Energy Scenario

Chapter I Energy Scenario

Learning Objectives: Reading this Chapter would enable you to understand: Types of energy sources Durability of energy resources Energy situation in India Energy and economic growth Energy policies, pricing and reforms Relationship between use of energy and environment The need to conserve energy Features of the Energy Conservation Act, 2001 Renewable energy sources and their importance Contents 1.1 Energy Scenario 1.2 Primary and Secondary Energy 1.3 Commercial Energy and Non-Commercial Energy 1.3.1 Commercial Energy 1.3.2 Non-Commercial Energy 1.4 Renewable and Non-Renewable Energy 1.5 Renewable Energy Resources 1.5.1 Bio-mass 1.5.2 Bagasse as Bio-Mass 1.5.3 Wind Energy 1.5.4 Hydro Energy 1.5.5 Solar Energy 1.5.5.1 Photovoltaic Cells

1.5.5.2 PV System (Solar) 1.6 Tidal Energy

1.7 Geothermal Energy 1.8 Global Primary Energy Reserves 1.8.1 Coal 1.8.2 Oil

1.9

1.10 Indian Energy Scenario 1.10.1 Energy Supply

1.8.3 Gas Global Primary Energy Consumption

1.11 Final Energy Consumption 1.12 Sector-wise Energy Consumption in India 1.13 Energy Needs of a Growing Economy 1.14 Per Capita Energy Consumption 1.14.1 Energy Intensity 1.15 Long Term Energy Scenario-India 1.15.1 Coal

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1.15.2 Oil 1.15.3 Natural Gas 1.15.4 Electricity 1.16 Energy Pricing in India 1.16.1Coal 1.16.2 Oil 1.16.3 Natural Gas 1.16.4 Electricity 1.17 Energy Sector Reforms 1.17.1 Coal 1.17.2 Oil and Natural Gas 1.17.3 Electricity 1.18 The Electricity Act, 2003 1.18.1 The Salient Features of the Electricity Act, 2003 are 1.19 Energy and Environment 1.19.1 Air Pollution 1.20 Global Warming and Climate Change 1.21 What Do Humans Do that Increases Atmospheric CO2 1.22 Acid Rain 1.23 Energy Security 1.24 Energy Conservation and its Importance 1.25 What is Energy Conservation? 1.26 Energy Strategy for the Future 1.26.1 Immediate-term Strategy 1.26.2 Medium-term Strategy 1.26.3 Long-term Strategy 1.26.4 Enhancing Energy Efficiency 1.27 The Energy Conservation Act, 2001 and its Features 1.27.1 Policy Framework -Energy Conservation Act, 2001 1.27.2 Standards and Labelling 1.27.3 Designated Consumers 1.27.4 Certification of Energy Managers and Accreditation of Energy Auditing Firms 1.27.5 Energy Conservation Building Codes 1.27.6 Central Energy Conservation Fund 1.28 Bureau of Energy Efficiency (BEE) 1.28.1 Role of Bureau of Energy Efficiency 1.29 Role of Central and State Governments 1.30 Enforcement through Self-Regulation 1.31 Penalties and Adjudication Summing Up Self-assessment References Annexure I: Features Extracted from the Energy Conservation Act, 2001

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1.1 Energy Scenario Introduction Energy is neither created nor destroyed. The amount of energy in the universe remains the same; whenweuseenergy,wedonotuseitup,wetransformitfrom one form to another form of energy. Energy is involved in every action that occurs in the universe, including all human actions, as well as all physical actions - the sun shining, the planets revolving, themotion of the tides, the growth and decay of plants and animals. Energy is one of the most important resource for the economic development of any country. Energy efficiency does not mean rationing or having to do without energy. Rather it means identifying wasteful energy use, and taking action to reduce or eliminate it. The objective of energy efficiency initiatives is to reduce energy costs, and consequently, increase profitability without sacrificing production. Since energy represents a resource and a cost for companies, it needs to be managed efficiently. Energy efficiency should be given a level of priority that reflects the overall cost of energy both on an absolute basis and relative to other costs incurred by the company. Energy efficiency improvements require significant investment, and it is essential that industries, and major energy users have full knowledge of the energy costs, as well as the potential for a return on investment for any capital, that theymayallocate towards it. Energy efficiency is of greater significance to India, given the very low per capita energy consumption at present. With economic development, the demand for energy in the country will grow phenomenally in every segment of the economy and society. It would be therefore necessary to understand the importance andmeans to achieve energy efficiency and ensure that the cost and availability of energy do not become impediments to development. Energy can be classified into several types based on the following criteria : Primary and Secondary energy Commercial and Non-commercial energy Renewable and Non-Renewable energy 1.2 Primar y and Secondary Energy Primary energy sources are those that are either found or stored in nature. Common primary energy sources are coal, oil, natural gas, and biomass (such as wood). Other primary energy sources found on earth include nuclear energy from radioactive substances, thermal energy stored in the earth's interior, and potential energy due to the earth's gravity. The major primary and secondary energy sources are shown in Figure 1.1.
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Primary energy sources are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or gas are converted to steam and electricity. Primary energy sources can also be used directly as well. Some energy sources have non-energy uses; for example coal or natural gas can be used as feedstock in fertiliser plants.
Source Extraction Processing
Coal Open or Deep Mines Preparation

Primary Energy
Coal Purification

Secondary
Energy Steam Thermal Coke

Hydro Nuclear Mining Enrichment Power Station Electricity

Natural gas

Gas Well

Treatment

Natural gas Thermal Steam

Petroleum

Oil Well

Cracking and Refining

LPG Petrol Diesel/fuel oils Petrochemical

Figure 1.1 Primary and secondary sources of energy 1.3 Commercial Energy and Non-commercial Energy 1.3.1 Commercial Energy Energy sources that are available in the market for a definite price are known as commercial energy. By far the most important forms of commercial energy are electricity, coal and refined petroleum products. Commercial energy forms the basis for industrial, agricultural, transport and commercial development in the modern world. In the industrialised countries, commercialised fuels are a predominant source not only for economic production, but also for many household tasks. Examples: Electricity, lignite, coal, oil, natural gas, etc. 1.3.2 Non-commercial Energy Energy sources that are not available in the commercial market for a price are classified as non-commercial energy. Non-commercial energy sources include fuels such as firewood, cattle dung and agricultural wastes, which are traditionally gathered (not bought) and are used especially in rural households. These are also called traditional fuels. Non-commercial energy is often ignored in energy accounting.
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Example: Firewood, agro waste in rural areas; solar energy for water heating, electricity generation for drying grain, fish and fruits; animal power for transport, threshing, lifting water for irrigation, crushing sugarcane; wind energy for liftingwater and electricity generation. 1.4 Renewable and Non-renewable Energy Renewable energy is energy obtained from sources that are essentially inexhaustible. Examples of renewable resources include wind power, solar power, geothermal energy, tidal power and hydroelectric power (See Figure 1.2). Themostimportant feature of renewable energy is that it can be harnessed without the release of harmful pollutants. Non-renewable energy resources are the conventional fossil fuels such as coal, oil and gas, which are likely to deplete with time (Ref. Fig 1.3).

Biomass

Solar

Geothermal Wind

Water

Figure 1.2 Renewable energy resources

Nuclear

Oil

Natural Gas Coal

Figure 1.3 Non- reneawble energy resources

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1.5 Renewable Energy Resources 1.5.1 Bio-mass Bio-mass is a renewable source of energy produced when the sun's radiant energy is transformed into chemical energy by plants in a process called photosynthesis. Bio-mass energy is the oldest form of energy used by humans, and for thousands of years was the main source of energy for human activity. Bio-mass is the most important source of energy; it supports the life processes of humans and other animals. Wood, crops, and grasses are all primary sources of bio-mass; secondary sources include forest, agricultural, and food manufacturing waste, as well as garbage. Bio-mass is used to generate electricity, fuel vehicles, and produce heat for climate control and manufacturing. The fermentation of grains principally corn, in the United States, produces a fuel called ethanol. It is blended with gasoline and used as transportation fuel. Gasification converts decaying bio-mass in landfills and biogas digesters into a gas called methane, the main ingredient in natural gas. Using bio-mass energy does not produce a net increase in carbon dioxide in the atmosphere. India is one of the largest producers of sugar in the world. Sugarcane has substantial biomass, which can be used as a fuel (Bagasse). Sugar production also yields molasses, which are used to produce ethanol, which is one of the important energy sources for transportation. Ethanol is mixed with petrol so that oil consumption is reduced. In Brazil, mixing of ethanol with petrol is being done formorethan40yearsandthefuelisknownasGasohol. India produces over 16 million tons sugar per annum and the installed capacity of ethanol is 2825 million ltrs. The production is of the order of 1440 million ltrs per annum or 50% capacity utilisation. On the basis of 230 ltrs ethanol/ton of molasses, the maximum production can be 1886 million ltrs/annum. As the molasses are not enough, other avenues like use of Jowar, Maize Wheat, Sago or Sweet Potato need to be considered for the production of ethanol. The yields are 340, 360, 400, 180 and 110 ltrs (average)/ton respectively for the above products. Addition of ethanol increases the octane number and reduces air pollution by 1520%. The compression ratio can also be increased so that knocking is considerably reduced. The calorific value of ethanol is 60% that of gasoline and hence consumption increases/KWH. 1.5.2 Bagasse as Bio-mass Bagasse is used as fuel to generate steam, which in turn, is used to generate power and process steam (co-generation plant). In view of lesser fuel cost
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(since it is a byproduct), this proves to be a most economical fuel for cogeneration. Bagasse calorific value varies with moisture content which depends on milling efficiency. At zero moisture content, it is 4600 Kcal/kg while at 50% it is 1900 Kcal/kg. Captive power generation of about 110 kwn per ton of sugar production using Bagasse as a fuel for cogeneration, have been achieved with steam generation pressure of 64 to 80 kg/cm2(f). 1.5.3 Wind Energy Wind energy is one of the viable sources of renewable energy, which can be used effectively for power generation. Power is generated through wind turbines. Feasibility of generation needs to be evaluated, which depends on several factors such as wind speed, duration of availability, feasibility of distribution and usage etc. While wind turbines are most commonly classified by their rated power at a certain rated wind speed, annual energy output is actually a more important measure for evaluating a wind turbine's value at a given site. Wind Turbine Capacity Factor Expected energy output per year can be reliably calculated when the wind turbine's capacity factor at a given average annual wind speed is known. The capacity factor is the wind turbine's actual energy output for the year divided by the energy output if themachine operated at its rated power output for the entire year. A reasonable capacity factor would be 0.25 to 0.30. A very good capacity factorwouldbe0.40. Power Generation throughWindTurbines Usually, one is more interested in power (which changes moment to moment) than energy. Since energy = power x time and density is a more convenient way to express the mass of flowing air, the kinetic energy equation can be converted into a flow equation: Power in the area swept by the wind turbine rotor: P = 0.5 x x A x V3 where: P = power in watts (746 watts = 1 hp) (1,000 watts = 1 kilowatt) = air density (about 1.225 kg/m3 at sea level ) A = rotor swept area, exposed to the wind (m2) V = wind speed in metres/sec
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Rotation

