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    Administrative Staff College of India, Hyderabad

    Coal and Energy Efficiency:Policy Initiatives

    Rajkiran V Bilolikar

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    Administrative Staff College of India 2

    The Power of Coal: If India Did Not Use More Coal

    To meet projected demand, and replace projected incremental coal based electricity generation, India

    would have to obtain more than 13 Tcf of NG, build 210 nuclear power plants or construct the equivalent of

    400 Hoover Dams

    1,770 1,736

    1,509

    1,586

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    The Logic of Indias Continuing Reliance on

    Coal

    There are no alternatives to hydrocarbons in the foreseeable futureM.Economides, Professor of Engineering, University of Houston, 2008

    Clean coal technology is one of the most promising routes formitigating emissionsIndia [will] benefit IEA, 2007

    Access to electricity is strongly correlated with every measurableindicator of human development -Berkeley Science Review, 2008

    India has more people without adequate access to energy than anycountry in the world -National Resources Forum, 2008

    Removal of poverty is the greater immediate imperative than global

    warming P. Ghosh, Secretary of the Environment, India,2007

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    The World Bank Agrees

    India needs much more power in a short time frame to continue itseconomic development.

    India still must rely on (coal) to meet growing demand

    Gas-based power is not a viable alternative not enough naturalgas is available and the power it generates is too expensive

    Wind power still has limited reliability and its higher cost makes itunsustainable for meeting large scale demand

    * July,2008

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    India Faces Rampant Growth

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    The Context and Scale of Growth

    Current

    Growth

    By 2030

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    17.1%

    0.5% 0.6%0.8%

    10.2%

    0.0%

    2.0%

    4.0%

    6.0%

    8.0%

    10.0%

    12.0%

    14.0%

    16.0%

    18.0%

    20.0%

    Population

    (1.15 Billion)

    Oil NG Uranium Coal

    %ofWorlds

    ProvedReserves

    Coal is Indias only Energy Advantage

    Indias Share of the Worlds Energy Reserves

    Coal is expected to be themainstay of power

    generation in the years tocome Indias 11th FiveYear Plan (2007-2012)

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    What Coal Conversion Will Do For India

    Electricity consumption will nearly triple by 2030 to almost 2,800terawatt hours (TWh).

    Liquid fuels India will have over 150 million vehicles in 20 years.

    Natural Gas demand will increase 170%.

    Dimethyl Ether (DME) a completely sootless fuel that can greatlyreduce dependence on wood and dung in household cooking.

    Petrochemicals ammonia, formaldehyde, ethylene, propylene,

    methanol production will add significant value to Indian economy.

    Manufacturing Energy sources to make iron and steel as well asnon-metallic goods, including cement and soda ash.

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    Coal is the Cornerstone of Energy in India

    Coal:

    48%Coal:

    39%

    2005

    Other fuel: 61%

    2030

    Other fuel

    52%

    By 2030, the 1.5 billion people in India will dependmore on coal for energy than any country in the

    world except for the 1.5 billion people in China.

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    Access to Electricity and the Quality of Life

    Survive

    Childhood

    Live

    Longer

    Drink

    Cleaner Water

    Eat

    Better

    Are Better

    Educated

    Under FiveDeath Rate/1000

    Life Expectancy(years)

    Access toImproved Sources

    (%)

    Under Nourished(%)

    LiteracyRate (%)

    People in Societies with Greater Access to Electricity:

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    We are at the beginning of the road:Indias Electricity Consumption per

    Capita Compared to Other Nations

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    India Will Increasingly Rely Upon Coal forElectricity Generation

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    COAL

    Reserves : 271 Billion Tonnes

    Proven category : 110 Billion Tonnes

    LIGNITE

    Reserves : 38.9 Billion TonnesProven category : 4.8 Billion Tonnes

    78% domestic coal production is used for power generation Coal is going to be the main source of power generation in the

