India Energy Security

India’s energy security
new opportunities for a

sustainable future
India’s energy security: new opportunities for a
sustainable future
The Energy and Resources Institute (TERI)

June 2009, New Delhi
© The Energy and Resources Institute, 2010
All rights reserved. No part of this publication may be reproduced in any form
or by any means without the prior permission of The Energy and Resources
Institute.
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India’s energy security: new opportunities for a sustainable future
Key recommendations
PP Move from being largely a fossil-fuel-driven energy economy,
to one that is powered by energy from clean and renewable
energy forms.
PP Rapidly move to a high efficiency energy path, with relatively low
gestation period but high returns, by designing the appropriate
regulatory and incentive structures.
PP Make solar energy the mainstay for satisfying national energy
needs—both as a large-scale generator as well as a small-scale
distributed provider of energy.
PP Invest liberally in developing a bio-based economy in rural
areas, supplemented with other locally available energy forms
as appropriate (wind, solar, and small hydro).
PP Rapidly, but optimally, deplete own coal resources so as to buy
time for effective switchover to an alternate energy economy
and avoid the risk of future stranded assets, while limiting the
dependence on coal imports to a bare minimum.
PP Aggressively pursue the development of nuclear energy while
providing the essential emphasis on safety and addressing
public perception issues.
PP Develop a long-term integrated mobility and freight movement
strategy that is aligned with the overall objective of driving
India’s energy economy through clean energy forms.
PP Move to a completely market-driven pricing mechanism for all
energy forms under the regulatory oversight of, preferably a
single, energy regulatory commission.
PP Roll all energy subsidies (LPG, kerosene, electricity, and so
on), differentiated by select income classes, into a single energy
subsidy delivered directly to the beneficiary through a system
of biometric cards.
PP Create a pool of technically qualified human resources to serve
the domestic and international clean energy markets.
PP Position India as a leader in clean energy policies, technologies,
manufacturing, and services.
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India’s energy security: new opportunities

for a sustainable future
India is suffering ‘We are energy secure when we can supply lifeline energy to all our citizens
irrespective of their ability to pay for it, as well as meet their effective demand for
from huge estimated safe and convenient energy to satisfy their various needs at competitive prices, at all
shortages of nearly times and with a prescribed confidence level considering shocks and disruptions that
10% in energy can be reasonably expected.’
–Integrated Energy Policy (2006)
terms and almost
17% in terms of
Background
peak demand The energy scenario in India poses increasing challenges for its future
energy policy. With an installed generating capacity of less than 150000 MW
(megawatt) and a per capita consumption of a mere 650 units of electricity per
annum, India is suffering from huge estimated shortages of nearly 10% in energy
Less than 30% of terms and almost 17% in terms of peak demand (2007/08). Energy and peak
shortages in 2003/04 were 7.1% and 11.2%, respectively. These shortages in the
India’s population system are increasing rapidly because of increasing demand and our inability to
is able to use LPG have met more than 40%–50% of the targeted capacity addition required in the
for meeting its last three Five-year Plan periods. This is the situation when over 50% of India’s
rural population does not even have access to electricity.
energy needs for
The country has also had limited success in establishing new oil reserves. While
cooking it has had considerably higher success in establishing natural gas finds, the lack
of adequate delivery infrastructure has significantly limited the expansion of, and
spread of benefits from, this source. Accordingly, gas consumption has increased
at a meagre growth rate of 2% per annum, from 1999/2000 to 2006/07, while
India’s coal India’s oil import dependence has increased to over 75% in 2006/07. In addition,
resources have less than 30% of India’s population is able to use liquefied petroleum gas (LPG)
been downgraded for meeting its cooking energy needs, with over 50% still dependent on firewood,
chips, animal dung, and agricultural residues.
to provide secure
Till recently estimated to last for another 200 years, at the current reserves-to
access for just about -production ratio, the government has downgraded its estimation of the useful
40 years life of India’s coal resources to provide secure access to just about 40 years
or so—with a peak production level of about 700 million tonnes per annum
(MTPA). This sector has been plagued by inadequate investments in resource
development, inefficiencies in production, and inadequate resource allocation for
technology development. It has also proven to be one of the most difficult sectors
Climate change to open up for private participation and resultant induction of more modern and
considerations efficient mining technologies.
In recent years, several innovative measures have been tried to overcome the
are putting the major bottlenecks being faced by the energy sector, albeit with limited success.
country under more The New Exploration Licensing Policy (NELP) rounds for oil exploration and
immediate and development, invitations to the private sector to participate in power sector
development, efforts to pry open the coal industry and move it along more market-
intense pressure to
driven lines, and partnership-based rural electrification programmes have all met
reduce dependence with lower than expected results. On the other hand, climate change considerations
on coal are putting the country under more immediate and intense pressure to reduce
dependence on coal or move to clean coal technologies, to use more renewable
energy forms (again, higher cost of energy provision), and to adopt more efficient
transport options (huge public investments needed). All of these measures would
make the task of providing universal access to clean and convenient energy much
5
more challenging for the government. Reconciling the energy pathway to be

