Energy sector in India

Indias primary energy consumption more than doubled between 1990 and 2011 to nearly
25,000 PJ. India's dependence on imported energy resources and the inconsistent reforms of
the energy sector are the challenges for satisfying the rising demand.
Importance of energy
Development and growth
Employment
Poverty alleviation
Industrial sector
Transportation
Infrastructure

Demand of energy- sector wise

The 2015 edition of BPs Energy Outlook projected that, by 2035, Indias energy production
will rise by 117%, while consumption grows by 128%.
The countrys energy mix evolves very slowly over the next 22 years with fossil fuels
accounting for 87% of demand in 2035, compared with a global average of 81% (down from
92% today).
Oil remains the dominant fuel (36%) followed by gas (30%) and coal (21%). CO 2 emissions
from energy consumption increase by 115%.
Electricity demand in India is increasing rapidly, and the 1193 TWh gross produced in 2013
was more than triple the 1990 output, though still represented only some 750 kWh per
capita for the year.

Problems
Fuel Security Concerns: Thermal capacity addition is plagued by the growing fuel availability
concerns faced by the Industry. Coal can become a great game changer but CO2 emission
from coal fired stations have been identified as a major
Financial Health of State Discoms: Years of populist tariff schemes, mounting AT&C losses
and operational inefficiencies have adversely affected the financial health of State Discoms
which are currently plagued with humongous out-standing debts.
Under-procurement of Power by States: Increasing power generation costs due to limited
fuel availability, poor financial health of State Discoms, high AT&C losses have contributed
in suppressed demand projections by State Discoms.
Inimical Financing Environment: Over the last 4-5 years, the leading rates have increased
significantly from the time of project appraisal resulting in project cost overrun and hence
higher end tariffs.
Policy Paralysis: The micro level policies governing the fuel cost pass-through, mega power
policy and competitive bidding guidelines are not in a harmony with the macro framework
like the Electricity Act 2003 and the National Electricity Policy.

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Solution
Fuel Reforms: while formulating such reforms, various aspects like increasing the level of
coal production by both public and private sector in a time-bound manner, increased
participation of private sector in coal production and easing of regulatory framework,
clearances and approvals for allocation and development of coal blocks and gas
infrastructure need to be addressed.
Arriving at an optimal fuel mix: There is a dire need to develop both conventional and non-
conventional forms of energy, wherein, three key factors must be kept in view for developing
an energy mix:
o The pattern of energy demand seen in the country
o The availability of fuels
o Fuel production and import costs.
It would be effective to adopt coal thermal as a fundamental component of the fuel mix for
the next 20-30 years, with solar occupying 5-8 percent of the total mix.
Balanced Regulatory Interventions: Regulators need to be sensitized to the challenges
faced by the sector and policy framework needs to be crafted and enforced to ensure a win-
win situation for all the stakeholders. They must pro-actively intervene to resolve the
immediate issues ailing the power sector.
Increased Financing Facilities for Energy Sector: A robust and sustainable credit
enhancement mechanism for funding in Energy Sector needs to be put in place through
increased participation by global funding agencies like the World Bank, ADB etc. in the
entire value chain.
Public private partnership model: There is a strong need to push for wider-scale
implementation of public private partnership models. The private sector has been playing a
key role in generating power; a more supportive environment will help in bridging the energy
deficit of the country.
The energy sector is undergoing rapid transformation. While ensuring that gaining of
commercial energy reach all segment of society, its transformation and use has to become
environmentally benign and commercially sustainable.

Rural electrification
Rural electrification is the backbone of the rural economy with needs include energy for basic
lighting, communication, irrigation and so on. The impact of rural electrification can be seen on
improved farm productivity, improved health and education, improved communication and
economic development.
Major facets of rural electrification
Setting up of rural electricity infrastructure
Providing connectivity to households
Adequate supply of desired quality of power
Supply of electricity at affordable rates
Providing clean, environmentally benign and sustainable power in efficient way.
Major initiatives for rural electrification