    country for at least next 25-30 years

    Source: Geological Survey of India, MOPNG

    Nearly 87% of the total reserves are thermal coal

    NATURAL GAS

    Proven Reserves : 1.12 TCM

    Coal is the only proven source of ThermalPower Generation

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    Indian Coal Reserve

    Proven: 8

    Indicated: 6Total : 14

    Proven: 5

    Indicated: 2Total : 7

    Proven: 9

    Indicated: 25Total : 34

    Proven: 14

    Indicated: 30Total : 44

    Proven: 11

    Indicated: 12

    Total : 23

    Proven: 35

    Indicated: 30

    Total : 65

    Proven: 7Indicated: 8

    Total : 15

    246Total

    46Inferred

    110Indicated

    90Proven

    Billion tonnes

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    Some Facts

    In 2008-09 coal contributed to about 53% of the total commercialenergy supply

    In MTOE terms India is the third largest consumer of coal in worldafter China

    In 2009 coal consumption in India was 245.8 MTOE

    India has third largest proven coal reserves totalling to 58600 MT

    Countrys Reserves to production ratio is 105

    False sense of security current and foreseeable technologies can

    convert only small fraction of these into mineable category

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    Challenges

    Indian coal industry is beset with problems

    Dwindling Reserves

    Increasing demand supply gap

    Inefficient operations

    Failure to equitably allocate coal among various consumers

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    Indias response to the coal sector

    First Phase

    Mining of coal in small pockets began in year 1774

    Production coal increased to 6 million tonnes at the beginning of20th century

    22.4 million tonnes in 1919

    33 million tonnes in 1951 (first five year plan)

    Second PhaseNationalization of coking coal mines in 1971-72

    Non coking coal mines in 1973

    Coking coal Mines (Emergency Provisions) Act 1971

    Coking Coal Mines (Nationalization) Act 1972Coal Mines (Taking over of Management) Act 1973

    Coal Mines (Nationalization) Act 1973

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    Indias response to the coal sector

    First comprehensive policy

    Fuel Policy Committee (1970), (1975)

    Concluded that the Coal should be considered the primary source ofenergy for the country and recommended the use of coal inpreference of oil products

    Lack of a long term vision for coal development and linkages to thepower sector

    Under the provisions of coal mines (Nationalisation) Act 1973public sector companies can mine coal

    Further in 1976 and in 1993 additional provisions wereenacted to allow coal mining for captive end use for steel,

    cement and power2005 Expert Committee on Road map for coal sector reforms

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    Committee recommendations - Future coal mapping

    conventional geological mapping

    air photo interpretation

    satellite imagery

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    Prognosticated Resources (Regional orReconnaissance Geological survey)

    22400 sq km area out of total surveyed area of 49000 sq km havecoal bearing sedimentary formationsGondwana group

    Out of this total potential coal bearing area of 22400 sq km only about10200 sq km (45%) has been systematically explored throughregional / promotional drilling

    Remaining 12200 sq km area still to be systematically explored Prognosticated resources of 143 billion tones have been estimated (GSI)

    Additionally there are 67 billion toones of coal resources occurring inthe Tertiary Cambay basin of Gujarat lying deeper than 1200 metersEnergy

    These prognosticated resources do not form part of the inventoryof Indian coal reserves

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    Agenda

    Wide spaced drilling is undertaken in these selected areas by GSI underregional exploration programme

    Indicated reserve If the bore holes are drilled at a spacing of 1km to 2 km

    Inferred Reserve If the drill spacing is even wider

    In the 10200 sq km area exploded so far a total of 248 billion tones of in-place Geological Coal reserve has been estimated upto 1200 meters depth ason 1/1/2005

    Bulk of these have been estimated to lie within 600 meters depth (230 billiontones

    Further some 152 billion tones (61.52% of total coal reserves) are estimated toexist within 300 meters depth

    These are available for open cast mining

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    Depth wise Geological Coal Reserves

    The reserves assessed on the basis of detailed exploratory drilling (drill spacingof less than 400 meters) are placed in the Proved Reserves Category

    As a result, 93 billion tones is placed under this category upto depth of 1200

    metersThese include 91.5 billion tones up to depth of 600 meters and 71 billion tonesup to a depth of 300 meters

    70% of the proven reserves have been earmarked for CIL Energy

    10015.54737.5%

    1002483811793Total

    718610.51.5600-1200

    614.5-0.5140-600(Jharia)

    25631739.56.5300-600

    61.5152.51566.5710-300

    In %In (Bt)

    TotalInferred (in

    Bt)

    Indicated (in

    Bt)

    Proved (in

    Bt)