followed for sustainable development with what might be needed for mitigating
climate change will require extreme innovation, both in technology use and in
policies, and international partnerships at unprecedented scales. Given the long
lifetimes of energy
What does the future hold? infrastructure, it is
India hopes to achieve a high rate of growth over the next several decades,
notwithstanding the recent global financial crisis. Energy availability—in adequate extremely important
quantity and good quality—would be a pre-requisite to sustain targeted levels that investments
of economic growth and the desired levels and spread of social development. made today serve us
However, the quantum of energy demand would obviously be a function of the
their full life
energy pathways that India can choose to adopt or design to follow. Using the
MARKAL (MARKet ALlocation) model1, an analysis has been undertaken of
four alternative energy development pathways that could lead to significantly
different outcomes in terms of the fuel mix, technologies deployed and, therefore,
total conventional energy demand. Also presented and discussed are policies and
measures that would need to be implemented to ensure realization of each of
these scenarios. Given the long lifetimes of energy infrastructure, it is extremely
important that investments made today serve us their full life and, therefore, such
investments must be aligned with the long-term choices that India may need
to make. All four scenarios present results up to 2031/32 (end of the Fifteenth
Five-year Plan) and uniformly assume an average annual economic growth rate
of about 8% over this period, a consistent population growth and affluence level,
and the same socio-economic structure. The model itself has been configured to
2036/37, recognizing the long gestation time for setting up of energy projects. Since any modelling
With economic growth, access to modern fuels and technology choices is exercise would have
assumed to increase as sections of society progress along the economic ladder. its limitations, the
The pace of implementation of already announced government policies and
programmes has been adjusted so as to capture more realistic trends in the short results have been
to medium term. For example, while the progress with regard to electrification interpreted keeping
has been slow in comparison to the targets for providing universal access to these in mind
electricity by 2012, it is assumed that all households would have electricity by
2017, at least. Moreover, households are assumed to make a transition towards
cleaner cooking fuels such as LPG with a rise in incomes.
A summary description of the four scenarios is provided in Table 1.
Reading through the numbers: results of scenario analysis

Figures 1, 2, 3, and 4 give a summary of the energy demands and mix across the
four scenarios in 2031/32, including the extent of avoided energy demand that
can be achieved primarily through good governance.
Since any modelling exercise would have its limitations, the results have been
interpreted keeping these in mind as well as the assumptions and boundary
conditions defined. A detailed analysis of the nearly 75000 variables specified in
the model leads to the following macro messages.
PP It is the directional path of the Global Equity Scenario (GES) that is the most
attractive path for India to follow, given the need for balancing the multiple
considerations of (i) minimizing energy imports, (ii) optimizing use of India’s
substantial renewable energy resources cost effectively, and (iii) the need for
efficient use of capital.
This exercise further builds on the database that was set up for the study on ‘National Energy Map
1
for India: Technology Vision 2030’, which is supported by the Office of the Principal Scientific
Adviser, Government of India. See Annex 1 for a more detailed description of the MARKAL model.
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Table 1 Description of future energy economy scenarios

Scenario names Storyline
Reference Energy Scenario Life continues pretty much as we know it, with autonomous efficiency improvements
taking place where feasible, increase in use of renewable energy carrying on at the
same pace, and defined policy priorities being implemented with no real sense of
urgency.
Sustainable Energy Scenario A determined effort is provided here for efficiency improvements both on the
supply and demand sides; an accelerated push for renewable energy, nuclear and
new technologies such as coal-to-liquids (CTL) and gas-to-liquids (GTL). Energy
security concerns are paramount in this scenario.
Global Equity Scenario This scenario honours the Prime Minister of India’s commitment that India’s per
capita carbon emissions would never exceed those of the developed world and it is
optimistically assumed here that the developed world would be able to bring down
its emissions to a level of 2 tonnes/capita.2 In this case, carbon emissions for India
would be around 38% of reference levels in 2031 to fulfil this commitment.
Stringent Mitigation Scenario This scenario considers that India sets aside its legitimate arguments on ‘common
but differentiated responsibilities’ and equitable per capita rights, and takes on
even more stringent emission reduction targets (reaching 1.24 tonnes/capita in
2031)3 towards influencing global response to the challenge of climate change.
Figure 1 Commercial energy consumption

Figure 2 Distribution of primary commercial energy supply in 2031
Figure 3 Fossil import dependency across scenarios

Figure 4 Power generation capacity mix in 2031 (GW)
2
Based on Intergovernmental Panel on Climate Change (IPCC) projections in AR4; with 80%
reduction of 2000 levels in 2030, Organisation for Economic Co-Operation and Development
(OECD) CO2 emissions from energy would be ~2 tonnes/capita.
3
Assuming 60% reduction of 2005 Non Annex I energy-related per capita CO2 emissions by 2030.
7
PP In this path, it is possible for India to drastically reduce its non-coking coal
It is possible for
import needs (from a high of 1300 MT in the Reference Energy Scenario
(RES) to a peak of 200 MT), while reducing its crude oil import level from India to drastically
660 MT to 260 MT— a little higher than today’s import levels! reduce its non-
PP The key transformations that define the GES scenario with respect to electricity coking coal import
are as follows.
• Substitution of fossil-fuel-based thermal energy with renewable-energy- needs while reducing
based electrical energy to the extent technologically possible across all its crude oil import
sectors of the economy, not including renewable-energy-based thermal level from 660 MT
energy demand (for example, moving to solar-charged-battery-driven
to 260 MT
vehicles instead of petroleum-based vehicles).
• Generation of this electricity from renewable energy sources (solar thermal
[255000 MW] and solar PV [32000 MW] by 2031/32). Wind and hydro
energy resources must be exploited to their potential using the most efficient Freezing coal-based
technologies. capacity additions
• Freezing coal-based capacity additions to currently committed levels, and
to currently
thereafter phasing out obsolete plants to end up with a coal thermal capacity
of ~150000 MW in 2031/32. committed levels
• Move to decentralized electricity generation on a large scale for rural is one of the key
electrification. transformations
• Maximize production from nuclear energy, which presently, due to physical
constraints, has been limited to a capacity of 63000 MW by 2031/32.
that define the
PP The key transformations that define the GES scenario with respect to the oil GES scenario with
sector are as follows. respect to electricity
• Containing the demand for petroleum products in the transportation sector
through significantly enhanced capacities in the railways, mass transit, and
public transport systems. Substituting petrol-
• Substituting petrol- and diesel-driven vehicles with hybrid and
and diesel-driven
battery-operated vehicles.
• Maximizing the substitution of petro-fuels with biofuels. vehicles with
PP The key transformations that define the GES scenario with respect to the coal hybrid and battery-
sector are as follows.4 operated vehicles
• Accelerating utilization of India’s domestic coal resources.
• Rejection of additional thermal power generation capacity based on
is one of the key
imported coal. transformations
PP To realize such long-term gains, India would need to make some hard choices, that define the
particularly in opting for high capital investment routes in the renewable GES scenario with
energy sector, transport sector, and other high energy-use intensive sectors.
Additionally, by virtue of their infrastructure quality, such capital formation respect to the oil
may require larger participation by the government in the form of budgetary sector
support! On the flip side, potentially infructuous investments in setting up
huge energy import and related transport infrastructure could be avoided, and
the threat of stranded coal-based power generation facilities due to climate Potentially
change considerations averted! infructuous
PP While some technological choices provided in the GES scenario may not be investments in
techno-economically viable today, a focused research and development (R&D)
effort combined with the requisite market creation support can have the desired setting up huge
results. The major focus here should be on renewable energy technologies, for energy import and
example, solar, wind, and biomass resources. related transport
infrastructure could
4
Coal or gas-derived liquids are not an attractive long-term strategy for the country. be avoided
8
PP Significant short-term gains (nearly 30%) are possible by increasing energy