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The need for rural electrification was recognized in 1950s with the first major initiative- the
establishment of Rural Electric Corporation in 1969. Its main objective is to finance and promote
rural electrification all over the country. These are the other major initiatives took by government
towards rural electrification.
Kutir Jyoti Yojana to provide single point light to below poverty level (BPL) families in rural
India launched in 1988.
Remote Village Electrification Programme launched in 2001 by Ministry of New and
Renewable Energy (MNRE) focused on electrifying remote villages not connected to grid
through use of renewable energy sources
Accelerated Rural Electrification Programme in 2003
Rural electrification policy 2005
Rajiv Gandhi Grameen Vidyutikaran Yojana was launched in 2005. This programme aimed
at providing energy access to all by 2009 and at least one unit of electricity per household
per day by 2012 as envisaged in NEP (National Electricity policy) 2005. All earlier
programmes were merged in RGGVY
Deendayal Upadhyaya Gram Jyoti Yojana with major modifications in RGGVY.
Ujwal Discom Assurance Yojana
Unnat Jyoti UJALA

The current government has announced 24X7 Power for All by 2019. The Comprehensive
state-specific action plans for 24x7 power to all homes is being prepared in partnership with
respective states, encompassing generation, transmission and distribution. For rural
electrification to be achieved in a sustainable way, we need a massive focus on creation of
income generation activities to boost the rural economy.
Power for all
Minister of Power, Coal, New and Renewable Energy is designated to look 24/7 Power for
All campaign would achieve electrification of all villages in India (all 18,452 of them) by the
end of 2017.

Challenges
Access to reliable energy is a major developmental challenge in India. The slow pace of
electrification is because of irregular policy focus and political economy constrains at
institutional and organizational level. The remote areas of India are still in dark while India is
extending grid to around 98%of the inhabited villages. 58.5 million Household lack access to
grid electricity. The following are the main challenges in achieving Power for all.
High cost of grid extension
Low recovery due to highly subsidized tariff
Low level of tariff collection resulting in negative return
Supply rationing due to non availability of power
High operation and maintain costs

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Way ahead
Rural electrification is complex and challenging; however, an integrated approach of
combining renewable with conventional grid extension approach and proactive policies to
resolve the integration and tariff issues is one of the preferred ways to move ahead.
For faster, reliable and effective rural electrification a unified model for implementation is
necessary.
There have been numerous programs in just the last decade for accelerating rural
electrification with focus on infrastructure investments, on ambitious coverage targets and
on triage of emergency measures. There is a need of paradigm shift from this to better
management, financing or creating incentives for sustainable maintenance of infrastructure
stock and on providing reliable services.
Awareness, capacity building and creating quality consciousness among the players is also
an essential part of the process.

GS Paper 3:

Critically evaluate the measures taken by the central government for rural electrification. Do you
think the project 24X7 Power for All by 2019 can be a reality?

Perception management: a big challenge in the growth of nuclear power

Reason to shift to nuclear energy
The energy production by burning of fossil fuel and other carbonaceous matter must be
minimized for mitigating the impact of generation of CO2 and other green house gases to
global climate change.
Advantages of Nuclear energy
Most commercially attractive energy option.
Safe and reliable source of energy with minimum carbon foot print.
Steady and uninterrupted supply
High energy density and the compactness of its energy sources translates into easy
transportation of fuel
Smooth operation of large size power plant capable supplying uninterrupted electricity to
mega cities and high power industries
Its full potential can provide sustainable energy to future in a long run.
The nuclear option should be retained, precisely because it is an important carbon-
free source of power that can potentially make a significant contribution to
future electricity supply

Major concerns about nuclear energy

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 Nuclear power is not an economically competitive choice. Moreover, unlike other energy
technologies, nuclear power requires significant government involvement because of safety,
proliferation, and waste concerns.
Higher radiation level which affects human health and result in an increase in cancer and
genetic disorder.
Higher temperature and radiation can cause adversely on agriculture, on land and on
aquatic ecosystem.
Dealing with radioactive waste.
The scope of misusing nuclear technology which may pose threat to national security.
Safety of reactors under the natural catastrophes like tsunami and earthquakes.

Challenges in Economy
Nuclear power will succeed in the long run only if it has a lower cost than competing
technologies. This is especially true as electricity markets become progressively less subject
to economic regulation in many parts of the world.

