YOJANA MAGAZINE August 2016 Summary

Energy sector in India

Indias primary energy consumption more than doubled between 1990 and 2011 to nearly
25,000 PJ. India's dependence on imported energy resources and the inconsistent reforms of
the energy sector are the challenges for satisfying the rising demand.
Importance of energy
Development and growth
Employment
Poverty alleviation
Industrial sector
Transportation
Infrastructure
Demand of energy- sector wise
The 2015 edition of BPs Energy Outlook projected that, by 2035, Indias energy
production will rise by 117%, while consumption grows by 128%.
The countrys energy mix evolves very slowly over the next 22 years with fossil fuels
accounting for 87% of demand in 2035, compared with a global average of 81% (down
from 92% today).
Oil remains the dominant fuel (36%) followed by gas (30%) and coal (21%).
CO2 emissions from energy consumption increase by 115%.
Electricity demand in India is increasing rapidly, and the 1193 TWh gross produced in
2013 was more than triple the 1990 output, though still represented only some 750 kWh
per capita for the year.
Problems
Fuel Security Concerns: Thermal capacity addition is plagued by the growing fuel
availability concerns faced by the Industry. Coal can become a great game changer but
CO2 emission from coal fired stations have been identified as a major
Financial Health of State Discoms: Years of populist tariff schemes, mounting AT&C
losses and operational inefficiencies have adversely affected the financial health of
State Discoms which are currently plagued with humongous out-standing debts.
Under-procurement of Power by States: Increasing power generation costs due to
limited fuel availability, poor financial health of State Discoms, high AT&C losses have
contributed in suppressed demand projections by State Discoms.
Inimical Financing Environment: Over the last 4-5 years, the leading rates have
increased significantly from the time of project appraisal resulting in project cost overrun
and hence higher end tariffs.
Policy Paralysis: The micro level policies governing the fuel cost pass-through, mega
power policy and competitive bidding guidelines are not in a harmony with the macro
framework like the Electricity Act 2003 and the National Electricity Policy.
Solution
Fuel Reforms: while formulating such reforms, various aspects like increasing the level
of coal production by both public and private sector in a time-bound manner, increased
participation of private sector in coal production and easing of regulatory framework,
clearances and approvals for allocation and development of coal blocks and gas
infrastructure need to be addressed.
Arriving at an optimal fuel mix: There is a dire need to develop both conventional and
non-conventional forms of energy, wherein, three key factors must be kept in view for
developing an energy mix:
o The pattern of energy demand seen in the country

o The availability of fuels

o Fuel production and import costs.
It would be effective to adopt coal thermal as a fundamental component of the fuel mix
for the next 20-30 years, with solar occupying 5-8 percent of the total mix.
Balanced Regulatory Interventions: Regulators need to be sensitized to the
challenges faced by the sector and policy framework needs to be crafted and enforced
to ensure a win-win situation for all the stakeholders. They must pro-actively intervene to
resolve the immediate issues ailing the power sector.
Increased Financing Facilities for Energy Sector: A robust and sustainable credit
enhancement mechanism for funding in Energy Sector needs to be put in place through
increased participation by global funding agencies like the World Bank, ADB etc. in the
entire value chain.
Public private partnership model: There is a strong need to push for wider-scale
implementation of public private partnership models. The private sector has been
playing a key role in generating power; a more supportive environment will help in
bridging the energy deficit of the country.
The energy sector is undergoing rapid transformation. While ensuring that gaining of
commercial energy reach all segment of society, its transformation and use has to become
environmentally benign and commercially sustainable.
Rural electrification
Rural electrification is the backbone of the rural economy with needs include energy for basic
lighting, communication, irrigation and so on. The impact of rural electrification can be seen on
improved farm productivity, improved health and education, improved communication and
economic development.
Major facets of rural electrification
Setting up of rural electricity infrastructure
Providing connectivity to households
Adequate supply of desired quality of power
Supply of electricity at affordable rates
Providing clean, environmentally benign and sustainable power in efficient way.
Major initiatives for rural electrification
The need for rural electrification was recognized in 1950s with the first major initiative- the
establishment of Rural Electric Corporation in 1969. Its main objective is to finance and promote
rural electrification all over the country. These are the other major initiatives took by government
towards rural electrification.
Kutir Jyoti Yojana to provide single point light to below poverty level (BPL) families in
rural India launched in 1988.
Remote Village Electrification Programme launched in 2001 by Ministry of New and
Renewable Energy (MNRE) focused on electrifying remote villages not connected to grid
through use of renewable energy sources
Accelerated Rural Electrification Programme in 2003
Rural electrification policy 2005
Rajiv Gandhi Grameen Vidyutikaran Yojana was launched in 2005. This programme
aimed at providing energy access to all by 2009 and at least one unit of electricity per
household per day by 2012 as envisaged in NEP (National Electricity policy) 2005. All
earlier programmes were merged in RGGVY
Deendayal Upadhyaya Gram Jyoti Yojana with major modifications in RGGVY.
Ujwal Discom Assurance Yojana
Unnat Jyoti UJALA

