. BIPV systems have significant potential in India, where a large number of
buildings are constructed every year for different purposes, and where energy
consumption in buildings is growing at a rapid rate. Although the initial costs of a BIPV
system are high, long-term savings result from a reduction in electricity consumption.
India needs more experience in the field of BIPV technology. In order to encourage this
application and to prepare manufacturers and users, the Ministry supports BIPV projects
by meeting 80% of the cost of PV modules installed in the systems on government and
semi government buildings.
SPV Pumping System: Water pumping is one of the most important applications of PV
in India. An SPV water pump is a DC or AC, surface-mounted or submersible or floating
pump that runs on power from an SPV array. The array is mounted on a suitable structure
and placed in a shadow free open space with its modules facing south and inclined at
local latitude. A typical SPV water-pumping system consists of an SPV array of 200–
3000 Wp capacity, mounted on a tracking/non-tracking type of structure. The array is
connected to a DC or AC pump of matching capacity that can be of surface mounted ,
submersible, or floating type. Interconnecting cables and electronics make up the rest of
the system. SPV water pumps are used to draw water for irrigation as well as for drinking.
The normal pumping heads are in the range of 10 meters (m) for irrigation, and 30 m for
drinking water. It is possible to use pumps with even greater head, especially for drinking
water supply. The SPV array converts sunlight into electricity and delivers it to run the
motor and pump up water. The water can be stored in tanks for use during non-sunny
hours, if necessary. For maximum power output from the SPV array, the structure on
which it is mounted should track the sun. Electronic devices are used to do this in some
models, thereby enabling the systems to operate at maximum power output. The power
from the SPV array is directly delivered to the pump in the case of DC pumps. In the case
of AC pumps, however, an inverter is used to convert the DC output of the array into AC.
No storage batteries are used in an SPV pump.
An SPV pump based on a one-horsepower motor can irrigate about 1–1.5 hectares of land
under a variety of crops except paddy and sugar cane (assuming a 10-m water table).
Using the same pump along with drip irrigation, it is possible to irrigate up to 6 hectares
of land for certain crops. A two-horsepower SPV pump could irrigate about 2–3 hectares
of land under many crops except paddy and sugar cane (again assuming a 10-m water
table). The cost of an SPV pump depends on the capacity and type of pump. For example,
a DC surface pump with a 900 W array may cost about Rs 150 000; a similar pump of
1800 W may cost about Rs 300 000; and an 1800 W AC submersible pump may cost
about Rs 422 000.

5.0 ENERGY RECOVERY FROM WASTES

Rapid urbanization, industrialization, and changes in the pattern of civic life have resulted
in the generation of enormous quantities of wastes in the urban and industrial areas of the
country. Each year, about 30 million tonnes of municipal solid waste (MSW) and about
4400 million cubic meters of liquid waste are generated. These estimates are based on a
structured database prepared for 299 Class I cities and 36 Class II cities as part of a study
titled the ‘National Master Plan for Development of Waste to Energy in India’. This
exercise was taken up as part of a project assisted by the United Nations Development
Programme (UNDP) and the Global Environment Facility (GEF) titled ‘Development of
High Rate Bio-methanation Processes as Means of Reducing Greenhouse Gases
Emission’. The study concluded that 17 cities (that is, 6% of those studied) generate
wastes in excess of 1000 tonnes per day (TPD), and 80 cities (26% of those studied)
generate 150 to 1000 TPD. The remaining 202 cities (68%) individually generate less
than 150 TPD. The MSW generation ranges from 0.25 to 0.75 kg/day per capita with an
average of 0.45 kg/day per capita. In addition, large quantities of solid and liquid wastes
are generated by the industry.
Most wastes that are generated find their way into land and water bodies without proper
treatment, causing severe water pollution. They also emit greenhouse gases like methane
and carbon dioxide, and add to air pollution. The problems caused by solid and liquid
wastes can be significantly mitigated through the adoption of environment-friendly waste-
to-energy technologies that will allow treatment and processing of wastes before their
disposal. These measures would reduce the quantity of wastes, generate a substantial
quantity of energy from them, and greatly reduce pollution of water and air. Various
technological options are available for setting up of waste-to-energy projects. Some of
these are described below.
Anaerobic digestion/biomethanation: In this process, the organic fraction of the waste
is segregated and fed into a closed container (biogas digester). In the digester, the
segregated waste undergoes biodegradation in presence of methanogenic bacteria and
under anaerobic conditions, producing methane-rich biogas and effluent. The biogas can
be used either for cooking/heating applications, or for generating motive power or
electricity through dual-fuel or gas engines, low-pressure gas turbines, or steam turbines.
The sludge from anaerobic digestion, after stabilization, can be used as a soil conditioner.
It can even be sold as manure depending upon its composition, which is determined
mainly by the composition of the input waste.
Combustion/incineration: In this process, wastes are directly burned in presence of
excess air (oxygen) at high temperatures (about 800 ºC), liberating heat energy, inert
gases, and ash. The net energy yield depends upon the density and composition of waste;
the percentage of moisture and inert materials in it (which add to the heat loss); ignition
temperature; size and shape of its constituent materials, etc. Combustion results in
transfer of 65%–80% of heat content of the organic matter to hot air, steam, and hot
water. The steam generated, in turn, can be used in steam turbines to generate power.
Pyrolysis/gasification: Pyrolysis is a process of chemical decomposition of organic
matter brought about by heat. In this process, the organic material is heated in absence of
air until the molecules thermally break down to become a gas comprising smaller
molecules (known collectively as syngas).
Gasification can also take place as a result of partial combustion of organic matter in
presence of a restricted quantity of oxygen or air. The gas so produced is known as
producer gas. The gases produced by pyrolysis mainly comprise carbon monoxide (25%),
hydrogen and hydrocarbons (15%), and carbon dioxide and nitrogen (60%). The next step
is to ‘clean’ the syngas or producer gas. Thereafter, the gas is burned in internal
combustion (IC) engine generator sets or turbines to produce electricity.
Landfill gas recovery: The waste dumped in a landfill becomes subjected, over a period
of time, to anaerobic conditions. As a result, its organic fraction slowly volatilizes and
decomposes, leading to production of ‘landfill gas’, which contains a high percentage of
methane (about 50%). Typically, production of landfill gas starts within a few months of
disposal of wastes, and generally continues for 10 years or even more, depending mainly
upon the composition of wastes and availability of moisture. As the gas has a calorific
value of about 4500 kcal/m3, it can be used as a source of energy either for direct
heating/cooking applications or to generate power through IC engines or turbines.
Plasma arc: Plasma arc technology is a relatively new technology for disposal of wastes,
particularly, hazardous and radioactive wastes. This technology is now being seen as an
attractive option for disposal of MSW as well. Besides generating energy, plasma arc
technology ensures the near complete destruction of waste. Therefore, it has an edge over
the combustion processes described earlier. The major advantages of plasma arc
technology are listed below.
 Compared to combustion/incineration technology, it creates much less
atmospheric pollution.
 In techno-economic terms, oxides of nitrogen and sulphur are not emitted during
normal operations because the system works in absence of oxygen.
 Toxic materials become encapsulated and are therefore much safer to handle than
the toxic ash left by combustion/gasifier processes.
Despite these advantages, however, plasma arc technology is costly, and has not been
tried in India.
Advantages of Waste-to-energy Projects: The major advantages of setting up waste-to-
energy projects are listed below.
 The quantity of wastes is reduced by nearly 60%–90%, depending upon the waste
composition and technology adopted.
 With less wastes to dispose of, the demand for landfills is reduced, thereby saving
land, which is already scarce in cities.
 Cost of transportation of wastes to far-away landfill sites is reduced.
 Environmental pollution is reduced.
 Energy is obtained from the waste.
 The slurry produced by biomethanation technology serves as a good fertilizer.
Limitations: Waste-to-energy is a new concept in India. The technologies, particularly
for biomethanation of urban waste, are usually imported; thus, the projects are generally
costly. Treatment of urban wastes for energy recovery requires MSW to be properly
segregated. However, segregated MSW is generally not available at the plant site, and this
hinders the setting up of waste-to-energy plants.
Cost: The approximate costs per MW for waste-to-energy projects based on different
technologies are indicated below.
Technology Cost/MW (Rs in crores)
Biomethanation
• Industrial waste 6–7
• Urban waste 8-9