    Depth (m)

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    Basis of Categorization

    It is based on Indian Standard Procedures adopted in 1957with a minimum thickness of 0.5 m to be included in coal

    inventory

    ISP was modified in 1989 to exclude the reserves in coalseams with thickness less than 0.9 m from coal inventory

    Leads to distortion between reserves included in the coalinventory and that estimated in the GRs

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    Tentative Extractable Reserves of the National CoalInventory

    52.24247.8437.80117.0892.96Total

    22.21156.1533.2497.6625.25Rest

    30.0391.694.5679.4267.71CIL Blocks

    TotalInferredIndicatedProvedExtractableReservesGeological ReservesArea

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    Expert Committee Recommendations

    This open up the window of opportunity to speed up the our efforts toaccelerate the pace of regional surveys and drilling to complete thecomprehensive coal resource assessment exercise and to re-examine

    the foundations of our energy security policies and programmes

    A time bound plan to cover the entire country by regional mapping in15 years

    Funding for this is commenced from 2006-07Program on detailed exploration and drilling

    CMPDIs current capacity of drilling 3 lakh meters per annum must beraised to at least 15 lakh meters per annum

    Arrangement of revolving fund of Rs 500 Crores for this purposeEnvisages an enhancement in the capacity for detailed explorationcould potentially add about 20 billion tones of coal to the proven

    category annually

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    New Coal Distribution Policy

    Each sector / consumers would be treated on merit keeping in

    view of regulatory provisions applicable there toPrice distribution will be different to different consumers

    75% of the quantity as per the normative requirement of theconsumers would be through FSA

    The balance 25% of through e-auctionReplacement of linkage system by FUEL Supply Agreement(FSA)

    It talks about new consumers and provisions made thereof

    EMD, Letter of Assurance etc

    It talks about Implementation Schedule

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    Some Maps

    BhagiratiR.

    Rajmahal

    Raniganj

    Karharbari

    Dubrajpur

    Durgapur

    DamodarR.

    BarakarR.

    DAMODAR BASIN

    KOEL BASIN

    Daltonganj

    TikiNidpur

    Parsora

    Pali

    Umaria

    Jabalpur

    SATPU

    RABAS

    IN

    Bijori

    Narmada

    R.

    Godavari R.

    PranhitaR.

    Chintalpudi

    Krishna

    R.

    HYDERABAD

    Talchir

    Bhubaneswar

    Athgarh

    MahanadiR.

    Nagpur

    Kamthi

    Mangli

    PRANHITAGODAVARIBASIN

    Manendragarh

    MAHANADIBASIN

    SonR

    .

    GangaR.

    KOLKATA

    83 8878 79 8081 82

    84 85 86 87

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    8988878685

    SONBASIN

    BAY

    OF

    BEN

    GAL

    Ramagundam

    Kothagudem

    BANGLADESH

    RAJM

    AHALBASIN

    8483828180797877

    0 50 100 150 km

    Scale

    Ptilophyllum Assemblage zone (Jurassic to Lr. Cretaceous

    Lepidopteris-Dicroidium Assemblage Zone (Triassic)

    Glossopteris Assemblage Zone (Permian)

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    Some Maps

    K OLL

    ID AM

    R .

    B AY

    OF B

    ENG A

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    C A U V ER Y

    R

    Po n n aiya r R.

    V e lla r R

    .

    N E Y V E L I

    C U D D A L O R E

    M i s a l R a m a n a t h a p u r a m

    R a m e s w a r a m

    S i v a g a n g a

    %

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    M A N N A R G U D I

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    T H A N J A V U R

    VA IG AI R

    IVER

    NEY

    VEL I

    LIG

    N ITE

    FIEL

    D

    MAN

    NARG

    UDI

    LIGN

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    FIEL

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    T A

    RG

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    G E O L O G I C A L M A PO F P A R T O F T A M I L N A D U