Safety challenges
This reactor safety standard should be possible to achieve in new light water reactor plants
that make use of advanced safety designs. International adherence to such a standard is
important because an accident in any country will influence public attitudes everywhere.

Waste management
The management and disposal of high-level radioactive spent fuel from the nuclear fuel
cycle is one of the most intractable problems facing the nuclear power industry throughout
the world. No country has yet successfully implemented a system for disposing of this
waste.
Strategically balanced nuclear waste program is needed to prepare the way for a possible
major expansion of the nuclear power sector.

Non proliferation
Nuclear power should not expand unless the risk of proliferation from operation of the
commercial nuclear fuel cycle is made acceptably small.
The nuclear power can expand as envisioned in our global growth scenario with acceptable
incremental proliferation risk, provided that reasonable safe-guards are adopted and that
deployment of reprocessing and enrichment are restricted.
The international community must prevent the acquisition of weapons-usable material, either
by diversion (in the case of plutonium) or by misuse of fuel cycle facilities.
Responsible governments must control, to the extent possible, the know-how relevant to
produce and process either highly enriched uranium (enrichment technology) or plutonium.
The International Atomic Energy Agency (IAEA) should focus overwhelmingly on its
safeguards function and should be given the authority to carry out inspections beyond
declared facilities to suspected illicit facilities.

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 Greater attention must be given to the proliferation risks at the front end of the fuel cycle
from enrichment technologies.

Radiation from nuclear plants

Presence of radio nuclides in the earth's crust and cosmic radiation from space contribute to
the background radiation which varies from place to place and depends on the food and
water we consume and the air we breathe.
Human and other living beings can indeed withstand such high radiation dose.
The background of radiation is monitored by the Indian Environmental Radiation Monitoring
system.

Impact of Nuclear power plant operation on environment

Nuclear reactors require water for steam generation, and for cooling. This is one of the
reasons they are situated along coastlines. The water used for cooling is later released at a
higher temperature. However, discharging heated water into marine ecosystems sets up a
thermal gradient that can throw the system off balance, and destroy the species that survive
there.
The thermal effluent discharged to water bodies cause eutrophication and hence it destroys
the aquatic life, extinction of aquatic species and fishing industries.
The thermal discharge from power plants while merging with receiving water body creates a
mixing zone, the position and size of which and temperature rise.
Since fishes are sensitive it should be ensured that the temperature in the outfall region
does not exceed their tolerance limit.
A small temperature shift has been found to enhance fish hatching. So a fish hatchery can
be established to make use of water from discharge canal and flourish aquaculture.
Fruit and vegetables are often irradiated to increase their shelf life. Food products that
contain radioactive nuclei, which are subatomic particles that emit gamma rays, can be toxic
and may cause cancer.

Conclusion
It is important for governments to adopt policies that enable the full range of significant
options available.
It will take sustained effort to accomplish the necessary technical and institutional steps
needed to make nuclear an attractive energy option.
The construction of a few reactors in the short term and a technology driven R&D program is
not sufficient.
Although R&D is a vital ingredient, a comprehensive program should address costs, safety,
proliferation, waste of the key criteria in order to create a clear and sound vision of the
energy future.

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 A similarly broad approach should be applied to all energy supply and end-use efficiency
technologies under consideration. A policy directed to a single solution is inadequate.
GS Paper 3:

The advantages of nuclear power plants overweigh its negative effects. Do you agree with the
statement? Discuss in light of the rising popular agitations against the new plants.

Solar energy and solar mission

Most of the developed countries are switching over to solar energy as one of the prime
renewable energy source. Solar Energy a clean renewable resource with zero emission has
got tremendous potential of energy which can be harnessed using a variety of devices.
Solar power entails producing energy from the sun instead of oil and electricity. The suns
energy is available abundantly and freely and can be used in two ways:
Solar thermal energy: Here the solar energy is converted into solar power through
equipment. Example, solar hot water heating system, solar drying system, solar cooking
system, etc.
Solar photovoltaic energy: In this method, the solar energy is converted into electrical
energy through equipment using solar photovoltaic technology. It can be used to power
anything from a single bulb to all the street lights in the city.