Wind Flow Lift Drag

Figure 1.4 Principles of wind turbine aerodynamic lift The vertical version is shown in the figure.

Rotor Blade Rotor Diameter Gearbox Generator Nacelle Fixed Pitch Rotor Blade Gearbox

Rotor Diameter

Rotor Height

Tower

Generator

Horizontal Axis

Vertical Axis

Figure 1.5 Wind turbine configurations

Renewable energy sources in the UK currently generate almost 3% of the total electricity supply, 15% ofwhichisgenerated fromwind energy. A new legislation, the Renewable Obligation, has set targets on the generation of electricity from renewable sources to 10% by 2010. The UK Government recently announced its intention to increase this to 15% by 2015. Kinetic Energy Power generation is directly proportional to kinetic energy of mass, which depends on the mass of air and velocity of air. Fig. 1.6 indicates the relation between rated power andwind speed.
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100

Rated Wind Speed

Cut-out Wind Speed

50

Cut-in Wind Speed

10

20

30

40

60

Figure 1.6 Idealised power curve for a wind turbine

1.5.4 Hydro Energy Hydropower is a renewable source of energy. Water continuously moves through a global cycle, evaporating from lakes and oceans, forming clouds, precipitating as rain or snow, and flowing back to the oceans. This water cycle is produced by the sun and driven by gravity. Hydropower facilities can capture the energy in flowing water by building a dam on a river (impoundment), or channeling a portion of a river through a generating facility (diversion). Hydropower is considered an efficient, cost-effective, and clean energy source for generating electricity. Hydropower plants return the water to the system unchanged in quantity and quality. 1.5.5 Solar Energy Solar energy can be converted directly or indirectly into other forms of energy, such as heat and electricity. The major drawbacks (problems, or issues to overcome) of solar energy are . 1. The intermittent and variable manner in which it arrives at the earth's surface . 2. The large area required to collect it at a useful rate. Electric utilities use photovoltaic devices, in a process by which solar energy is converted directly to electricity. Electricity can be produced indirectly from steam generators using solar thermal collectors to heat a working fluid. 1.5.5.1 Photovoltaic Cells There are only a handful of materials, especially treated semi-conductors, that are known to display the PV effect with reasonable energy conversion efficiency. At present the vast majority of photovoltaic cells are made from silicon. In general, cells are classified as either crystalline ( sliced from ingots or castings or grown ribbons ) or thin film ( deposited in thin layers on a low cost backing ).

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The photovoltaic cell is the basic building block of a PV system. Individual cells can vary in size from about 1 cm (1/2 inch) to about 10 cm (4 inches) across. However, one cell only produces 1 or 2 watts, which isn't enough power for most applications. To increase power output, cells are electrically connected into a packaged weather-tight module. Modules can be further connected to form an array. The term array refers to the entire generating plant, whether it ismadeup of one or several thousand modules. Figure 1.7 shows the working of the photovoltaic cell

DC side isolation switch Inver PV Array (usually building mounted) AC mains sypply Meter Main Fusebox To high efficiency appliances AC side isolation switch

Figure 1.7 Application of the photovoltaic cell 1.5.5.2 PV System (Solar) The lifetime of a PV system is assumed to be 30 years. Many manufacturers now offer 20-year guarantees, and PV panels might last 0 to 50 years in nonmaritime locations. In Port Headland in NW Australia, which is an excellent site by world standards, the average irradiation on the panels is 2,500 kWh/m2/year.

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Solar Cells

Receiver panel has fluid inside that collects heat

Rotating Mirrors focus sunlight onto receiver panel

Figure 1.8 Solar power tower

1.6 Tidal Energy The worldwide wave power resource potential is huge. Future Energy Solutions highlight that the global power potential has been estimated to be around 8,00080,000TWh/y (1-10TW), which is the same order of magnitude as world electrical energy consumption. The best wave climates, with annual average power levels between 20-70 kW/m of wave front or higher, are found in the temperate zones (30-60 degrees latitude) where strong storms occur. 1.7 Geothermal Energy Geothermal energy is considered a renewable source of energy. It is heat energy produced within the earth. It is continuously generated, primarily by the decay of radioactive elements in the earth's core. The most active, high temperature geothermal resources are usually found along major plate boundaries where earthquakes and volcanoes are concentrated. Geothermal reservoirs are formed by rainwater seeping through faults in the

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contain a mixture of steam and hot water. Once the water has been used, it is injected back into the ground. Properly managed geothermal reservoirs can have extensive life spans. 1.8 Global Primar y Energy Reser ves 1.8.1 Coal The global coal reserve was estimated to be 9,84,453 million tonnes at the end of 2002. USA had the largest share of the global reserve (25.4%) followed by Russia (15.9%),China(11.6%). India was 4th in the listwith8.6%. 1.8.2 Oil The global proven oil reserve was estimated to be 1047 billion barrels by the end of 2002. Saudi Arabia had the largest share of the reserve with almost 25%. (One barrel of oil is approximately 160 litres. 20000 barrels a day is equivalent to one million tons of oil per annum. Saudi Arabia produces around 10 million barrels a day which is equal to 500million tons oil per annum. 1.8.3 Gas The global proven gas reserve was estimated to be 156 trillion cubic metres by the end of 2002. The Russian Federation had the largest share of the reserve with almost 30%. (Source: BP Statistical Review of World Energy, June 2003. ) World oil and gas reserves are estimated at just 45 years and 65 years respectively. Coal is likely to last a little over 200 years. 1.9 Global Primary Energy Consumption The global primary energy consumption at the end of 2002 was equivalent to 9405 million tonnes of oil equivalent (Mtoe). Figure 1.9 shows in what proportions the sources mentioned above contributed to this global figure.

Developed Countries

Population

Developed Countries

Energy Consumption

Developed Countries

Developed Countries

100 90 80 70 60 50 40 30 20 10 0

Figure 1.9 Energy distribution for developed and developing countries

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The primary energy consumption for a few of the developed and developing countries is shown in Table 1.1. It may be seen that India's absolute primary energy consumption is only 1/29th of the world, 1/7th of USA, 1/1.6th time of Japan but 1.1, 2.9, 1.3, 1.5 times of Canada, Australia, France and U.K respectively.
Oil USA Canada France Russian Federation United Kingdom China India Japan Malaysia Pakistan Singapore TOTAL WORLD 894.3 89.7 92.8 122.9 77.2 245.7 97.7 242.6 22.5 17.9 35.5 3522.5 Natural Gas 600.7 72.6 38.5 349.6 85.1 27.0 25.4 69.7 24.3 18.8 1.6 2282.0 Coal 553.8 30.7 12.7 98.5 36.5 663.4 180.8 105.3 3.3 2.1 2397.9 Nuclear 185.8 17.0 98.9 32.0 19.9 5.9 4.4 71.3 0.4 610.6 Hydro 58.2 78.6 15.0 37.2 1.7 55.8 16.9 20.5 1.7 4.6 592.1 Total 2293.0 288.7 258.0 640.2 220.3 997.8 325.1 509.4 51.8 43.8 37.1 9405.0 Share of Total 24.4% 3.1% 2.7% 6.8% 2.3% 10.6% 3.5% 5.4% 0.6% 0.5% 0.4%

Table 1.1 Primary energy consumption by fuel (2002) in million tonnes oil equivalent