Significant short-
efficiencies along the, entire value chain. Such efficiencies are technically
term gains (nearly attractive even today but would require strong policy and regulatory
30%) are possible interventions, including a rational approach to pricing. India’s short-term oil
by increasing energy and gas import dependency can also be contained through such measures.
PP What India would do in the short term (Twelfth or Thirteenth Five-year Plan
efficiencies along the period) would pave the way for realizing its long-term opportunities. The
entire value chain short-term period should be used for creating a comfort level with emerging
technologies (manufacturing and market creation experience at appropriate
scales, human resources, regulatory frameworks, and so on); for investing in
identified research, development, and demonstration (R,D&D) needs, and
creating a conducive environment for transformational changes (awareness
generation, education, and appropriate policies/regulations for bringing about
The government
behavioural changes).
must put in place an
aggressive, multi- Moving along the desirable pathway: need for focused
pronged energy interventions and clearly articulated policy initiatives
efficiency initiative It is obvious from the above analysis that in the short-to-medium term, it is
that would require energy efficiency and optimal infrastructure choices (for transport and energy-
efficient, buildings in particular) that would need to play a key role in meeting
policies/regulations
India’s energy demands effectively with minimum dependence on imports. By
to urgently work following a path of energy efficiency, India could reduce its electricity shortages
in concert with as well as drastically bring down its need for non-coking coal import. Of course,
financial institutions, this implies that the government must put in place an aggressive, multi-pronged
energy efficiency initiative that would require policies/regulations to urgently
manufacturers, and work in concert with financial institutions, manufacturers, and consumers at all
consumers levels (centre, state, and local).
This drive for energy efficiency needs to be combined with a conscious drive
towards renewable energy (solar, wind, and biomass in particular) for providing
the country more secure and clean long-term energy options. As recognized by
the Government of India, hydropower – both at the national and regional levels
An aggressive – should also be exploited to the maximum. So, how do we bring about this
programme for solar momentum to shift India’s energy pathway along desired directions?
power generating
capacity is essential Focussed interventions
for giving the India’s National Solar Mission
India has already recognized the potential of solar technologies under the
boost that domestic National Action Plan on Climate Change (NAPCC) as well as for enhancing
manufacturing its energy security. However, a modest target of adding 20000 MW of capacity
capacity would by 2020 may not serve India’s needs. A very aggressive programme for solar
power generating capacity is essential for (i) giving the boost that domestic
need, the economies
manufacturing capacity would need, (ii) the economies of scale to kick in, and
of scale to kick in, (iii) providing the policy commitment that is so essential to build confidence
and provide the among industry and consumers and to exploit global market opportunities. It is
policy commitment also essential that the government plays its role in creating this market for solar
energy, both in terms of direct investments, as also by providing the right policy
that is so essential environment, as was done in the case of wind energy.
to build confidence So, at what levels should India target its solar programme? The cost of solar
among industry and photovoltaic (PV) energy is still significantly higher than that of electricity
consumers generated by solar thermal technologies. At Rs 18–20 per unit, solar PV energy
can more easily compete with diesel-based electricity generation in the country.
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Similarly, with the traded price of electricity touching nearly Rs 10 per unit under
At Rs 18–20 per
a deregulated scenario, solar thermal electricity (with storage), at Rs 8–10 per
unit, becomes quite attractive. Large-scale implementation of such a programme unit, solar PV
could accelerate commercialization of newer technologies, and also bring down energy can easily
costs by another 25%–50%. compete with diesel-
There are three distinct market segments that can make a shift to decentralized
distributed generation (DDG) by using solar PV. based electricity
generation in the
Households using kerosene for lighting country
About 67.5 million rural households and 3.7 million urban households in
India rely on kerosene as fuel for lighting. On an average, a household that uses
kerosene as fuel burns about 2–3 litres of it per month. A solar lantern is a cleaner
and brighter alternative to kerosene-based lighting, and all rural as well as peri-
urban households could immediately make a shift to solar lanterns. In terms of
an immediate market, even if 70% of the households switch to solar lanterns, this
would translate into about 50 million solar lanterns.
A solar lantern using state-of-the-art light emitting diodes (giving illumination
equivalent to 5–7 W [watt] compact-fluorescent-lamp-based solar lantern)
requires, on an average, 3 Wp (watt-peak) of solar PV panel. Fifty million solar
lanterns would, therefore, lead to a market of 150 MWp (megawatt-peak) of
solar PV modules.
Lighting a Billion Lives