Need of solar energy

India is facing an acute energy scarcity which is hampering its industrial growth and
economic progress. It is essential to tackle the energy crisis through judicious utilization of
abundant the renewable energy resources, such as Biomass Energy, Solar Energy, Wind
Energy and Geothermal Energy. Apart from augmenting the energy supply, renewable
resources will help India in mitigating climate change. Most of the power generation is
carried out by coal and mineral oil-based power plants which contribute heavily to
greenhouse gases emission.
India has a great potential to generate electricity from solar energy and the Country is on
course to emerge as a solar energy hub. The techno-commercial potential of photovoltaics
in India is enormous. It lies between the Tropic of Cancer and the Equator. It has an
average annual temperature that ranges from 25C 27.5 C. This means that India has
huge solar potential. The sunniest parts are situated in the south/east coast, from Calcutta
to Madras.
Indias government has begun to acknowledge the importance of solar energy to the
countrys economic growth.

The National Solar Mission

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 It is a major initiative of the Government of India and State Governments to promote
ecologically sustainable growth while addressing Indias energy security challenge. It will
also constitute a major contribution by India to the global effort to meet the challenges of
climate change.
The objective of the National Solar Mission is to establish India as a global leader in solar
energy, by creating the policy conditions for its diffusion across the country as quickly as
possible.
The immediate aim of the Mission is to focus on setting up an enabling environment for solar
technology penetration in the country both at a centralized and decentralized level.

Importance and relevance of solar energy for India

Cost: Solar is currently high on absolute costs compared to other sources of power such as
coal. The cost projections vary from 22% for every doubling of capacity to a reduction of
only 60% with global deployment increasing 16 times the current level.
Scalability: India is endowed with vast solar energy potential. Both, the technology routes for
conversion of solar radiation into heat and electricity, namely, solar thermal and solar
photovoltaics, can effectively be harnessed providing huge scalability for solar in India.
Solar also provides the ability to generate power on a distributed basis and enables rapid
capacity addition with short lead times.
The constraint on scalability will be the availability of space, since in all current applications,
solar power is space intensive. In addition, without effective storage, solar power is
characterized by a high degree of variability. In India, this would be particularly true in the
monsoon season.
Environmental impact: Solar energy is environmentally friendly as it has zero emissions
while generating electricity or heat.
Security of source: From an energy security perspective, solar is the most secure of all
sources, since it is abundantly available. Theoretically, if captured, a small fraction of the
total incident solar energy can meet the entire country s power requirements.
Already, faced with crippling electricity shortages, price of electricity traded internally,
touched Rs 7 per unit for base loads and around Rs 8.50 per unit during peak periods. The
situation will also change, as the country moves towards imported coal to meet its energy
demand.
The price of power will have to factor in the availability of coal in international markets and
the cost of developing import infrastructure. It is also evident that as the cost of
environmental degradation is factored into the mining of coal, as it must, the price of this raw
material will increase. In the situation of energy shortages, the country is increasing the use
of diesel-based electricity, which is both expensive costs as high as Rs. 15 per unit - and
polluting. It is in this situation the solar imperative is both urgent and feasible to enable the
country to meet long-term energy needs.
India is a poor source for conventional fuel sources. It is dependent on the Gulf countries for
its oil supplies. With the oil prices skyrocketing and the reluctance of the Indian government

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 to hike the prices of LPG and kerosene, Indian oil companies are suffering major losses.
Even electric supply in the country is unable to meet the burgeoning demands of the
growing population and businesses.
Government initiatives and schemes
Ministry of New and Renewable Energy (MNRE), which is the nodal unit for all matters
relating to RE.
India Renewable Energy Development Agency (IREDA), is a public limited company
established in 1987 to promote, develop and extend financial assistance for RE and energy
efficiency/conservation projects.
Solar Energy Centre (SEC) is a dedicated unit of the MNRE and the government for the
development of solar energy technologies and promotion of its applications through product
development.
Indias National Action Plan on climate change (NAPCC) identifies eight critical missions to
promote climate mitigation and adaptation.
The government also offers capital subsidies to semiconductor manufacturing plants in
Special Economic Zone (SEZs) and outside SEZs through semiconductor policy launched in
2007.
In 2009, MNRE launched Jawaharlal Nehru National Solar Mission (JNNSM) with the
ambitious goal of making India a global leader in solar energy.
National Solar Mission, which has the specific goal of increasing the usage of solar thermal
technologies in urban areas, industry, and commercial establishments, is one of the core
components of this policy.
The other targets of this mission include achieving grid parity (same production cost as
current electricity source) by 2022 and parity with coal based power generation in 2030.