Although 80 percent of the world's population lies in the developing countries (a fourfold population increase in the past 25 years) their energy consumption amounts to only 40 percent of the world total energy consumption. The high standards of living in the developed countries are attributable to high-energy consumption levels. Also, the rapid population growth in the developing countries has kept the per capita energy consumption low compared to that of highly industrialised developed countries. World average energy consumption per person is equivalent to 2.2 tonnes of coal. In industrialised countries, people use four to five times more than the world average, and nine times more than the average for developing countries. AnAmerican uses 32 timesmorecommercial energy than an Indian. 1.10 Indian Energy Scenario Coal dominates the energy mix in India, contributing to 55% of the total primary energy production. Over the years, there has been a marked increase in the share of natural gas in primary energy production from 10% in 1994 to 13% in 1999. There has been a decline in the share of oil in primary energy production from 20% to 17% during the same period. 1.10.1 Energy Supply a. Coal India has huge coal reserves, at least 84,396 million tonnes of proven recoverable reserves. This amounts to almost 8.6% of world reserves and they may last for about 235 years at the current Reserve to Production (R/P) ratio. In contrast, the world's proven coal reserves are expected to last only for 204 years at the current R/P ratio.
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Reserves/Production (R/P) ratio- If the reserves remaining at the end of the year are divided by the production during that year, the result is the length of time that the remaining reserves would last if production were to continue at that level. India is the fourth largest producer of coal and lignite in the world. Coal production is concentrated in the states of Andhra Pradesh, Bihar, Madhya Pradesh,Maharashtra,Orissa, Jharkhand and West Bengal. b. Oil Oil accounts for about 33 % of India's total energy consumption.While India has invested considerable resources in this sector, crude oil production has stagnated at around 32-33 million metric tonnes per year over the past decade. The majority of India's roughly 5.4 billion barrels in oil reserves, are located in the Bombay High, upper Assam, Cambay, Krishna-Godavari and Cauvery basins. India's average oil production level for 2002 was 793,000 barrels per day. Consumption continues to outstrip production and about 70% of the total petroleum product demand is met by imports imposing a heavy burden on foreign exchange. India had net oil imports of over 1.2 million barrels per day in 2002. India's annual current oil import bill is around Rs.80,000 crores. In terms of sector wise petroleum product consumption, transport accounts for 53% followed by domestic and industry being 18% and 17% respectively. The graph below shows the widening gap between indigenous production and imports, due to rapid growth in consumption of oil products in India. The indigenous production ismoreorlessstagnant.
2500 2000 1500 1000 500 0 1980 Source EIA 1985 1990 Consumption

Net NetImparts Imports

Production 1995 2000

Figure 1.10 oil production and consumption in India, 1980-2003 c. Natural gas supply Natural gas accounts for about 8 per cent of energy consumption in the country. The current demand for natural gas is about 96 million cubic metres per day (mcmd) as against availability of 67 mcmd. By 2007, the demand is expected to be around 200 mcmd. Natural gas reserves are estimated at 660 billion cubic metres.
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d. Electrical energy supply The all India installed capacity of electric power generating stations under utilities was 1,07,973 MW as on 31st March 2003, consisting of 26,910 MWhydro, 76,607 MW - thermal and 2,720 MW- nuclear and 1,736 MW- wind ( Source -Ministry of Power). The gross generation of power in the year 2002-2003 stood at 531 billion units (kWh). e. Nuclear power supply Nuclear Power contributes to about 2.5 per cent of electricity generated in India. India has ten nuclear power reactors at five nuclear power stations producing electricity.Morenuclearreactors have also been approved for construction. Nuclear Power in India As of 2004 Planned till 2012 Total 2720 MW 9380 MW 12100 MW % of Total installed 2.8 8.1 5.6

Nuclear power plays the waiting game as many plants are old and have to be replaced during the next few years. Safety and security (terrorism) are the areas to be addressed. France and Germany have a large share in nuclear power generation, but they are planning more green energy. India will also have to depend on a power mix containing renewable energy and nuclear energy. The come back of nuclear energy is on the cards and its role cannot be ignored. f. Hydro power supply India is endowed with a vast and viable hydro potential for power generation of which only 15% has been harnessed so far. The share of hydropower in the country's total generated units has steadily decreased and it presently stands at 25% as on 31st March 2003. It is assessed that exploitable potential at 60% load factor is 84,000MW. 1.11 Final Energy Consumption Final energy consumption is the actual energy demand at the user end. This is the difference between primary energy consumption and the losses that take place in transport, transmission and distribution and refinement. The actual final energy consumption (past and projected) is given in Table no. 1.2
Source Units 1994-95 2001-02 Electricity Billion Units 289.36 480.08 Coal Million Tonnes 76.67 109.01 Lignite Million Tonnes 4.85 11.69 Natural Gas Million Cubic Metres 9880 15730 Oil Products Million Tonnes 63.55 99.89 Source: Planning Commission BAU:_Business As Usual 2006-07 712.67 134.99 16.02 18291 139.95 2011-12 1067.88 173.47 19.70 20853 196.47

Table 1.2 Demand for commercial energy for final consumption (BAU scenario)
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1.12 Sector- wise Energy Consumption in India The major commercial energy consuming sectors in the country are classified as shown in Figure 1.11. As seen from the figure, industry remains the biggest consumer of commercial energy and its share in overall consumption is 49%. (Reference year : 1999/2000).
14%

Transport Industry 49% Forest Solid waste

10% 5%

22%

Others

Figure 1.11 Sector- wise energy consumption (1999-2000) 1.13 Energy Needs of a Growing Economy Economic growth is desirable for developing countries, and energy is essential for economic growth. However, the relationship between economic growth and increased energy demand is not always a straightforward linear one. For example, under present conditions, a 6% increase in India's Gross Domestic Product (GDP) would impose an increased demand of 9 % on its energy sector. In this context, the ratio of energy demand to GDP is a useful indicator. A high ratio reflects energy dependence and a strong influence of energy on GDP growth. It is worthwhile to note that developed countries - by focusing on energy efficiency and lower energy-intensive routes - maintain their energy to GDP ratios at values of less than 1. The ratios for developing countries tend to be much higher. The plan outlay vis--vis the share of energy is given in Figure 1.12. As seen from the Figure, 30 % of the total five-year plan outlay is spent on the energy sector.
80000 70000 60000 50000 40000 30000 20000 10000 0
1951-56 1956-61 1961-66 1969-74 1980-85 1985-90 1992-97 1997-02 35 30 25 20 15 10 5 0

Plan Outlay Rs. Crores - % Share of Energy Sector

Period

Figure 1.12 Expenditure towards the energy sector

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1.14 Per Capita Energy Consumption The per capita energy consumption (see Figure 1.13) is too low for India as compared to developed countries. It is just 4% of USA and 20% of the world average. Per capita consumption is likely to grow in India with the growth in the economy, thus increasing energy demand. Primar y energy consumption per capita
Tonnes of equivalent

0 - 1.5 1.5 - 3 3 - 4.5 4 - 5.0 5-6

Figure 1.13 Per capita energy consumption YEAR 2002 2012 2022 2032 2042 2052 kWh/CAPITA 613 1000 1620 2454 3699 5305

Table 1.3 Likely growth rate generation per capita kWh Planned Nucl. Capacity 2020 - 20000 MW 600 BL kWh to 8000 BL kWh in 2052 Although the figures mentioned in the table are as planned, the investment required is huge and without private participation, the government will not be able to fulfil this target on its own. In fact, this aspect has been considered in the electricity bill, which has now come into existence as the Electricity Act 2003. 1.14.1 Energy Intensity Energy intensity is energy consumption per unit of GDP. Energy intensity indicates the development stage of the country. India's energy intensity is 3.7 times of Japan, 1.55 times of USA, 1.47 times of Asia and 1.5 times of World average. 1.15 Long Term Energy Scenario-India 1.15.1 Coal Coal is the primary energy source for power production in India, generating approximately 70% of total domestic electricity. Energy demand in India is
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expected to increase over the next 10 -15 years; although new oil and gas plants are planned, coal is expected to remain the dominant fuel for power generation. Despite significant increase in total installed capacity during the last decade, the gap between electricity supply and demand continues to increase. The resulting shortfall has had a negative impact on industrial output and economic growth. However, to meet expected future demand, indigenous coal production will need to be greatly expanded. Production currently stands at around 290 million tonnes per year, but coal demand is expected to more than double by 2010. Indian coal is typically of poor quality Coal imports will also need to increase dramatically to satisfy industrial and power generation requirements. 1.15.2 Oil According to projections for the Tenth Five-Year Plan, India's demand for petroleum products is likely to rise from 97.7 million tonnes in 2001-02 to around 139.95 million tonnes in 2006-07. The plan document puts compound annual growth rate (CAGR) at 3.6 % during the plan period. Domestic crude oil production is likely to rise marginally from 32.03 million tonnes in 2001-02 to 33.97 million tonnes by the end of the 10th plan period (2006-07). As shown in Figure 1.14, around 92% of India's total oil demand by 2020 will have to be met by
5 4 Mbd 3 2 1 0 85% 92%

