Role of Energy in balanced Sectorial Growth

D.H. Kalsaria1.& U.C. Patel2.

1
Junior Engineer, Corp. office,Vadodara, 2Superintending Engineer, Jambuva,.
Gujarat Energy Transmission Corporation Limited
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1.0 Introduction:
 In spite of contraction in energy consumption and profound impact on world energy
demand under global economic recession that began in 2008 and continued into
2009, viewing the pace of recovery and returning back to the economic growth path,
the anticipated future energy demand is substantial.
 India faces formidable challenges in meeting its energy need and providing adequate
energy of desired quality in various forms to users in a sustainable manner and at
reasonable costs. Exponential increased use of fossil fuel, combined with
environmental concerns, has led to renewed interest in energy reserves and
alternatives of fossil fuels. Experts over the world are working on remaining coal, oil
and gas resources realizing the need to ensure a long term supply of energy
reserves.
 The availability of conventional energy sources is limited and may not be sufficient in
the long run to sustain the process of economic development. The demand of energy
is growing manifold and the energy reserves are being scarce and costlier, it
necessitates to strike a balance between sectorial growth and optimal utilization of
energy reserves. The optimum usage of energy involves several aspects in terms of
cost of generation, technology, operational performance, type of fuel, environmental
effects, renewable energy resources, grid integration, electricity market and
competition, fuel transportation, infrastructure development, water conservation, etc
not forgetting the change in social set up and living life-style.
 The main objective of this paper is to focus on the influencing players which are
determinants for striking a balance between sectorial growth and energy reserves in
the form of energy model. It is intended to provide ideas and inspiration on how to
counter the energy challenges and how to apply a meaningful approach towards
dealing with the long term energy demand and economic development by taking small
steps at a time. This model is structured depicting role of each player on energy
security & measures to be taken in attaining the balance, not compromising with
environmental consequences & socio-economic growth.

2.0 Energy scenario overview

World overview India overview

Crude oil Crude oil

35% Coal 32%
25%

Coal
Others 54%
5%
Others Natural Gas
19% Natural Gas 9%
21%

• 35% of world energy need is • 32% of India energy need is

supplied by crude oil, 25% coal and supplied by crude oil, 54% coal and
21% by natural gas 9% by natural gas
• World primary sector growing at 2% • India primary sector growing at 5%
  Energy security has become a growing concern because India’s energy needs are
growing rapidly with rising income levels and a growing population. At the same time,
our dependence on imported energy has increased.

3.0 Sectorial energy consumption: Overview.

World overview India overview

Agriculture
Others
5%
14%
Residential,
Commerical&
Industries
others
50% Industries
20%
49%
b
Transportation
30%
T ransportation
22%

Residential
10%

• 50% of world energy is consumed by • 49% of India energy is consumed by

industrial sector, 30% by industrial sector, 22% by
transportation and 20% by transportation, 10% by residential,
residential, commercial & others. 5% by agriculture & 14% by others.

 Primary energy sources like coal, oil, natural gas and bio-mass are mostly converted
into secondary energy like electricity, steam, thermal and refined petroleum products
which form the basis of industrial, transport, agriculture, residential/commercial
development. Energy being an important element, its availability has to be ensured on
sustainable basis.
 Impressive progress has been made in the field of industry, agriculture,
communication, transport and other sectors, necessitating growing consumption of
energy for socio-economic activities. India ranks 6th in the world, accounting for 3.4%
of global energy consumption in terms of energy demand. India’s fossil fuel reserves
are limited. The known reserves of oil & natural gas may last for hardly 18 & 26 years,
respectively at the current reserve to production ratio while India’s coal reserves (84
million tones) may last for about 200 years.