Lighting a Billion Lives (LaBL), TERI’s global campaign, aims at providing solar lanterns as clean and
reliable lighting sources to rural households. The success of LaBL also comes from its empowerment of
communities, particularly women and children, through access to education, health facilities, and livelihoods.
LaBL operates on a fee-for-service model wherein solar charging stations are set up in villages for
charging the lanterns, which are then rented out as needed. Based on the experience of implementing LaBL
in eight states across the country, the total cost for setting up one charging station, inclusive of all of the
above components, is estimated at ~Rs 200 000. The operations and maintenance of the charging station,
managed by local entrepreneurs who are selected and trained by TERI in association with its grassroots
level partners, is self-sustaining (once it is set up) with a rental rate of Rs 3 per day.
Unelectrified/inadequately electrified rural communities/villages

towards ‘Power for all by 2012’
As on February 2009, of the total 593,732 villages in the country, 104,806 were
yet to be electrified (Ministry of Power 2009). Even those that are electrified do If 50% of the
not get reliable supply of electricity. A solar PV-based DDG power plant in these unelectrified villages
villages, either in-grid connected or in off-grid mode (with an option for grid were to have a
connectivity in future), will ensure the reliable supply of electricity for basic and
DDG power plant
critical applications. For instance, a DDG power plant of 50 kWp (kilowatt-peak)
capacity (on an average) can be set up to provide electricity supply for domestic, of 50 kWp average
community (health care centre, water pumping and purification station, and per village, a
street lights), as well as some livelihood activities (such as handicrafts, shops, and demand of about
grinding and polishing machines). If 50% of the unelectrified villages were to
have a DDG power plant of 50 kWp on an average per village, a demand of about 2600 MWp PV
2600 MWp PV would be generated. would be generated
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Decentralized energy supply for the industry, commercial, and

According to TERI
household sectors in urban areas
estimates, about An important untapped market opportunity pertains to the urban pockets that
7000 MWp of solar depend on diesel gensets for captive and backup consumption. Rooftop solar PV
rooftop potential installations (mainly in-grid connected mode) on residential and institutional
roofs can substantially add to the generation mix of the state, while at the same
can be developed time reducing the dependence on diesel-based captive and backup generation
in residential areas units installed in most urban buildings. According to TERI estimates, at an
alone average of 2–5 kWp per roof, about 7000 MWp of solar rooftop potential can
be developed in residential areas alone. About 1075 MWp can additionally be
put up on institutional/commercial buildings by 2012, as per the estimates of the
Indian Semiconductor Association.
In total
With the right kinds of financial and fiscal incentives, supported by a conducive
regulatory framework, an additional 10000 MWp market could be economically
created for solar PV by 2012, if not earlier. The PV manufacturing capacity in
Using a mere 0.5% the country has already reached 700 MW, and an aggressive programme of this
nature could give it the fillip to create not only a domestic market but also access
of the wasteland to the international market.
of four districts of While several of the above examples have focused on solar PV technology for
the solar rich states providing access to currently deprived populations or for replacing diesel, the
of Rajasthan and solar thermal technology (with storage) in a grid-connected mode, even at a price
of ~Rs 8 per unit, can effectively contribute to reducing the large energy shortages
Gujarat, it was that the country is facing. Using a mere 0.5% of the wasteland of four districts
possible to create of solar-rich states of Rajasthan and Gujarat (Jaisalmer, Jodhpur, Barmer, and
a potential to Kutch), it was possible to create a potential to install about 2000 MW capacity of
concentrating solar thermal power.
install about 2000
The economies of scale achievable with this aggressive short-term programme
MW capacity of supported by projected medium-term targets for 2020 that could be placed at,
concentrating solar say, 10% of required electricity generation in that year would ensure that this
thermal power industry, like the wind industry, reaches the ‘take-off ’ stage. The Solar Mission
must, therefore, target an installed solar PV capacity of at least 10000 MW and
a concentrated solar power capacity of at least 2000 MW by 2012—and this is a
conservative target. The target for 2020 should be set at a more ambitious level
of at least 40000 MW.
A programme of this scale would require a coordinated approach across several
ministries of the Government of India, the promotion of a range of technological
The Solar Mission Case study: Australia’s solar initiatives

The Australian government set a target to achieve a 20% share of renewable energy in Australia’s electricity
must target for 2020
mix by 2020. The government is increasing the legislated target under the Renewable Energy Target
and should set a Scheme more than four times, from 9500 gigawatt-hours to 45000 gigawatt-hours in 2020. The scheme’s
more ambitious current rules allow owners of small-scale solar PV systems, small wind turbines, and micro-hydro systems
level of at least to create at the time of installation, renewable energy certificates (RECs) equivalent to the output of up to 15
years operation, depending on the system type.
40000 MW On 19 May 2009, the Australian Prime Minister announced an intent to set up the world’s largest solar
thermal plant with an output capacity of a 1000 megawatt and at a cost of a little over $1 billion.
Sources <http://www.climatechange.gov.au/renewabletarget/publications/pubs/fs-ret-solar-credits.pdf>
<http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE54G0C820090517>
11
options across several applications, and a careful and dynamic design of