57% 1997 Net imports 2010 2020

Domestic production

Figure 1.14 India's oil balance

16000 14000 12000 10000 8000 6000 4000 2000 0

142700

700 Proved Reserve

97.7

3522.5

Consumption

India World

700 142700

97.7 3522.5

Figure 1.15 Proven oil reserves/consumption (in million tonnes) India vs. world (end of 2002)
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1.15.3 Natural Gas India's natural gas production is likely to rise from 86.56 million cmpd in 2002-03 to 103.08 million cmpd in 2006-07. It is mainly based on the strength of a more than doubling of production by private operators to 38.25mmcmpd. 1.15.4 Electricity India currently has a peak demand shortage of around 14% and an energy deficit of 8.4%. Keeping this in view and to maintain a GDP (gross domestic product) growth of 8% to 10%, the Government of India has very prudently set a target of 215,804MWpowergeneration capacity byMarch2012fromthelevelof100,010 MW as on March 2001. This is a capacity addition of 115,794MWinth e next 11 years (Table 1.4).
Thermal Gas / LNG / Nuclear (Coal) (MW) Diesel (MW) (MW) Installed capacity as on March 2001 Additional capacity (2001-2012) Total capacity as on March 2012 61,157 53,333 114,490 (53.0%) Gas: 10,153 Diesel: 864 20,408 31,425 (14.6%) 2720 9380 12,100 (5.6%) 25,116 32,673 57,789 (2.6.8%) 100,010 115,794 215.804 Hydro (MW) Total (MW)

Table 1.4 India's perspective plan for power for zero deficit power by 2011/12 (source tenth and eleventh five-year plan projections) In the area of nuclear power the objective is to achieve 20,000 MW of nuclear generation capacity by the year 2020. 1.16 Energy Pricing in India Price of energy does not reflect true cost to society. The basic assumption underlying the efficiency of the market place does not hold in our economy, since energy prices are undervalued and energy wastages are encouraged. Pricing practices in India, like many other developing countries are influenced by political, social and economic compulsions at the state and central levels. Many a times, this has been the foundation for energy sector policies in India. The Indian energy sector offers many examples of cross subsidies e.g., diesel, LPG and kerosene being subsidised by petrol, petroleum products for industrial usage and industrial and commercial consumers of electricity subsidising agricultural and domestic consumers. 1.16.1 Coal Grade wise basic price of coal at the pithead excluding statutory levies for runof-mine (ROM) coal are fixed by Coal India Ltd from time to time. The pithead price of coal in India compares favourably with the price of imported coal. In spite of this, industries still import coal due its higher calorific value and low ash content.
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1.16.2 Oil As part of the energy sector reforms, the government has attempted to bring prices for many of the petroleum products (naphtha, furnace oil, LSHS, LDO and bitumen) in line with international prices. The most important achievement has been the linking of diesel prices to international prices and a reduction in subsidy. However, LPG and kerosene, consumed mainly by domestic sectors, continue to be heavily subsidised. Subsidies and cross-subsidies have resulted in serious distortions in prices, as they do not reflect economic costs at all in many cases. 1.16.3 Natural Gas The government has been the sole authority for fixing the price of natural gas in the country. It has also been taking decisions on the allocation of gas to various competing consumers. Gas prices vary from Rs 5 to Rs.15 per cubic metre. The recent find of the Reliance Group has revealed that there is good potential for natural gas in India. In fact talks are on with Iran to get piped gas for Indian industry. The present ruling price in the international market varies between $ 2.5 to 3.25 per million Btu. Natural gas is going to play a very important role in India's energy sector in the form of power generation and transportation. 1.16.4 Electricity Electricity tariffs in India are structured in a relatively simple manner. While high tension consumers are charged based on both demand (kVA) and energy (kWh), the low-tension (LT) consumer pays only for the energy consumed (kWh) as per the tariff system in most of the electricity boards. The price per kWh varies significantly across states as well as customer segments within a state. Tariffs in India have been modified to consider the time of usage and voltage level of supply. In addition to the base tariffs, some of the State Electricity Boards make additional recovery from customers in the form of fuel surcharges, electricity duties and taxes. For example, for an industrial consumer, the demand charges may vary from Rs. 150 to Rs. 300 per kVA, whereas the energy chargesmayvaryanywhere between Rs. 2 to Rs. 5 per kWh. As for the tariff adjustment mechanism, even when some of the states have regulatory commissions for tariff review, the decisions to effect changes are still political and there is no automatic adjustment mechanism, which can ensure recovery of costs for the electricity boards. 1.17 Energy Sector Reforms Since the initiation of economic reforms in India in 1991, there has been a growing acceptance of the need for deepening these reforms in several sectors of the economy, which were essentially in the hands of the government for several decades. It has now been realised that if substance has to be provided to macroeconomic policy reforms, then it must be based on reforms that concern the functioning of several critical sectors of the economy, among which the infrastructure sectors in general and the energy sector in particular, are paramount.
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1.17.1 Coal The government has recognised the need for new coal policy initiatives and for rationalisation of the legal and regulatory framework that would govern the future development of this industry. One of the key reforms is that the government has allowed the import of coal to meet our requirements. The private sector is now allowed to participate in the extraction and marketing of coal. The ultimate objective of some of the ongoing measures and others under consideration is to see that a competitive environment is created for the functioning of various entities in this industry. This would not only bring about gains in efficiency but also effect cost reduction, which would consequently ensure supply of coal on a larger scale at lower prices. Competition would also have the desirable effect of bringing in new technology, for which there is an urgent and overdue need since the coal industry has suffered a prolonged period of stagnation in technological innovation. 1.17.2 Oil and Natural Gas Since 1993, private investors have been allowed to import and market liquefied petroleum gas (LPG) and kerosene freely; private investment has also been allowed in lubricants, which are not subject to price controls. Prices for naphtha and some other fuels have been liberalised. In 1997 the government introduced the New Exploration Licensing Policy (NELP) in an effort to promote investment in the exploration and production of domestic oil and gas. In addition, the refining sector has been opened to private and foreign investors in order to reduce imports of refined products and to encourage investment in downstream pipelines. Attractive terms are being offered to investors for the construction of liquefied natural gas (LNG) import facilities. 1.17.3 Electricity Following the enactment of the Electricity Regulatory Commission Legislation, the Central Electricity Regulatory Commission (CERC) was set up, with the main objective of regulating the Central power generation utilities. State level regulatory bodies have also been set up to set tariffs and promote competition. Private investments in power generation were also allowed. The State SEBs were asked to switch over to separate Generation, Transmission and Distribution corporations. While,India currently does not have a unified national power grid, the country plans to link the SEB grids eventually, and has set up a state company, Power grid, to oversee the unification. 1.18 The Electricity Act, 2003 The government has enacted the Electricity Act, 2003, which seeks to bring about a qualitative transformation of the electricity sector through a new paradigm. The Act seeks to create a liberal framework of development for the power sector by distancing the Government from regulation. It replaces the three existing legislations, namely, Indian ElectricityAct,1910,theElectricity
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(Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998. The objectives of the Act are to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally to take measures conducive to the development of the electricity industry, promoting competition therein, protecting the interests of consumers and the supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of the Central Electricity Authority, Regulatory Commissions and establishment of the Appellate Tribunal and for matters connected therewith or incidental thereto. The Act strikes a balance, taking into account the complex ground realities of the power sector in Indiawithitsintractable problems. 1.18.1 The Salient Features of the Electricity Act, 2003 The Central Government to prepare a National Electricity Policy in consultation with State Governments. (Section 3) ii. Thrust to complete rural electrification and provide for management of rural distribution by Panchayats, Co-operative Societies, non-Government organisations, franchisees etc. (Sections 4, 5 & 6) iii. Provision for license free generation and distribution in the rural areas. (Section 14) iv. Generation being delicensed and captive generation being freely permitted. Hydro projects would, however, need clearance from the Central Electricity Authority. (Sections 7, 8 & 9) v. Transmission Utility at the Central as well as State level, to be a Government company with responsibility for planned and co-ordinated development of a transmission network. (Sections 38 & 39) vi. Provision for private licensees in transmission and entry in distribution through an independent network, (Section 14) vii. Open access to transmission from the outset. (Sections 38-40) viii. Open access to distribution to be introduced in phases with a surcharge for the current level of cross subsidy to be gradually phased out along with cross subsidies and an obligation to supply. SERCs to frame regulations within one year regarding phasing of open access. (Section 42) ix. Distribution licensees would be free to undertake generation and generating companies would be free to take up distribution businesses. (Sections 7, 12) x. The State Electricity Regulatory Commission is a mandatory requirement. (Section 82) xi. Provision for payment of subsidy through budget. (Section 65) xii. Trading, a distinct activity is being recognised with the safeguard of the Regulatory Commissions being authorised to fix ceilings on trading margins, if necessary. (Sections 12, 79 & 86) xiii. Provision for reorganisation or continuance of SEBs.(Sections 131 & 172) xiv. Metering of all electricity supplied made mandatory. (Section 55) xv. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. (Section 111)
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xvi. Provisions relating to theft of electricity made more stringent. (Section 135-150) xvii. Provisions safeguarding consumer interests. (Sections 57-59,166) An ombudsman scheme (Section 42) for consumer grievance redressal. 1.19 Energy and Environment
Inputs Permission from process Energy Water Chemical Raw Material Solid/ Liquid waste Industrial Process Products Process Outputs

Permission from combustion

Direct/Indirect Energy waste

Figure 1.16 Inputs and outputs of process

1.19.1 Air Pollution The usage of energy resources in industry leads to environmental damages by polluting the atmosphere. A few of examples air pollution are sulphur dioxide (SO2), nitrous oxide (NOX) and carbon monoxide (CO) emissions from boilers and furnaces, chloro-fluro carbon (CFC) emissions from refrigerants used, etc. In chemical and fertiliser industries, toxic gases are released. Cement plants and power plants spew out particulate matter. Typical inputs, outputs, and emissions for a typical industrial process are shown in Fig. 1.16 above.