Challenges Faced by Solar Energy Sector in India

The solar industry in India is still in its nascent stage and faces many challenges such as
high costs of solar power generation.
Solar projects are capital intensive, and the lack of an effective financing infrastructure for
these projects is another major factor impeding growth in this sector.
The disparity in solar potential across states.
Lack of technological innovations that improve the efficiency of current solar energy systems
are necessary to exploit the solar energy potential in India.
Another major factor restricting the growth of this sector is the lack of standards, resulting in
the fragmentation of the market among manufacturers and suppliers.
Standardization of systems will lead to rationalization of cost as companies can invest in
R&D and newer technologies to meet common specifications.
Facilitating closer industry government cooperation and increasing consumer awareness
about the benefits of solar energy are some of the other main challenges currently faced by
the industry.

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Way ahead
Active growth of the Indian solar energy industry calls for immediate implementation of the
following steps. These measures will not only boost the growth of solar energy sector, but
also reduce the usage of non-renewable sources of energy and carbon footprint.
Faster and Efficient Implementation of Renewable Energy Certificates (RECs): RECs are
interstate tradable certificates issued for every unit of renewable energy produced.
Mechanisms such as these are essential to achieve NAPCCs goal of increasing the
mandatory RE usage for states from 5% today to approximately 15% in the next 10 years.
Instead of producing RE by their own, states can purchase RECs from each other to
increase their RE content in total energy.
This mechanism will enable low RE potential states to purchase RECs from high potential
states, enabling them to meet NAPCCs increased demands.
Moreover, these purchases will incentivize high RE potential states to produce more RE
than required currently, enabling overall increase in RE production.

Carbon Trading as a Source of Revenue

Solar power generation emits lesser amount of CO2 compared to conventional sources of
energy such as coal.
Trading this reduction in the emissions trading market can be another source of income for
the Solar Energy manufacturers.
This will partially help in offsetting the high cost of solar production.

Selective Implementation of On-Grid Application

From todays technology standpoint, solar power generation works at 15-20% efficiency.
Under this scenario, large-scale on-grid applications are more feasible in areas where there
is plenty of barren land and high rate of irradiance such as Gujarat and Rajasthan.
It is very important to concentrate the efforts in these areas to realize solar potential there
before moving onto other parts where the irradiance is low or there is scarcity of barren land.
The RE produced in these regions can be transferred to other states through RECs,
enabling uniform distribution.

Development of Off-Grid Application

More than 80, 000 villages in India suffer major electricity supply shortages throughout the
year, which provides tremendous opportunity for off-grid solar applications deployment.

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 Some of the possible applications are lighting and electrification systems, solar powered
cellular towers, irrigation pumps and street lighting.
Establishment of Localized Mini-Grid.
Localized mini-grids based on Photo Voltaic (PV) cells can be set up in regions that lack grid
connectivity due to physical or financial barriers.
Electricity generated by these mini-grids can be distributed through localized low-tension
networks.
The main advantages of mini-grids are lesser initial setup costs and power tariff comparable
to that of conventional grid power.
The mini-grids in Sunderbans stand testimony to the success this system can achieve in
India.

Conclusion
Solar Energy possesses tremendous potential in bridging Indias energy demand-supply gap in
the future. There are various challenges for this industry, and financing infrastructure. It is
important to overcome these challenges for fast growth and mass adoption of the technology.
Some of the immediate actions to enable growth are efficient implementation of renewable
energy certificates, usage of carbon trading as a source of revenue, immediate implementation
of grid powered energy in regions of Rajasthan and Gujarat, development of off-grid usage in
various applications such as cellular towers and encouraging localized mini grids in areas that
lack connectivity today. If these initiative work as planned, it is only a matter before India
becomes one of the world leaders in Solar Energy.