4.0 Social and economic growth:

 The level of per capita Energy Consumption is a good indicator of the level of social
and economic development. However, per capita consumption in India is too low (612
kWh) as compared to developed countries which is just 4% of USA and 20% of the
world average. To mitigate with required economic rise, the demand for energy has
grown at an average of 3.6% per annum over the past 30 years. If India is to achieve
targeted growth of about 8% in GDP, it would need commensurate input of energy,
mainly commercial energy in the form of coal, oil, gas & electricity. To sustain growth
of 8% and to meet life time energy needs of all citizens, India needs to increase its
primary energy supply by 3 to 4 times and electricity generation capacity about 6
times.

5.0 Balance Sectorial growth to optimal use energy reserves: Energy Model

 While energy markets are complex, simplified energy model is devised depicting a
meaningful approach towards dealing with long term aspiration of social and
economic development, striking a balance between sectorial growth and optimally use
of energy reserves. The major drivers and the vital constituents are covered in the
model.
Energy Model

Objective
• Influencing players for striking balance between growth and optimally use energy reserves
• Provide ideas & inspiration to counter with energy challenges.
• Dealing with long term social & economic development
• Ensuring long term supply of energy reserves

Sectorial Growth Energy reserves

• Energy efficiency & Energy conservation • Energy Mix
• Comprehensive energy policy frame work • Harnessing renewable energy resources
• Optimum energy utilization through infrastructure • Coordinated R&D efforts

Environmental Impacts Socio-economic Growth

• Co-relation energy reserve& Environmental
• Change in social setup & life style
impacts
• Improved performance of power sector (generation,
• Up-gradation in generation technologies &
transmission, distribution)
improved operational performance

Outcome
• Increase in Energy security
• Long term supply energy reserves
Feedback • Long term aspiration & socio-economic development
• Optimally use of energy reserves
• Balance sectorial growth
• Lower impact on environmental consequences
Balance
Balancesectorial
sectorialgrowth
growthto
tooptimally
optimallyuse
useEnergy
Energyreserves
reserves
•Energy efficiency & Energy conservation measures in intensive
•Energy efficiency & Energy conservation measures in intensive
industries & other sectors
Energy efficiency & industries & other sectors
Energy efficiency & •Energy conservation Act 2001
•Energy conservation Act 2001
Energy conservation •Bureau of Energy Efficiency
Energy conservation •Bureau of Energy Efficiency
• Demand side management.
• Demand side management.

•Promoting coal imports

•Promoting coal imports
•Accelerating power sector reforms
•Accelerating power sector reforms
•Cutting cost of power
•Cutting cost of power
•Rationalization of fuel prizes to mimic free market prices
•Rationalization of fuel prizes to mimic free market prices
Comprehensive that promote efficient fuel choice & substitution
Comprehensive that promote efficient fuel choice & substitution
•Promoting energy efficiency & conservation
Energy
EnergyPolicy
Policyframe
frame
•Promoting energy efficiency & conservation
•Augmenting energy resources & supply
work •Augmenting energy resources & supply
•Encouraging renewables & local solutions
work •Encouraging renewables & local solutions
•Enhancing energy security
•Enhancing energy security
•Promoting & focusing energy R&D
•Promoting & focusing energy R&D
•Creating an enabling environmental & regulatory oversight for competitive
•Creating an enabling environmental & regulatory oversight for competitive
efficiency
efficiency

•Fuel substitution, fuel production

•Fuel substitution, fuel production
•Level of imports
•Level of imports
Energy Mix •Utilizing non conventional energy sources
Energy Mix •Utilizing non conventional energy sources
•Demand side management
•Demand side management
•Industrial use of Naptha, FO & HSDO.
•Industrial use of Naptha, FO & HSDO.