10% 5% 8% 42% Transport Industry Forest Solid waste 35% Others

Figure 1.17 Major pollutants in air-sector wise
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13% 10% 47% 15% 15%

CO2 Hydro carbons S02 N0X Particulates

Figure 1.18 Composition of major air pollutants

1.20 Global Warming and Climate Change Climate change, also called global warming, refers to long-term fluctuations in temperature, precipitation, wind and other elements of the earth's climate system. Energy use has attracted huge attention in present times due to its associated global climatic impacts. Increasing fossil fuel use has led to increasing carbon dioxide emissions leading to the greenhouse effect and global warming (see Figure. 1.19). The heating up of the earth's atmosphere due to trapping of long wavelength infrared rays (reflected from the earth's surface) by the carbon dioxide layer in the atmosphere is called the greenhouse effect. The name greenhouse effect comes from the fact that this effect is used usefully in horticulture for growing green plants in an enclosure made of glass or some other transparentmaterial to act as a heat trap. Scientists generally believe that the combustion of fossil fuels and other human activities are the primary reason for the increased concentration of carbon dioxide. Plant respiration and the decomposition of organic matter release more than 10 times the CO2 released by human activities; but these releases have generally had a favourable balance earlier during the centuries with carbon dioxide being absorbed by terrestrial vegetation and the oceans. The key greenhouse gases driving global warming are shown in Figure 1.20. Carbon dioxide, whose increase is largely produced by the burning of fossil fuels, is the primary global warming gas. CFC's, even though they exist in very small quantities, are significant contributors to global warming. And, (not shown in Figure 1.20), perfluorocarbons (PFC's), sulfur hexafluoride (SF6) and hydro fluorocarbons (HFC's) are other growing contributors.

The Greenhouse Effect

Solar radiation passes through the clear atmosphere

Some solar radiation radiation passes through the is reflected by the atmosphere, and some is Earth and the absorbed and re-emitted in all directions by greenhouse atmosphere

Some of the infrared

gas molecules. The effect of this is to warm the Earth's surface and the lower atmosphere

Figure 1.19 The greenhouse effect

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7% 12%

6%

C02 CFC 54% Methane Ozone

21%

Nox

Figure 1.20 Share of green house gases in Gw There are six gases, which contribute to the greenhouse gas effect. The emission factor of each gas varies and Table 1.5 gives the factors in terms of intensities. Thus it will be seen that carbon dioxide has the lowest emission factor, while SF6 has the highest. However the amount of carbon dioxide runs into a billion tonnes and therefore all efforts are on to reduce CO2 emissions on a priority basis. Carbon Dioxide Methane Nitrous Oxide Hydrofluorocarbons Perfluorocarbons Sulphur Hexafluoride 1 21 310 140 - 9800 4800 - 9200 23900

Table 1.5 Emission factors of GHG Carbon dioxide, one of the most prevalent greenhouse gases in the atmosphere, has two major anthropogenic (human-caused) sources: the combustion of fossil fuels and changes in land use. Net releases of carbon dioxide from these two sources are believed to be contributing to the rapid rise in atmospheric concentrations since pre-industrial times. 1.21 What Do Humans Do that Increase Atmospheric CO2 Burning of fossil fuels like coal, oil and gas contributes to 80% of CO2 emission. Whereas cutting down forests particularly in tropical region contributes 20% of CO2 emission. These figures only prove that the land under forest has to be preserved as CO2 emission increases. The latest ideas are creation of carbon basins which means plantation of millions of trees which will absorb the additional CO2 emission and convert it back to carbon. USA is in the forefront in this regard. The condition in India is not very encouraging as the forest cover is going down. Ideally the forest cover should be around 33% of the total land area. This percentage is being drastically reduced. It is therefore absolutely essential to take up a massive programme of a forestation during the coming years. As far as usage of energy is concerned, the following figures throw light on population verses energy consumption. As India's per capita energy consumption is quite low as compared toUSAorotherdeveloped nations, due to a high population, the total energy used is quite high. It will be seen from Table
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1.6 that India has already overtaken developed nations like France and Italy. It almost uses the levels of energy as Germany and is likely to exceed this in the coming years. These figures are very vital as global energy consumption percentage is rapidly growing. Because estimates indicate that approximately 80 percent of all anthropogenic carbon dioxide emissions currently are from fossil fuel combustion, world energy use has emerged at the centre of the climate change debate.

Countr y China India United States Brazil Pakistan Russia Bangladesh Japan Nigeria Mexico Germany France United Kingdom Italy South Korea Canada

Population in millions 1295 1050 288 176 150 144 144 128 121 102 82 60 59 57 47 31

Energy consumption in quadrillion Btu's 43.2 14.0 97.4 8.6 1.8 27.5 0.6 22.0 0.9 6.6 14.3 11.0 9.6 7.6 8.4 13.1

Table 1.6 Representative countries and energy usage, 2002 International accords began in Rio de Janeiro in 1992 (Rio Earth Summit), wherein developed nations were asked to reduce GHG emissions to 1990 levels by the year 2000. New levels of commitment were taken during the third Conference of Parties (COP) on The Framework Convention on Climate Change, held at Kyoto in 1997 (Kyoto Protocol), which made GHG reductions mandatory for 38 developed nations with an average reduction of 5.2% below 1990 levels by 2012. The emergence of the Clean Development Mechanism (CDM) as a framework for the involvement of industrialised countries in the developing world may lead to financing opportunities for energy efficiency projects.

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Global mean temperature increase of 2 o C is increasing - 0.3 to 0.6o C Global sea level has 50 cm risen: 10 to 25 cm

- Projected temperature by year 2100 - Projected sea level rise by year 2100

Table 1.7 Climate has changed and will continue to change 1.22 Acid Rain Acid rain is caused by the release of SOX and NOX from the combustion of fossil fuels, which then mix with water vapour in the atmosphere to form sulphuric and nitric acids respectively. The effects of acid rain are as follows: Acidification of lakes, streams and soils Direct and indirect effects (release of metals, for example: Aluminium which washes away plant nutrients) Killing of wildlife (trees, crops, aquatic plants, and animals) Decay of building materials and paints, statues, and sculptures Health problems (respiratory, burning- skin and eyes )

SO2

NOx

Acid Rain

Coal-fired electric utilities and other sources that burn fossil fuels emit sulpher dioxide and nitrogen oxide

Figure 1.21 Acid rain formation 1.23 Energy Security The basic aim of energy security for a nation is to reduce its dependence on imported energy sources for its economic growth. India will continue to experience an energy supply shortfall throughout the forecast period. This gap has been exacerbated since 1985, when the country became a net importer of coal. India has been unable to raise its oil production substantially in the 1990s. Rising oil demand close to 10 percent per year has led to sizeable oil import bills. In addition, the government subsidises refined oil product prices, thus compounding the overallmonetary loss to the government.
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Imports of oil and coal have been increasing at rates of 7% and 16% per annum respectively during the period 1991 - 99. This dependence on energy imports is projected to increase in the future. Estimates indicate that oil imports will meet 75% of total oil consumption requirements and coal imports will meet 22% of the total coal consumption requirements in 2006. At present, India does not import any natural gas, but demand is supply constrained and imports of gas and LNG (liquefied natural gas) are likely to arise during the coming years. This energy import dependence implies vulnerability to external price shocks and supply fluctuations,which threaten the energy security of the country. Increasing dependence on oil imports means reliance on imports from the Middle East, a region susceptible to disturbances and consequent disruptions of oil supplies. This calls for diversification of sources of oil imports. The need to deal with oil price fluctuations also necessitates measures to be taken to reduce the oil dependence of the economy, possibly through fiscal measures to reduce demand, and by developing alternatives to oil, such as natural gas and renewable energy. Some of the strategies that can be used to meet future challenges to energy security are : Building stockpiles Diversification of energy supply sources Increased capacity of fuel switching Demand restraint Development of renewable energy sources Energy efficiency Sustainable development

Although all these options are feasible, their implementationwilltaketime.Also, for countries like India, reliance on stockpiles would tend to be slow because of resource constraints. Besides, the market is not sophisticated enough nor the monitoring agencies experienced enough to predict the supply situation in time to take necessary action. If India has to increase its energy stockpile, insufficient storage capacity needs to be augmented. However, out of all these options, the simplest and the most easily attainable is reducing demand through persistent energy conservation efforts. 1.24 Energy Conservation and its Importance Coal and other fossil fuels, which have taken three million years to form, are likely to deplete soon.Within the last two hundred years, we have consumed 60% of all resources. For sustainable development, we need to adopt energy efficiency measures. Today, 85% of primary energy comes from non-renewable, and fossil sources (coal, oil, etc.). These reserves are continually diminishing with increasing consumption and will not exist for future generations.
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25 20 15 10 5 0 1000 BC 0 1000 AD 2000 3000 4000 Time