The current government has announced 24X7 Power for All by 2019. The Comprehensive
state-specific action plans for 24x7 power to all homes is being prepared in partnership with
respective states, encompassing generation, transmission and distribution. For rural
electrification to be achieved in a sustainable way, we need a massive focus on creation of
income generation activities to boost the rural economy.
Power for all
Minister of Power, Coal, New and Renewable Energy is designated to look 24/7 Power
for All campaign would achieve electrification of all villages in India (all 18,452 of them)
by the end of 2017.
Challenges
Access to reliable energy is a major developmental challenge in India. The slow pace of
electrification is because of irregular policy focus and political economy constrains at
institutional and organizational level. The remote areas of India are still in dark while India is
extending grid to around 98%of the inhabited villages. 58.5 million Household lack access to
grid electricity. The following are the main challenges in achieving Power for all.
High cost of grid extension
Low recovery due to highly subsidized tariff
Low level of tariff collection resulting in negative return
Supply rationing due to non availability of power
High operation and maintain costs
Way ahead
Rural electrification is complex and challenging; however, an integrated approach of
combining renewable with conventional grid extension approach and proactive policies
to resolve the integration and tariff issues is one of the preferred ways to move ahead.
For faster, reliable and effective rural electrification a unified model for implementation is
necessary.
There have been numerous programs in just the last decade for accelerating rural
electrification with focus on infrastructure investments, on ambitious coverage targets
and on triage of emergency measures. There is a need of paradigm shift from this to
better management, financing or creating incentives for sustainable maintenance of
infrastructure stock and on providing reliable services.
Awareness, capacity building and creating quality consciousness among the players is
also an essential part of the process.

GS Paper 3:
Critically evaluate the measures taken by the central government for rural electrification. Do
you think the project 24X7 Power for All by 2019 can be a reality?

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

Reason to shift to nuclear energy
The energy production by burning of fossil fuel and other carbonaceous matter must be
minimized for mitigating the impact of generation of CO2 and other green house gases to
global climate change.
Advantages of Nuclear energy
Most commercially attractive energy option.
Safe and reliable source of energy with minimum carbon foot print.
Steady and uninterrupted supply