financial packages that would create the requisite markets (including accessing It is proposed that
international carbon funds), and the involvement of industry. It is, therefore, the government
essential that this Mission is high powered and has at its head an independent, devise a mechanism
eminent personality with the requisite vision.
for diverting the
The economics of using solar lanterns for lighting purposes has been recognized
by the Government of India. Even in the case of rural energization, the costs to equivalent of at
the exchequer of going the solar route would definitely be more attractive than least 70% of the
the current focus on extending the grid — especially if the reliability of energy subsidies and
supply was to be factored in and the subsidies (both direct and cross-subsidies)
that the government or other consumers are bearing were to be capitalized. under-recoveries on
Consequent environmental benefits would add to the economic attractiveness of account of kerosene,
this programme through both avoided natural resource degradation and avoided and at least 50% of
indoor-air-pollution-related health costs. Given the fact that the electricity
the RGGVY budget
trading market is revealing prices of Rs 8–10 per unit of electricity, solar thermal
power plants (with storage) would be attractive even today. to support the solar
However, recognizing the entry barriers to new technologies, and the fact that market development
the kerosene subsidies are in any case not reaching the targeted populations, it is in the country
proposed that the government devise a mechanism for diverting the equivalent
of at least 70% of the subsidies and under-recoveries on account of kerosene,
and at least 50% of the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
budget to support the solar market development in the country. Over a period of
the next three years (rest of the Eleventh Five-year Plan), this could amount to a
huge budgetary set aside of about Rs 70000 crore, which could be added on to
the existing solar subsidies of the Government of India, and would amount to an The challenge of
incremental subsidy of nearly Rs 6 crore/MW! Not only would such an approach promoting energy
give a fillip to the solar manufacturing capacity in the country, but it would also
efficiency in India
ensure a steady flow of energy services to the beneficiaries. The scale economies
thus generated would also work towards bringing down the subsidy burden in lies not so much
future years. in the availability
of technology, as it
Mission on Energy Efficiency does with a distorted
One of the eight missions defined in the NAPCC recognizes the importance of
energy efficiency. The challenge of promoting energy efficiency in India lies not pricing system
so much in the availability of technology, as it does with a distorted pricing system
that leads to perverse incentives to either promote wasteful energy consumption
or to resort to theft! The issue of high initial costs does exist, primarily due to
the existence of a large and unregulated market for non-standardized products,
but is relatively simpler to design a solution for. The experience with energy
efficiency in any sector of the economy — be it agriculture, the residential sector,
industry (including small and medium enterprises [SMEs]) or the commercial
sector – points towards the need for correcting the pricing of either the fuels to
reflect their true scarcity value or the prices of appliances/equipment through
appropriate fiscal interventions.
Residential sector The residential sector, at 25% of final electricity consumption,
is the second largest contributor to demand and possibly the largest contributor to
peak demands in the system. Lighting accounts for 35% and space conditioning
for 30% of the total electricity consumed in the sector. Approximately 13% of
the electricity is consumed by refrigerators and 8% in water heating. Trends
in consumption patterns reveal that electricity consumption is increasing at a
rate of approximately 10% in this sector. The lighting, space conditioning, and
water heating demands coincide substantially with peak load periods, and the
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introduction of well-designed time-of-day pricing can, affect savings of nearly

A recommendation 30%. With the exception of lifeline consumers, all other consumers must be
on the minimum charged a peak tariff that is at least a factor of two or three higher than the off-
differential must peak tariff, and a recommendation on the minimum differential must be stipulated
in the National Electricity Policy. The Mission on Energy Efficiency must also
be stipulated in the
work with state regulatory commissions to encourage them to increase such a
National Electricity differential if their local contexts demand so.
Policy Industrial sector Industry accounts for about 50% of the total commercial
energy consumption in the country. The energy-intensive industries fall in
both the large industry segment (for example, iron and steel, cement, fertilizer,
pulp and paper, textiles, and aluminium) as well as in the medium, small and
micro-enterprises (MSMEs) segment (for example, foundries, forging, glass,
ceramics, brassware, brick making, refractories, rice mills, and a highly dispersed
food–processing sector). Many units in the industrial sectors like iron and
steel, chemicals, pulp and paper, aluminium, and textiles also fall under the
broad category of the MSME sector. This large sector is already experiencing
a transformation towards high energy efficiency levels largely due to the cost
implications of the existing tariff structures as also the pressures of competition.
TERI’s experience However, it is the MSME sector that requires a push in terms of ensuring that
of working in energy-efficient technologies get adopted in the sector on a large scale.
The low end-use efficiencies in MSMEs can be attributed to several barriers,
the small-scale (i) use of obsolete technologies, (ii) non-availability of readymade technological
industrial sector solutions, (iii) low level of awareness/information availability, (iv) non-availability
during the last 10 of technology providers at local/cluster level, and (v) relatively high cost of
technologies and poor access to finance. Given the diversity of the MSME
years shows that it
sector, the promotion of technology upgradation in this sector necessitates
is possible to reduce the development of sector-specific integrated programmes for technology