    L I G N I TE O C C U R R E N C E SOF

    T A M I L N A D U

    35 0 0 35 0 km

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    m m m m m m m m

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    mmmmmmm

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    Sri n a g a r

    S i m la

    C h a n d i g a r h

    N e w D e l h i

    Jai p urL u c k n o w

    P a t n a

    G a n g t o k It a n a ga r

    Dis p u r

    K o h i m a

    Im p h a l

    S h i ll o n g

    Ai z a w l

    A g a rt a l a

    K o l k a t a

    B h u b a n e s w a r

    C h e n n a i

    P o n d i c h e rry

    Tir u v a n a n ta p u r a m

    B a n g a l o r e

    H y d e r a b a d

    M u m b a i

    P a n a ji

    G a n d h i n ag a rB h o p a l

    6 8 7 6 8 4 9 2

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    M A N N A R G U D I

    R a m e s w a ra m

    R a m a n at h a p u r a m

    %

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    %C H E N NA I

    TA

    A

    M

    IL

    N

    AD

    U

    A l l u v i u m

    T e r t i a r y s e d i m e n t s

    U p p e r G o n d w a n a s &U n d i f fe r e n t i a te d C r e ta c e o u s

    M e t a m o r p h ic

    b a s e m e n t

    T A R G E T A R E A

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    K E Y M A P

    L E G E N D

    A r e a s : L i g n i t e o c c u r e n c e s p r o v e d

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    RajMahal Coal Field

    Khargram

    Fatehpur

    Rampurhat

    Saldaha

    D u m k a

    Katikund

    Gopikandar

    Amrapara

    Pakur

    Barharwa

    Hansd iha

    Kaha lgaon

    Bara

    M a h a g a m a

    PhulberiaSimra

    Berhait

    Ra jmaha l RS .

    Sah ibgan jPirpaint i RS.

    87 00 ' 8710 ' 87 20 ' 87 30 ' 87 40' 8750' 88 00 '

    2410'

    2430'

    2440'

    2450'

    2500'

    2510'

    2520'

    2420'

    Alluvium

    Lower Gondwanas

    Metamorph ics

    Ra jmaha l Format ion

    Upper Gondwanas

    L E G E N D

    8700 ' 8710 ' 8720 ' 8730 ' 8740 ' 8750 ' 8800 '

    2410'

    2420'

    2430'

    2440'

    2450'

    2500'

    2510'

    2520'

    10 0 10 k m

    U R M A -PA H A R IT O L A

    C H A U D H A R -G A R IA PA N I

    SA H A R PU R -JA MA R PA N I

    K U L K U L ID A N G A L -SITASAL

    R A M P U R -MA L L A R PU R

    B O R T A L A -MA T H U R A PU R

    Ongoing blocks

    Completed blocks

    Pro p o sed b lo ck

    G E O L O G I C A L M A P O F R A J M A H A L A N D B I R B H U M C O A L F I E L D SJ H A R K H A N D A N D W E S T B E N G A L

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    Geological Map of Talcher

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    Geological map of Singrauli coal field

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    Energy Conservation and Energy Efficiency

    Energy Conservation andEnergy Efficiency

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    Energy Development and Climate Change

    7721 kg OEUSA

    1130 kg OEBrazil

    346 kg OEIndia

    1680 kg OEWorld

    1403 kg OEChina

    Indias Energy Development and climate change challengesare multipronged

    Energy Performance in terms of both quantity and equity is veryweak

    Indias challenge is to bridge the access gap in modern energyservices

    It leads to growing contributions of climate change

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    Energy Development and Climate Change

    Some questions

    How the Government policies and regulatory frameworkshave evolved over a period of time for promoting energyefficiency?

    What are the trends observed in energy intensities of Indianeconomy?

    Do the trends in energy intensities reflect the influence ofenergy efficiency policy measures and subsequent actions?

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    Energy Development and Climate Change

    Indian Government estimates that the energy consumptionwill rise by 50% by 2015 compared to 2005 levels

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    Energy Development and Climate Change

    Primary energy consumption as a whole has grown at a

    CAGR of 4.9% The consumption of coal has grown at 4.2%

    Oil by 5.5%

    Natural Gas by 12.8%

    Hydro and Nuclear power by 8.6% & 4.4%

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    Energy Development and Climate Change

    The total energy related CO2 emissions have grown at a CAGR of 4.7%

    to about 1328 Million Tonne in 2007-08 from about 182 Million Tonne in1965

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    Energy Development and Climate Change

    The energy intensities have been estimated for each of the primary

    energy sources / carriers by dividing the energy consumption by theconstant 2000 national GDP