Gasification/pyrolysis 8–9

Combustion/incineration 6–7
Financial Support: The scheme for providing financial support for waste-to-energy
projects is presently under review and accelerated programme on energy recovery from
municipal and industrial wastes is being developed for providing a major fillip to this
sector.
Implementation: Waste-to-energy projects can be set up by municipal corporations,
other urban local bodies, government institutions, and private developers having technical
and managerial capabilities for implementing such projects on the basis of Build, Own,
and Operate (BOO); Build, Own, Operate, and Transfer (BOOT); Build, Operate, and
Transfer (BOT); and Build, Operate, Lease, and Transfer (BOLT). The proposals are to
be sent to the MNES after completing all tie-ups for waste procurement, sale and
evacuation of power, pollution control, etc. In cases where debt financing is involved,
IREDA, other financial institutions, and commercial banks are required to forward
proposals along with their Appraisal Note. An advance copy of the proposal may be sent
to the MNES.
Potential: There exists a potential for generating an estimated 1700 MW of power from
the urban and municipal wastes, and about 1000 MW from industrial wastes in the
country. The potential is likely to increase further with economic development.
Achievements: A total of 27 waste-to-energy projects have been completed as on
31 March 2005 in India, with an aggregated installed capacity of 45.50 MW. Four
projects of 4.5-MW capacity are under implementation.
A few completed projects are described below.
Projects based on Urban Waste: Three projects based on MSW have been executed so
far: one of 5 MW at Lucknow, and two of 6 MW each at Hyderabad and Vijayawada.
6-MW MSW-based power project at Hyderabad: This project has been executed by
SELCO International Ltd, Hyderabad, by availing a soft loan from the Technology
Development Board (TDB), the Department of Science and Technology (DST), and the
Indian Renewable Energy Development Agency (IREDA). The plant is based on
combustion technology. MSW is first converted into ‘fluff ’ or into pellets of refuse-
derived fuel (RDF). The MSW fluff and RDF pellets are then directly burnt in the boiler
to generate steam, which, in turn, runs a steam turbine. The calorific value of the RDF
ranges from 3000 to 3500 kcal/kg. The plant is based on indigenous technology, and its
cost is about Rs 40 crores. It was commissioned in November 2003 and has generated 35
million units of electricity till January 2005. The project has been completed in two
phases: one for preparation of pellets from MSW and the other for power generation from
MSW pellets/fluff.
6-MW MSW-based power project at Vijayawada: This project has been executed by
Shriram Energy Systems, Hyderabad, and is based on combustion of MSW in the form of
fluff. It has been supported by the TDB and IREDA in terms of soft loans. The total cost
of the project is about Rs 45 crores, and it was commissioned in December 2003. A total
of 500 tonnes of MSW is being collected each day from Vijayawada and Guntur cities.
The MSW is processed for preparation of fluff at various sites, and then transported to the
plant site at Vijayawada. The plant is reportedly operating at full capacity. It has
generated 28 million units of electricity till January 2005, of which 12.34 million units
were exported to the grid.
5-MW MSW-based power project at Lucknow: This project has been executed by Asia
Bio-energy Pvt. Ltd, Chennai, on BOOM (build, own, operate, and maintenance) basis. It
is based on high-rate biomethanation technology, developed and commercialized by
ENTEC Environment Technology, Austria.
The major components of the plant are (a) segregation system, (b) biomethanation unit,
(c) biogas storage, (d) power generation, and (e) organic fertilizer production unit. It has
been designed to process 500–600 tonnes of MSW per day from Lucknow city. This
MSW is converted into about 115 tonnes of dry volatile solids, which produce 50 000 m3
of biogas per day along with about 75 tonnes of organic fertilizer (from biogas digester
slurry). The biogas produced is fed into five 100% biogas engines to generate 5 MW of
grid-quality power. The plant was commissioned for commercial operation in December
2003, and it reached a maximum limit of 1 MW. The major problem it faced in achieving
its designed capacity of power generation was the non-availability of segregated and
source-collected biodegradable MSW at the plant site. Efforts are being made by the
promoters and the Lucknow Nagar Nigam to provide this. The cost of the project is about
Rs 74 crores.
Demonstration Projects:A few demonstration projects on urban wastes have been taken
up by the MNES under the UNDP/GEF assisted project mentioned earlier.
Three such projects are described below.
1-MW power project based on cattle manure at Haebowal Dairy Complex, Ludhiana: The
Haebowal Dairy Complex in Ludhiana, spread over an area of over 20 hectares, has 1490
dairies with an animal population of 150 000. The complex generates about 2250 tonnes of
animal droppings each day. The project, which has been implemented at a cost of about Rs
13.60 crores, will use about 235 tonnes of animal waste each day to produce about 10 000 m3
of biogas, which, in turn, will be burnt to generate 0.965 MW of electrical energy. The
surplus energy after meeting the in-house power requirement will be fed to the state
electricity grid. Besides electrical energy, the project will also produce about 50 tonnes of
stabilized organic manure per day. The plant has been commissioned in December 2004.
The plant is based on biogas-induced mixing arrangement (BIMA) technology, developed
and commercialized by ENTEC Environment Technology, Austria. The Punjab Energy
Development Agency (PEDA) owns the plant and the Indian Institute of Technology,
Roorkee, monitors the performance of the plant.
0.15-MW power project utilizing vegetable market and slaughterhouse wastes at Vijayawada:
This plant is based on biomethanation of 20 tonnes per day of mixed wastes (that is, 16
tonnes of vegetable market waste and 4 tonnes of slaughterhouse waste) generated by the
Vijayawada Municipal Corporation (VMC). Sewage from the nearby treatment plant too is
being used for dilution of the mixed waste in the plant. The plant is owned by the VMC. It
was commissioned in June 2004, and is expected to generate about 1600 m3 of biogas along
with 5 tonnes of organic manure per day after complete stabilization of operations. The
biogas produced is being used in a 145-kW biogas engine for generation of electricity, which
the VMC proposes to feed into the state electricity grid. The VMC is monitoring the
performance of the plant.
0.5-MW power project based on biogas produced from sewage treatment plant at
Anjana, Surat: The Anjana sewage treatment plant (STP) at Surat has three sludge
digesters with a total capacity of 82.50 million litres per day (MLD) and generate about
2500 m3 of biogas per day from each digester. The biogas is fed into a hydrogen sulphide
(H2S) scrubber system, which removes any H2S in the gas before it is passed into a 100%
biogas engine to convert it into electricity. The electricity thus produced meets the power
requirement of the STP, thus saving electricity worth about Rs 10 lakhs per month. The
plant was commissioned in December 2003.
Projects based on Industrial Wastes Distillery waste: Kanoria Chemicals and
Industries Ltd, Ankleshwar, Gujarat, produces about 21 000 m3 of biogas per day from
biogas plants based on distillery waste water (spent wash). Since 1998–99, the biogas has
been utilized for generation of power required for the company’s captive use. The project
is based on two IC engines, each of 1 MW capacity, fuelled solely by biogas. The waste
heat of the fuel gases from the engines, at atemperature of more than 500 ºC, is utilized to
generate about 1.5 tonnes of steam per hour at about 130 ºC. The steam is used for
meeting process heat requirements of the factory. The project has been performing
satisfactorily for the past five years, and has been generating about 1 million units of
electricity every month amounting to a saving of Rs 40 lakhs per month. The pay-back
period works out to about three years.
Pulp and paper mill black liquor waste: The pulp and paper industry is highly
polluting, and consumes a large amount of energy and water in its various unit operations.
The waste water discharged by the industry is highly heterogeneous: it contains
compounds from wood or other raw materials, process chemicals, as well as compounds
formed during processing. A demonstration plant for biomethanation of bagasse wash
effluent for recovery of energy has been installed at Tamil Nadu Newsprint and Papers
Ltd, Karur, Tamil Nadu. Presently, about 12 000 m3 of gas is generated everyday. The
gas is being used in the line-mud re-burning kiln. With the current level of gas output
from the plant, 50% of the heat load of the kiln is met, which is approximately equivalent
to 12–13 kilolitres of furnace oil.
The biomethanation plant also yields indirect benefits like savings in electricity and
chemicals that would have been required for the treatment of waste water through the
conventional process.
Starch and glucose industry waste: A 4-MW-capacity power plant based on starch
industry solid waste has been installed at Vensa Biotech Ltd, Samalkot, Andhra Pradesh.
This firm processes about 63 000 tonnes of maize and 30 000 tonnes of tapioca per year
for manufacturing of liquid glucose and starch. The power plant is based on the starch
industry waste such as tapioca fibre, maize husk, and tapioca stems. The waste generated
after extracting starch and other by-products has very high calorific value, and can be
directly burnt in a boiler to generate steam. The steam thus generated is fed into a steam
turbine to generate power. The plant has been functioning satisfactorily since December
2003 and the power generated is being exported to the grid.
Slaughterhouse waste: Biogas plants have been installed for treating both solid and
liquid wastes generated from the slaughterhouse of Alkabeer Exports Ltd at Rudraram
village in Medak district of Andhra Pradesh. While about 1300 m3 of biogas is generated
from liquid wastes each day, about 2500 m3 of biogas is generated from solid wastes.
Adoption of biomethanation technology has resulted in saving of furnace oil as well as
chemicals used for treatment of waste water. Sludge from the anaerobic digester is dried
and marketed as a nutrient-rich soil conditioner. The biogas plants have resulted in a total
saving of Rs 6 lakhs per month.

6.0 WIND ENERGY

Wind energy has been utilized by mankind for sailing, grinding, and other mechanical
applications for centuries. In the recent past, wind energy has emerged as a viable
renewable energy option with increased application in water pumping, battery charging,
and large power generation. It is environmentally benign and does not emit greenhouse
gases (GHG). Generation of electricity has emerged as the most important application of
wind energy world-wide. Wind energy is the fastest growing renewable energy source but
accounts for only 0.03% of total energy supply. 69% of world total wind energy
installed capacity is located in Western Europe.
The concept is simple: flowing wind rotates the blades of a turbine, and causes electricity
to be produced in generator unit. The blades and generator (housed in a unit called
‘nacelle’) are mounted at the top of a tower. Wind turbines generally have three rotor
blades, which rotate with wind flow and are coupled to a generator either directly or
through a gear box. The rotor blades rotate around a horizontal hub connected to a
generator, which is located inside the nacelle. The nacelle also houses other electrical
components and the yaw mechanism, which turns the turbine so that it faces the wind.
Sensors are used to monitor wind direction and the tower head is turned to line up with
the wind. The power produced by the generator is controlled automatically as wind
speeds vary. The rotor diameters vary from 30 meters (m) to about 90 m, whereas the
towers on which the wind electric generators (WEGs) are mounted, range in height from
25 to 80 m. The power generated by wind turbines is conditioned properly so as to feed
the local grid. The unit capacities of WEGs presently range from 225 kilowatt (kW) to 2
megawatt (MW), and they can operate in wind speeds ranging between 2.5 m/s (meters
per second) and 25 m/s. Wind speed data of potential locations is compiled for a period of
one to two years, to identify suitable sites for the installation of WEGs. Thereafter, WEGs
are installed on the sites with appropriate distances between them to ensure minimum
disturbance to one another. After the identification of sites, wind turbines generally take
two to three months for installation. The equipment is tested and certified by agencies to
ensure that it conforms to the laid-down standards, specifications, and performance
parameters. The machines are maintained by the respective manufacturers after
installation.
Wind Power Potential in India: India’s wind power potential has been assessed at 45
000 MW. The current technical potential is estimated at about 13 000 MW, assuming
20% grid penetration, which would increase with the augmentation of grid capacity in
potential states. The state-wise gross and technical potentials are given in Table 1.
State Gross potential (MW) Technical potential (MW)

Andhra Pradesh 8275 2110

Gujarat 9675 1900

Karnataka 6620 1310

Kerala 875 610

Madhya Pradesh 5500 1050

Maharashtra 3650 3060

Orissa 1700 1085

Rajasthan 5400 1050

Tamil Nadu 3050 2150

West Bengal 450 450

Total 45195 14775

National Wind Power Programme: The Wind Power Programme in India was initiated
towards the end of the Sixth Plan, in 1983–84. The programme aims at survey and
assessment of wind resources, setting up demonstration projects, and provision of
incentives to make wind electricity competitive. As a result, wind electricity has emerged
as an option for grid-quality power generation. The costs in respect of wind monitoring
stations are shared between the Ministry of Non-Conventional Energy Sources (MNES)
and the state nodal agencies in the ratio of 80:20 (90:10 for north-eastern states).
With 2980 MW of installed wind power capacity, India now ranks fifth in the world after
Germany, USA, Spain, and Denmark. Most of the capacity addition has been achieved
through commercial projects by private investors.

Cost of Wind Power Projects: The cost of wind power generation varies between Rs 4
and 5 crores per MW, depending upon state characteristics. The machines can be
maintained at a cost of Rs 0.25 to 0.60/kWh. The projects are estimated to have a pay-
back period of five to eight years.
Promotional Incentives: Wind power projects have been set up through private
investment. The promotional incentives available are listed below.
 80% accelerated depreciation in the first year.
 Concessional import duty of 5% on five specified wind turbine components and
their parts.
 Favourable tariffs and policies in several states.

Manufacturing Base for Wind Turbine: Wind turbines are produced in the country by
about a dozen manufacturers, mainly through joint ventures or under licensed production
agreements. A few foreign companies have also set up their subsidiaries in India. A few
Indian companies are manufacturing WEGs without any foreign collaboration. Indian-
made wind turbines are also being exported to some countries.

Guidelines for Wind Power Projects: Comprehensive guidelines for wind power
projects have been issued by the MNES from time to time. These guidelines relate to
preparation of detailed project reports (DPRs), micro-siting, selection of wind turbine
equipment, operation and maintenance, performance evaluation, etc. Users of these
guidelines include the state electricity boards (SEBs), state nodal agencies,
manufacturers, developers, and investors. The certification requirement for wind turbines
was reintroduced with a time-bound provision for self-certification. C-WET issues a list
of manufacturers of certified wind turbine machines on a quarterly basis.

Success Stories: A few examples of successful wind farms are briefly described below.
Muppandal–Perungudi (Tamil Nadu): With an aggregate wind power capacity of 450
MW, the Muppandal–Perungudi region near Kanyakumari in Tamil Nadu has the
distinction of having one of the largest clusters of wind turbines. About Rs 2500 crores
has been invested in wind power in this region.
Kavdya Donger, Supa (Maharashtra): A wind farm project has been developed at
Kavdya Donger at Supa, off the Pune–Ahmednagar highway, about 100 km from Pune.
This wind farm has 57 machines of 1-MW capacity each. Annual capacity utilization of
up to 22% has been reported from this site. The farm is connected through V-sat to
project developers as well as promoters for online performance monitoring.
Satara district (Maharashtra): A conducive policy for private investment in wind
power projects has resulted in significant wind power development in Maharashtra,
particularly in the Satara district. Wind power capacity of about 340 MW has been
established at Vankusawade, Thosegarh, and Chalkewadi in Satara district, with an
investment of about Rs 1500 crores.