energy consumption development. TERI’s experience of working in the small-scale industrial sector
by up to 30%–35% during the last 10 years shows that it is possible to reduce energy consumption
by up to 30%–35%, if sustained and concerted efforts are put in RDD&D for
developing cluster/sector-specific technologies. For example, in case of the
Firozabad glass industry cluster, TERI has developed and demonstrated an
energy-efficient glass melting furnace in the cluster, and already nearly 50% of
the units in this cluster have switched over to this energy-efficient design, thus
saving close to 10000 toe (tonne of oil equivalent) of natural gas annually.
Specific cluster programmes for MSMEs that are aimed towards technology
upgradation and improvement of energy efficiency must be launched. These
A public–private can be done quickly for nearly 150 manufacturing clusters that are energy
partnership model intensive. The interventions in different energy-intensive MSME subsectors
comprising industry, would require undertaking detailed diagnostic studies, focusing on technology
and needs assessment, designing, developing, and demonstrating energy-efficient
academia/R&D technologies to suit local conditions, providing advisory support to small units
institutions, for disseminating these technologies and building local capacities so that the new,
service providers, energy-efficient technology options may be adopted by a relatively large number
of units in the clusters. A public–private partnership (PPP) model comprising
and government
industry, academia/R&D institutions, service providers, and government is
is required for required for each cluster for developing and implementing programmes.
each cluster for One of the key tasks of the Mission on Energy Efficiency should be to
developing and strengthen the Bureau of Energy Efficiency’s (BEE) initiative on SMEs through
the establishment of such goal-oriented partnerships with adequate funding and
implementing performance targets over a sufficiently long-term period. Identifying energy-
programmes
13
efficiency goals for each cluster, this programme should first carry out competitive
Financial incentives
bids for demonstrating efficiency improvement interventions (including any
technology development/adaptation costs) with appropriate weightage being in the form of
provided to more ambitious and early-impact programmes. Involving the key reductions in sales
stakeholders of such a consortium in facilitating the widespread dissemination tax, abolishment of
of successful interventions would be a useful ‘carrot’ to increase the success
rate of such a programme. Such demonstration projects should also be required octroi on energy-
to address the key institutional and capacity barriers that might exist to rapid efficient products,
implementation of efficiency improvements. and reduction in
Agricultural sector The initial high cost of energy-efficient motors, poor
customs and excise
pricing regimes, and lack of knowledge about the long-term gains are the major
factors responsible for sub-optimum efficiencies. Motors used by the farmers are duty on imported
generally of poor quality and efficiency. Energy-efficient motors account for a energy-efficient
very small percentage of motor sales in India. The cost of energy-efficient motors equipment must be
is ~20%–30% higher than standard motors in India. Higher prices of these and
subsidies on power consumed lead to low demand, creating a vicious cycle and
provided
making it difficult for prices to reflect economies of scale. Financial incentives
in the form of reductions in sales tax, abolishment of octroi on energy-efficient
products, and reduction in customs and excise duty on imported energy-efficient
equipment must be provided. Retrofitting of even 10% of the existing inefficient
pump sets (~15.35 million as of March 2007) annually, would translate into a
The National
savings of ~4 billion kWh (kilowatt-hour) per year at the user’s end and ~900
MW of equivalent generation capacity. The Mission on Energy Efficiency must Mission on Energy
intervene with relevant stakeholders to achieve the desired outcome. The avoided Efficiency must
capacity requirements would amount to an avoided infructuous investment set quantitative
of over Rs 4000 crore annually. Setting aside this amount for such a retrofit
programme could almost fully cover its cost. goals for bringing
The National Mission on Energy Efficiency must set quantitative goals for about efficiency
bringing about efficiency improvements. Such goals must be bold enough improvements
to specify an energy intensity goal for the economy as a whole and must be
supported by well-defined sector and subsector goals and requisite budgets as
illustrated above. As a reasonable illustration, India could aspire to bring down
its overall energy intensity of the economy by about 30% of 2001/02 levels by
2021/22, which would still translate into a higher total energy consumption but a
rate of growth of energy demand that could be significantly lower. This reduction This Mission must
in demand can be achieved by setting efficiency targets for specific sectors, work through a
such as:
PP Reducing technical losses on the transmission and distribution (T&D) network system of task
from the current 16%–19% to a level of 8%–12%. forces comprising
PP Achieving an energy saving of around 20% by 2020 in the industry sector. experts from
PP improving the average efficiency of vehicles by 15%.
relevant sectors,
PP Maintaining the share of public transport in total motorized, road-based
passenger movement at 70%. representatives of
PP Accelerating the efficiency performance of the stock of household appliances relevant ministries
as follows: (at least at the joint
• Refrigerators By 7% over the autonomous efficiency improvements assumed
in the business as usual (BAU) secretary level),
• Air conditioners By about 25% over the efficiency improvement in the BAU. and representatives
from industry
This Mission must have a high powered governance structure, along the lines
and financial
of the Telecom Commission chaired in the past by Mr Sam Pitroda, and must
work through a system of task forces comprising experts from relevant sectors, institutions
14
representatives of relevant ministries (at least at the joint secretary level), and
representatives from industry and financial institutions. The chairman of this
Mission must report to the Prime Minister of India.
Energy efficiency Green Buildings Initiative