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    Energy Development and Climate Change

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    First Phase

    National Development policy was till the early 1970s focused onpuritanical ideals of economic development

    Early 1970s witnessed the first initiatives towards the integration of energypolicy into national development policy

    Concerns on the fossil fuel long term solution for growing energydemands

    The fuel policy committee was set up in 1970Suggestion to set up Energy Board

    PCRA

    The Working group on Energy Policy (WGEP)

    Demand Management should form the most important element of oil policyTo develop coordination among rail, road and water ways including coastalshipping for optimum us of transportation options

    To set up standards of fuel efficiency for electrical and diesel pumps, lighting,cooking appliances etc

    Assessment of Energy Policy regimes

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    Second Phase (6th & 7th five year plan 1980 1989)

    GoI Instituted the inter ministerial working group on EnergyConservation in August 1981

    The first concrete proposal for reduction in energy consumption inIndia (IMWGEC 1983)

    Three major sectors Industry, Transport and Agriculture

    5-10% of investment required for new energy supplies and equalamount would be saved by EC

    Advisory Board on Energy was set up in 1983

    ABE made detailed projection on energy demand

    ABE commissioned Indian Law Institute in 1987 to prepare a draftof the Energy Conservation Bill for enactment

    The draft was completed in 1988The establishment of Nodal Energy Conservation Organisation

    (NECO)

    It was soon replaced by Energy Management Centre

    Assessment of Energy Policy regimes

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    Second Phase (6th & 7th five year plan 1980 1989)

    The establishment of Nodal Energy Conservation Organisation(NECO)

    It was soon replaced by Energy Management Centre

    The centre coordinated

    Energy Auditing of consumers both in the industrial and commercialsector

    Both conventional and non conventional energy managementsystems and energy conservation

    Education and training

    Energy generation and conservation based employment and povertyalleviation programmes

    Assessment of Energy Policy regimes

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    Third Phase (1990s)

    National Energy Conservation Day 14th

    of DecemberNational Energy Conservation Award

    Eco-Mark Voluntary eco-labeling program; MoEF managed theprogram with the support of CPCB

    Voluntary programme on energy efficiency

    Refrigerators

    Room Air Conditioners

    World Energy Efficiency Association (WEEA) was founded in1993

    Assessment of Energy Policy regimes

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    Fourth Phase

    (Critical to the development of energy policy in India)

    The energy conservation bill was passed as an act in September2001

    It facilitated the creation of new body in the name of Bureau ofEnergy Efficiency popularly known as BEE

    The Main objectives of BEE were

    To exert leadership, provide policy framework and direction tonational energy conservation and efficiency efforts

    To coordinate energy efficiency and conservation policies andprogrammes and take them to stakeholders

    To establish systems and procedures to measure, monitor and verifyenergy efficiency results at sectoral as well as macro level

    To leverage multi lateral, bi-lateral and private sector support inimplementation of EC Act and EE programmes

    To interpret, plan and manage EC programmes as envisaged in theEC Act

    Assessment of Energy Policy regimes

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    Fourth Phase

    (Critical to the development of energy policy in India)

    BEE has worked to eliminate market failures arising fromquandaries such as information asymmetries

    Industry specific task forces

    Notifying more industries as designated consumers

    Conduct of energy audit amongst notified designated consumers

    Recording and publication of best practices in each sector

    Development of energy consumption norms

    Monitoring of compliance with mandated provision by designatedconsumers

    Assessment of Energy Policy regimes

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    Fifth Phase : the way forward

    Integrated Energy Policy (2006)

    Barriers were analyzed

    Energy Pricing

    Informational asymmetries

    Consuemers are not aware of the opportunities for improving

    EEEffective and Comprehensive energy policy

    Assessment of Energy Policy regimes

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    National Action Plan

    The National Action Plan on Climate Change wasreleased by Honorable Prime Minister of India in June

    2008

    The Action Plan Outlines 8 Missions includingNational Mission on Enhanced Energy Efficiency

    (NMEEE)

    The Mission has outlined specific goals

    Missions under NAPCC

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    National Solar Mission National Mission for Enhanced Energy Efficiency

    National Mission on Sustainable Habitat

    National Water Mission

    National Mission for Sustaining the Himalayan Ecosystem National Mission for a Green India