High energy density and the compactness of its energy sources translates into easy
transportation of fuel
Smooth operation of large size power plant capable supplying uninterrupted electricity to
mega cities and high power industries
Its full potential can provide sustainable energy to future in a long run.
The nuclear option should be retained, precisely because it is an important carbonfree source of power that can potentially make a significant contribution to
future electricity supply
Major concerns about nuclear energy
Nuclear power is not an economically competitive choice. Moreover, unlike other energy
technologies, nuclear power requires significant government involvement because of
safety, proliferation, and waste concerns.
Higher radiation level which affects human health and result in an increase in cancer and
genetic disorder.
Higher temperature and radiation can cause adversely on agriculture, on land and on
aquatic ecosystem.
Dealing with radioactive waste.
The scope of misusing nuclear technology which may pose threat to national security.
Safety of reactors under the natural catastrophes like tsunami and earthquakes.
Challenges in Economy
Nuclear power will succeed in the long run only if it has a lower cost than competing
technologies. This is especially true as electricity markets become progressively less
subject to economic regulation in many parts of the world.
Safety challenges
This reactor safety standard should be possible to achieve in new light water reactor
plants that make use of advanced safety designs. International adherence to such a
standard is important because an accident in any country will influence public attitudes
everywhere.
Waste management
The management and disposal of high-level radioactive spent fuel from the nuclear fuel
cycle is one of the most intractable problems facing the nuclear power industry
throughout the world. No country has yet successfully implemented a system for
disposing of this waste.
Strategically balanced nuclear waste program is needed to prepare the way for a
possible major expansion of the nuclear power sector.
Non proliferation
Nuclear power should not expand unless the risk of proliferation from operation of the
commercial nuclear fuel cycle is made acceptably small.
The nuclear power can expand as envisioned in our global growth scenario with
acceptable incremental proliferation risk, provided that reasonable safe-guards are
adopted and that deployment of reprocessing and enrichment are restricted.
The international community must prevent the acquisition of weapons-usable material,
either by diversion (in the case of plutonium) or by misuse of fuel cycle facilities.
Responsible governments must control, to the extent possible, the know-how relevant to
produce and process either highly enriched uranium (enrichment technology) or
plutonium.
The International Atomic Energy Agency (IAEA) should focus overwhelmingly on its
safeguards function and should be given the authority to carry out inspections beyond
declared facilities to suspected illicit facilities.
Greater attention must be given to the proliferation risks at the front end of the fuel cycle
from enrichment technologies.

Radiation from nuclear plants

Presence of radio nuclides in the earth's crust and cosmic radiation from space
contribute to the background radiation which varies from place to place and depends on
the food and water we consume and the air we breathe.
Human and other living beings can indeed withstand such high radiation dose.
The background of radiation is monitored by the Indian Environmental Radiation
Monitoring system.
Impact of Nuclear power plant operation on environment
Nuclear reactors require water for steam generation, and for cooling. This is one of the
reasons they are situated along coastlines. The water used for cooling is later released
at a higher temperature. However, discharging heated water into marine ecosystems
sets up a thermal gradient that can throw the system off balance, and destroy the
species that survive there.
The thermal effluent discharged to water bodies cause eutrophication and hence it
destroys the aquatic life, extinction of aquatic species and fishing industries.
The thermal discharge from power plants while merging with receiving water body
creates a mixing zone, the position and size of which and temperature rise.
Since fishes are sensitive it should be ensured that the temperature in the outfall region
does not exceed their tolerance limit.
A small temperature shift has been found to enhance fish hatching. So a fish hatchery
can be established to make use of water from discharge canal and flourish aquaculture.
Fruit and vegetables are often irradiated to increase their shelf life. Food products that
contain radioactive nuclei, which are subatomic particles that emit gamma rays, can be
toxic and may cause cancer.
Conclusion
It is important for governments to adopt policies that enable the full range of significant
options available.
It will take sustained effort to accomplish the necessary technical and institutional steps
needed to make nuclear an attractive energy option.
The construction of a few reactors in the short term and a technology driven R&D
program is not sufficient.
Although R&D is a vital ingredient, a comprehensive program should address costs,
safety, proliferation, waste of the key criteria in order to create a clear and sound vision
of the energy future.
A similarly broad approach should be applied to all energy supply and end-use efficiency
technologies under consideration. A policy directed to a single solution is inadequate.

GS Paper 3:
The advantages of nuclear power plants overweigh its negative effects. Do you agree with the
statement? Discuss in light of the rising popular agitations against the new plants.