Figure 1.22 Consumption of fossil fuels

1.25 What is Energy Conser vation? Conservation is achieved when energy consumption is reduced, measured in physical terms. Energy conservation can therefore be the result of several processes or developments, such as productivity increase or technological progress. On the other hand energy efficiency is achieved when energy intensity in a specific product, process or area of production or consumption is reduced without affecting output, consumption or comfort levels. Promotion of energy efficiency will contribute to energy conservation and is therefore an integral part of energy conservation promotional policies. Energy conservation and energy efficiency are separate, but related concepts. For example, replacing traditional light bulbs with Compact Fluorescent Lamps (CFLs) means you will use only 1/4th of the energy to light a room. Pollution levels also reduce by the same amount. Nature sets some basic limits on how efficiently energy can be used, but in most cases our products and manufacturing processes are still a long way from operating at this theoretical limit. Very simply, energy efficiency means using less energy to perform the same function. Energy Efficient Equipment uses less energy for same output and reduces CO2 emission

Incandescent lamp 60 W
CO2 Emission - 65 g/hr

Compact fluorescent lamp 15 W

CO2 Emission - 16 g/hr

Figure 1.23 Energy efficient equipments

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Based on the present efficiencies of thermal power plants the emission per kwh is approximately 1 kilo of carbon dioxide. In the year 2000, coal was responsible for generating around 6000 TWh. The international electricity authority gives the figure of 12000 TWh in 2003. By 2030 the additional global CO2 emission from coal fired electricity production could be over 5 billion tonnes. Although this figure is high, the increase in efficiency will certainly help in bringing down the emission by 5 % points. The present overall efficiency of a coal fired power plant is around 35 % with the introduction of super critical temperatures, the efficiency is likely to touch 40-45 % in the near future. This means the reduction ofCO2 per kwhwillbearound30-35%. Although, energy efficiency has been in practice ever since the first oil crisis in 1973, it has today assumed even more importance because of it being the most cost-effective and reliable means of mitigating the effects of global climatic change. Recognition of this potential has led to high expectations for the control of future CO2 emissions through even more energy efficient improvements which have occurred in the past. The industrial sector accounts for some 41 per cent of global primary energy demand and approximately the same share ofCO 2 emissions. The benefits of Energy conservation for various players are given in 1.24 Figure
Industry Nation Globe

. Reduced energy bills . Reduced energy imports . Avoided costs can be . Increased used for poverty competitiveness . Increased productivity reduction . Conservation of limited . Improved quality resources . Increased profits ! . Improved energy security

. Reduced GHG and other emissions . Maintains a sustainable environment

Figure 1.24 Energy efficiency benefits

1.26 Energy Strategy for the Future The energy strategy for the future could be classified into immediate, mediumand long-term strategy. The various components of these strategies are listed below: 1.26.1 Immediate-term Strategy Rationalising the tariff structure of various energy products. Optimum utilisation of existing assets. Efficiency in production systems and reduction in distribution losses, including those in traditional energy sources. Promoting R&D, transfer and use of technologies and practices for environmentally sound energy systems, including new and renewable energy sources.
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1.26.2 Medium-term Strategy Demand management through greater conservation of energy, optimum fuel mix, structural changes in the economy, an appropriate modal mix in the transport sector, i.e. greater dependence on rail than on road for the movement of goods and passengers and a shift away from private modes to public modes for passenger transport; changes in the designs of different products to reduce the material intensity of those products, recycling, etc. There is need to shift to less energy-intensive modes of transport. This would include measures to improve transport infrastructure viz. Roads, better design of vehicles, use of compressed natural gas (CNG) and synthetic fuel, etc. Similarly, better urban planning would also reduce the demand for energy use in the transport sector. There is need to move away from non-renewable to renewable energy sources viz. solar, wind, bio-mass energy, etc. 1.26.3 Long-term Strategy Efficient generation of energy resources Efficient production of coal, oil and natural gas. Reduction of natural gas flaring. Improving energy infrastructure. Building new refineries. Creation of urban gas transmission and distribution network. Maximising efficiency of rail transport for coal production. Building new coal and gas fired power stations.

1.26.4 Enhancing Energy Efficiency Improving energy efficiency in accordance with national, socio-economic, and environmental priorities. Promoting energy efficiency and emission standards. Labelling programmes for products and adoption of energy efficient technologies in large industries. De-regulation and privatisation of the energy sector. Reducing cross subsidies on oil products and electricity tariffs. De-controlling coal prices and making natural gas prices competitive. Privatisation of oil, coal and power sectors for improved efficiency. Investment legislation to attract foreign investments. Streamlining the approval process to attract private sector participation in power generation, transmission and distribution. 1.27 The Energy Conser vation Act, 2001 and its Features 1.27.1 Policy Framework Energy Conser vation Act,- 2001 With the background of high energy saving potential and its benefits, bridging the gap between demand and supply, reducing environmental emissions through energy saving, and to effectively overcome barriers, the Government
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of India has enacted the Energy Conservation Act, 2001. The Act provides the much-needed legal framework and institutional arrangement for embarking on an energy efficiency drive. Under the provisions of the Act, The Bureau of Energy Efficiency has been established with effect from 1st March 2002 by merging the erstwhile Energy Management Centre of The Ministry of Power. The Bureau would be responsible for implementation of policy programmes and co-ordination of implementation of energy conservation activities. Important features of the Energy Conservation Act are: 1.27.2 Standards and Labelling Standards and Labelling (S & L) has been identified as a key activity for energy efficiency improvement. The S & L programme, when in place would ensure that only energy efficient equipment and appliances would be made available to consumers. Themainprovisions of the EC act on Standards and Labelling are: Evolve minimum energy consumption and performance standards for notified equipment and appliances. Prohibit manufacture, sale and import of such equipment, which does not conform to standards. Introduce a mandatory labelling scheme for notified equipment appliances to enable consumers to make informed choices. Disseminate information on the benefits to consumers. 1.27.3 Designated Consumers The main provisions of the EC Act on designated consumers are: The government would notify energy intensive industries and other establishments as designated consumers; The schedule to the Act provides a list of designated consumers which cover basically energy intensive industries, Railways, Port Trust, Transport Sector, Power Stations, Transmission and Distribution Companies and Commercial buildings or establishments; The designated consumer to get an energy audit conducted by an accredited energy auditor; Energy managers with prescribed qualifications are required to be appointed or designated by the designated consumers; Designated consumers would comply with norms and standards of energy consumption as prescribed by the central government.

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1.27.4 Certification of Energy Managers and Accreditation of Energy Auditing Firms The main activities in this regard as envisaged in the Act are: A cadre of professionally qualified energy managers and auditors with expertise in policy analysis, project management, financing and implementation of energy efficiency projects would be developed through a Certification and Accreditation programme. BEE designs training modules, and conducts a National level examination for the certification of energy managers and energy auditors. 1.27.5 Energy Conser vation Building Codes Themainprovisions of the EC Act on Energy ConservationBuildingCodes are: The BEE would prepare guidelines for Energy Conservation Building Codes (ECBC); These would be notified to suit local climate conditions or other compelling factors by the respective states for commercial buildings erected after the rules relating to energy conservation building codes have been notified. In addition, these buildings should have a connected load of 500 kW or contract demand of 600 kVA and above and intended for commercial purposes. Energy audit of specific designated commercial building consumers would also be prescribed. 1.27.6 Central Energy Conser vation Fund The EC Act provisions in this case are: The fund would be set up at the centre to develop the delivery mechanism for large-scale adoption of energy efficiency services such as performance contracting and promotion of energy service companies. The fund is expected to give a thrust to R & D and demonstration in order to boost market penetration of efficient equipment and appliances. It would support the creation of facilities for testing and development and promote consumer awareness. 1.28 Bureau of Energy Efficiency (BEE) The mission of the Bureau of Energy Efficiency is to institutionalise energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the economy. The primary objective would be to reduce energy intensity in the Indian Economy. The general superintendence, directions and management of the affairs of the Bureau are vested in the Governing Council with 26 members. The Council is headed by the Union Minister of Power and consists of members represented by Secretaries of various line Ministries, the CEOs of technical agencies under the Ministries, members representing
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equipment and appliance manufacturers, industry, architects, consumers and five power regions representing the states. The Director General of the Bureau shall be the ex-officio member-secretary of the Council. The BEE will be initially supported by the Central Government by way of grants through the budget. It will, however, in a period of 5-7 years become self-sufficient. It would be authorised to collect appropriate fees in discharge of its functions assigned to it. The BEE will also use the Central Energy Conservation Fund and other funds raised from various sources for innovative financing of energy efficiency projects in order to promote energy efficient investment. 1.28.1 Role of the Bureau of Energy Efficiency The role of BEE would be to prepare standards and labels of appliances and equipment, develop a list of designated consumers, specify certification and accreditation procedures, prepare building codes, maintain the Central EC fund and undertake promotional activities in co-ordination with the central and state level agencies. The role would include development of Energy service companies (ESCOs), transforming the market for energy efficiency and create awareness through measures including clearing houses. 1.29 Role of Central and State Governments The following role of the Central and State Government is envisaged in the Act Central - to notify rules and regulations under various provisions of the Act, provide initial financial assistance to the BEE and EC fund, coordinate with various State Governments for notification, enforcement, penalties and adjudication. State - to amend energy conservation building codes to suit the regional and local climatic conditions. To designate a state level agency to co-ordinate, regulate and enforce provisions of the Act and constitute a State Energy Conservation Fund for promotion of energy efficiency. 1.30 Enforcement through Self-Regulation The E.C.Act would require inspection of only two items. The following procedure of self-regulation is proposed to be adopted for verifying areas that require inspection of only two items. The certification of energy consumption norms and standards of production processes by the Accredited Energy Auditors is a way to enforce effective energy efficiency in Designated Consumers. For energy performance and standards, manufacturers declared values would be checked in Accredited Laboratories by drawing sample from the market. Any manufacturer or consumer or consumer association can challenge the values of the other manufacturer and bring them to the notice of the BEE. The BEE is recognised for challenge testing in disputed cases as a measure for self-regulation.
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1.31 Penalties and Adjudication Penalty for each offence under the Act would be in monetary terms i.e. Rs.10,000 for each offence and Rs.1,000 each day for continued non compliance. The initial phase of 5 years would be promotional and would create infrastructure for implementation of the Act. No penalties would be effective during this phase. The power to adjudicate has been vested with the state Electricity Regulatory Commission which shall appoint any one of its members to an adjudicating officer to hold an enquiry in connection with the penalty imposed.