GS Paper 3:

What are the challenges faced by the solar energy sector in India? Discuss how a decentralized
approach can bring about penetration of energy sector.

A renewable energy future for India

The idea of electricity access in India has been centralised generation and grid-based
distribution. This idea has failed to give adequate electricity supply to two-thirds of our
people even after seven decades of independence.

Problems
Environmental and developmental crisis are interacting and reinforcing each other and
reflecting in our energy sector.
Chronic energy poverty in rural areas and two third of the population is deprived of modern
energy services.

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 Unscientific use of biomass such as dung, agricultural waste and firewood for primary needs
cause indoor pollution and increase the burden of disease of the womenfolk.
India is largely dependent on coal to meet its energy needs which cause heavy
environmental degradation and health issues.
The challenge before India is meeting its energy requirements without compromising the
ecology of the country.
Five trends
1. Indias dependence on imported fossil fuel is increasing at an alarming rate.
2. Reducing costs of renewable energy, especially solar and wind power.
3. Use of electricity for practically all applications.
4. Urgency of reducing greenhouse gas emissions.
5. Increasing global recognition to supply clean energy to all.
These five converging trends demands, an energy strategy that is based on electricity as
a prime mover and this electricity is generated from renewable energy resources.
Energy policy of 2006 is primarily focused on developing fossil fuel resources for
electricity and direct use of oil and gas for transport, industrial usage and cooking.
This is a high time where a new integrated energy policy that charts a roadmap for a
renewable electricity future. India needs renewable electricity future that is affordable
and accessible to all.

Future aspects
It is important to understand that a 24 X 7 renewable electricity generation is not going to be
cheap.
The renewable electricity future will be a decentralized and distributed one. The fact is
renewable energy is decentralizedsunlight falls everywhere and wind blows everywhere.
Demand for electricity too is decentralized, and most renewable technologies are modular.
This makes renewable electricity most suitable for decentralized generation and
consumption.
In this energy future, there is no role of big DISCOMS. Instead, we will have mini-DISCOMS
that would meet the electricity needs of small communities in cities and villages. These mini-
DISCOMS would feed excess power to the grid and buy power from other mini-DISCOMS
when in deficit.
There will be a role for large power plants based on other non-fossil technologies, but this
role would be to supplement decentralized generation, which would also reduce over a
period of time.
Germany, the leader in renewable energy, has most of its solar PV installed on rooftops.
About 1.5 million households in Germany have installed more than 30,000 MW worth of
solar PV panels on their rooftops. They are either feeding it to the local grids or consuming it
domestically.

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 This is the only way we can keep the renewable electricity affordable and accessible to all. If
operationalised, this model will revolutionize the way power is produced and consumed in
India.
Millions of households would produce and consume their own electricity.
Thousands of renewable energy based mini-grids would promote millions of small
businesses and social entrepreneurs to create local jobs and build local economies.
Living standards in villages will improve which in turn will ensure women empowerment,
better health and education. There cannot be a better development agenda for the country.

Write a note on India's green energy corridor to alleviate the problem of conventional energy. (GS
Paper 3, 2013)

Shale gas in India: challenges and prospects

The unlocking of domestic shale gas reserves could help India meet its growing energy
demand, besides reducing its dependence on expensive energy imports. In addition, the
development of the domestic shale gas industry could boost the economy. However, this
emerging industry will have to be promoted by balancing economic benefits with
environmental and social issues.
The Ministry of Petroleum and Natural Gas (MoPNG) has identified six basins as potentially
shale gas bearing. These are Cambay, Assam-Arakan, Gondwana, Krishna-Godavari,
Kaveri, and the Indo-Gangetic plain.