Wind Energy for Water Pumping and Off-grid Power Generation

Water-pumping windmills, aerogenerators (small wind electric generators), and wind–
solar hybrid systems have been found to be useful for meeting water-pumping and small-
power requirements in a decentralized mode in rural and remote windy areas of the
country.
The MNES is implementing a programme on ‘Small Wind Energy and Hybrid Systems’
to promote utilization of water-pumping wind mills, aerogenerators, and wind–solar
hybrid systems for water pumping and power generation.
Water-pumping windmill: A water-pumping windmill pumps water from wells, ponds,
and bore wells for drinking, minor irrigation, salt farming, fish farming, etc. Available
windmills are of two types, namely direct drive and gear type. The most commonly used
windmill has a horizontal axis rotor of 3–5.5 m diameter, with 12–24 blades mounted on
the top of a 10–20 m high mild steel tower. The rotor is coupled with a reciprocating
pump of 50–150 mm diameter through a connecting rod. Such windmills start lifting
water when wind speed approaches 8–10 kilometers (km) per hour. Normally, a windmill
is capable of pumping water in the range of 1000 to 8000 liters per hour, depending on
the wind speed, the depth of water table, and the type of windmill. Windmills are capable
of pumping water from depths of 60 m. Water-pumping windmills have an advantage in
that no fuel is required for their operation, and thus they can be installed in remote windy
areas where other conventional means of water pumping are not feasible. However,
water-pumping windmills have limitations too. They can be operated satisfactorily only in
medium wind regimes (12–18 km per hour). Further, special care is needed at the time of
site selection as the sites should be free from obstacles such as buildings and trees in the
surrounding areas. The cost of the system being high, many individual users do not find
them affordable.
Cost :The cost of a water-pumping windmill varies from Rs 45 000 to Rs 150 000,
depending on the type. In addition, Rs 10 000– Rs 20 000 is required for the foundation,
storage tank, and the installation of the windmill. As the system involves moving parts, it
requires frequent maintenance. The repair and maintenance cost of a windmill is about Rs
2000 per year. The MNES provides a subsidy of up to 50% of the ex-works cost of water-
pumping windmills, subject to ceilings of Rs 20 000, Rs 30 000, and Rs 45 000 in the
case of direct drive, gear type, and AV-55 Auroville models, respectively. For non-
electrified islands, subsidy of up to 90% of the ex-works cost is provided for the above
types of windmills, subject to ceilings of Rs 30 000, Rs 45 000, and Rs 80 000,
respectively.
Aerogenerator: An aerogenerator is a small wind electric generator having a capacity of
up to 30 kW. Aerogenerators are installed either in stand-alone mode or along with solar
photovoltaic (SPV) systems to form a wind–solar hybrid system for decentralized power
generation. An aerogenerator is suitable for power generation in unelectrified areas
having adequate wind speeds. It consists of a rotor of 1–10 m diameter having 2–3 blades,
permanent magnet generator, control devices, yaw mechanism, tower, storage battery, etc.
The aerogenerator rotor starts moving at a wind speed of 9–12 km per hour. However, it
produces optimum power at the rated wind speed of 40–45 km per hour. The limitation of
not being able to provide power as and when it is required is overcome by storing it in a
battery bank. Aerogenerators cost about Rs 2.00–2.50 lakhs per kW. In addition, the cost
of installation including civil works is estimated at Rs 5000 per kW. The repair and
maintenance cost is about Rs 2000 per kW per annum.
Wind–solar hybrid systems: When an aerogenerator and an SPV system are interfaced,
the power generation from these is mutually supplemented, and the resultant hybrid
system offers a reliable and cost-effective electric supply in a decentralized mode. The
wind–solar hybrid system mainly consists of one or two aerogenerators along with SPV
panels of suitable capacity, connected with charge controller, inverter, battery bank, etc.
to supply AC power. The major advantage of the system is that it meets the basic power
requirements of non-electrified remote areas, where grid power has not yet reached. The
power generated from both wind and solar components is stored in a battery bank for use
whenever required. The cost of the system varies from Rs 2.50 lakhs to Rs 3.50 lakhs per
kW depending on the ratio of wind and solar components. The approximate cost of
installation, including civil works, is about Rs 10 000 per kW. Repair and maintenance
cost is about Rs 3000 per kW per annum. Subsidy of up to 50% of ex-works cost of the
system is provided, subject to a maximum of Rs 1.25 lakhs per kW to individuals,
industries, and R&D and academic institutions. The MNES provides a subsidy for
community use and direct use by central/state government departments and defence and
para-military forces of up to 75% of the ex-works cost of the system subject to a
maximum of Rs 2 lakhs per kW. For non-electrified islands, subsidy of up to 90% of ex-
works cost subject to a maximum of Rs 2.4 lakhs per kW is available.
Potential and Achievement: Water-pumping windmills require only medium wind
regimes. Considering the availability of required wind speeds and the level of the
prevailing water table, potential exists for installing water-pumping windmills in almost
all states, except in hilly and rocky regions.
Aerogenerators and wind–solar hybrid systems require high wind speeds and good solar
radiation. Potential exists for their installation in Andhra Pradesh, Gujarat, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttaranchal, Uttar
Pradesh, West Bengal, and the windy regions of Jammu and Kashmir and all northeastern
states. So far, about 1000 water-pumping windmills and 380-kW aggregate capacity of
aerogenerators/wind–solar hybrid systems have been installed in the country.
Success Stories:
Water-pumping windmills: Three water-pumping windmills of AV-55 type installed in
and around Auroville have become the exclusive source of drinking water for the
community, which is fully dependent on the water lifted by these windmills. The
maximum number of water-pumping windmills have been installed in Gujarat, for
irrigation and drinking water purposes.
Aerogenerators: The West Bengal Renewable Energy Development Agency
(WBREDA) has installed six aerogenerators of 3-kW capacity each in the existing SPV
power plants at Sagar and Mousani islands. A number of aerogenerators have been
installed by the Maharashtra Energy Development Agency (MEDA), and are working
satisfactorily.
An aerogenerator of 3.2-kW capacity, installed at the Manashakti Research Centre,
Lonawala, is supplying electricity to illuminate 22 streetlights on the road connecting the
centre’s hostel to the highway. The aerogenerator is visible from the Mumbai–Pune
highway.
Wind–solar hybrid systems: Wind–solar hybrid systems have been installed for a
variety of applications. Some of them have been installed on islands and in coastal areas.
One notable project is a 5-kW capacity wind–solar hybrid system installed on Vagator
beach in Goa, which has become a destination point for tourists. The system illuminates
60 CFLs (compact fluorescent lamps) of 18 watts rating each. These CFLs are the only
source of illumination on the beach. A 15-kW wind–solar hybrid system has recently
been installed at the famous pilgrimage site of Bhimashanker Deosthan, in Pune district,
Maharashtra. This system provides electricity to meet the needs of the entire temple
complex. It has become a point of attraction for a large number of devotees visiting the
temple complex. A large number of wind–solar hybrid systems have been installed in
Maharashtra by MEDA, including a unit that provides power to the local area network of
computers and other needs in their own office complex in Pune.

7.0 SMALL HYDRO POWER

Hydro power is the largest renewable energy resource being used for the generation of
electricity. In India, hydro power projects with a station capacity of up to 25 megawatt
(MW) each fall under the category of small hydro power (SHP). India has an estimated
SHP potential of about 15 000 MW, of which about 11% has been tapped so far. The aim
is to install 2% additional power generation capacity from SHP during the Tenth and
Eleventh Plan periods. This capacity addition is expected to come mainly from private
investment.
Hydro power is obtained from the potential and kinetic energy of water flowing from a
height. The energy contained in the water is converted into electricity by using a turbine
coupled to a generator. The hydro power potential of a site is dependent on the discharge
and head of water. It is estimated by the following equation.
P (power in kW) = Q × H × 9.81 × n where
Q = discharge (rate of flow) in m3/s;
H = head (height) in metres; and
n = overall power generating system efficiency.
SHP projects can be set up on rivers, canals or at dams. Essentially, an SHP project has
the components listed below.
 Diversion weir/barrage
 Power channel
 Desalting devices
 Fore bay tank / balancing reservoir
 Penstock
 By-pass arrangements/spillways
 Powerhouse building
 Equipment
 Power evacuation arrangements
SHP projects are classified based on head as follows.
 Ultra low head : below 3 metres
 Low head : above 3 and up to 40 metres
 Medium/high head : above 40 metres
SHP projects are classified based on capacity as follows.
 Micro hydro : up to 100 kW
 Mini hydro : 101–1000 kW (i.e. 1 MW)
 Small hydro : above 1 MW up to 25 MW
Advantages of SHP Projects:
a) SHP projects can provide electricity to meet distributed energy requirements; currently, such
requirements are met from single sources of power. SHP is increasingly becoming economical;
besides, it is relatively benign in environmental effects. A few major advantages of SHP projects
are listed below.
b) Flexibility of installation and operation in a distributed mode
c) Standard indigenous technologies and manufacturing base available, which
require only minor adaptation to specific site conditions
d) Compatible with use of water for other purposes such as irrigation and drinking
water
 e) Environment-friendly because it causes negligible or no submergence; minimal
deforestation; and minimal impact on flora, fauna, and biodiversity
Costs: While SHP projects on rivers involve higher costs of civil works than those on
canals, the cost of equipment for canal-based projects is relatively higher. SHP projects
generally cost between Rs 5 crores and Rs 7 crores per MW, depending upon the location
and site topography. SHP projects generally have a payback period of 5–7 years
depending upon the capacity utilization factor, which, in turn, depends on the factors
mentioned earlier and on grid availability.
SHP Resource Assessment: A database has been created for potential SHP sites through
information gathering from various sources, including state governments. Zonal plans for
13 states of the Himalayan and sub Himalayan region have already been prepared.
Simulation models have been developed that take into account regional flow duration
curves, geological and seismological data, vegetation cover, etc., and use GIS (geographic
information system) technology. The database of SHP projects includes 4233 potential
sites with an aggregate capacity of 10 324 MW. It is proposed to further strengthen the
database by including new sites. A scheme is under implementation to provide a subsidy
of up to Rs 30 lakhs to states for identification of new potential sites, and preparation of a
perspective plan for SHP development.
Small Hydro Power Programme: The Ministry of Non-Conventional Energy Sources
(MNES) supports SHP project development throughout the country. So far, 523 SHP
projects with an aggregate installed capacity of 1705 MW have been installed. Besides
these, 205 SHP projects with an aggregate capacity of 479 MW are under
implementation. With a capacity addition, on an average, of 100 MW per year and
gradual decrease in gestation periods and capital costs, the SHP sector is becoming
increasingly competitive with other alternatives.
The MNES supports SHP development, both in the government and private sectors. Apart
from financial support to new SHP projects, subsidy is provided for the renovation and
modernization (R&M) of existing SHP stations and government projects that have been
languishing for want of funds. A special incentive package has been developed for the
promotion of the SHP programme in the North-Eastern states, Jammu and Kashmir,
Himachal Pradesh, and Uttaranchal. Key performance parameters such as cost of the
project, capacity utilization factor, and cost of electricity generation are the guiding
factors for grant of subsidy. Emphasis is also laid on quality of the equipment through
insistence upon standards and specifications that match international levels. To improve
the economic viability of SHP projects and to give impetus to the programme, the MNES
provides a one-time subsidy for commercial SHP projects. The subsidy is utilized by the
promoter towards repayment of the term loan availed from a financial institution. The
subsidy is released after the project performance parameters are attained as laid down in
the MNES scheme. The subsidy scheme covers projects of capacity up to 25 MW each.
Sale of Electricity and Financing. Fifteen states have announced policies to attract private
sector entrepreneurs to set up SHP projects. The state electricity regulatory commissions
are now determining tariffs by taking into account the submissions of all stakeholders
including the developers and the MNES. For commercial projects, these states have
offered sites with a total potential of over 2300 MW. A number of leading financial
institutions and banks –including Indian Renewable Energy Development Agency
(IREDA), Power Finance Corporation, Rural Electrification Corporation, IDBI, IL&FC,
and commercial banks – have started financing SHP projects.
Water Mills: Water mills, also known as gharats in the northern part of the country, have
traditionally been used to convert the energy of water to useful mechanical energy. In the
Himalayan region, about 150 000 water mills are being used for mechanical applications
such as grain grinding and oil extraction. In general, water mills have low conversion
efficiency. Improved water mills have been developed for mechanical applications as well
as electricity generation. The MNES scheme for the development of water mills is being
operated through local organizations such as Water Mills Associations, cooperative
societies, registered NGOs, local bodies, and state nodal agencies. Under the scheme,
subsidy up to 75% of the actual cost is being provided, limited to a ceiling of Rs 30 000 in
mechanical mode and Rs 1 lakh in electrical / electrical plus mechanical mode.
Uttaranchal has set up over 150 such water mills in its remote and isolated areas.
Nagaland too has started laying emphasis on the deployment of water mills for village-
level electricity generation.
8.0 HYDROGEN ENERGY
Hydrogen: A Clean Energy Source: Hydrogen is a colourless, odourless, tasteless,
flammable gas. It is found in water, organic compounds, biomass, and hydrocarbons such
as petrol, natural gas, methanol, and propane. Hydrogen is high in energy content as it
contains 120.7 kilojoules/gram. This is the highest energy content per unit mass among
known fuels. However, its energy content per unit volume is rather low. Thus, greater
challenges have to be overcome in the storage of hydrogen for civilian applications, as
compared to storage of liquid fossil fuels. When burnt, hydrogen produces water as a by-
product. It is therefore not only an efficient energy carrier but a clean, environmentally
benign fuel as well.
Hydrogen can be used for power generation and also for transport applications. It is
possible to use hydrogen in internal combustion (IC) engines, directly or mixed with
diesel and compressed natural gas (CNG). Hydrogen can also be used directly as a fuel in
fuel cells to produce electricity. It has been used as a fuel in spacecraft. In India, a large
number of houses do not have access to grid-supplied electricity. Besides, the country is
heavily dependent on imported oil, which is largely consumed by the transport sector.
Therefore, the use of hydrogen as a substitute for petrol can help in reducing our
dependence on oil imports.

Hydrogen Energy Programme in India: Ministry of Non-

Conventional Energy Sources (MNES) has constituted a
National Hydrogen Energy Board. The Board is chaired by the
Minister for Non-Conventional Energy Sources, and has
members from the
government, industry, academia, and other fields. The Board provides guidance in
preparation and implementation of a ‘National Hydrogen Energy Road Map’ covering all
aspects of hydrogen energy: production, storage, transport, delivery, safety, and
applications. The Board will also suggest policy initiatives, fiscal / regulatory measures,
and other measures for promotion of hydrogen as a clean fuel. The Board will assist in
developing specific projects with public–private partnership, which would also facilitate
generation of resources from the private sector. Furthermore, it has set up a Steering
Group under Mr Ratan Tata, Chairman, Tata Sons, to prepare the National Hydrogen
Energy Road Map and also to develop projects with private sector participation.
The Steering Group is preparing an action plan, which will cover
(a) hydrogen applications in automobiles,
(b) hydrogen applications in power generation,
(c) hydrogen storage,
(d) hydrogen production, and
(e) hydrogen system integration.
The Steering Group is holding consultations to finalize the goals, time frames, and
requirement of funds for some specific projects that can be quickly implemented. The
report of the Steering Group (outlining a plan for public–private partnership and the
National Hydrogen Energy Road Map) is expected to be ready during 2005–06.