Summing Up
In this chapter the overall energy scenario-Global and Indian is briefly illustrated. The different types of energy and the long term energy scenario is also explained. Energy and environment go hand in hand. Energy conservation has a direct relation to degradation. The importance of energy conservation and energy efficiency are also explained. As for the future energy requirement, energy security is a very important aspect and the same has been dealt with. As per the legal aspects are concerned Conservation Act, 2001 and its features are briefly explained.

Self-assessment
1. Bio-mass is a renewable energy (a) True (b) False 2. Global gas reserves are estimated at (a) 200 trillion Cum (c) 156 trillion Cum (b) 250 trillion Cum (d) 125 trillion Cum 3. World proven oil reserves are estimated at (a) 1047 billion barrels (c)1500 billion barrels (b) 1175 billion barrels (d) 1300 billion barrels 4. Global energy consumption in 2002 was tonnes of oil equivalent. (a) 11500 million tonnes (c) 13500 million tonnes (b) 9405 million tonnes (d) 8500 million tonnes 5. Developed countries consume(a) 70 (b) 85 (c) 55 percentage of total energy. (d) 60

6. Coal is the main source of primary energy in India. (a) True (b) False
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7. Hydro power contributes to (a) 30 (b) 40

percent electricity generation in India (c) 20 (d) 25 .

8. 1 million cum standard gas/ day has a capacity to generate (a) 300 MW (b) 250 MW (c) 200 MW (d) 185 MW 9. In India industry consumes (a) 55 (b) 45 percent energy. (c) 49 (d) 40

10.The transport sector consumes percent energy in India. (a) 28 (b) 24 (c) 22 (d) 30 11.India is planning to have (a) 225400 (b) 230120 MW installed capacity by 2012. (c) 215800 (d) 241000

12.India's petroleum product demand is estimated at million tons/annum. (a) 160 (b) 125 (c) 165 (d) 140 13.Maximum air pollution in India is caused by (a) CO2 (b) NOX (c) SO2 (d) CO 14.Industry contributes (a) 45 (b) 42 .

percent to air pollution in India. (c) 35 (d) 38

15.Natural gas mainly contains . (a) Ethane (b) Carbon Monoxide (c) Propane (d) Methane 16.H.T. consumers are billed on the basis of . (a) Units (b) Maximum demand (c) Power Factor (d) All the three 17.The Bureau of energy efficiency works under the Ministry of (a) Commerce (b) Environment & forest (c) Power (d) Public works 18.The paper industry is designated under the Energy Conservation Act 2001. (a) True (b) False .

19.The world's oil reserves are expected to last for (a) 100 yrs (b) 80 yrs (c) 45 yrs (d) 90 yrs

20.The energy consumption code is applicable to commercial buildings having . (a) 800 KVA M.D. & 600 kw connected load (b) 600 KVA M.D. & 500 kw connected load (c) 1000 KVA M.D. & 700 kw connected load (d) 1200 KVA M.D. & 900 kw connected load

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References
1. Encyclopedia of Energy - McGraw Hill Publication 2. Handbook of Energy Engineering, The Fairmont Press Inc - Albert Thumann 3. Energy Handbook, Von Nostrand Reinhold Company - Robert L.Loftness 4. Cleaner Production - Energy Efficiency Manual for GERIAP, UNEP, Bangkok prepared by National Productivity Council 5. Statistics have been drawn from BP Statistical Review of World Energy, June 2003, International Energy Outlook, March 2002, Energy Information Administration, Office of Integrated Analysis and Forecasting, US Department of Energy, Washington 6. Planning Commission Statistics 7. The Energy and Resources Institute (TERI) 8. IEE Review (Journal) March 2005.

Annexure I Features Extracted From The Energy Conser vation Act, 2001

Chapter I Definitions In this Act, unless the context otherwise requires: a. Accredited energy auditor means an auditor possessing qualifications specified under clause (p) of sub-section (2) of section 13; b. Appellate Tribunal means Appellate Tribunal for Energy Conservation established under section 30; c. Building means any structure or erection or part of a structure or erection, after the rules relating to energy conservation building codes have been notified under clause (a) of section 15 of clause (l) of sub-section (2) of section 56, which has a connected load of 500kW or contract demand of 600 kVA and above and is intended to be used for commercial purposes; d. Bureau means the Bureau of Energy Efficiency established under subsection (l) of section 3; e. ChairpersonmeanstheChairperson of the Governing council; f. Designated agency means any agency designated under clause (d) of section 15; g. Designated consumer means any consumer specified under clause (e) of section 14;

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h. Energy means any form of energy derived from fossil fuels, nuclear substances or materials, hydro-electricity and includes electrical energy or electricity generated from renewable sources of energy or bio-mass connected to the grid; i. Energy conservation building codes means the norms and standards of energy consumption expressed in terms of per square metre of the area wherein energy is used and includes the location of the building; j. Energy consumption standards means the norms for process and energy consumption standards specified under clause (a) of section 14; k. EnergyManagement CentremeanstheEnergyManagement Centre set up under the Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 7(2)/87-EP (Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act, 1860; (21 of 1860) l. Energy manager means any individual possessing qualifications prescribed under clause (m) of section 14; m. Governing CouncilmeanstheGoverning Council referred to in section 4; n. Member means the member of the Governing Council and includes the Chairperson; o. Notification means a notification in the Gazette of India or, as the case may be, the OfficialGazette of a State; p. Prescribedmeans prescribed byrulesmadeunderthisAct; q. RegulationsmeansregulationsmadebytheBureauunderthisAct; r. SchedulemeanstheSchedule of thisAct; s. State Commission means the State Electricity Regulatory Commission established under sub-section (l) of section 17 of the Electricity Regulatory Commissions Act, 1998; (14 of 1998); t. Words and expressions used and not defined in this Act but defined in the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or the Electricity Regulatory Commissions Act, 1998 shall have meanings respectively assigned to them in those Acts. (9 of 1940, 54 of 1948,14 of 1998). Chapter IV, Section 13 Powers and Functions of the Bureau 1) The Bureau shall, effectively co-ordinate with designated consumers, designated agencies and other agencies, recognise and utilise existing resources and infrastructure, in performing functions assigned to it by or under this Act.

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2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or under this Act and in particular, such functions and powers include the functions and powers to a. recommend to the Central Government the norms for processes and energy consumption standards required to be notified under clause (a) of section 14 ; b. recommend to the Central Government the particulars required to be displayed on labels on equipment or on appliances and the manner of their display under clause (d) of section 14; c. recommend to the Central Government to notify any user or class of users of energy as a designated consumer under clause (e) of section 14; d. take suitable steps to prescribe guidelines for energy conservation building codes under clause (p) of section 14; e. take all measures necessary to create awareness and disseminate information for the efficient use of energy and its conservation; f. arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; g. strengthen consultancy services in the field of energy conservation; h. promote research and development in the field of energy conservation; i. develop testing and certification procedures and promote testing facilities for certification and testing for energy consumption of equipment and appliances; j. formulate and facilitate the implementation of pilot projects and demonstration projects for the promotion of efficient use of energy and its conservation; k. promote the use of energy efficient processes, equipment, devices and systems; l. promote innovative financing of energy efficiency projects; m. give financial assistance to institutions for promoting efficient use of energy and its conservation; n. levy fee, as may be determined by regulations, for services provided for promoting efficient use of energy and its conservation; o. maintain a list of accredited energy auditors as may be specified by regulations; p. specify, by regulations, qualifications for the accredited energy auditors;