Solar energy and solar mission

Most of the developed countries are switching over to solar energy as one of the prime
renewable energy source. Solar Energy a clean renewable resource with zero emission

has got tremendous potential of energy which can be harnessed using a variety of
devices.
Solar power entails producing energy from the sun instead of oil and electricity. The suns
energy is available abundantly and freely and can be used in two ways:
Solar thermal energy: Here the solar energy is converted into solar power through
equipment. Example, solar hot water heating system, solar drying system, solar cooking
system, etc.
Solar photovoltaic energy: In this method, the solar energy is converted into electrical
energy through equipment using solar photovoltaic technology. It can be used to power
anything from a single bulb to all the street lights in the city.
Need of solar energy
India is facing an acute energy scarcity which is hampering its industrial growth and
economic progress. It is essential to tackle the energy crisis through judicious utilization
of abundant the renewable energy resources, such as Biomass Energy, Solar Energy,
Wind Energy and Geothermal Energy. Apart from augmenting the energy supply,
renewable resources will help India in mitigating climate change. Most of the power
generation is carried out by coal and mineral oil-based power plants which contribute
heavily to greenhouse gases emission.
India has a great potential to generate electricity from solar energy and the Country is on
course to emerge as a solar energy hub. The techno-commercial potential of
photovoltaics in India is enormous. It lies between the Tropic of Cancer and the Equator.
It has an average annual temperature that ranges from 25C 27.5 C. This means that
India has huge solar potential. The sunniest parts are situated in the south/east coast,
from Calcutta to Madras.
Indias government has begun to acknowledge the importance of solar energy to the
countrys economic growth.
The National Solar Mission
It is a major initiative of the Government of India and State Governments to promote
ecologically sustainable growth while addressing Indias energy security challenge. It will
also constitute a major contribution by India to the global effort to meet the challenges of
climate change.
The objective of the National Solar Mission is to establish India as a global leader in
solar energy, by creating the policy conditions for its diffusion across the country as
quickly as possible.
The immediate aim of the Mission is to focus on setting up an enabling environment for
solar technology penetration in the country both at a centralized and decentralized level.
Importance and relevance of solar energy for India
Cost: Solar is currently high on absolute costs compared to other sources of power such
as coal. The cost projections vary from 22% for every doubling of capacity to a reduction
of only 60% with global deployment increasing 16 times the current level.
Scalability: India is endowed with vast solar energy potential. Both, the technology
routes for conversion of solar radiation into heat and electricity, namely, solar thermal
and solar photovoltaics, can effectively be harnessed providing huge scalability for solar
in India.
Solar also provides the ability to generate power on a distributed basis and enables
rapid capacity addition with short lead times.
The constraint on scalability will be the availability of space, since in all current
applications, solar power is space intensive. In addition, without effective storage, solar
power is characterized by a high degree of variability. In India, this would be particularly
true in the monsoon season.