Shale gas prospects of India

According to estimates by EIA, India has 63 tcf of recoverable shale gas reserves. Indias
shale reserve estimates pale in comparison to global standards.
The Cambay, Krishna Godavari, Cauvery and the Damodar Valley are the most prospective
sedimentary basins for carrying out shale gas activities in the country.
The Cambay basin in Gujarat is the largest basin in the country. Around 20 tcf of gas has
been classified as technically recoverable reserves in the basin.
It is estimated that the Krishna Godavari basin, located in eastern India, holds the largest
shale gas reserves in the country. The basin encloses a series of organically rich shales,
containing around 27 tcf of technically recoverable gas.
The Government of India, along with Indian companies, is undertaking various initiatives to
accelerate the development of shale gas reserves in the country.
MoU have been signed between USA, and India for sharing technical knowledge in shale-
gas exploration.
Indias first shale gas well drilled and completed by ONGC, North West of Kolkata. (depth
2000 m)

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Indias Shale Gas Policy - 2013
ONGC and OIL given the right to drill for shale oil and gas in the blocks they have, but fresh
auction proposed for all other deposits.
Private sector not allowed exploiting blocks for shale oil and gas in the blocks they have.
It provides for auction based on simple production sharing between explorer and
government.
No need to treat shale gas different from conventional natural gas.
Traditional oil comes from drilling in porous and permeable rocks like sandstone and
limestone
It is possible to have thick limestone / sandstone interspersed with shale layers, all having
oil and gas.
To have 2 separate companies drill on sandstone and shale layers does not make sense. It
will lead to unnecessary litigation.

Challenges
The Indian government has not been able to implement the right kind of gas policies even
after the recommendations given by several high powered commissions.
Our exploration policy allows companies to produce only conventional oil and gas from their
exploration blocks. If they find non -conventional energy such as coal-bed methane or
shale gas they are forbidden to produce this. This is because the petroleum ministry
regards any non-conventional deposit as an unwarranted windfall for the exploring
company, and wants separate bidding for non-conventional energy.
The fiscal and pricing regime are of concern in shale gas potential in India.
There is a growing concern with evidence that shale gas emits more greenhouse gases than
conventional national gas, and may emit as much or more than oil or coal.
Land acquisition is not covered in the shale gas policy, but will be a serious issue because
of the large area required for fracking and the consequent displacement of people.
Methane is a very powerful greenhouse gas, although it stays in the atmosphere for only
one tenth as long a period as carbon dioxide.
Dealing with Water pollution, poisoning of subsoil by chemical and the extensive horizontal
drilling may lead to earthquakes, landslides and other high-impact disasters.
The hydraulic fracturing technology used in shale gas extraction is feared to be a powerful
pollutant, capable of devastating India's water resources, thus offsetting any social benefit
from increased energy production.
Cost of field development operations.
Lack of fiscal incentives and infrastructure.
Inability to experiment with wellbores.
Lack of wellbore-specific information.

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 Lack of political will: Apart from this corruption, bureaucracy, political instability, and
prohibitive customs regulations all mean that operations are often significantly delayed or
cancelled altogether.
Competition from alternative sources: Companies need to face a huge market competition
from existing products and also due to the monopoly of gas rich countries.
India is largest producer of Guar gum. But due to heavy imports from US shale gas
companies, its prices have increased by ten times within a year. Hence, there is shortage of
Guar-gum, for domestic industries willing to explore shale gas, but who cannot keep up with
the prices offered by Americans.

Solutions
Indias gas demand is limited by its access to gas supplies based on domestic production
and imports availability.
If India can produce more gas, then it can reduce its coal imports which are environmentally
more unfriendly.
The basic requirement for proper gas sector development in India is that the government
should allow the market to set the prices as recommended by many gas committees.
The government needs to come out with a holistic shale gas policy. It should facilitate
seismic surveys that can quickly delineate potential shale gas deposits, and then invite bids
for exploration.
All future exploration contracts for oil should permit exploitation of shale gas as well as
conventional gas.
Addressing the environmental concerns along with adoption of best practices and
appropriate government policies could successfully ensure the sustainability of shale gas
operations in India.

GS Paper 3:
Discuss the shale gas prospects of India. What are the problems faced by the sector?

Energy efficiency: Need of the hour

Energy efficiency means to be able to deliver the same amount of services or more through
reduced energy input.
Efficiency in energy can be brought by using appliances which consumes less energy over
the traditional ones or adopting technologies.
Asias third largest economy faced a 3.6% deficit in peak-hour energy supply. Such a
shortfall not only affects manufacturing and industrial productivity but also inconveniences
millions of Indians, particularly during the torrid summer months.
A joint venture of NTPC Ltd., Power Finance Corporation Ltd., Rural Electrification
Corporation Ltd. and Powergrid Corporation of India Ltd., Energy Efficiency Services Limited

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 (EESL) was set up under Ministry of Power to facilitate implementation of energy efficiency
projects.
EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency
market in India and potentially result in energy savings of up to 20 per cent of current
consumption, by way of innovative business and implementation models. It also acts as the
resource center for capacity building of State DISCOMs, ERCs, SDAs, upcoming ESCOs,
financial institutions, etc.

