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ORGANIZATION OF ENERGY SECTOR

Energy sector in India is dominated by government and its agencies. It is guided in policy making by Power & Energy Policy and Rural Energy Division of Planning Commission. Many of the large companies in energy sector are government owned. The sector has only recently seen the rise of private sector companies. A few areas like Nuclear Power , still under state monopoly.

ORGANIZATION OF ENERGY SECTOR

ORGANIZATION OF ENERGY SECTOR

INDIAN ENERGY SECTOR


There is a strong two-way relationship between economic development and energy consumption. Primary commercial energy demand grew @ 5% between 1980-81 and 2005-06 India accounted for 3.9 % of worlds commercial energy demand. Low levels of per capita energy consumption. Since 1999, Indias energy intensity has been decreasing and is expected to continue to decrease. High economic growth rates lead to higher rates of growth in energy consumption. Cost-effective and environmentally benign energy sources needed to maintain competitiveness. Energy is also the key to improve socio-economic conditions. Future growth projections indicate total demand to rise up to 1887 MTOE by 2031, compared to 220 MTOE now. GDP v/s energy efficiency for top 40 economies

INDIAN ENERGY SECTOR

Third largest producer in world. Coal is the mainstay . Low quality . Coking coal imported. 22MT in 06-07. Current production @ 450 MT , to increase up to 2350 MT by 2031. Coal critical for future energy needs as reserves to production ratio is close to 217. Reforms have been stalled by unionized labor force and coal lobby, allowing monopoly of CIL , leading to serious energy security, local, regional, and environment concerns. Shallow mining preferred due to quick returns, producing poor quality and contaminated coal. Price fluctuations cause of concern. Large investments in infrastructure needed, high prices might actually bring more forex.

COAL AND LIGNITE

OIL AND GAS


Domestic production stagnant for past 15 years. Higher imports putting fiscal strains on economy. Imports have tripled in 10 years. Reserves augmented only to a minor extent by some recent discoveries. Strategic oil reserve to be established ( 5MT by 2012). NELP expected to result in more discoveries. OALP mooted. Round the year licensing . OVL and other companies investing in foreign fields ( Equity Oil). India is emerging as a big refining hub, with technical advantages and capacity crunch worldwide allowing higher margins. 4218 Km of pipelines transporting crude and natural gas between refineries, production sites and consumption areas. Reforms needed and alternative fuels to be considered.

BLOCKS OFFERED UNDER NELP

POWER
Power generation has grown to 659.42 BU at a CAGR of 4.36% in 03-07. Captive power production at 21000 MW. Total length of transmission lines is 6778359 circuit km, with voltages ranging from 800 kV to 11 kV and less. Close to 70% generation by thermal power, with coal contributing the most, followed by hydro, wind , nuclear and other sources. High T&D and AT&C losses. Total electrification and metering still not done. Low per capita consumption compared to world, and regional variations in consumption patterns. Reforms, investments and R&D for development of alternate resources needed.

RENEWABLE SOURCES
Total capacity at 9372 MW, 6315 wind energy, 1905 small hydropower, 1152 Biopower. 7% of total, Renewable energy is available in wide forms and sources. Bio-power and Bagasse based co-generation, Biomass gassification, Solar photovoltaics, Wind, Small-hydropower, Urban and industrial waste, biogas , Solar, fuel cells, Bio-fuels, Hydrogen energy, ocean and geothermal energy are some of the potential sources. High potential in each of these, with capability, if properly exploited and with sufficient technological advances, to replace much of the thermal power generation Current constraining factors are high costs and lack of proper technologies to tap these sources. IEP features : Renewable energy to be given special policies for well defined period to ensure outcomes, incentives to integrate alternative sources into systems should be linked with energy generated. More policies and frameworks.