Hydrogen Energy Technologies:

Present-day technologies for hydrogen energy are yet to be optimized for use in power
generation or in automobiles. Development of hydrogen energy will play a crucial role in
deciding the choice of fuel, especially for the transport sector. In the first stage, public
transport and small vehicles are expected to provide the lead in the use and acceptance of
hydrogen energy in the country. The use of hydrogen in cars, trucks, and other vehicles
would follow. In the Indian context, both IC engines and fuel cells will be used in the
transport sector. Typically, one liter of petrol can be replaced by about 260 grams of
hydrogen. For over a decade, the MNES has supported a broad-based programme for
research and development (R&D) in, and demonstration of, different aspects of hydrogen
energy and fuel-cell technologies. These aspects include production, storage, and
utilization of hydrogen as a fuel. Several R&D and academic institutions – including
Indian Institutes of Technology (IITs), CSIR laboratories, and industries – are involved in
implementing this programme.
Hydrogen production through biological, photo-electrochemical, and biomass routes has
been demonstrated, as has the use of hydrogen for stationary, portable, and transport
applications. Metal hydrides have been developed to store hydrogen. The focus of the
research efforts is on developing renewable methods of hydrogen production, efficient
storage techniques, and on the development and demonstration of hydrogen energy
applications through direct combustion and fuel-cell routes.
New / renewable technologies for hydrogen production: Hydrogen production is a key
area of concern. Hydrogen is only found in compound form in nature. It must, therefore,
first be isolated from its compounds, a process that itself requires the use of energy.
Globally, over 95% of hydrogen is produced from hydrocarbons; about 4% is produced
through electrolysis of water. Oil, gas, and fertilizer companies are major producers and
consumers of hydrogen in India. Hydrogen is also produced as a by-product in chloralkali
industries. In addition, there are several other methods to produce hydrogen that are at
different stages of research and demonstration. These methods include hydrogen
production through:
(a) biomass and biological route,
(b) photo-electrochemical route,
(c) thermo-chemical decomposition of water using nuclear energy or solar energy, and
(d) electrolysis using renewable energy (solar, wind).
The Banaras Hindu University (BHU); Murugappa Chettiar Research Centre (MCRC),
Chennai; and IIT, Kharagpur are among the leading research groups working on
biological, biomass, and other renewable energy routes to produce hydrogen. MCRC has
demonstrated hydrogen production in batch-scale from distillery waste. The pilot plant is
able to produce up to 18 000 litres of hydrogen per hour. This is a new method of
hydrogen production. On successful optimization, this process can provide low-cost on-
site hydrogen for use in IC engines and fuel cells in the coming years. R&D is in progress
on several of the other methods mentioned above.
Hydrogen storage technologies: The most common method of storage of hydrogen is in
gaseous form in pressurized cylinders/tanks. However, hydrogen being the lightest
element, gaseous storage requires large volumes under preferably high pressures.
Hydrogen is also stored in liquid form, which requires low temperatures with cryogenic
storage systems. It is also possible to store hydrogen in certain solid-state materials like
metal hydrides and carbon nanostructures, and in chemicals. Solid-state storage requires
moderate temperatures and pressures to store and release hydrogen. As hydrogen is a light
gas, large volumes of it have to be stored to yield a sufficient quantity of energy.
Therefore, storage of hydrogen assumes great importance, as does its safe transport. Any
long-term storage solution must be energy-efficient, compact, durable, safe, and cost-
effective. This requires the development of new methods to store hydrogen. Necessary
infrastructure for transport and delivery of hydrogen too needs to be developed and put in
place. The BHU, IIT Chennai, and the National Physical Laboratory are working on the
hydrogen storage methods. The BHU has developed various types of metal hydrides with
storage capacities of up to 2.4 weight%. It has also demonstrated the use of 1.6% weight
storage in metal hydride on a pilot scale. The solid-state storage methods need to be
further improved upon to achieve about 8–9 weight% hydrogen storage capacity.
Hydrogen-fuelled vehicles: It is possible to run commercially available IC-engine
vehicles directly on hydrogen, or on hydrogen mixed with CNG. In India, R&D efforts
are in progress to optimize the use of hydrogen in existing IC engines. Small vehicles and
generators that work on IC engines have been modified to work with hydrogen.
Hydrogen-operated motorcycles and three-wheelers have been developed and
demonstrated. The BHU has modified a commercially available motorcycle (100 cc, four
strokes) and a three-wheeler (175 cc, four strokes) to operate on hydrogen as a fuel. The
hydrogen is stored in metal hydride powder (approximately 1.6 wt% storage capacity).
The engine is modified to run on hydrogen by using a specially developed automatic
valve. The amount of hydrogen going into the engine is controlled through this valve. In
this case, the engine exhaust too is passed through the hydride tank to facilitate heating of
the hydride to about 60 ºC. This ensures continuous release of hydrogen from the hydride
material. At present, the hydrogen-fuelled motorcycle is able to cover about 70 km before
refuelling is required. R&D efforts are in progress to improve the driving range to about
100 km per charge.
Hydrogen-fuelled generators: A petrol-driven, small-capacity generator set (1.2 kW)
has been converted to operate on hydrogen, and thereby demonstrate the potential for
decentralized electricity generation by means of hydrogen fuel stored in metal hydrides.
Hydrogen is stored in a Misch-metal-based hydride. The heat transfer is optimized to
maximize the release of hydrogen. A 10-kW, single-cylinder spark ignition (petrol)
engine generator set has been converted to operate on hydrogen gas stored in cylinders.
The fuel induction system is the most crucial part of this converted generator set. The
performance of the generator set has been evaluated at different load conditions.
Similarly, compression ignition engines have been designed to operate in dual-fuel mode
by blending of hydrogen with diesel. Several designs of fuel-feeding systems have been
tested for using hydrogen as a fuel. The thermal efficiency of the system is about 31.1%.
There are no emissions of carbon monoxide or hydrocarbons. The Nox level is 200 PPM
(parts per million) at 0.6 equivalence ratio.
Fuel cells: A fuel cell is an electrochemical device that converts energy into electricity
and heat without combustion. A fuel cell is similar to a battery as it has electrodes, an
electrolyte, and positive and negative terminals. But it differs from a battery in that it does
not release energy stored in the cell, nor does it require recharging. A fuel cell continues
to work as long as its fuel (hydrogen) is supplied. Fuel cells do not emit pollutants.
Although a fuel cell is not a heat engine, it produces a significant amount of heat, which
can be used for thermal applications or to produce steam or be converted into electricity
using turbines. Fuel cells can be used for stationary, mobile, and transport applications.
They can operate on a variety of fuels, namely natural gas, methanol, or hydrogen gas
depending on the type of fuel process and the reformer used.
Fuel cell power packs: Research efforts over the past several years have resulted in the
development of phosphoric acid fuel cell (PAFC) systems and polymer electrolyte
membrane fuel cell (PEMFC) systems. PAFC power packs of up to 50-kW capacity have
been developed and tested in the country.
At present, Bharat Heavy Electricals Ltd (BHEL) is working on the development of a 5-
kW PAFC power pack with improved control and instrumentation system. PEMFC
systems of up to 25-kW capacity have been developed and demonstrated. An improved 3-
kW capacity PEMFC power pack, which can also work as an uninterrupted power supply
(UPS) system, is under trials at the SPIC Science Foundation, Tuticorin.
Fuel cell vehicle: PEMFC systems are considered to be most suitable for use in vehicles
due to their low operating temperature (~70 ºC). Global research efforts are primarily
focused on the development of PEMFC systems for automobile applications. A fuel cell–
battery hybrid van has been developed in India. The van is powered by a 10-kW-capacity
fuel cell along with a lead–acid battery bank. The range of the vehicle is about 70 km per
charge. This van has logged more than 2500 km.
Conclusion:
The development of hydrogen energy should be seen as a long-term solution to the
growing energy needs and energy security of India. The development of hydrogen
energy can be accomplished through three stages. In the first stage, extensive R&D
and demonstration of technologies will be taken up. In the second stage,
infrastructure and markets for hydrogen energy will be created. The third stage
aims at large-scale commercialization where the benefits of a hydrogen-based
economy reach the common man and start influencing everyday life. The next few
decades should see several thousand hydrogen vehicles on the road. Hydrogen is
poised to become an important component of the nation’s energy mix: it will prove
vital to meet the growing energy needs of India’s economy, thus ensuring our energy
security even while protecting the environment.

BIOFUEL SECTOR NEEDS MORE INCENTIVES: GOVERNMENT

The agriculture ministry has asked for more incentives to local producers of bio-diesel
and rationalization of the customs duty structure on raw materials for biofuel production
to make such imports domestically and internationally competitive. Addressing the ‘Bio-
energy Tech 2007’ convention, the union agriculture minister Shri Sharad Pawar said the
country had vast potential for producing biofuel from the biomass generated by
agriculture and forests. besides, biofuel can be derived from several crops such as sugar
cane, cassava, sweet sorghum, maize, and sugar beet, and the seeds of tree species such as
jatropha and karanja. Shri Pawar said that the NOVODB (National Oilseeds and
Vegetable Oils Development
Board), under the agriculture ministry, had already begun research, development, and
promotion work on oilseed trees such as jatropha and karanja. The board has set up a
countrywide network for identification and development of elite planting material for
biofuel
producing trees and plants. Nurseries for producing elite planting material of these plants
have been set up on 10 000 hectares in 21 states. NOVODB is offering back-ended,
credit-linked subsidy for encouraging biofuel production. However, more incentives are
required for the purpose. Shri Pawar said that the estimated 5% blending of petrodiesel
with bio-diesel would require about 25 lakh hectares of waste land to be brought under
jatropha and karanja plantation. To promote biofuels on such a scale, it was necessary to
make farmers understand
that these ventures would be profitable, the minister said. The interests of various other
stakeholders would also have to be taken care of, he said. Justifying the need for
encouraging
the use of biofuel, he said that the country’s current annual petroleum products
requirement
was estimated at 124 million tonne. Nearly 72% of this was met through imports from the
Gulf region, one of the most volatile parts of the world. Some of the delegates attending
the convention emphasized the need for increasing the availability of bank loans to
farmers
to encourage them to go in for raising biofuel plantations.
BUSINESS STANDARD, 6 JANUARY 2007

Chapter 7
International Laws on Environment & Energy
INTERNATIONAL DECLARATIONS / AGREEMENTS
 Post world war economies of western world grew at a tremendous pace. This started
faster consumption of earth’s resouces and also led to discharge of effluents in the
environment. By sixties degradation of environment has started showing which made
countries aware of the adverse effects of unchecked consuption of vital resources.

1972 : ST0CKHOLM DECLARATION

The United Nations Conference on Human Environment was held in Stockholm from 5th
June to 16th June, 1972. It was also attended by India’s prime minister Mrs. Indira
Gandhi.
India’s approach to the challenge of the protection of our environment was shaped by the very wise and
perceptive observations of our former Prime Minister, Mrs. Indira Gandhi, who told the United Nations
Conference on the Human Environment in 1972 that "poverty was the worst polluter".
In saying so, Prime Minister Indira Gandhi launched a global debate on the relationship between poverty
alleviation, economic growth, and environmental conservation. In the years since then, an organized
structure of multilateral agreements and institutions for realizing the goal of sustainable development has
been developed.
The United Nations Conference on Human Environment proclaimed:
The protection and improvement of the human environment is a major issue which affects
the well being of peoples and economic development. It was also proclaimed that man is
both creator and molder of the environment, which gives him physical sustainance and
affords him the opportunity for intellectual, moral, social and spiritual growth. Man has
acquired the power to transform his environment in countless ways and on unprecedented
scale.
It was also proclaimed that, since, in the developing countries, most of environment
problems are caused by under development; the developing countries must direct their
efforts to development, bearing in mind their priorities, and the need to safeguard and
improve the environment. For the same purpose, the industrialised countries should make
efforts to reduce the gap between themselves and the developing countries.
The Stockholm conference laid down 26 principles to be followed by the states for the
preservation and improvement of human environment. These include:
 The natural resources of earth including the air, water, land flora and fauna must
be safeguarded for the benefit of present and future generations through careful planning
and management.
 The capacity of the earth to produce vital renewable resources must be maintained
and wherever practicable, restored or improved.
 The non-renewable resources of the earth must be employed in a way as to guard
against the danger of their future exhaustion.
 Environmental deficiencies generated by the conditions of under development and
natural disasters must be remedied by accelerated development through the transfer of
substantial quantities of financial and technological assistance.
 For the developing countries stability of prices and adequate earnings for primary
commodities and raw materials are essential for environmental management.
After the UN conference on Human Environment, 1972 the United Nations
Environment Program (UNEP) was established. UNEP has played a very important
role in in the evolution of conventions and instruments in the field of environment
protection like 1985 Vienna Convention for the protection of Ozone Layer and the 1987
Montreal protocol and 1992 Convention on Biodiversity.