With a consistent 8% rise in annual energy consumption in the residential
measures can
and commercial sectors, the building energy consumption in India has seen
help achieve 30% significant growth from a low 14% in the 1970s to nearly 33%5 in 2004/05. As
energy savings in per TERI estimates, there is an annual increased demand of about 5.4 billion
new residential units of electricity for meeting end-use energy requirement for residential and
commercial buildings. This would translate into a base load capacity addition
buildings and 40% requirement of nearly 5500 MW on a Five-year Plan basis—nearly 20% of the
energy savings in capacity addition that India has been achieving in each of the last few Five-year
new commercial Plan periods. Energy efficiency measures can help achieve 30% energy savings in
new residential buildings and 40% energy savings in new commercial buildings.
buildings
Energy saving potential in existing buildings is about 20%, and can be achieved
through application of suitable retrofit measures.
The Government of India has already put in place building energy efficiency
codes and has adopted GRIHA (a five star rating system, with one star being
the lowest) as a national ‘green’ building rating system—the use of which should
greatly enhance the energy efficiency of commercial buildings. The incentive
system being designed by the government for encouraging the move from a no
star to a five star rating must be generous–addition of a star results in energy
Investments in
demand reductions from the grid, incrementally reducing, on an average, by 10%.
green buildings The difference in energy consumption between a no star and a five star rated
have a payback commercial building could be as high as 50%! In the case of residential buildings,
period of 3-5 years a building compliant with the energy conservation building code (ECBC) would
have on average a 30% lower demand than the norm. Investments in green
but several barriers buildings have a payback period of 3-5 years but several barriers exist. Apart from
exist issues of awareness and confidence in the concept, the biggest barrier to making
new buildings that are energy efficient and green is the issue of ‘split incentives’—
it is the developer of a project who would need to incur higher investments, while
the beneficiary would be the ultimate owner. As such, any programme targeting
energy efficiency in buildings would need a barrier removal incentive.
The reductions in energy demand resulting from such programmes would (i)
reduce the demand for diesel in captive generating sets, and (ii) bring down
If ‘sustainability the need for state utilities to purchase power through short-term transactions,
incentives’ were thereby reducing the demand for subsidies from the state governments. In
offered to a TERI’s calculation, this avoided subsidy alone could translate to an equivalent of
nearly Rs 400/m2 for residential buildings (~70% of the incremental investments
developer, he would needed) and Rs 500/m2 for a three-star commercial building (Rs 800/m2 for a five-
be sure to recover star building). If these amounts are reimbursed to the developer on production
nearly 70% of his of appropriate certificates from accredited organizations as a ‘sustainability
incremental cost for incentive’, the developer would be sure to recover nearly 70% of his incremental
cost for residential buildings and nearly 30% for commercial buildings. An outlay
residential buildings of an average of Rs 1800–2000 crore per annum should achieve the desired result
and nearly 30% with a major part of this being offset in the form of avoided electricity subsidies.
for commercial India’s existing building stock also needs energy efficiency upgrades. Retrofit
programmes in existing buildings through energy service companies have generally
buildings
5
Ministry of Statistics and Programme Implementation, Government of India, 2006.
15
not been successful primarily due to lack of an appropriate financial model. The
The magnitude of
minimum structural interventions that can be undertaken on existing buildings
would be better insulation, energy-efficient windows, and roof protection. The the current and
government must encourage loans for such interventions with either a subsidized future potential
interest cost or in the form of recognition as an expense for income tax purposes. for energy demand
The Mission on Sustainable Urban Habitats under the NAPCC covers the
issue of green buildings. However, the magnitude of the current and future reductions through
potential for energy demand reductions through proper designing of buildings proper designing of
is such that it warrants independent treatment. The lack of regulatory pressure buildings is such
on energy performance of buildings, combined with a lack of awareness/skills in
that it warrants
the architectural and building professions, further compounds the challenges of
developing green buildings. independent
treatment
Accelerated Hydropower Development
India has a large hydropower capacity that has till date been exploited to a mere
33%. Apart from rapidly exploiting its own hydropower resources, India would
also need to capitalize on the opportunities that exist in Nepal and Bhutan.
However, the domestic hydropower development programme has been stymied An R&R expert
by inadequate attention to managing the ecological impacts and to addressing committee should
the resettlement and rehabilitation (R&R) issues relating to project-affected
be set up to review,
populations. The ability to exploit the regional resources has been limited by
vulnerabilities felt by Nepal and Bhutan in being so completely tied into the revise, and monitor
Indian market. Any strategy to accelerate the development of this energy source the R&R plan for
would necessarily have to frontally address both these issues. each major project
Since the R&R issues are quite context specific, and, apart from, a good design
for each context, require adequate monitoring of implementation it is proposed
(both hydro and
that an R&R expert committee be set up to review, revise, and monitor the other large energy
R&R plan for each major project (both hydro and other large energy projects). projects)
This committee must be chaired by an eminent social expert and must include
members from financial institutions, energy economists, and representatives
of the concerned Energy Ministry as well as the Ministry of Social Justice and
Empowerment. Since the federal and state roles are different and land acquisition
and R&R are primarily a state subject, the committee needs to co-opt an eminent This minimum
person from the state where the project is being implemented. amount of financial
The committee must a priori estimate the budget required to ensure not only
the compensation of the market value of land or homestead but also the sums support for the
needed to create long-term human capacities and opportunities for engagement project affected
of displaced populations in economically productive activities. populations should
This minimum amount of financial support for the project-affected populations
be non-negotiable,
should be non-negotiable, charged to the project developer, and added on to the
price bid of the winning bidder. The fund so generated should be administered charged to the
by a credible local NGO and guided by a steering committee with representatives project developer,
from the local government, project developers, and community representatives. and added on to
An annual review of performance and fund utilization must be undertaken by the
R&R expert committee. the price bid of the
In seeking to exploit the hydropower resources at the lowest cost, extreme winning bidder
care should be taken to ensure that environmental and ecological consequences
are not underplayed. Undoubtedly, any hydropower project, despite receiving
an environmental clearance, will have some negative consequences. The
Environmental Management Plan (EMP) drawn up to address these impacts
should be credible and sincerely implemented with emphasis on transparency
16
and accountability of action by the project developers. A special mention should