Harnessing renewable
Harnessing renewable •Hydro power, Solar energy, Wnd energy, Biomass
energy •Hydro power, Solar energy, Wnd energy, Biomass
energyresources
resources
Optimum energy •Coordination & functioning regulation of ports, roads, rail roads, urban
Optimum energy •Coordination & functioning regulation of ports, roads, rail roads, urban
mass transport,etc.
utilization through mass transport,etc.
utilization through •Transmission network/ Gas pipeline network regulation
•Transmission network/ Gas pipeline network regulation
infrastructure •Expand electrification of railway to reduce diesel need
infrastructure •Expand electrification of railway to reduce diesel need

Co-relation
Co-relationEnergy
Energy •GHG emissions, SOX, NOX, SPM
reserves & •GHG emissions, SOX, NOX, SPM
reserves & •Renewable options v/s fossil fuels
•Renewable options v/s fossil fuels
Environmental
Environmentalimpacts
impacts
•Developing nuclear power based on thorium
•Developing nuclear power based on thorium
•Development cheap batteries with high storage density for hybrid/Electric
Coordinated
CoordinatedR&D
R&D •Development cheap batteries with high storage density for hybrid/Electric
vehicle
efforts vehicle
efforts •Developing solar power increasing efficiency PV from 15% to 50%
•Developing solar power increasing efficiency PV from 15% to 50%
•Exploiting Gas hydrates
•Exploiting Gas hydrates

•Increase in income level

Change in social setup •Increase in income level
Change in social setup •Increase in comfort level
& life style •Increase in comfort level
& life style •Availability of updated/ energy efficient domestic appliances
•Availability of updated/ energy efficient domestic appliances

Up-gradation in
Up-gradation in •Inadequate power generation capacity
•Inadequate power generation capacity
generation technology •Lack of optimum utilization of existing generation capacity
generation technology •Lack of optimum utilization of existing generation capacity
•Huge AT&C losses
& improved operational •Huge AT&C losses
& improved operational •Inadequate aging transmission & distribution network
performance •Inadequate aging transmission & distribution network
performance
•Transmitting stable, reliable & quality power
•Transmitting stable, reliable & quality power
•Transmitting surplus power to deficit area
Role of GETCO as a •Transmitting surplus power to deficit area
•Developing national grid, Enhancing grid network on 765 KV/FACT
Role of GETCO as a •Developing national grid, Enhancing grid network on 765 KV/FACT
•Smart Grid
Transmission Utility •Smart Grid
Transmission Utility •Inadequate interregional transmission links
•Inadequate interregional transmission links
•Lack of grid discipline
•Lack of grid discipline
5.1 Energy efficiency & Energy conservation:

 Industrial sector in India utilizes about 49% of total commercial energy consumption.
Petrochemicals, fertilizers, cement, textiles, paper, sugar, aluminum, etc are the
energy intensive industries. The energy consumption in transport sector, agriculture
sector, etc has also increased substantially. Change in social setup and living life-
style and culture has resulted into tremendous increase in energy consumption in
residential and commercial sectors.
 India has peak power and average energy shortages of 12% and 8% respectively.
Meeting our future need and to bridge current energy situation towards a new future
boils down to following two options.
 Increase in supply of energy or
 Decrease in demand for energy from various sector
 Thus, for reducing supply and demand and to mitigate energy demand, efficient use
of energy and its conservation emerges out to be the least cost option. Nearly, 25000
MW equivalent of capacity creation through energy efficiency in the electricity
consumption has been estimated in India. It requires to explore energy conservation
potential in various sectors of economy. Considering importance of energy efficiency
and conservation and knowing high energy potential & its benefits, Govt. of India has
enacted the Energy Conservation Act 2001 which provides a legal frame work and
institutional arrangement for embarking on energy efficiency drives.

 Demand side Management (DSM) is the vital option to be pursued to reduce demand
for electricity through energy efficient processes, equipment, lighting and buildings, so
that electricity demand is reduced.