1992: RIO DECLARATION

From 3rd to 14th June, 1992, representatives of over 150 countries assembled in Rio de
Janeiro, Brazil, for the United Nations Conference on Environment and Development
(UNCED) what was popularly known as Earth Summit. The Earth Summit is considered
an important milestone in establishing the linkages between environment and
development and in defining the concept of “Sustainable Development” One of the
objects of RIO conference was to recognize the integral and interdependent nature of our
earth.
Principles proclaimed at UNCED RIO conference include:
 The right to development must be fulfilled so as to equitably meet developmental
and environmental needs of present and future generations (doctrine of Intergenerational
Equity).
 In order to achieve sustainable development, environment protection shall
constitute an integral part of the developmental process (Doctrine of Sustainable
Development).
 All states and all people shall cooperate in the essential task of eradicating poverty
 The special situation and needs of developing countries particularly the least
developed and those most environmentally vulnerable, shall be given special priority.
 States shall enact effective environmental legislation.
 In order to protect the environment the precautionary approach shall be widely
used by the states. Lack of Scientific certainty shall not be used as a reason for
postponing cost effective measures to prevent environment degradation (Precautionary
Principle).
 National authorities should endeavor to promote the internalization of
environmental costs taking into account the approach that polluter should bear the cost of
pollution (Polluter Pays principle).
 Environment Impact Assessment (EIA) shall be undertaken for proposed activities
that are likely to have adverse impact on the environment.

AGENDA 21 was one of the instruments adopted at UNCED Rio conference. It is a non-
binding instrument that presents a set of strategies and detailed program to halt and
reverse the effects of environmental degradation and to promote environmentally sound
and sustainable development in all countries.

1992: UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE

CHANGE
The states which participated in UNCED Rio conference and which were determined to
protect the climate system for the present and future generation, signed the UNFCCC,
1992 convention. These states acknowledged that changes in earth’s climate and it’s
adverse effects are a common concern of human kind and that human activities have been
substantially increasing the concentrations of greenhouse gases which will result in
additional warming of earth’s surface and atmosphere so as to adversely affect natural
ecosystems and humankind.
UNFCCC is guided by following principles:-
1) The state parties should protect the climate system for the benefit of present and
future generations on the basis of equity and in accordance with their common but
differentiated responsibilities and respective capabilities.
2) The state parties should take precautionary measures to anticipate, prevent and
minimize the causes of climate change and mitigate its adverse effects. Lack of
scientific certainty should not be used as a reason for postponing such measures
3) The state parties have a right to sustainable development, and should, promote
sustainable development.
 4) The state parties should cooperate to promote a supportive and open international
economic system that would lead to sustainable economic growth & development
in all states, particularly developing countries, thus enabling them to address
problems of climate change.
Under Article 4 of the UNFCCC certain commitments of the State parties and those of
the developed state parties (Annex I) were formulated. The UNFCCC provides for the
establishment of a Subsidiary Body for Scientific and Technological Advice to provide the
Conference of parties (COP) timely information and advice on scientific and
technological matters. The UNFCCC also provides for the establishment of a Subsidiary
Body for Implementation to assist the COP in the assessment and review of the effective
implementation. In 1992, the UN commission on Sustainable Development (UNCSD)
was established to monitor and report on implementation of the Earth Summit
agreements.
The Global Environment Facility (GEF) was created to award grants and concessional
funds to developing countries for global environmental protection projects. The facility is
intended to focus upon climate change, the destruction of biological diversity, the
pollution of international waters and ozone depletion.

Review of Progress after Earth Summit

It was agreed that a five-year review of would be made in 1997 by the United Nations
General Assembly special session. In 1997, the special session of UN General Assembly
took stock of the situation. It was found that five years after UNCED, the state of global
environment has continued to deteriorate as noted down in the Global Environment
Outlook of UNEP and significant environmental problems remain deeply embedded in
the socio economic fabric of countries in all regions. Some progress has been made in
terms of institutional development, consensus building, public participation and private
sector actions and, as a result, a number of countries have succeeded in curbing pollution
and slowing sown rate of resource degradation. Overall, however trends are worsening.
Insufficient progress has been made in the field of environmentally sound management.
Many countries undergoing rapid economic growth and urbanization are also
experiencing increasing levels of air and water pollution, with adverse impacts on human
health. Acid rain and trans-boundary air pollution, once considered a problem in only in
the industrialised countries, are increasingly becoming problem in many developing
 regions. In many poorer regions of the world, persistent poverty is contributing to
accelerated degradation of natural resources and desertification has spread. In countries
seriously affected by draught and / or desertification, especially those in Africa,
agricultural productivity continues to decline, thereby hampering efforts to achieve
sustainable development. Inadequate and unsafe water supplies are affecting increasing
number of people worldwide., aggravating problems of ill health and food insecurity
amongst the poor. Conditions in natural habitats and fragile ecosystems including
mountains are still deteriorating. Renewable resources, in particular fresh water, forests,
top soil and marine fish stocks continue to be used at rates beyond their viable rates of
regeneration. While there has been progress in material and energy efficiency,
particularly with respect to non-renewable resources, overall trends, remain
unsustainable. As a result, increasing levels of pollution threaten to exceed the capacity of
global environment to absorb them.
1997: KYOTO PROTOCOL

In 1995, several nations agreed that voluntary reductions in GHG emissions were not
effective. Therefore, a conference was held at Kyoto on climate change on December 1,
1997 to review the progress made in five years from Rio 1992 and to formulate plans and
fix strategies and objectives for the future.
The parties to the UNFCCC, in pursuit of the ultimate objective, as stated in Article 2 of
the convention agreed to fulfill the obligations contained in the through the convention
Kyoto Protocol.
Some of the important commitments accepted by the parties for achieving quantified
emissions limitation and reductions. These are included in Annex –I of the UNFCC and
include:-
1. Implement and / or further elaborate policies and measures in accordance with it’s
national circumstances, such as:
a) Enhancement of energy efficiency
b) Protection & enhancement of sinks and reservoirs of GHG emissions not controlled
by the Montreal Protocol, promotion of sustainable forest management practices,
afforestation and reforestation.
c) Promotion of sustainable forms of agriculture in light of climate changes.
 d) Promotion, research, development and increased use of new and renewable forms of
energy, of CO2 sequestration and advanced / innovative technologies.
e) Progressive reduction or phasing out of fiscal incentives, tax and duty exemptions and
subsidies in all GHG emissions sectors. Promoting policies and measuresand reforms
to limit and reduce emissions of GHG not controlled by Montreal Protocol including
transport sector.
f) Limitations and reduction of methane through recovery and use in waste management
as well as in production, transport, and distribution of energy.
2. Parties agree to share their experience and exchange information on such policies and
measures of improving their comparability, transparency and effectiveness.
3. Parties included in Annex-I shall pursue limitation or reduction of emissions of GHG
from aviation and marine bunker fuels.
4. Parties included in Annex-I shall try to minimize adverse effects of climate change on
international trade and social, environmental 7 economic impacts on other parties especially
developing countries.
5. Parties included in Annex-I shall individually or jointly ensure that their aggregate
anthropogenic carbon dioxide equivalent emissions of GHG listed in Annex-A do not exceed
their assigned amounts commitments in Annex-B, with a view to reducing overall emissions
of GHG by at least 5% below 1990 levels during period 2008-2012.

2002: JOHANNESBURG DECLARATION (WSSD)

For complete details refer website visited 15.04.2008.
http://www.un.org/esa/sustdev/documents/WSSD_POI_PD/English/WSSD_PlanImpl.pdf
The World Summit on Sustainable Development (WSSD) (26 August – 04 September,
2002 in Johannesburg, South Africa) is a coordinated international effort to translate rhetoric
into action for tackling poverty while sustaining environment. The summit represents a major
step forward in the development of partnerships with the UN Governments, Business and
Civil Society coming together. At the Summit, the UN General Secretary Mr. Kofi Annan
observed that, “the model of development we are accustomed to have been fruitful for the
few, but flawed for the many. A path to prosperity that ravages the environment and leaves
the majority of humankind behind in squalor will soon prove to be dead end road for
everyone”. He hoped that the WSSD, Johannesburg would mark the opening of a new chapter
of responsibility, partnerships and implementation. At the end of Summit, the participating
countries happily accepted responsibility and commitment to sustainable development and
also set targets and prescribed timetables for implementation of plan.
Key Commitments, Targets and Timetables for the Johannesburg Plan:
Poverty Eradication:- Halve, by the year 2015, the proportion of the world’s people whose
income is less than $ 1 a day and the proportion of people who suffer from hunger
(reaffirmation of Millennium Development Goal).
Establish a world solidarity fund to eradicate poverty and to promote social & human
development in the developing countries.
Water and Sanitation: Halve, by the year 2015, the proportion of people without access to
safe drinking water. (reaffirmation of Millennium Development Goal).
Halve, by the year 2015, the proportion of people who do not have access to basic sanitation.
Sustainable Production & Consumption: Encourage and promote a 10 year framework of
programmes to accelerate the shift towards sustainable consumption and production.
ENERGY
Renewable energy: Diversify energy supply and substantially increase the global share of
renewable energy sources.
Access to Energy: Improve access to reliable, affordable, socially acceptable and
environmentally sound energy services and resources.
Energy Markets: Remove market distortions including the restructuring of taxes and
phasing out of harmful subsidies. Support efforts to improve the functioning, transparency
and information about energy markets w.r.t. both supply and demand.
Energy Efficiency:- Establish domestic programs for energy efficiency with the support of
international community Accelerate the development and dissemination of energy efficiency
and energy conservation technologies and promotion of R & D.
Key Energy Initiatives & Announcements:-
 Nine major electricity companies of the E7 signed a range of agreements to facilitate
technical cooperation for sustainable energy projects in developing countries.
 The EU announced a $700 million partnership initiative on energy and USA
announced that it would invest up to $ 43 million in 2003.
 DESA, UNEP and the US EPA announced a partnership on Cleaner Fuels and
Vehicles broad support from private sector, NGO community, developed and
developing countries.
 The South African energy utility Eskom announced a partnership to extend modern
energy services to neighboring countries.
 UNEP launched a new initiative called the Global Network on Energy for Sustainable
Development to promote the research, transfer and deployment of green and cleaner
energy technologies to the developing world.
 UN has received 32 partnership submissions for energy projects with $ 26 million in
resources.

2007: BALI CLIMATE CHANGE CONFERENCE

Delegates from 189 countries together with observers from intergovernmental and non-
governmental organisations held meeting in Bali from 03 December – 14 December,
2007 in order to negotiateon a new international climate change agreement to succeed the
Kyoto protocol, which expires in 2012.

The conference was presided over by Indonesian environment minister, Rachmat

Witoelar, with support from the UN's climate change secretariat.