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q. specify, by regulations, the manner and intervals of time in which the energy audit shall be conducted ; r. specify, by regulations, certification procedures for energy managers to be designated or appointed by designated consumers; s. prepare educational curriculum on efficient use of energy and its conservation for educational institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such curriculum in their syllabuses; t. implement international co-operation programmes relating to efficient use of energy and its conservation as may be assigned to it by the Central Government; u. perform such other functions asmaybeprescribed. Chapter V, Section 14 Power of the Central Government to Facilitate and Enforce Efficient use of Energy and its Conser vation The Central Government may, by notification, in consultation with the Bureau, a. specify the norms for processes and energy consumption standards for any equipment or appliance which consumes, generates, transmits or supplies energy; b. specify equipment or appliance or class of equipments or appliances, as the casemaybe,forthepurposesofthisAct; c. prohibit manufacture or sale or purchase or import of equipment or appliance specified under clause (b) unless such equipment or appliances conform to energy consumption standards. Provided that no notification prohibiting manufacture or sale or purchase or import or equipment or appliance shall be issued within two years from the date of notification issued under clause (a) of this section; (c) direct display of such particulars on label on equipment or on appliance specified under clause (b) and in suchmanner asmaybespecifiedbyregulations; d. specify, have regard to the intensity or quantity of energy consumed and the amount of investment required for switching over to energy efficient equipments and capacity or industry to invest in it and availability of energy efficient machinery and equipment required by the industry, any user or class of users of energy as a designated consumer for the purposes of this Act; e. alter the list ofEnergyIntensive Industries specified in the Schedule; f. establish and prescribe such energy consumption norms and standards for designated consumers as itmayconsider necessary:
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Provided that the Central Government may prescribe different norms and standards for different designated consumers having regard to such factors as may be prescribed; g. direct, having regard to the quantity of energy consumed or the norms and standards of energy consumption specified under clause (a) energy intensive industries specified in the Schedule to get an energy audit conducted by an accredited energy auditor in such manner and intervals of time asmaybespecifiedbyregulations; h. direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get an energy audit conducted by an accredited energy auditor; i. specify the matters to be included for the purposes of inspection under subsection (2) of section 17; j. direct any designated consumer to furnish to the designated agency, in such form and manner and within such period, as may be prescribed, information with regard to the energy consumed and action taken on the recommendation of the accredited energy auditor; k. direct any designated consumer to designate or appoint an energy manger in charge of activities for the efficient use of energy and its conservation and submit a report, in the form and manner as may be prescribed, on the status of energy consumption at the end of every financial year to the designated agency; l. prescribe minimum qualifications for energy managers to be designated or appointed under clause (l); m. direct every designated consumer to comply with energy consumption norms and standards; n. direct any designated consumer, who does not fulfil the energy consumption norms and standards prescribed under clause (f), to prepare a scheme for the efficient use of energy and its conservation and implement such a scheme keeping in view the economic viability of the investment in such form and manner asmaybeprescribed; o. prescribe energy conservation building codes for efficient use of energy and its conservation in the building or building complex; p. amend the energy conservation building codes to suit regional and local climatic conditions; q. direct every owner or occupier of the building or building complex, being a designated consumer to comply with the provisions of energy conservation building codes for the efficient use of energy and its conservation; r. direct, any designated consumer referred to in clause (q), if considered necessary, for the efficient use of energy and its conservation in his building
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to get an energy audit conducted in respect of such building by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; s. take all measures necessary to create awareness and disseminate information for the efficient use of energy and its conservation; t. arrange and organise training of personnel and specialists in the techniques for the efficient use of energy and its conservation; u. take steps to encourage preferential treatment for the use of energy efficient equipment or appliances: Provided that the powers under clauses (o) and (r) shall be exercised in consultationwiththeconcerned State. Chapter VI, Section 15 The Power Of The State Government To Facilitate And Enforce Ef ficient Use Of Energy And Its Conservation The State Government may, by notification, in consultation with the Bureau a. amend the energy conservation building codes to suit regional and local climatic conditions and may, by rules made by it, specify and notify energy conservation building codeswith respect to use of energy in buildings; b. direct every owner or occupier of a building or building complex being a designated consumer to comply with the provisions of the energy conservation building codes; c. direct, if considered necessary, the efficient use of energy and its conservation, any designated consumer referred to in clause (b) to get an energy audit conducted by an accredited energy auditor in such a manner and at such intervals of time as may be specified by regulations; d. designate any agency as a designated agency to co-ordinate, regulate and enforce provisions of this Act within the State; e. take all measures necessary to create awareness and disseminate information for the efficient use of energy and its conservation; f. arrange and organise training of personnel and specialists in the techniques for the efficient use of energy and its conservation; g. take steps to encourage preferential treatment for the use of energy efficient equipment or appliances; h. direct, any designated consumer to furnish to the designated agency, in such form and manner and within such period as may be specified by rules made by it, informationwithregard to the energy consumed by such a consumer; i. specify the matters to be included for the purposes of inspection under subsection (2) of section 17;
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1) The State Government shall constitute a Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of energy and its conservation within the State. 2) To the Fund shall be credited all grants and loans that may be made by the State Government or, Central Government or any other organisation or individual for the purposes of this Act. 3) The Fund shall be applied for, for meeting the expenses incurred for implementing the provisions of this Act. 4) The Fund created under sub-section (l) shall be administered by such persons or any authority and in such manner as may be specified in the rules made by the StateGovernment. i) The designated agency may appoint, after the expiry of five years from the date of commencement of this Act, as many inspecting officers as may be necessary for the purpose of ensuring compliance with energy consumption standards specified under clause (a) of section 14 or ensure display of particulars on labels on equipment or appliances specified under clause (b) of section 14 or for the purpose of performing such other functions as may be assigned to them. ii) Subject to any rules made under this Act, an inspecting officer shall have the power to a. inspect any operation carried on or in connection with the equipment or appliance specified under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14 have been specified; b. enter any place of a designated consumer where energy is used for any activity and may require any proprietor, employee, director, manager or secretary or any other person who may be attending in any manner to or helping in, carrying on any activity with the help of energy i. to afford him necessary facility to inspect a. any equipment or appliance as he may require and which may be available at such place; b. any production process to ascertain the energy consumption norms and standards; ii) to make an inventory of stock of any equipment or appliance checked or verified by him; iii) to record the statement of any person whichmaybeusefulfor,orrelevantto, for the efficient use of energy and its conservation under this Act. 3) An inspecting officermayenteranyplaceofadesignatedconsumera. where any activity is carried onwiththehelpofenergy; and
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b. where any equipment or appliance notified under clause (b) of section 14 has been kept, during the hours at which such places are open for production or conduct business connected therewith. 4. An inspecting officer acting under this section shall, on no account, remove or cause to be removed from the place wherein he has entered, any equipment or appliance or books of accounts or other documents. The Central Government or the State Government may, in the exercise of its powers and performance of its functions under this Act and for the efficient use of energy and its conservation, issue such directions in writing as it deems fit for the purposes of this Act to any person, officer, authority or any designated consumer and such person, officer or authority or any designated consumer shall be bound to comply with such directions. Explanation for the avoidance of doubts, it is hereby declared that the power to issue directions under this section includes the power to direct a. regulation of norms for process and energy consumption standards in any industry or building or building complex; or b. regulation of energy consumption standards for equipment and appliances. Chapter VIII, Section 26 Penalties and Adjudication 1) If any person fails to comply with the provision of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed ten thousand rupees for each such failure and, in the case of continuing failures, with an additional penalty which may extend to one thousand rupees for every day during which such failure continues: Provided that no person shall be liable to pay penalty within five years from the date of commencement of thisAct. 2) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue. i) For the purpose of adjudging section 26, the State Commission shall appoint any of its members to be an adjudicating officer to hold an inquiry in such manner as may be prescribed by the Central Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. ii) While holding an inquiry the adjudicating officer shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case or give evidence or produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that
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the person has failed to comply with the provisions of any of the clauses of the sections specified in section 26, hemayimpose such penalty as he thinks fit in accordancewith the provisions of any of those clauses of that section: Provided that where a State Commission has not been established in a State, the Government of that State shall appoint any of its officer not below the rank equivalent to a Secretary dealing with legal affairs in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be an adjudicating officer immediately on the appointment of an adjudicating officer by the State Commission on its establishment in that State: Provided further that where an adjudicating officer appointed by a State Government ceased to be an adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all matters being adjudicated by him and thereafter the adjudicating officer appointed by the State Commission shall adjudicate penalties on suchmatters. While adjudicating the quantum of penalty under section 26, the adjudicating officer shall have due regard to the following factors, namely:a. the amount of disproportionate gain or unfair advantage, wherever quantifiable,madeasaresultofthedefault; b. the repetitive nature of the default. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. Chapter IX, Section 30 Appellate Tribunal for Energy Conservation The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Appellate Tribunal for Energy Conservation to hear appeals against the orders of the adjudicating officer or the Central Government or the State Government or any other authority under this Act. Chapter X, Section 61 Miscellaneous The provisions of this Act shall not apply to the Ministry or Department of the CentralGovernment dealingwithDefence, Atomic Energy or such other similar Ministries or Departments undertakings or Boards or institutions under the control of such Ministries or Departments as may be notified by the Central Government.
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The Schedule [See section 2 (s)] List of Energy Intensive Industries and other establishments specified as designated consumers 1. Aluminium; 2. Fertilisers; 3. Iron and Steel; 4. Cement; 5. Pulp and Paper; 6. Chlor Alkali; 7. Sugar; 8. Textile; 9. Chemicals; 10. Railways; 11. Port Trust; 12. Transport Sector (industries and services); 13. Petrochemicals, Gas Crackers, Naphtha Crackers and Petroleum Refineries; 14. Thermal Power Stations, hydel power stations, electricity transmission companies and distribution companies; 15. Commercial buildings or establishments;

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