    National Mission for Sustainable Agriculture

    National Mission for Strategic Knowledge for Climate Change

    Missions under NAPCC

    Indian Power Supply: Current Situation and

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    Indian Power Supply: Current Situation andFuture Projections

    Installed Capacity in India Approx. 160,000 MW

    Projected Capacity in 2030 800,000 MW

    600 MW capacity addition each week

    Continued deficit supply in 2007-08 (MOP)

    Peak power deficit of 16.6%

    Energy Deficit of 9.9%

    Source: Planning Commission of India and Central Electricity Authority

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    Electricity Scenario in India

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    Energy Conservation

    Energy Conservation is achieved when growth of energy

    consumption is reduced, measured in physical terms

    Energy Conservation can therefore, be the result of severalprocesses or developments, such as productivity increase ortechnological progress

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    Energy Conservation

    Energy conservation refers to

    efforts made to reduce energy consumption in order

    to preserve resources for the future and reduce environmentalpollution.

    Energy conservation can be achieved through

    increased efficient energy use, in conjunction with

    decreased energy consumption and/or reduced consumption fromconventional energy sources.

    D i f E C i

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    Drivers for Energy Conservation

    India is faced with the challenge of sustaining its rapid economic

    growth while dealing with the global threat of climate change

    Increasing gross domestic product (GDP) remains the key target

    of the Indias economic development strategy; however GDP

    growth is tied closely to increasing energy consumption

    Unless economic growth is decoupled from increased energy

    consumption, the energy shortage situation will continue

    While per-capita GHG emissions of India are low, in absolute

    terms Indias GHG emissions very high

    Energy Security and way towards clean technologies

    E Effi i M

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    Energy Efficiency Measures

    Legal or Regulatory Instruments

    Financial Measures

    Market Oriented Mechanisms

    Energy Audits

    Energy Conservation programmes

    Demand Side Mangement

    I di R t d E Effi i

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    Indias Response towards Energy Efficiency

    Legal and Regulatory instruments

    The Energy Conservation Act 2001

    Mandatory energy Efficiency target of 5% by 2012 in 11th five year plan

    National Mission for Enhanced Energy Efficiency (NMEE)

    PAT (Perform, Achieve and Trade)

    MTEE (Market Transformation for Energy Efficiency)

    FEEED (Framework for Energy Efficient Economic Development)

    DSM (Demand Side Management)

    Indias Response towards Energy Efficiency

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    Indias Response towards Energy Efficiency

    Financial Measures

    The State Energy Conservation fund (SECF) is a 70 Crore

    Rupees fund launched in 2009 under the framework of the 2001

    Energy Conservation Act

    Energy Audit

    Energy audits are mandatory for large energy consuming

    industries. The bureau of Energy Efficiency is responsible forimplementation of energy efficiency programmes

    Energy Efficiency Spin offs

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    Energy Efficiency Spin offs

    Energy Efficiency / conservation measures can reduce peak and

    average demand

    One unit saved avoids around 2.5 to 3 times of fresh capacity

    addition

    Investment in energy efficiency/ energy conservation is highly cost

    effective

    Can be achieved less than Rs. 1.2 Crore/MW

    Avoids investment in fuel, mining and transportation etc

    Energy Efficiency India Scenario

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    Energy Efficiency India Scenario

    Savings Potential

    Supply side savings opportunity : 25000 MW

    Demand side savings opportunity

    Agricultural sector : 20%

    Commercial sector : 20-50 %

    Industrial sector : 25 %

    Energy Conservation Act 2001

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    Energy Conservation Act 2001

    Comprehensive legislation laying roadmap for improvement inenergy efficiency in the country

    Mandatory energy audit for energy intensive industries

    Minimum energy performance standards for industries & forequipment & appliances

    Setting up of a Bureau of Energy Efficiency

    Bureau of Energy Efficiency (BEE)

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    Bureau of Energy Efficiency (BEE)

    Established in 2002 to provide a policy framework and direction tonational energy conservation activities, with following thrust areas:

    Indian Industry Programme for Energy Conservation

    Demand Side Management

    Standards and Labeling Programme

    Energy Efficiency in Buildings and Establishments

    Energy Conservation Building Codes

    Professional Certification and Accreditation

    Manuals and Codes

    Energy Efficiency Policy Research Programme

    School Education

    Delivery Mechanisms for Energy Efficiency Services

    Standards and Labeling

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    Standards and Labeling

    Frost Free(No-Frost) refrigerator

    Tubular Fluorescent Lamps

    Room Air Conditioners

    Direct Cool Refrigerator

    Induction Motors, Pump Sets

    Ceiling Fans

    LPG, Electric Geysers

    Colour TV

    The Objectives of Program is to provide the consumer an informedchoice about the energy saving ,and thereby the cost saving potentialof the marketed household and other equipment.