Environmental impact: Solar energy is environmentally friendly as it has zero

emissions while generating electricity or heat.
Security of source: From an energy security perspective, solar is the most secure of all
sources, since it is abundantly available. Theoretically, if captured, a small fraction of the
total incident solar energy can meet the entire country s power requirements.
Already, faced with crippling electricity shortages, price of electricity traded internally,
touched Rs 7 per unit for base loads and around Rs 8.50 per unit during peak periods.
The situation will also change, as the country moves towards imported coal to meet its
energy demand.
The price of power will have to factor in the availability of coal in international markets
and the cost of developing import infrastructure. It is also evident that as the cost of
environmental degradation is factored into the mining of coal, as it must, the price of this
raw material will increase. In the situation of energy shortages, the country is increasing
the use of diesel-based electricity, which is both expensive costs as high as Rs. 15 per
unit - and polluting. It is in this situation the solar imperative is both urgent and feasible
to enable the country to meet long-term energy needs.
India is a poor source for conventional fuel sources. It is dependent on the Gulf countries
for its oil supplies. With the oil prices skyrocketing and the reluctance of the Indian
government to hike the prices of LPG and kerosene, Indian oil companies are suffering
major losses. Even electric supply in the country is unable to meet the burgeoning
demands of the growing population and businesses.
Government initiatives and schemes
Ministry of New and Renewable Energy (MNRE), which is the nodal unit for all matters
relating to RE.
India Renewable Energy Development Agency (IREDA), is a public limited company
established in 1987 to promote, develop and extend financial assistance for RE and
energy efficiency/conservation projects.
Solar Energy Centre (SEC) is a dedicated unit of the MNRE and the government for the
development of solar energy technologies and promotion of its applications through
product development.
Indias National Action Plan on climate change (NAPCC) identifies eight critical
missions to promote climate mitigation and adaptation.
The government also offers capital subsidies to semiconductor manufacturing plants in
Special Economic Zone (SEZs) and outside SEZs through semiconductor policy
launched in 2007.
In 2009, MNRE launched Jawaharlal Nehru National Solar Mission (JNNSM) with the
ambitious goal of making India a global leader in solar energy.
National Solar Mission, which has the specific goal of increasing the usage of solar
thermal technologies in urban areas, industry, and commercial establishments, is one of
the core components of this policy.
The other targets of this mission include achieving grid parity (same production cost as
current electricity source) by 2022 and parity with coal based power generation in 2030.
Challenges Faced by Solar Energy Sector in India
The solar industry in India is still in its nascent stage and faces many challenges such as
high costs of solar power generation.
Solar projects are capital intensive, and the lack of an effective financing infrastructure
for these projects is another major factor impeding growth in this sector.
The disparity in solar potential across states.
Lack of technological innovations that improve the efficiency of current solar energy
systems are necessary to exploit the solar energy potential in India.

Another major factor restricting the growth of this sector is the lack of standards,
resulting in the fragmentation of the market among manufacturers and suppliers.
Standardization of systems will lead to rationalization of cost as companies can invest in
R&D and newer technologies to meet common specifications.
Facilitating closer industry government cooperation and increasing consumer awareness
about the benefits of solar energy are some of the other main challenges currently faced
by the industry.
Way ahead
Active growth of the Indian solar energy industry calls for immediate implementation of
the following steps. These measures will not only boost the growth of solar energy
sector, but also reduce the usage of non-renewable sources of energy and carbon
footprint.
Faster and Efficient Implementation of Renewable Energy Certificates (RECs):
RECs are interstate tradable certificates issued for every unit of renewable energy
produced.
Mechanisms such as these are essential to achieve NAPCCs goal of increasing the
mandatory RE usage for states from 5% today to approximately 15% in the next 10
years. Instead of producing RE by their own, states can purchase RECs from each other
to increase their RE content in total energy.
This mechanism will enable low RE potential states to purchase RECs from high
potential states, enabling them to meet NAPCCs increased demands.
Moreover, these purchases will incentivize high RE potential states to produce more RE
than required currently, enabling overall increase in RE production.
Carbon Trading as a Source of Revenue
Solar power generation emits lesser amount of CO2 compared to conventional sources
of energy such as coal.
Trading this reduction in the emissions trading market can be another source of income
for the Solar Energy manufacturers.
This will partially help in offsetting the high cost of solar production.
Selective Implementation of On-Grid Application
From todays technology standpoint, solar power generation works at 15-20% efficiency.
Under this scenario, large-scale on-grid applications are more feasible in areas where
there is plenty of barren land and high rate of irradiance such as Gujarat and Rajasthan.
It is very important to concentrate the efforts in these areas to realize solar potential
there before moving onto other parts where the irradiance is low or there is scarcity of
barren land.
The RE produced in these regions can be transferred to other states through RECs,
enabling uniform distribution.
Development of Off-Grid Application
More than 80, 000 villages in India suffer major electricity supply shortages throughout
the year, which provides tremendous opportunity for off-grid solar applications
deployment.
Some of the possible applications are lighting and electrification systems, solar powered
cellular towers, irrigation pumps and street lighting.
Establishment of Localized Mini-Grid.
Localized mini-grids based on Photo Voltaic (PV) cells can be set up in regions that lack
grid connectivity due to physical or financial barriers.
Electricity generated by these mini-grids can be distributed through localized low-tension
networks.