Unnat Jyoti by Affordable LEDs for All

The fundamental achievement of one of the government's first energy efficiency programme
is reflected by Unnat Jyoti by Affordable LEDs for All.
An ordinary bulb is an extremely energy inefficient form of lighting with just 5% of the
electricity input converted to light. Efficient light bulbs like Light-emitting Diode (LEDs)
consumes only one-tenth of energy used by ordinary bulb to provide the same or better light
output. However, high cost of LEDs has been a barrier in adoption of such efficient lighting
systems. The DELP on-bill financing scheme proposes to overcome this cost barrier.
This has avoided a peak demand of about 2655 MW in India and is leading to a reduction in
carbon footprint up to an extent.

Street lighting national programme

Street lights in India were recognised as the second most potential group resulting in
significant energy savings.
This programme launched in 100 cities to convert conventional street and domestic lights
with energy efficient LED lights designated under EESL.
The main objective is to promote efficient lighting, enhance awareness on using efficient
equipment which reduce electricity bills and help preserve environment.
Under this Programme (SLNP), replacement of 3.5 crore conventional street light will result
in saving of 9,000 million units annually.
The majority of Indian street lightning infrastructure is inefficiently designed. Inefficiencies
persist in operation and maintenance. As a result energy consumption for street is high and
municipalities spend large amount on this.
EESL replaces the conventional street lights with LEDs at its own costs and consequent
reduction in energy and maintenance cost of the municipality is used to repay EESL over a
period of time.

Agriculture sector

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 Agriculture sector consumes 20-22% of total electricity consumption. Managing agricultural
load is increasingly becoming a challenge for electricity utility in India. Subsidized tariff
generate a perception of zero marginal cost of electricity use and consequently, efficiency in
consumption is disregarded.

Agricultural Demand-side Management (AgDSM)

In power and energy sector, Agricultural Demand-side Management (AgDSM) consists of
those activities, methodologies, awareness, policy and technologies that influence consumer
(farmers) behavior and Changes their (farmers) consumption patterns.
The objective of the AgDSM programme is to reduce peak demand, shift the time during
which electricity is consumed to off-peak hours and to reduce the total quantum of
consumption.
It aims at providing free of cost BEE Star Rated Energy Efficient Pump Sets to the farmers
along with an electrical control panel.

Benefits to DISCOMs
Reduction in power purchase cost
Monetary benefits because of sharing of energy saving
Lower load shedding
Reduction in peak demand
Lower subsidy burden

Benefits to Farmers
Free Cost of Energy Efficient Pump Sets (EEPS)
Free Repair & Maintenance till project duration
Less pump failure
Farmer awareness workshop on AgDSM and best agricultural irrigation practice

Fan Programme (NEEFP)

National Energy Efficient Fan Program (NEEFP) was implemented by EESL for consumers
under demand side management, with the aim of benefitting the people from all socio-
economic bands.
Under NEEFP, EESL aims to replace 35 crore inefficient regular ceiling fans across
households with BEE 5 Star rated efficient ceiling fans by 2018.
With the intent to give a significant thrust to the expansion of market for efficient fan
technologies in India, EESL through its procurement of fans, has brought the price of a fan
down by 33 per cent to Rs. 955, when compared to the market price.

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EESL building programme
EESLs buildings programme has successfully been completed at Niti Ayog, Shram Shakti
Bhawan, India Habitat Center, UPSC building, IP Bhawan along with others. Currently, work
is being carried out in more than 18 buildings to make them more energy efficient. It was
observed that on an average, EESL has successfully received energy savings of about 19%
on bills with its completed buildings projects.
GS Paper 3:
Efficiency can play an equally important role as the availability of energy. Critically evaluate the
statement.

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