The Kyoto protocol is an international and legally binding agreement to reduce greenhouse gas emissions
worldwide. It came into force in February 2005 after being agreed at a 1997 UN conference in Kyoto,
Japan. A total of 174 nations ratified the pact to reduce the greenhouse gases emitted by developed
countries to at least 5% below 1990 levels by 2008-12. However, United States, the world's biggest carbon
emitter, opposed the Kyoto protocol in 2001, saying it would be too expensive and should include targets
for developing nations. Australia's former prime minister, John Howard, whose 11-year term in office was
ended by a Labour victory last month, also strongly opposed ratification of Kyoto, arguing it would unfairly
damage Australia's energy-export based economy and cost jobs. The prime minister elect, Kevin Rudd, ran
a successful campaign on a platform to address climate change, and hopes his new government will ratify
the Kyoto protocol immediately.
With the Kyoto protocol due to expire in 2012, a new international climate change deal must be put in place
in time to ensure that necessary action is undertaken immediately. The UN says that this year's scientific
report from the its Intergovernmental Panel on Climate Change (IPCC) has "made clear beyond doubt that
climate change is a reality", which poses a serious threat to the future development of the world's
economies, societies and ecosystems. "We cannot go on this way for long," the UN secretary general, Ban
Ki-moon, has said. "We cannot continue with business as usual. The time has come for decisive action on a
global scale."
The main goal of the Bali conference is to get underway negotiations on a new international climate change
agreement. The Bali conference is not expected to deliver a fully negotiated and agreed climate deal, but
instead aims to set the necessary wheels in motion. Parties need to agree on the key areas which the new
climate agreement should cover, such as mitigation (including avoided deforestation, where industrialised
nations pay rainforest-rich nations to protect their forests to offset greenhouse gas emissions), adaptation,
technology and financing. They also need to agree on when the talks and negotiations will conclude so that
the new climate change deal can be ratified by national governments before the end of 2012. Other
important issues under negotiation in Bali, included adaptation to climate change, the launch of a fund for
adaptation, reducing emissions from deforestation, issues relating to the carbon market, and arrangements
for a review of the Kyoto protocol.
Four reports from the Intergovernmental Panel on Climate Change (IPCC), a G8 summit
in Heiligendamm, a Nobel Peace Prize for Al Gore and a world climate council -- never
before has there been so much talk about reducing greenhouse gases as in 2007.
However, not a single reduction goal for after 2010 is included in the final text, although
such goals have been the topic of discussion for weeks -- even months -- and warnings
from scientists who have been recognized with the very highest prizes can be found in a
one-and-a-half-line footnote
The progress made in Bali was minimal at best, writes DW's Jens Thurau.
But the mandate for a Kyoto successor treaty by 2009 and the isolation of the
US delegation were two lights in the dark.
It's the same old situation that's to blame: The sacred oath that the wealthy states made at
the environment summit in Rio in 1992 to set a good example in cutting emissions hasn't
been kept. The industrialized countries have lost valuable time -- or, like the US and
Russia, simply approach the climate challenge with demonstrative apathy. Practically
every climate conference ends in the same way: the US, with countries like Canada and
Russia on its side, facing off against the developing nations. It was no different this time.
In a certain way, the ambitious European Union also bear some of the guilt. They're
constantly naming the most extensive goals, but only a few EU states -- including
Germany -- will fulfill the aims of the Kyoto Protocol by 2012.
Climate change will hit the poorest and most vulnerable the hardest, according to the IPCC, but it will affect
everyone. With their greater economic and technological resources, industrialised countries are considered
to be equipped to do the most to reduce greenhouse gas emissions. Increasingly, developing countries are
also taking steps to cut back on emissions and to adapt to the impacts of climate change. The international
community is identifying resources, tools and approaches to support these efforts. According to the IPCC,
strategies for adaptation should take into account environmental, economic and social concerns of
sustainable development. For obvious reasons, the emerging nations refuse to risk the bit of prosperity
they've finally managed to attain by making commitments to climate protection.
Nevertheless, two aspects make the results of the Bali conference just barely tolerable.
As expected, the mandate was issued to negotiate a successor treaty to Kyoto by 2009.
And, as India proposed a text change at the end of the conference, the US delegation,
which rejected the proposal, had to come to terms with their exaggerated arrogance
toward the Third World. No one, not even eternal allies Canada or Russia, stood by the
Americans, who ultimately gave up their resistance. In the end, the at least symbolic
victory should give the developing countries, which are most burdened by climate
change, more self-confidence.

As talks overran their scheduled close by more than a day, delegates from the EU, US
and G-77/China embarked with UN officials on a series of behind-the-scenes
consultations aiming to break the remaining deadlock. The EU and US agreed to drop
binding targets; then the EU and China agreed to soften language on commitments from
developing countries. A chorus of boos rang out. And a member of Papua New Guinea's
delegation told the US: "If you're not willing to lead, please get out of the way." Shortly
after, the US delegation announced it would support the revised text after all.
Delegates at the UN summit in Bali have agreed a deal on curbing climate change after days of bitter
wrangling. Agreement was reached after a U-turn from the US, which had wanted firmer commitments
from developing countries. Environment groups said they were disappointed by the lack of firm targets for
reducing emissions. The "Bali roadmap" initiates a two-year process of negotiations designed to agree a
new set of emissions targets to replace those in the Kyoto Protocol. The EU had pressed for a commitment
that industrialised nations should commit to cuts of 25-40% by 2020, a bid that was implacably opposed by
a bloc containing the US, Canada and Japan. The final text does not mention specific emissions targets, but
does acknowledge that "deep cuts in global emissions will be required to achieve the ultimate objective" of
avoiding dangerous climate change. It also says that a delay in reducing emissions will make severe
climate impacts more likely.
"This is a real breakthrough, a real opportunity for the international community to
successfully fight climate change," said Indonesian Environment Minister Rachmat
Witoelar, who served as conference president, at the conclusion of the talks. UN
Secretary General Ban Ki-moon said he appreciated "the spirit of flexibility" shown by
key delegations - and was aware that "there is divide of position between and among
countries". "But as this global warming is an issue which affects the whole humanity,
whole planet earth, we must have co-ordinated and concerted efforts to address this
issue," Mr Ban said. In London, UK Prime Minister Gordon Brown declared: "This
agreement is a vital step forward for the whole world. "The Bali roadmap agreed today is
just the first step. Now begins the hardest work, as all nations work towards a deal in
Copenhagen in 2009 to address the defining challenge of our time."

Environmental groups and some delegates have criticised the draft as being weak and a
missed opportunity. "This deal is very disappointing," said Tony Juniper of Friends of the
Earth. "We said we needed a roadmap, but this conference has failed to give us a clear
destination." The document coming out of the meeting, the "Bali roadmap", contains text
on emissions cuts, the transfer of clean technology to developing countries, halting
deforestation and helping poorer nations protect their economies and societies against
impacts of climate change such as rising sea levels and falling crop yields.

The roadmap sets the parameters and aims for a further set of negotiations to be finalised
by the 2009 UN climate conference, to be held in Copenhagen Denmark. By that stage,
parties should have agreed on a comprehensive plan for curbing global warming and
adapting to its impacts.
This will include:
 emissions targets for industrialised countries, possibly but not necessarily binding
 some softer form of targets or ambitions for major developing countries
 mechanisms for leveraging funds from carbon trading to fund adaptation projects

Earlier, consensus was reached on the principle of rewarding poorer countries to protect
their forests. This is widely acknowledged as the cheapest single way of curbing climate
change, and brings benefits in other environmental areas such as biodiversity and fresh
water conservation. Delegates agreed on a framework that could allow richer nations and
companies to earn "carbon credits" by paying for forest protection in developing
countries.
Mr Mitchell said the only feasible source of sufficient funds was a global carbon market.
But many economists believe mandatory emissions targets are needed to create a
meaningful global market.

http://www.carbonpositive.net/viewarticle.aspx?articleID=1045 on 16 April, 2008

Associated Press, Reuters, Voice of America, Star Bulletin 1/2/08

Big emitters move closer in Hawaii
The Bush Administration has continued to resist greenhouse emission reduction targets
but won praise from other nations over a new constructive approach to climate
negotiations at a US-hosted meeting of the world’s major emitters in Hawaii.

The second gathering of the Major Economies Meeting on Energy Security and Climate
Change wound up in Honolulu on Thursday without any formally stated outcomes.
However, the meeting behind closed doors has endorsed the “Bali road map”, the 189-
nation undertaking at the UN’s annual climate convention talks last December to strike a
new international deal by the end of 2009.

The Bush Administration last year gave its commitment to the UN climate change
convention being the process through which a new global agreement should be forged. Its
own meeting of 16 of the largest emitting nations from the developing and developed
world is aimed at finding common ground on how a new treaty might include all of them,
the US government says.

"In the Bali road map, we committed to a vision of deep cuts in emissions, and now we
are trying to sort through how we can come up with a common expression of that," said
James Connaughton, the White House’s chief environmental adviser.

The group consists of India, China, Brazil, Indonesia, Mexico, South Africa, Britain,
Germany, France, Italy, separate EU representatives, Russia, Japan, Australia, South
Korea, Canada and the US.

France’s climate change ambassador, Brice Lalonde, said “now we are seeing that the
United States is discussing the matter," Reuters reports. "We welcome this move. Of
course we are waiting for the next step, which would be that the US will also have a goal
in reducing its greenhouse gases, joining in that way all developed countries."

Shaun Vorster, special adviser to South Africa's Ministry of Environment, said

developing nations still “do not yet see eye to eye” with the Americans but leave with
“much improved understanding of each other's national positions, underlying concerns,
interests and aspirations".

Germany's minister for the environment, Matthias Machnig, expressed concern that there
is not yet enough common ground, saying “we need a clear international agreement,
because we are running out of time."

Also discussed at the meeting was energy efficiency, deforestation and the transfer of
clean technology from the rich world to poorer nations. The US and Japan have recently
committed $2 billion each to new initiatives to help developing nations tackle climate
change, expected to result in a new World Bank fund.

07 April 2008
UN official: The train to Copenhagen has left the station
The first major UN climate change talks since the Bali meeting last December have
wound up in Bangkok with a schedule agreed for how the 189 nations of the UN climate
convention will work towards a new global climate treaty to extend the Kyoto Protocol
beyond 2012.
The primary aim of the Bangkok meeting was process oriented - thrashing out the step-
by-step work program of negotiations in the areas needed for a comprehensive global
climate agreement:
*mitigation of greenhouse gas emissions;
*adaptation to the impacts of climate change;
*development and deployment of clean carbon technology;
*financial market mechanisms.
Yvo de Boer, executive secretary of United Nations Framework Convention on Climate
Change, welcomed the outcome as major step in implementing the Bali roadmap saying
afterwards “the train to Copenhagen has left the station”. The work programme agreed
means these can be addressed in “bite-sized, manageable chunks of work”, de Boer said,
across seven meetings timetabled up to the deadline for the new agreement – at the UN’s
annual meeting in Copenhagen at the end of 2009.
The primary aim of the Bangkok meeting was process oriented - thrashing out the step-
by-step work programme of negotiations in the areas needed for a comprehensive global
climate agreement; the mitigation of greenhouse gas emissions, adaptation to the impacts
of climate change, development and deployment of clean carbon technology and financial
market mechanisms.
Other views of the meeting were not so sanguine as De Boer’s, however. The gathering of
1000 or more delegates from 163 countries was also the first chance to gauge what
movement there has been on the major sticking points of targets and burden-sharing since
the new ‘constructive’ air following Bali and the US-convened major emitters’ meeting in
Hawaii early this year.
“The talks managed to keep the momentum going … but it’s hard to leave Bangkok
confident that the deadline can be met,” said Elliot Diringer, director of international
strategies at the respected Pew Center on Climate Change. Major nations were still
sticking to their old positions on the big questions that have stalemated negotiations up to
now, Diringer said.
The proposal by Japan for emissions reductions in developing countries to be shifted from
an overall national focus to a sector-by-sector approach was put off for discussion late in
the year after finding significant opposition from developing countries. Bloomberg
reports the G77 group of developing nations, including China and India, expressed
concern that rich countries weren’t setting new national emissions reduction targets. The
developing world maintains a view that firm commitments to reduce emissions by
developed countries is a key, first-up requirement in a new global agreement.
On the positive side of the ledger, a significant area of agreement among all nations,
developed and developing, was support for the carbon market mechanisms of Kyoto
being continued under a new agreement. Effectively, the Bangkok meeting has reduced
some of the uncertainty surrounding the future of the primary market mechanism of
Kyoto, the Clean Development Mechanism (CDM).
“This sends an important signal to businesses that the international carbon market
spawned by the Kyoto Protocol will continue beyond 2012,” de Boer said in his closing
statement. “Businesses have been asking for clarity on this issue, and now they have it.”

IPCC FOURTH ASSESMENT REPORT , NOVEMBER 2007

This Synthesis Report is based on the assessment carried out by the three Working
groups of the IPCC. It provides an integrated view of climate change as the final part of
the IPCC.s Fourth Assessment Report. This report addresses environmental concerns in
totality and suggests a road map for mitigation thereof.

1. Observed changes in climate and their effects

Warming of the climate system is unequivocal, as is now evident from observations

of increases in global average air and ocean temperatures, widespread melting of
snow and ice, and rising global average sea level (Figure SPM.1).
Eleven of the last twelve years (1995-2006) rank among the twelve warmest years in the
instrumental record of global surface temperature (since 1850). The 100-year linear trend
(1906-2005) of 0.74 [0.56 to 0.92]°C is larger than the corresponding trend of 0.6 [0.4 to
0.8]◦C (1901-2000) given in the Third Assessment Report (TAR) The temperature
increase is widespread over the globe, and is greater at higher northern latitudes. Land
regions have warmed faster than the oceans. Global average sea level has risen since 1961
at an
average rate of 1.8 [1.3 to 2.3] mm/yr and since 1993 at 3.1 [2.4 to 3.8]mm/yr, with
contributions from thermal expansion, melting glaciers and ice caps, and the polar ice
sheets. Satellite data since 1978 show that annual average Arctic sea ice extent has shrunk
by 2.7 [2.1 to 3.3]% per decade, with larger decreases in summer of 7.4 [5.0 to 9.8]% per
decade. Mountain glaciers and snow cover on average have declined in both hemispheres.
Globally, the area affected by drought has likely increased since the 1970s. It is very
likely that over the past 50 years: cold days, cold nights and frosts have become less
frequent over most land areas, and hot days and hot nights have become more frequent. It
is likely that: heat waves have become more frequent over most land areas, the frequency
of heavy precipitation events has increased over most areas, and since 1975 the incidence
of extreme high sea level3 has increased worldwide. There is observational evidence of
an increase in intense tropical cyclone activity in the North Atlantic since about 1970.
Average Northern Hemisphere temperatures during the second half of the 20th century
were very likely higher than during any other 50-year period in the last 500 years and
likely the highest in at least the past 1300 years.