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

GS Paper 3:
What are the challenges faced by the solar energy sector in India? Discuss how a
decentralized approach can bring about penetration of energy sector.

A renewable energy future for India

The idea of electricity access in India has been centralised generation and grid-based
distribution. This idea has failed to give adequate electricity supply to two-thirds of our
people even after seven decades of independence.
Problems
Environmental and developmental crisis are interacting and reinforcing each other and
reflecting in our energy sector.
Chronic energy poverty in rural areas and two third of the population is deprived of
modern energy services.
Unscientific use of biomass such as dung, agricultural waste and firewood for primary
needs cause indoor pollution and increase the burden of disease of the womenfolk.
India is largely dependent on coal to meet its energy needs which cause heavy
environmental degradation and health issues.
The challenge before India is meeting its energy requirements without compromising the
ecology of the country.
Five trends
1. Indias dependence on imported fossil fuel is increasing at an alarming rate.
2. Reducing costs of renewable energy, especially solar and wind power.
3. Use of electricity for practically all applications.
4. Urgency of reducing greenhouse gas emissions.
5. Increasing global recognition to supply clean energy to all.
These five converging trends demands, an energy strategy that is based on electricity as
a prime mover and this electricity is generated from renewable energy resources.

Energy policy of 2006 is primarily focused on developing fossil fuel resources for
electricity and direct use of oil and gas for transport, industrial usage and cooking.
This is a high time where a new integrated energy policy that charts a roadmap for a
renewable electricity future. India needs renewable electricity future that is affordable
and accessible to all.
Future aspects
It is important to understand that a 24 X 7 renewable electricity generation is not going to
be cheap.
The renewable electricity future will be a decentralized and distributed one. The fact is
renewable energy is decentralizedsunlight falls everywhere and wind blows
everywhere.
Demand for electricity too is decentralized, and most renewable technologies are
modular. This makes renewable electricity most suitable for decentralized generation
and consumption.
In this energy future, there is no role of big DISCOMS. Instead, we will have miniDISCOMS that would meet the electricity needs of small communities in cities and
villages. These mini-DISCOMS would feed excess power to the grid and buy power from
other mini-DISCOMS when in deficit.
There will be a role for large power plants based on other non-fossil technologies, but
this role would be to supplement decentralized generation, which would also reduce over
a period of time.
Germany, the leader in renewable energy, has most of its solar PV installed on rooftops.
About 1.5 million households in Germany have installed more than 30,000 MW worth of
solar PV panels on their rooftops. They are either feeding it to the local grids or
consuming it domestically.
This is the only way we can keep the renewable electricity affordable and accessible to
all. If operationalised, this model will revolutionize the way power is produced and
consumed in India.
Millions of households would produce and consume their own electricity.
Thousands of renewable energy based mini-grids would promote millions of small
businesses and social entrepreneurs to create local jobs and build local economies.
Living standards in villages will improve which in turn will ensure women empowerment,
better health and education. There cannot be a better development agenda for the
country.

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

Shale gas in India: challenges and prospects

The unlocking of domestic shale gas reserves could help India meet its growing energy
demand, besides reducing its dependence on expensive energy imports. In addition, the
development of the domestic shale gas industry could boost the economy. However, this
emerging industry will have to be promoted by balancing economic benefits with
environmental and social issues.