5.2 Comprehensive Energy Policy frame work

 A multi prone approach emphasizing of on comprehensive energy policy frame work

at national level on fossil fuel reserves and their alternatives are required to reliably
meet the demand for all sectors including the energy need of household. At the least
cost in a technically efficient, economically viable and environmentally sustainable
manner. Integrated energy policy by GOI in 2008 is an effort made in right direction;
however, its implementation is a real challenge.
 The main areas of policy recommendations are as below:
 Promoting coal imports
 Accelerating power sector reforms
 Cutting cost of power
 Rationalization of fuel prices to mimic free market prices that promote efficient fuel
choice and substitutions.
 Promoting energy efficiency and conservation
 Augmenting energy resources and supply.
 Encouraging renewables and local solutions
 Enhancing energy security
 Promoting and focusing energy R&D
 Promoting energy security through entitlements for the poor, gender equity and
empowerment
 Creating an enabling environment and regulatory oversight for competitive
efficiency.
 Power sector reforms and reduce cost of power in line with Electricity Act 2003.
 Energy efficiency and demand side management lowering energy intensity of GDP
growth through higher energy efficiency.
  House hold energy security considering poor paying capacity, the limited
availability for clean cooking energy with respect to size of the country and its
population.
 Climate change concern for the threat of climate change in formulating energy
policy and to reduce green house gas intensity.

5.3 Energy mix of commercial energy:

 Energy security can be increased by diversifying the energy mix using different types
of fuels.
 A well-defined mechanism and more diffused phenomena in terms of competition with
other fuel forms be devised for supply of energy to major potential consumers. It also
requires to conquest new markets to fulfill energy reserve needs of potential
consumers. It is essential to pursue an energy mix strategy to minimize dependence
on a few resources.
 The opportunities and
economics for substitution of
fuel vary with place, time and
applications. However,
appropriate policies have to be
formulated in an integrated
frame work. The table shows
comparison of the percentage
energy mix for world and India.

 The electricity requirement can be met by various alternative fuels, which necessitates
to develop a possible fuel mix scenario. Natural gas can replace existing fuels in
various sectors both for feedstock and energy purpose, mainly naptha for fertilizer &
petrochemicals and coal for power. Proper energy mix has to be devised on the basis
of future energy requirement and various supply options to achieve balance sectorial
growth.
 An integrated energy policy is needed because different fuels can substitute each
other in both production and consumption. Alternative technologies are available and
there is substantial scope for exploiting synergy for energy system efficiency to meet
energy requirements.

5.4 Harnessing renewable resources:

Estimated midium term non conventional energy

potential (2032) for power generation
Estimated Mid-term (2032)
Sources/ Systems
Potential in MW
45,0
Wind power
00.00
61,0
Bio-Power
00.00
5,00
Co-generation Baggasse
0.00
15,0
Small Hydro (up to 25 MW)
00.00
7,00
Waste of Energy
0.00
50,0
Solar Photovoltaic
00.00
  India has large untapped potential for Total 183,000.00
renewable energy sources. With a
concerted push of 20-fold increase in capacity, renewables can account for around 5-
7% of India’s energy mix by 2031-2032. However, it can provide many social benefits
being it is environmentally benign.
 Wind, Small hydro, Biomass and Solar energy are the renewable energy sources
which have been so far harnessed as a fifth fuel. Our country has significant potential
for generation of power from non renewable energy sources. The total estimated
potential for power is about 1,83,000 MW by 2032 however, the installed capacity at
the end of 10th plan was 10,256 MW and 14,000 MW grid interactive renewable
power is targeted for 11th plan.

 Solar power could be an important player in attending energy independence in the

long run. Solar energy is one of our major energy sources with sufficient potential to
meet almost all our energy needs.

 A good water management

and storage are needed for
tapping hydropower potential.
Only 20% of potentials is
currently being utilized
(18,000MW out of 19,000MW)
 India is 4th world ranking in
power generation utilizing
biomass. Its application
include power generation,
biomass gasification or
heating and cooking.