Observational evidence from all continents and most oceans shows that many
natural systems are being affected by regional climate changes, particularly
temperature increases.

Changes in snow, ice and frozen ground have increased the number and size of glacial
lakes, increased ground instability in mountain and other permafrost regions, and led to
changes in some Arctic and Antarctic ecosystems. Some hydrological systems have also
been affected through increased runoff and earlier spring peak discharge in many glacier-
and snow-fed rivers, and effects on thermal structure and water quality of warming rivers
and lakes. In terrestrial ecosystems, earlier timing of spring events and pole-ward and
upward shifts in plant and animal ranges are linked to recent warming. In some marine
and freshwater systems, shifts in ranges and changes in algal, plankton and fish
abundance are associated with rising water temperatures, as well as related changes in ice
cover, salinity, oxygen levels and circulation.

Other effects of regional climate change on natural and human environments are
emerging, although many are difficult to discern due to adaptation and non-climatic
drivers.

They include effects of temperature increases on

• agricultural and forestry management at Northern Hemisphere higher latitudes, such as
earlier spring planting of crops, and alterations in disturbance regimes of forests due to
fires and pests
• some aspects of human health, such as heat-related mortality in Europe, changes in
infectious disease vectors in some areas, and allergenic pollen in Northern Hemisphere
high and mid-latitudes
• some human activities in the Arctic (e.g. hunting and travel over snow and ice) and in
lower-elevation alpine areas (such as mountain sports).
2. Causes of change

Changes in atmospheric concentrations of greenhouse gases (GHGs) and aerosols, land-

cover and solar radiation alter the energy balance of the climate system.
Global GHG emissions due to human activities have grown since pre-industrial
times, with an increase of 70% between 1970 and 2004 (Figure SPM.3).
Carbon dioxide (CO2) is the most important anthropogenic GHG. Its annual emissions
grew by about 80% between 1970 and 2004. The long-term trend of declining CO2
emissions per unit of energy supplied reversed after 2000.

Global anthropogenic GHG emissions

Figure SPM.3. (a) Global annual emissions of anthropogenic GHGs from 1970 to 2004.5 (b) Share of
different anthropogenic GHGs in total emissions in 2004 in terms of CO2-eq. (c) Share of different sectors in
total anthropogenic GHG emissions in 2004 in terms of CO2-eq. (Forestry includes deforestation). {Figure
2.1}
Global atmospheric concentrations of CO2, methane (CH4) and nitrous oxide (N2O) have
increased markedly as a result of human activities since 1750 and now far exceed pre-
industrial values determined from ice cores spanning many thousands of years.

Atmospheric concentrations of CO2 (379ppm) and CH4 (1774 ppb) in 2005 exceed by far
the natural range over the last 650,000 years. Global increases in CO2 concentrations are
due primarily to fossil fuel use, with land-use change providing another significant but
smaller contribution. It is very likely that the observed increase in CH4 concentration is
predominantly due to agriculture and fossil fuel use. Methane growth rates have declined
since the early 1990s, consistent with total emission (sum of anthropogenic and natural
sources) being nearly constant during this period. The increase in N2O concentration is
primarily due to agriculture. {2.2}
There is very high confidence that the net effect of human activities since 1750 has been
one of warming.

Most of the observed increase in globally-averaged temperatures since the mid-20th

century is very likely due to the observed increase in anthropogenic GHG
concentrations. It is likely there has been significant anthropogenic warming over
the past 50 years averaged over each continent (except Antarctica). Advances since
the TAR show that discernible human influences extend beyond average
temperature to other aspects of climate.
Human influences have:
• contributed to sea level rise during the latter half of the 20th century
• contributed to changes in wind patterns, affecting extra-tropical storm tracks and
temperature patterns
• increased temperatures of extreme hot nights, cold nights and cold days
• increased risk of heat waves, area affected by drought since the 1970s and frequency
of heavy precipitation events.
Anthropogenic warming over the last three decades has likely had a discernible
influence at the global scale on observed changes in many physical and biological
systems.
3. Projected climate change and its impacts
There is high agreement and much evidence that with current climate change
mitigation policies and related sustainable development practices, global GHG
emissions will continue to grow over the next few decades.

The IPCC Special Report on Emission Scenarios (SRES, 2000) projects an increase of
global GHG emissions by 25-90% (CO2-eq) between 2000 and 2030 (Figure SPM.5),
with fossil fuels maintaining their dominant position in the global energy mix to 2030 and
beyond.
Continued GHG emissions at or above current rates would cause further warming
and induce many changes in the global climate system during the 21st century that
would very likely be larger than those observed during the 20th century.
For the next two decades a warming of about 0.2°C per decade is projected. Even if the
concentrations of all greenhouse gases and aerosols had been kept constant at year 2000
levels, a further warming of about 0.1oC per decade would be expected.

Regional-scale changes include:

• warming greatest over land and at most high northern latitudes and least over Southern
Ocean and parts of the North Atlantic Ocean, contraction of snow cover area, increases in
thaw depth over most permafrost regions, and decrease in sea ice extent; in some
projections using SRES scenarios, Arctic late-summer sea ice disappears almost entirely
by the latter part of the 21st century
• increase in frequency of hot extremes, heat waves, and heavy precipitation
• increase in tropical cyclone intensity; less confidence in global decrease of tropical
cyclone numbers
• pole-ward shift of extra-tropical storm tracks with consequent changes in wind,
precipitation, and temperature patterns
• precipitation increases in high latitudes and likely decreases in most subtropical land
regions, continuing observed recent trends

By mid-century, annual river runoff and water availability are projected to increase at
high latitudes (and in some tropical wet areas) and decrease in some dry regions in the
mid-latitudes and tropics. Also many semi-arid areas (e.g. Mediterranean basin, western
United States, southern Africa and northeast Brazil) will suffer a decrease in water
resources due to climate change.
Examples of some projected regional impacts

Africa
• By 2020, between 75 and 250 million of people are projected to be exposed to increased
water stress due to climate change;
• By 2020, in some countries, yields from rain-fed agriculture could be reduced by up to
50%. Agricultural production, including access to food, in many African countries is
projected to be severely compromised. This would further adversely affect food security
and exacerbate malnutrition;
• Towards the end of the 21st century, projected sea-level rise will affect low-lying
coastal areas with large populations. The cost of adaptation could amount to at least 5-
10% of Gross Domestic Product (GDP);
• By 2080, an increase of 5-8% of arid and semi-arid land in Africa is projected.

Asia
• By the 2050s, freshwater availability in Central, South, East and South-East Asia,
particularly in large river basins, is projected to decrease;
• Coastal areas, especially heavily-populated mega delta regions in South, East and South-
East Asia, will be at greatest risk due to increased flooding from the sea and, in some
mega deltas, flooding from the rivers;
• Climate change is projected to compound the pressures on natural resources and the
environment, associated with rapid urbanization, industrialization and economic
development;
• Endemic morbidity and mortality due to diarrhoeal disease primarily associated with
floods and droughts are expected to rise in East, South and South-East Asia due to
projected changes in the hydrological cycle.

Australia and New Zealand

• By 2020, significant loss of biodiversity is projected to occur in some ecologically rich
sites including the Great Barrier Reef and Queensland Wet Tropics;
• By 2030, water security problems are projected to intensify in southern and eastern
Australia and, in New Zealand, in Northland and some eastern regions;
• By 2030, production from agriculture and forestry is projected to decline over much of
southern and eastern Australia, and over parts of eastern New Zealand, due to increased
drought and fire. However, in New Zealand, initial benefits are projected in some other
regions.;
• By 2050, ongoing coastal development and population growth in some areas of
Australia and New Zealand are projected to exacerbate risks from sea level rise and
increases in the severity and frequency of storms and coastal flooding.

Europe
• Climate change is expected to magnify regional differences in Europe’s natural
resources and assets. Negative impacts will include increased risk of inland flash floods,
and more frequent coastal flooding and increased erosion (due to storminess and sea-level
rise);
• Mountainous areas will face glacier retreat, reduced snow cover and winter tourism, and
extensive species losses (in some areas up to 60% under high emissions scenarios by
2080);
• In Southern Europe, climate change is projected to worsen conditions (high
temperatures and drought) in a region already vulnerable to climate variability, and to
reduce water availability, hydropower potential, summer tourism and, in general, crop
productivity;
• Climate change is also projected to increase the health risks due to heat-waves, and the
frequency of wildfires.
Latin America
• By mid century, increases in temperature and associated decreases in soil water are
projected to lead to gradual replacement of tropical forest by savanna in eastern
Amazonia. Semi-arid vegetation will tend to be replaced by arid-land vegetation.
• There is a risk of significant biodiversity loss through species extinction in many areas
of tropical Latin America;
• Productivity of some important crops is projected to decrease and livestock productivity
to decline, with adverse consequences for food security. In temperate zones soybean
yields are projected to increase. Overall, the number of people at risk of hunger is
projected to increase
• Changes in precipitation patterns and the disappearance of glaciers are projected to
significantly affect water availability for human consumption, agriculture and energy
generation.

North America
• Warming in western mountains is projected to cause decreased snow-pack, more winter
flooding, and reduced summer flows, exacerbating competition for over-allocated water
resources;
• In the early decades of the century, moderate climate change is projected to increase
aggregate yields of rain-fed agriculture by 5-20%, but with important variability among
regions. Major challenges are projected for crops that are near the warm end of their
suitable range or which depend on highly utilized water resources;
• During the course of this century, cities that currently experience heatwaves are
expected to be further challenged by an increased number, intensity and duration of
heatwaves during the course of the century, with potential for adverse health impacts;
• Coastal communities and habitats will be increasingly stressed by climate change
impacts interacting with development and pollution.

Polar Regions
• The main projected biophysical effects are reductions in thickness and extent of glaciers
and ice sheets and sea ice, and changes in natural ecosystems with detrimental effects on
many organisms including migratory birds, mammals and higher predators;
• For human communities in the Arctic, impacts, particularly those resulting from
changing snow and ice conditions are projected to be mixed;
• Detrimental impacts would include those on infrastructure and traditional indigenous
ways of life;
• In both polar regions, specific ecosystems and habitats are projected to be vulnerable, as
climatic barriers to species invasions are lowered.

Small Islands
• Sea-level rise is expected to exacerbate inundation, storm surge, erosion and other
coastal hazards, thus threatening vital infrastructure, settlements and facilities that support
the livelihood of island communities;
• Deterioration in coastal conditions, for example through erosion of beaches and coral
bleaching is expected to affect local resources;
• By mid-century, climate change is expected to reduce water resources in many small
islands, e.g., in the Caribbean and Pacific, to the point where they become insufficient to
meet demand during low-rainfall periods.
• With higher temperatures, increased invasion by non-native species is expected to occur,
particularly on mid- and high-latitude islands.

Some systems, sectors and regions are likely to be especially affected by climate change.
• particular ecosystems:
• terrestrial: tundra, boreal forest and mountain regions because of sensitivity to warming;
mediterranean-type ecosystems because of reduction in rainfall; and tropical rainforests
where precipitation declines
• coastal: mangroves and salt marshes, due to multiple stresses
• marine: coral reefs due to multiple stresses; the sea ice biome because of sensitivity to
warming
• water resources in some dry regions at mid-latitudes and in the dry tropics, due to
changes in rainfall and evapotranspiration, and in areas dependent on snow and ice melt
• agriculture in low-latitudes , due to reduced water availability
• low-lying coastal systems, due to threat of sea level rise and increased risk from extreme
weather events
• human health in populations with low adaptive capacity.
• the Arctic, because of the impacts of high rates of projected warming on natural systems
and human communities
• Africa, because of low adaptive capacity and projected climate change impacts
• small islands, where there is high exposure of population and infrastructure to projected
climate change impacts
• Asian and African mega-deltas, due to large populations and high exposure to sea level
rise, storm surges and river flooding.
Within other areas, even those with high incomes, some people (such as the poor, young
children, and the elderly) can be particularly at risk, and also some areas and some
activities.

Ocean Acidification
The uptake of anthropogenic carbon since 1750 has led to the ocean becoming more
acidic with an average decrease in pH of 0.1 units. Increasing atmospheric CO2
concentrations lead to further acidification. Projections give a reduction in average global
surface ocean pH of between 0.14 and 0.35 units over the 21st century. While the effects
of observed ocean acidification on the marine biosphere are as yet undocumented, the
progressive acidification of oceans is expected to have negative impacts on marine shell
forming
organisms (e.g. corals) and their dependent species.

Altered frequencies and intensities of extreme weather, together with sea level rise,
are expected to have mostly adverse effects on natural and human systems.
Anthropogenic warming and sea level rise would continue for centuries due to the
timescales associated with climate processes and feedbacks, even if GHG
concentrations were to be stabilised.