The Ministry of Petroleum and Natural Gas (MoPNG) has identified six basins as
potentially shale gas bearing. These are Cambay, Assam-Arakan, Gondwana, KrishnaGodavari, Kaveri, and the Indo-Gangetic plain.
Shale gas prospects of India
According to estimates by EIA, India has 63 tcf of recoverable shale gas reserves.
Indias shale reserve estimates pale in comparison to global standards.
The Cambay, Krishna Godavari, Cauvery and the Damodar Valley are the most
prospective sedimentary basins for carrying out shale gas activities in the country.
The Cambay basin in Gujarat is the largest basin in the country. Around 20 tcf of gas
has been classified as technically recoverable reserves in the basin.
It is estimated that the Krishna Godavari basin, located in eastern India, holds the largest
shale gas reserves in the country. The basin encloses a series of organically rich shales,
containing around 27 tcf of technically recoverable gas.
The Government of India, along with Indian companies, is undertaking various initiatives
to accelerate the development of shale gas reserves in the country.
MoU have been signed between USA, and India for sharing technical knowledge in
shale-gas exploration.
Indias first shale gas well drilled and completed by ONGC, North West of Kolkata.
(depth 2000 m)
Indias Shale Gas Policy - 2013
ONGC and OIL given the right to drill for shale oil and gas in the blocks they have, but
fresh auction proposed for all other deposits.
Private sector not allowed exploiting blocks for shale oil and gas in the blocks they have.
It provides for auction based on simple production sharing between explorer and
government.
No need to treat shale gas different from conventional natural gas.
Traditional oil comes from drilling in porous and permeable rocks like sandstone and
limestone
It is possible to have thick limestone / sandstone interspersed with shale layers, all
having oil and gas.
To have 2 separate companies drill on sandstone and shale layers does not make
sense. It will lead to unnecessary litigation.
Challenges
The Indian government has not been able to implement the right kind of gas policies
even after the recommendations given by several high powered commissions.
Our exploration policy allows companies to produce only conventional oil and gas from
their exploration blocks. If they find non -conventional energy such as coal-bed
methane or shale gas they are forbidden to produce this. This is because the
petroleum ministry regards any non-conventional deposit as an unwarranted windfall for
the exploring company, and wants separate bidding for non-conventional energy.
The fiscal and pricing regime are of concern in shale gas potential in India.
There is a growing concern with evidence that shale gas emits more greenhouse gases
than conventional national gas, and may emit as much or more than oil or coal.
Land acquisition is not covered in the shale gas policy, but will be a serious issue
because of the large area required for fracking and the consequent displacement of
people.
Methane is a very powerful greenhouse gas, although it stays in the atmosphere for only
one tenth as long a period as carbon dioxide.

Dealing with Water pollution, poisoning of subsoil by chemical and the extensive
horizontal drilling may lead to earthquakes, landslides and other high-impact disasters.
The hydraulic fracturing technology used in shale gas extraction is feared to be a
powerful pollutant, capable of devastating India's water resources, thus offsetting any
social benefit from increased energy production.
Cost of field development operations.
Lack of fiscal incentives and infrastructure.
Inability to experiment with wellbores.
Lack of wellbore-specific information.
Lack of political will: Apart from this corruption, bureaucracy, political instability, and
prohibitive customs regulations all mean that operations are often significantly delayed
or cancelled altogether.
Competition from alternative sources: Companies need to face a huge market
competition from existing products and also due to the monopoly of gas rich countries.
India is largest producer of Guar gum. But due to heavy imports from US shale gas
companies, its prices have increased by ten times within a year. Hence, there is
shortage of Guar-gum, for domestic industries willing to explore shale gas, but who
cannot keep up with the prices offered by Americans.
Solutions
Indias gas demand is limited by its access to gas supplies based on domestic
production and imports availability.
If India can produce more gas, then it can reduce its coal imports which are
environmentally more unfriendly.
The basic requirement for proper gas sector development in India is that the government
should allow the market to set the prices as recommended by many gas committees.
The government needs to come out with a holistic shale gas policy. It should facilitate
seismic surveys that can quickly delineate potential shale gas deposits, and then invite
bids for exploration.
All future exploration contracts for oil should permit exploitation of shale gas as well as
conventional gas.
Addressing the environmental concerns along with adoption of best practices and
appropriate government policies could successfully ensure the sustainability of shale gas
operations in India.