5.5 Optimizing energy utilization through infrastructure.

 Many element of the energy system constitute public infrastructure with many positive
externalities and economies of scale. Some of them are natural monopolies. Ports,
roads, rails, urban mass transport, etc. play an important role in energy system.
Transmission network or gas pipe line networks have large economies of scale. Their
development needs to be coordinated and function regulated.
 Expand electrification of railways to reduce diesel need.
 Promote urban mass transport to reduce demand for petrol for personalized vehicles.
5.6 Co-relation between energy reserves &
environmental impacts

 Increase in demand of energy has increased

excess burden on the energy reserves and
problem of GHGs emissions resulted from the
industrial activities, conventional transportation,
agriculture activities, water based crops, forest
fire, rocks weathering, deforestation, volcanic
eruption and many other anthropogenic activities.
 As India is short of energy resources, the need to
develop all energy sources including the
renewable options is paramount, though they
have high initial costs.
  Adverse local environment impacts (SOx, NOx, SPM) and global environmental
impacts (green house gas emissions mainly due to carbon dioxide) associated with
fossil fuel use have resulted in an increased emphasis on renewable. The figure
shows a listing of some of the commonly used renewable options. Renewable can be
used for space heating, cooling, water pumping, cooking and for almost any end uses
that is presently met by fossil fuels. A renewable energy resource may be
environmentally benign.

5.7 Coordinated R&D efforts for exploring untapped energy sources:

 Viable technologies for transforming different untapped energy sources into clean fuel
and energy for minimizing CO2 emissions are required to be explored through
coordinated R&D efforts.
Nuclear technology including fusion power:
 Nuclear power is critical to India’s long term energy security needs based on
abundant thorium reserves. The nuclear option to be fully developed
undertaking R&D for fusion for unlimited power. Success in these efforts could
deliver some 2,50,000 MW by 2050 which can not only enhance energy
security but also yield dividends by reducing carbon emissions.
Battery technology
 Battery technology is important for exploiting solar power as well as for
automotive sectors.
Hydrogen
 Hydrogen is an energy carrier and can be used to generate electricity in a fuel
cell and can be burnt directly in combustion engine. However, hydrogen has to
be produced with using some energy which can be gas, coal, oil, solar energy,
biomass hydro or nuclear energy. It is also possible to produce it through
microbial action.
Non-conventional hydrocarbon resources:
 R&D for exploiting non-conventional resources in the form of heavy oils, sands,
gas hydrates, etc has to be undertaken. Very large reserves exist in Indian
water having potential to provide vast amount of gas hydrates.

5.8 Change in social setup and living life style:

 A noticeable shift in social set-up & life-style has been experienced for the past two
decades with increase in population, rise in income level, increase in comfort level,
introduction of ‘Jyotigram Yojna’-providing 24 hrs power supply in rural areas in
Gujarat, Standards & Labelling for house hold appliances, etc. A tremendous rise in
energy demand in residential/commercial sector has been observed both in urban &
rural areas. Electricity consumption in offices and residential/commercial buildings has
increased manifold with installation of air conditioners and other comfort giving
appliances.

5.9 Cost of generation, technology up gradation, operational performance in Power

sector:
 Conventional technology base power generation has increased cost of power
generation. Inefficient operation & maintenance in generation, transmission &
distribution of power & electricity losses have further add to the energy crisis.
Efficiency of coal power plants needs to be improved from current average level of
30.5 % obtaining the latest coal based technology.
5.10 Role of GETCO as a Transmission Utility in Energy Model – Grid
integration/smart grid
 Electricity is one of the most convenient forms of commercial energy. Even those who
have access to electricity suffer from shortages and poor quality of supply.
Unscheduled outages, load shedding, fluctuating voltage and erratic frequency are
common.
 The current total installed capacity in the country as on 31st March,2010 is 1,59,000
MW, as compared to 1,32,330 MW prevailing as on 31.03.2007 (at the end of 10th
plan). The national electricity policy envisages power for all by 2012. To achieve this,
total capacity addition of about 1,00,000 MW is required during 10th & 11th plan period.