    The scheme was launched by the Hon'ble Minister of Power inMay,2006

    The scheme is currently invoked for equipments/appliances

    Energy Conservation Building Code (ECBC)

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    Energy Conservation Building Code (ECBC)

    Commercial Buildings Sector in India

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    Commercial Buildings Sector in India

    Commercial Buildings Growth Forecast

    Currently, ~ 659 million m2 (USAID ECO-III Internal Estimate Using MOSPI,CEA and Benchmarked Energy Use data)

    In 2030,~ 1,900 million m2 (estimated) *

    66% building stock is yet to be constructed

    Year: 2010

    660

    million

    m2

    660

    million

    m2

    * Assuming 5-6% Annual Growth

    1,930

    million m2

    Source: USAID ECO- III Project, Lawrence Berkeley National Laboratory

    Projected Growth Across Building Sector inI di

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    India

    Source: McKinsey Analysis

    Growth of Electricity Consumption inCommercial Sector in India

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    Commercial Sector in India

    SOURCE: Central Electricity Authority (2009).

    Energy Conservation Building Code (ECBC)

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    gy g ( )

    Covers new buildings and ensures minimum energy performancerequirements

    Launched by Govt. of India on May 2007

    Building components included

    Building Envelope (Walls, Roofs, Windows)

    Lighting (Indoor and Outdoor)

    Heating Ventilation and Air Conditioning (HVAC) System

    Solar Water Heating and Pumping

    Electrical Systems (Power Factor, Transformers)

    ECBC Overview

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    ECBC sets minimum energy efficiency standards for design andconstruction of commercial buildings

    ECBC encourages energy efficient design of new buildings andmajor renovations

    Addresses local design conditions and helps improve existingconstruction practices

    Emphasis on Integrated Building Design approach

    First generation code ease of use and continuousimprovement

    ECBC Compliance

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    ENVELOPEENVELOPE

    HVACHVAC

    LIGHTINGLIGHTING

    ELECTRICAL POWERELECTRICAL POWER

    SOLAR HOT WATER &

    PUMPING

    SOLAR HOT WATER &

    PUMPING

    PrescriptivePrescriptive

    Whole Building

    Performance

    Whole Building

    Performance

    Trade-off option (for

    ENVELOPE only)

    COMPLIANCE APPROACHES

    Required for ALL

    Compliance Approaches

    Applicable BUILDING SYSTEMS

    ECBC Development

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    Broad Stakeholder participation

    Building Industry, Manufacturers, Professionals, Govt.Agencies etc.

    ECO-II facilitated the development of ECBC

    ECBC committee of experts

    An extensive data collection was carried out for construction typesand materials, glass types, insulation materials, lighting and HVACequipment

    Base case simulation models were developed

    The stringency analysis was done through detailed energy and lifecycle cost analysis

    Relationship of ECBC With Other Programs

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    Program OrganizationCompliance

    RequiredBuilding Type Building With Scope Linkage to ECBC

    ECBCMinistry ofPower/BEE

    Voluntary Commercial

    ConnectedLoad>=500kW

    Contract Demand

    >=600kVA

    Energy Efficiency NA

    LEED-IndiaCII-Green

    Business CenterVoluntary

    Commercial/Institutional

    -Sustainable

    design/greenbuilding

    Refers to ECBC forenergy efficiency

    credits

    GRIHA MNRE VoluntaryResidential/Commercial/Institutional

    -Sustainable

    design/greenbuilding

    Refers to ECBC forenergy efficiency

    credits

    EnvironmentalImpact

    Assessment (EIA)

