Energy conservation & Efficiency

An important tool in our fight against high energy

prices

PCRA –An Integrated Energy Solution Provider

ByVISHALANANDA.M.(NR)E-mail: anandv@pcra.org

It is not just the threat of climate change which makes a U-turn in energy policies an urgent requirement. A fundamental reorientation is indispensable also because worldwide energy resources in terms of fossil fuels such as coal, gas and oil are of course limited. Independent studies have shown that on the basis of current rates of output, global oil reserves would last around 40 years, natural gas reserves 65 years, and coal deposits some 200 years.

Embarking on renewable energy and energy saving – this is the double strategy to cope with diminishing energy reserves and the growing demand for energy without having to burden the environment even more.  

Energy is scarce

Why save energy?

Energy prices have multiplied over the last few years while the energy demand continues to grow

According to the American Energy Information Administration (EIA) and to the International Energy Agency (IEA), the world-wide energy consumption will continue to increase by 2 % per year on average unless action is taken. 

According to the UN's Food and Agriculture Organization, energy prices influence all parts of our everyday life and are also seen as a determining factor for the high food prices.

ConsumersIn the UK, 16 % of all households now live in fuel poverty, meaning that they spend more than 10 % of their income on energy expenses.

Developing countriesThe UN estimates that the number of very poor people in the developing world will grow from one to two billion because their purchasing power has been reduced by half due to the high food and energy prices.

The fast decline in the fossil fuel reserves.

According to ASPO (The Association for the Study of Peak Oil), we consume several times more conventional oil than we discover. That has made security of our energy supply a political headache.We are using many times more conventional oil than is discovered – putting supply and prices under even stronger pressure.

Reasons for the increasing oil prices:

ENERGY DEMAND AND SUPPLYENERGY DEMAND AND SUPPLY On the energy demand and supply side, India is facing severe shortages

70% of the total petroleum product demand is being met by imports, imposing a heavy burden on foreign exchange (Rs.170,000/- crores per year).

Country is also facing electric Power Shortages

Peak shortage –11%

Average shortages – 7%

Additional 100,000 MW required by 2012

Approximately Rs. 8000 billion investment required

Further , the per capita consumption in India is too low as compared to developed countries (just 4% of USA and 20% of the world average). The per capita consumption is targetted to to grow to about 1000 kWh per year by 2012

Power Supply Position (2003 - 04)

ENERGY Region Requirement

(MU) Availability

(MU) Surplus(+)/Deficit(-)

(MU) %

Northern Region 161595 152743 -8852 -5.5

Western Region 191680 171236 -20444 -10.7

Southern Region 144372 136844 -7528 -5.2

Eastern Region 54977 52287 -2690 -4.9

N. Eastern Region 6640 6288 -352 -5.3

All India 559264 519398 -39866 -7.1

PEAK DEMAND Region Projected

(MW) Availability

(MW) Surplus(+)/Deficit(-) (MW) %

Northern Region 35540 29471 -5799 -16.3

Western Region 35223 30301 -4922 -14.0

Southern Region 31017 25290 -5727 -18.5

Eastern Region 11990 14311 +2321 +19.4

N. Eastern Region 1875 2035 +160 +8.5

All India 115705 101725 -13980 -12.1

Power Supply Position (2006 - 07)

EFFECTIVENESS OF ENERGY UTILISATION?

• Indian industrial sector accounts for half of the commercial energy used in the country

• Wide variation in energy consumption co-efficient among different units in the same industry using comparable technologies (30-150 % )

• Vast section of industry to still improve their energy efficiency

• Also energy intensity per unit of GDP of Indian economy is very high in comparison with developed countries and Asian and world averages

• This points to vast scope for energy saving potential

Priority areas:

• Shrink the economy ?

• Renewable energy

• Energy efficiency/energy conservation

Energy Security through Energy Conservation

• Huge Potential in reducing electrical consumption by improving supply side energy efficiency, demand side energy efficiency, electricity T&D and by adopting renewable electricity technologies.

• Sector-wise conservation potential in the country has been estimated as:

industrial- 25%, Agricultural- 30%, Domestic & Commercial- 20%, Transport- 20% and Economy as a whole- 23%.

Energy- Today’s raw material

With today's high energy cost,

Energy can be taken as a major

RAW MATERIAL

And not merely an overhead

Potential for Energy Saving Total Energy Consumption – 423 MMTOE Total foreign exchange outgo – Rs.170,000 crores

per annum. Oil & Gas Consumption – 120 MMTOE Potential for saving Energy – 15% Total Energy Saving Potential – 18 MMTOE Money Equivalent – Rs. 57600 Crores(@ Rs.32000/

ton)

Energy Conservation: Need of the Hour

Oil and Gas are major sources of energy. At production level it accounts for 42% .

Oil accounts for major portion of import bill. More than 70% of demand met through imports at

substantial cost. Foreign Exchange outgo of approx. Rs.170,000/- Crores and

will increase further. Limited Reserves. Bigger scope for R&D to develop fuel efficient products /

processes/devices Efficient Management and usage of gaseous fuels like CNG

/LNG/CBM Global competitiveness through energy efficiency.

Conservation is imperative for the Country

IMPORTANCE OF ENERGY CONSERVATIONIMPORTANCE OF ENERGY CONSERVATION

Energy efficiency/conservation measures can reduce peak and average demand.

One unit saved avoids 2.5 to 3 times of fresh capacity addition.

Investment in energy efficiency/energy conservation is highly cost effective.

Also avoids investment in fuel, mining, transportation etc.

Keeping the above factors in view and also to provide a policy guidance,Government of India enacted the Energy Conservation Act,2001

• Conservation – the route to profitability

Barrier

Sometimes, even when the opportunities for energy savings are great, they are not utilized.The reasons fall into the familiar:

Was not aware of opportunities that exist

Did not know what to do

Top management not supportive

Energy issues not a priority

No money and/or staff and/or time

No defined accountability

Only new technology can improve energy efficiency

To start some objects to be put in place

Firm commitment of top management Clearly defined program objective Organizational structure & fixed responsibility Provision of resources Measures & tracking procedure Regular progress review

Thank you