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

Energy efficiency: Need of the hour

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

A joint venture of NTPC Ltd., Power Finance Corporation Ltd., Rural Electrification
Corporation Ltd. and Powergrid Corporation of India Ltd., Energy Efficiency Services
Limited (EESL) was set up under Ministry of Power to facilitate implementation of energy
efficiency projects.
EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy
efficiency market in India and potentially result in energy savings of up to 20 per cent of
current consumption, by way of innovative business and implementation models. It also
acts as the resource center for capacity building of State DISCOMs, ERCs, SDAs,
upcoming ESCOs, financial institutions, etc.
Unnat Jyoti by Affordable LEDs for All
The fundamental achievement of one of the government's first energy efficiency
programme is reflected by Unnat Jyoti by Affordable LEDs for All.
An ordinary bulb is an extremely energy inefficient form of lighting with just 5% of the
electricity input converted to light. Efficient light bulbs like Light-emitting Diode (LEDs)
consumes only one-tenth of energy used by ordinary bulb to provide the same or better
light output. However, high cost of LEDs has been a barrier in adoption of such efficient
lighting systems. The DELP on-bill financing scheme proposes to overcome this cost
barrier.
This has avoided a peak demand of about 2655 MW in India and is leading to a
reduction in carbon footprint up to an extent.
Street lighting national programme
Street lights in India were recognised as the second most potential group resulting in
significant energy savings.
This programme launched in 100 cities to convert conventional street and domestic
lights with energy efficient LED lights designated under EESL.
The main objective is to promote efficient lighting, enhance awareness on using efficient
equipment which reduce electricity bills and help preserve environment.
Under this Programme (SLNP), replacement of 3.5 crore conventional street light will
result in saving of 9,000 million units annually.
The majority of Indian street lightning infrastructure is inefficiently designed.
Inefficiencies persist in operation and maintenance. As a result energy consumption for
street is high and municipalities spend large amount on this.
EESL replaces the conventional street lights with LEDs at its own costs and consequent
reduction in energy and maintenance cost of the municipality is used to repay EESL over
a period of time.
Agriculture sector
Agriculture sector consumes 20-22% of total electricity consumption. Managing
agricultural load is increasingly becoming a challenge for electricity utility in India.
Subsidized tariff generate a perception of zero marginal cost of electricity use and
consequently, efficiency in consumption is disregarded.
Agricultural Demand-side Management (AgDSM)
In power and energy sector, Agricultural Demand-side Management (AgDSM) consists
of those activities, methodologies, awareness, policy and technologies that influence
consumer (farmers) behavior and Changes their (farmers) consumption patterns.
The objective of the AgDSM programme is to reduce peak demand, shift the time during
which electricity is consumed to off-peak hours and to reduce the total quantum of
consumption.
It aims at providing free of cost BEE Star Rated Energy Efficient Pump Sets to the
farmers along with an electrical control panel.
Benefits to DISCOMs

 Reduction in power purchase cost

Monetary benefits because of sharing of energy saving
Lower load shedding
Reduction in peak demand
Lower subsidy burden
Benefits to Farmers
Free Cost of Energy Efficient Pump Sets (EEPS)
Free Repair & Maintenance till project duration
Less pump failure
Farmer awareness workshop on AgDSM and best agricultural irrigation practice
Fan Programme (NEEFP)
National Energy Efficient Fan Program (NEEFP) was implemented by EESL for
consumers under demand side management, with the aim of benefitting the people from
all socio-economic bands.
Under NEEFP, EESL aims to replace 35 crore inefficient regular ceiling fans across
households with BEE 5 Star rated efficient ceiling fans by 2018.
With the intent to give a significant thrust to the expansion of market for efficient fan
technologies in India, EESL through its procurement of fans, has brought the price of a
fan down by 33 per cent to Rs. 955, when compared to the market price.
EESL building programme
EESLs buildings programme has successfully been completed at Niti Ayog, Shram
Shakti Bhawan, India Habitat Center, UPSC building, IP Bhawan along with others.
Currently, work is being carried out in more than 18 buildings to make them more energy
efficient. It was observed that on an average, EESL has successfully received energy
savings of about 19% on bills with its completed buildings projects.
GS Paper 3:
Efficiency can play an equally important role as the availability of energy. Critically evaluate the
statement.