    Ministry ofEnvironmentand Forests

    MandatoryCommercial/Resi

    dentialApplicable toLarge Projects

    EnvironmentalImpact

    ECBC andEnvironmentalClearance

    requirements arerelated

    Energy Conservation Act 2001

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    Government of India - creation of Bureau of Energy Efficiency (BEE)

    Powers and Functions of BEE vis--vis ECBCPrescribe ECBC for efficient use of energyTake suitable steps to prescribe guidelines for ECBCLink Energy Performance Index (from the EC Act) to the ECBCPrescriptive Compliance Approach in order to facilitate theimplementation of the Code

    [On Page 5, clause (j) of the EC Act, 2001 currently reads:"energy conservation building codes" means the norms and

    standards of energy consumption expressed in terms of per squaremeter of the area wherein energy is used and includes the locationof the building]

    Energy Conservation Act 2001

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    Power of State Government:

    The State Govt., in consultation with BEE, may

    amend ECBC to suit the regional and local climatic conditions withrespect to use of energy in the buildings

    direct the owner or occupier of a building (if notified as aDesignated Consumer) to comply with the provisions of ECBC

    Benchmarking: Macro Analysis BuildingPopulation

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    Population

    N=760

    N=861

    Baseline Energy Use in Commercial Buildings

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    Number ofBuildings

    Building TypeFloorArea(m2)

    Annual EnergyConsumption

    (kWh)Benchmarking Indices

    OFFICE BUILDINGS kWh/m2/year kWh/m2/hour

    145 One shift Buildings 16,716 20,92,364 149 0.068

    55 Three shifts Buildings 31,226 88,82,824 349 0.042

    88 Public Sector Buildings 15,799 18,38,331 115 0.045

    224Private Sector

    Buildings28,335 44,98,942 258 0.064

    10 Green Buildings 8,382 15,89,508 141 -

    HOSPITALS kWh/m

    2

    /year kWh/bed/year128

    Multi-specialtyHospitals

    8721 24,53,060 378 13,890

    22 Government Hospitals 19,859 13,65,066 88 2,009

    HOTELS kWh/m2/yearkWh/room/yea

    r

    89Luxury Hotels (4 and 5

    Star)19,136 48,65,711 279 24,110

    SHOPPING MALLS kWh/m2/year kWh/m2/hour

    101 Shopping Malls 10,516 23,40,939 252 0.05642

    Source: Building Energy Benchmarking study undertaken by the USAID ECO-III Project

    Building Envelope Design

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    ECBC Compliant Design Strategy for a Building

    Heat/Moisture Losses Walls Roof Window

    Minimize ConductionLosses

    Use insulation withlow U-value

    Use insulationwithlow U-value

    Use material withlowU-factor

    Minimize ConvectionLosses & MoisturePenetration

    Reduce air leakage&use vapor barrier

    Reduce airleakage& use vaporbarrier

    Use prefabricatedwindows and sealthejoints betweenwindows and walls.

    Minimize RadiationLosses

    Use light coloredcoating with highreflectance

    Use lightcoloredcoating withhighreflectance

    Use glazing withlowSolar Heat GainCoefficient (SHGC)

    Demand Side Management

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    Demand Side Management or DSM is defined as a set of initiativesundertaken by the utility on the consumer side of the meter to bring about

    a desired change in consumer demand and/or demand profilemaintaining, or even enhancing the service provided to the consumer interms of quality, reliability and cost of service.

    DSM programmes broadly classifies as

    Peak Clipping Programme

    Load Shifting Programme

    Strategic Conservation Programme

    .

    Demand Side Management

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    Monetary incentives results in the most effective implementation of anypolicy

    ERCs can play a critical role in promoting DSM by appropriate tariffstructure

    Time of Day Tariffs

    Power Factor Incentive & Penalty / Reactive Power Charges

    Load Management Charges

    Rebates/ incentives for energy efficiency/ fuel switching

    Differential Pricing for Agricultural Sector

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    Administrative Staff College of India, Hyderabad

    Thank YouRajkiran V. Bilolikar,

    Assistant Professor, Energy Area,

    Administrative Staff College of India,Bella Vista, Raj Bhavan Road,

    Hyderabad - 500082

    T: +91 40 6653 4390F: +91 40 6653 4356

    M: +91 9704087888

    [email protected]