Summary of Installed capacity as on 31.03.2007 (in MW)

Thermal
Sector Hydro Coal lignite Gas Disel Total Nuclear RES Total
Centrqal 7562 25270 2490 5899 0 33659 3900 0 45121
State 25786 38530 590 3610 605 43335 0 976 70096
Private 1306 3741 500 4183 597 9021 0 6785 17113
Total 34654 67541 3580 13692 1202 86015 3900 7761 132330
Note(*): RES = Renewable energy sources includes small hydro projects, biomass gas, Biomass power,
Urban & Industrial west power & wind energy

 As a notified energy intensive transmission utility, GETCO can plan a major role in
terms of transmitting, reliable, stable and quality power to the various energy
consuming sectors across the state. Comprehensive construction of rural and urban
power grid has been undertaken to meet with exponential growth in generation
capacity.
 Transmission system in the country at the end of 10th plan as on 31.03.2010 at
220KV and above was 2,38,742 CKm, 3,12,552 MVA of Substation capacity and
8,700 MW of HVDC.

Summary of Transmission capacity as on 31.03.2010

India Gujarat
Transmission lines Unit Transmission lines Unit
765KV ckm 3719 765KV ckm -
HVDC ± 500KV ckm 7617 HVDC ± 500KV ckm -
400 KV ckm 98329 400 KV ckm 2048
230/220 KV ckm 129077 230/220 KV ckm 13081
Total transmisson lines ckm 238742 Total transmisson lines* ckm 39519
(*) including 66KV & 132KV
Substations Unit Substations Unit
± 500KV HVDC converter/BTB MW 8700 HVDC BTB MW -
765KV MVA 4500 765KV MVA -
400 KV MVA 118317 400 KV MVA 7410
230/220 KV MVA 189735 230/220 KV MVA 16900
Total AC substation
Total AC substation capacity MVA 312552 capacity* MVA 49854
(*) including 33KV, 66KV, 132KV

 An inadequate transmission network wherein power can not be easily moved from
surplus areas to areas with a deficit. The focus of development in transmission
system is towards national grid by interconnecting with regional grids by providing
inter-regional transmission links together with corresponding required intra regional
transmission system. A strong all India grid enable exploitation of unevenly distributed
 generation resources in the country to their optimal potential. It would meet the firm
transmission needs and with open access in transmission would facilitate increase
real time trading in electricity and leading to market determine generation dispatches.
 Transmission schemes for power evacuation and regional system strengthening
corresponding additional generation capacity are identified. Growth in 765 KV
transmission line during 11th five year plan period is planned from 1714 Ckm at the
end of 10th plan to about 7132 Ckm by the end of 11th plan thereby increase in 765 KV
Substation transformation capacity from 2000 MVA to 53000 MVA by the end of 11th
plan.

Launching Smart Grid:

 Various functionalities geared towards modernizing the electricity grid in “Smart Grid”
with fully automated power delivery network, which utilizes digital communication and
control to monitor and control power flows with the aim of making the power grid more
resilient, efficient and cost effective.
 However, smart grids are still under evolution, and different utilities will need different
solutions as per their underlying infrastructure, legacy requirements, and business
case. It also aims at saving money with the feature of “Self healing Grid” which can
repair itself in the event of any failure or attack. It may fulfill improved power quality for
needs of 21st century economy thereby reducing the disruptions, improved efficiency
and better asset utilization. It will also help in lowering carbon foot print & reduced
emissions and increased access to renewable energy resources.

6.0 Conclusion:

An attempt has been made by devising an energy model depicting a meaningful approach
towards dealing with long term ideas & aspiration for socio-economic development, striking a
balance between sectorial growth and optimally use of depleting energy reserves. The major
drivers and the important players, having direct influences on the balance are discussed to
counter the future energy challenges. The main benefit of this model is not only to strike a
judicial balance between sectorial growth and energy reserves but it also ensures minimal
damage to the environment.
References:

[1] Integrated Energy Policy (Draft report of the expert committee) Dec-2005
[2] Internation Energy Outlook, 2010
[3] Indian Energy Scenario by www.dnv.com
[4] Bureau of Energy Efficiency books (www.bee-india.nic.in )
th
[5] Key inputs for accelerated development of Indian power sector for 11 plan and beyond