Current models suggest virtually complete elimination of the Greenland ice sheet and a
resulting contribution to sea level rise of about 7 m if global average warming were
sustained for millennia in excess of 1.9 to 4.6ºC relative to pre-industrial values.
The corresponding future temperatures in Greenland are comparable to those inferred for
the last interglacial period 125,000 years ago, when paleoclimatic information suggests
reductions of polar land ice extent and 4 to 6 m of sea level rise.

Anthropogenic warming could lead to some impacts that are abrupt or irreversible,
depending upon the rate and magnitude of the climate change.
Partial loss of ice sheets on polar land could imply metres of sea level rise, major changes
in coastlines and inundation of low-lying areas, with greatest effects in river deltas and
low-lying islands. Such changes are projected to occur over millennial time scales, but
more rapid sea level rise on century time scales cannot be excluded.
Climate change is likely to lead to some irreversible impacts. Approximately 20-30% of
species assessed so far are likely to be at increased risk of extinction if increases in global
average warming exceed 1.5-2.5 DegC (relative to 1980-1999). As global average
temperature increase exceeds about 3.5 DegC, model projections suggest significant
extinctions (40-70% of species assessed) around the globe.

4. Adaptation and mitigation options14

A wide array of adaptation options is available, but more extensive adaptation than
is currently occurring is required to reduce vulnerability to climate change. There
are barriers, limits and costs, which are not fully understood.
Societies have a long record of managing the impacts of weather- and climate-related
events. Nevertheless, additional adaptation measures will be required to reduce the
adverse impacts of projected climate change and variability, regardless of the scale of
mitigation undertaken over the next two to three decades. Moreover, vulnerability to
climate change can be exacerbated by other stresses. These arise from, for example,
current climate
hazards, poverty and unequal access to resources, food insecurity, trends in economic
globalisation, conflict and incidence of diseases such as HIV/AIDS.

Some planned adaptation to climate change is already occurring on a limited basis.

Adaptation can reduce vulnerability especially when it is embedded within broader
sectoral initiatives. There are viable adaptation options that can be implemented in some
sectors at low cost, and/or with high benefit-cost ratios.

Adaptive capacity is intimately connected to social and economic development but is

unevenly distributed across and within societies.
A range of barriers limit both the implementation and effectiveness of adaptation
measures. The capacity to adapt is dynamic and is influenced by a society’s productive
base including: natural and man-made capital assets, social networks and entitlements,
human capital and institutions, governance, national income, health and technology. Even
societies with high adaptive capacity remain vulnerable to climate change, variability and
extremes. {4.2}

Both bottom-up and top-down studies indicate that there is high agreement and
much evidence of substantial economic potential for the mitigation of global GHG
emissions over the coming decades that could offset the projected growth of global
emissions or reduce emissions below current levels.
While top-down and bottom-up studies are in line at the global level there are
considerable differences at the sectoral level.
No single technology can provide all of the mitigation potential in any sector. The
economic mitigation potential, which is generally greater than the market mitigation
potential, can only be achieved when adequate policies are in place and barriers removed.
Studies suggest that mitigation opportunities with net negative costs have the potential to
reduce emissions by around 6 GtCO2-eq/yr in 2030, realizing which requires dealing with
implementation barriers.

Future energy infrastructure investment decisions, expected to exceed 20 trillion US$

between 2005 and 2030, will have long-term impacts on GHG emissions, because of the
long life-times of energy plants and other infrastructure capital stock. The widespread
diffusion of low-carbon technologies may take many decades, even if early investments
in these technologies are made attractive. Initial estimates show that returning global
energy related CO2 emissions to 2005 levels by 2030 would require a large shift in
investment patterns, although the net additional investment required ranges from
negligible to 5-10%.

A wide variety of policies and instruments are available to governments to create the
incentives for mitigation action. Their applicability depends on national
circumstances and sectoral context.
They include integrating climate policies in wider development policies, regulations and
standards, taxes and charges, tradable permits, financial incentives, voluntary agreements,
information instruments, and research, development and demonstration (RD&D).
An effective carbon-price signal could realise significant mitigation potential in all
sectors. Modelling studies show global carbon prices rising to 20-80 US$/tCO2-eq by
2030 are consistent with stabilisation at around 550 ppm CO2-eq by 2100. For the same
stabilisation level, induced technological change may lower these price ranges to 5-65
US$/tCO2-eq in 2030.
There is high agreement and much evidence that mitigation actions can result in near-term
co-benefits (e.g. improved health due to reduced air pollution) that may offset a
substantial fraction of mitigation costs.
There is high agreement and medium evidence that Annex I countries. actions may affect
the global economy and global emissions, although the scale of carbon leakage remains
uncertain.
Fossil fuel exporting nations (in both Annex I and non-Annex I countries) may expect, as
indicated in the TAR, lower demand and prices and lower GDP growth due to mitigation
policies. The extent of this spill over depends strongly on assumptions related to policy
decisions and oil market conditions.
There is also high agreement and medium evidence that changes in lifestyle, behaviour
patterns and management practices can contribute to climate change mitigation across all
sectors.
Many options for reducing global GHG emissions through international cooperation
exist. There is high agreement and much evidence that notable achievements of the
UNFCCC and its Kyoto Protocol are the establishment of a global response to
climate change, stimulation of an array of national policies, and the creation of an
international carbon market and new institutional mechanisms that may provide the
foundation for future mitigation efforts. Progress has also been made in addressing
adaptation within the UNFCCC and additional international initiatives have been
suggested.
Greater cooperative efforts and expansion of market mechanisms will help to reduce
global costs for achieving a given level of mitigation, or will improve environmental
effectiveness. Efforts can include diverse elements such as emissions targets; sectoral,
local, sub-national and regional actions; RD&D programmes; adopting common policies;
implementing development oriented actions; or expanding financing instruments.
In several sectors, climate response options can be implemented to realise synergies
and avoid conflicts with other dimensions of sustainable development. Decisions
about macroeconomic and other non-climate policies can significantly affect
emissions, adaptive capacity and vulnerability.
Making development more sustainable can enhance mitigative and adaptive capacities,
reduce emissions, and reduce vulnerability, but there may be barriers to implementation.
On the other hand, it is very likely that climate change can slow the pace of progress
towards sustainable development. Over the next half-century, climate change could
impede achievement of the Millennium Development Goals.

5. The long-term perspective determining what constitutes “dangerous

anthropogenic interference with the climate system” in relation to Article 2 of the
UNFCCC involves value judgements. Science can support informed decisions on this
issue, including by providing criteria for judging which vulnerabilities might be
labelled “key Vulnerabilities.
Key vulnerabilities19 may be associated with many climate sensitive systems including
food supply, infrastructure, health, water resources, coastal systems, ecosystems, global
biogeochemical cycles, ice sheets, and modes of oceanic and atmospheric circulation
The five “reasons for concern” identified in the TAR remain a viable framework to consider key
vulnerabilities. These “reasons” are assessed here to be stronger than in the TAR. Many risks are identified
with higher confidence. Some risks are projected to be larger or to occur at lower increases in temperature.
Understanding about the relationship between impacts and vulnerability (that includes the ability to adapt to
impacts) has improved.
• Risks to unique and threatened systems. There is new and stronger evidence of
observed impacts of climate change on unique and vulnerable systems (such as polar and
high mountain communities and ecosystems), with increasing levels of adverse impacts as
temperatures increase further. An increasing risk of species extinction and coral reef
damage is projected with higher confidence than in the TAR as warming proceeds. There
is medium confidence that approximately 20-30% of plant and animal species assessed so
far are likely to be at increased risk of extinction if increases in global average
temperature exceed 1.5-2.5°C over 1980-1999 levels. Confidence has increased that a 1-
2oC increase in global mean temperature above 1990 levels (about 1.5-2.5oC above pre-
industrial) poses significant risks to many unique and threatened systems including many
biodiversity hotspots. Corals are vulnerable to thermal stress and have low adaptive
capacity. Increases in sea surface temperature of about 1-3oC are projected to result in
more frequent coral bleaching events and widespread mortality, unless there is thermal
adaptation or acclimatization by corals. Increasing vulnerability of indigenous
communities in the Arctic and small island communities to warming is projected.
• Risks of extreme weather events. Responses to some recent extreme events reveal
higher levels of vulnerability than the TAR. There is now higher confidence in the
projected increases in droughts, heatwaves, and floods as well as their adverse impacts.
• Distribution of impacts and vulnerabilities. There are sharp differences across regions
and those in the weakest economic position are often the most vulnerable to climate
change. There is increasing evidence of greater vulnerability of specific groups such as
the poor and elderly in not only developing but also developed countries. Moreover, there
is increased evidence that low-latitude and less-developed areas generally face greater
risk, for example in dry areas and mega-deltas.
• Aggregate impacts. Compared to the TAR, initial net market-based benefits from
climate change are projected to peak at a lower magnitude of warming, while damages
would be higher for larger magnitudes of warming. The net costs of impacts of increased
warming are projected to increase over time.
• Risks of large-scale singularities. Global warming over many centuries would lead to
a sea level rise contribution from thermal expansion alone which is projected to be much
larger than observed over the 20th century, with loss of coastal area and associated
impacts. Risk of additional contributions to sea level rise from both the Greenland and
possibly Antarctic ice sheets may be larger than projected by ice sheet models and could
occur on century time scales.

There is high confidence that neither adaptation nor mitigation alone can avoid all
climate change impacts; however, they can complement each other and together can
significantly reduce the risks of climate change.

Many impacts can be reduced, delayed or avoided by mitigation. Mitigation efforts

and investments over the next two to three decades will have a large impact on
opportunities to achieve lower stabilisation levels. Delayed emission reductions
significantly constrain the opportunities to achieve lower stabilisation levels and
increase the risk of more severe climate change impacts.
In order to stabilise the concentration of GHGs in the atmosphere, emissions would need
to peak and decline thereafter. The lower the stabilisation level, the more quickly this
peak and decline would need to occur.
Sea level rise under warming is inevitable. Thermal expansion would continue for many
centuries after GHG concentrations have stabilised, for any of the stabilisation levels
assessed, causing an eventual sea level rise much larger than projected for the 21st
century. The eventual contributions from Greenland ice sheet loss could be several
metres, and larger than from thermal expansion, should warming in excess of 1.9-4.6°C
above pre-industrial be sustained over many centuries. The long time scales of thermal
expansion and ice sheet response to warming imply that stabilisation of GHG
concentrations at or above present levels would not stabilise sea level for many centuries.

There is high agreement and much evidence that all stabilisation levels assessed can
be achieved by deployment of a portfolio of technologies that are either currently
available or expected to be
commercialised in coming decades, assuming appropriate and effective incentives
are in place for their development, acquisition, deployment and diffusion and
addressing related barriers.

All assessed stabilisation scenarios indicate that 60-80% of the reductions would
come from energy supply and use, and industrial processes, with energy efficiency
playing a key role in many scenarios.
Including non-CO2 and CO2 land-use and forestry mitigation options provides greater
flexibility and cost-effectiveness. Low stabilization levels require early investments and
substantially more rapid diffusion and commercialisation of advanced low emissions
technologies. Without substantial investment flows and effective technology transfer, it
may be difficult to achieve emission reduction at a significant scale. Mobilizing financing
of incremental costs of low-carbon technologies is important.
The macro-economic costs of mitigation generally rise with the stringency of the
stabilisation target. For specific countries and sectors, costs vary considerably from
the global average.
In 2050, global average macro-economic costs for mitigation towards stabilisation
between 710 and 445ppm CO2-eq are between a 1% gain and 5.5% decrease of global
GD. This corresponds to slowing average annual global GDP growth by less than 0.12
percentage points.
Responding to climate change involves an iterative risk management process that includes both adaptation
and mitigation and takes into account climate change damages, co-benefits, sustainability, equity, and
attitudes to risk.
Impacts of climate change are very likely to impose net annual costs which will increase
over time as global temperatures increase. Peer-reviewed estimates of the social cost of
carbon in 2005 average US$12 per tonne of CO2, but the range from 100 estimates is
large (-$3 to $95/tCO2). This is due in large part to differences in assumptions regarding
climate sensitivity, response lags, the treatment of risk and equity, economic and non
economic
impacts, the inclusion of potentially catastrophic losses, and discount rates. Aggregate
estimates of costs mask significant differences in impacts across sectors, regions and
populations and very likely underestimate damage costs because they cannot include
many non-quantifiable impacts. Limited and early analytical results from integrated
analyses of the costs and benefits of mitigation indicate that they are broadly comparable
in magnitude, but do not as yet permit an unambiguous determination of an emissions
pathway or stabilisation level where benefits exceed costs. Climate sensitivity is a key
uncertainty for mitigation scenarios for specific temperature levels. Choices about the
scale and timing of GHG mitigation involve balancing the economic costs of more rapid
emission reductions now against the corresponding medium-term and long-term climate
risks of delay.

Chapter 8
Technological Intiatives

Annexures
Abbreviations Used

Law Cases, Acts & Notifications

Bibliography