It is obvious that
be made here of the state of Arunachal Pradesh that has the largest share of India’s
environmental hydropower potential. It is obvious that environmental impact assessments for
impact assessments individual projects will have to be placed in the context of a larger regional impact
for individual assessment that would capture the aggregate impact of large-scale exploitation.
This is the responsibility of the state, which should be undertaken urgently and
projects will have thoroughly.
to be placed in the The other major constraining factor on exploiting hydro resources, particularly
context of a larger from neighbouring countries, that would need to be overcome is the large initial
investment needs. India should not be niggardly in negotiating hydro electricity
regional impact
supply prices. There are huge rents and major co-benefits for India in this option.
assessment that The note of caution here, however, is that the concerned countries of the region
would capture the have to carefully consider the likely impacts of climate change on the vulnerability
aggregate impact of hydropower projects in the region—both as a result of accelerated glacier melt
as well as changes in the precipitation patterns. This concern would also apply to
of large-scale projects implemented in the country as well.
exploitation. This is
the responsibility of Mission towards a Bio-based Energy Economy
the state India is rich in biodiversity as well as in biomass resources. Recognizing the
potential of such resources—not only for meeting energy demands, but also from
monetizing these resources for enhancing rural livelihoods and for substituting
commercial energy—in transforming India’s energy economy, it is essential that
these resources are exploited optimally across their various competing applications.
Historically, India has had a major emphasis on biomass energy resources—
from the biogas programme, to the national programme on improved cook stoves
to promoting biomass gasifiers and more recently in its interest in biofuels. While
each of these initiatives faced several challenges, the learnings from the same have
not been utilized to strengthen the much-needed initiatives in this area. Apart
As demonstrated from this, as demonstrated by TERI, India’s biodiversity is replete with micro-
by TERI, India’s organisms that can be put to work for enhancing energy productivity as well as
substituting for energy used in the fertilizer and chemical industries (almost 15%
bio-diversity is of industrial energy consumption) through the use of ‘biofertilizers’.
replete with micro- It is estimated that about 590 MT of agricultural wastes and agro-industrial
organisms that can residue resources are generated annually and can be utilized for thermal or
be put to work for electrical energy generation. About 345 MT of this is on account of sugar cane
bagasse, most of which is utilized in sugar mills for power generation. The other
enhancing energy residues are currently used in household, agricultural and industrial sectors
productivity as largely for cooking purposes with fairly low efficiencies.With the development and
well as substituting application of state-of-the-art technologies, in conjunction with biotechnology,
these biomass resources can produce a number of joint products.
for energy used in
PP Biofuels with the residues having a significant thermal value for use in
the fertilizer and decentralized power generation applications.
chemical industries PP Through the application of the biorefinery concept, manufacture a range of
biochemicals that can substitute for petroleum products.
PP Through efficient biomass gasification systems, producer gas that can be used
for both decentralized power generation as well as for thermal applications
(which could potentially include cooking energy).
PP Through the design of efficient and clean cook stoves, set up rural enterprise
based on biomass fuel supply chains.
17
While significant R&D efforts have already been invested in several of the above
Placing even 40
technologies, a final major push on refinements and commercialization can
greatly enhance the contribution of biomass resources to India’s energy security. million hectares
Such an R&D programme should also be combined with commensurate efforts of wasteland or
on enhancing the productivity of land in an ecologically sensible manner. degraded forest
India has nearly 140 mha (million hectares) of land that today are not used
very productively. Placing even 40 mha of such wasteland or degraded forest land under energy
land under energy plantation can yield enough firewood to generate about 280 plantation can yield
million units of electricity annually from 17000 biomass gasifiers of 10 KW each. enough firewood
Providing this amount of electricity through the centralized electricity provision
to generate about
route to rural areas (assuming a T&D loss of 40%) would require about 70 MW
of generation capacity to be allocated/setup thereby entailing an investment of 280 million units of
nearly Rs 560 crore in generation capacity and T&D investments. The avoided electricity annually
investments in centralized capacity would be sufficient to provide a subsidy of
nearly Rs 2 lakh per gasifier to the 17000 villages that can be serviced via this
option. The productivity of the above land resources can be enhanced through a
focused R&D programme for managed Jatropha plantations.
India has about 140 mha of land presently under cultivation. This land has Biofertilizers offer
almost reached its saturation point with respect to productivity, and farmers in sustainable and
several states like Punjab and Haryana are overusing nitrogenous fertilizers leading environment-
to high costs, lower efficiency in fertilizer usage, and increasing water pollution
friendly solutions to
with the run-off. On the other hand, the fertilizer subsidy cost the exchequer
Rs 95000 crores in 2008/09. Biofertilizers offer sustainable and environment- almost all cultivated
friendly solutions to almost all cultivated plants and crops by enhancing nutrition plants and crops by
and yields up to 5%–25%, and curtailing chemical fertilizer inputs by 50%. On enhancing nutrition
an average, the farmers could save about Rs 660 per hectare (for wheat), but the
savings to the country could be as high as Rs 4000 per hectare in the form of
and yields up to
avoided fertilizer subsidy. 5%–25%, and
curtailing chemical
Incidental benefits of biofertilizer use: experience from TERI fertilizer inputs
The application of biofertilizers developed at TERI to the wheat crop resulted in a marked improvement in
the mean grain yield, which increased by 41%. It also significantly increased (from 6% to 53%) the protein
by 50%
and mineral nutrient contents of crop grains, including all measured macro-elements (phosphorus and
potassium) and micro-elements (iron, copper, zinc, and manganese). The total mineral content (ash) was
enhanced by 13% - 29%. There is also recorded evidence that the positive influence of the biofertilizer on
grain quality is due to a synergistic effect of the mineral-mobilization capabilities of microbes. Biofertilizers A mission on
also significantly increase (between 51% and 98%) enzyme activities.
moving towards a
bio-based energy
A mission on moving towards a bio-based energy economy must be established economy must be
that would focus on an integrated approach to exploiting India’s bio-energy
potential though appropriately designed policies and incentives. established that
would focus on an
Integrated Urban Transport Strategy integrated approach
In the absence of efficient public transport, urban India is increasingly relying on to exploiting
personal transport. The number of personal vehicles has grown exponentially—
from 3 million in 1980 to about 72 million in 2005—and is expected to grow to
India’s bio-energy
about 708 million by 2030 with a GDP growth of 6%, while the share of public potential though
transport is projected to decline from the current level of 60% to 45%. appropriately
The current level of ownership of personal vehicles in India is around 37 designed policies
per thousand as compared to a little over 500 per thousand in the developed
and incentives
18
world. The Auto Policy Vision of the Government of India that seeks to promote
Policy must aim to
India as the hub for small cars, notes that this can happen only if there is a
make the purchase growth in volume, and recommends measures to promote and increase the sale
price reflect the of small cars in the country. At the same time, it recognizes that an increase in
full cost of vehicle personal automobiles can have an adverse impact on energy usage and on the
environment, and suggests certain measures to mitigate these impacts. While it
ownership and use, may not be possible to discourage the purchase of personal vehicles, policy must
and also discourage aim to make the purchase price reflect the full cost of vehicle ownership and use,
the use of personal and also discourage the use of personal vehicles for routine use.
Appropriate interventions to reduce reliance on personal vehicles, making
vehicles for routine
them more fuel efficient, and increasing the share of public transport and non-
use motorized transport will lead to a significant reduction in energy consumption.
Although urban transport is largely a state function, there are several interventions
that the Government of India can make to promote energy efficiency in urban
transport in addition to encouraging states to follow appropriate policies. The key
interventions are as follows.
PP Introduction of energy efficiency standards Studies have shown that the
introduction of fuel economy standards will result in a significant reduction
in energy consumption. The US Europe, Japan, China, and Mexico have
States and city mandated fuel economy standards, while India is yet to do so. A study carried
governments also out by TERI in 2005 established that an improvement in fuel efficiency by 50%
lack the capacity to of all existing motorized modes would result in a reduction of 125 MTOE in
commercial energy consumption by 2031. These standards are achievable and
plan and implement need to be introduced immediately.
projects to provide/ PP Encouraging public transport The National Urban Transport Policy (NUTP)
augment public encourages state governments to adopt transport policies in consonance with
it. It also calls upon state governments to discourage the use of personal
transport vehicles and increase the share of public transport. The Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) has made funding for transport
projects in cities conditional upon the proposals being in conformity with the
NUTP. There is, however, a continuing tendency to seek funding for more
transport- related physical infrastructure projects like widening of roads,
building flyovers, and parking spaces, and not for funding the provision of
buses and para-transit facilities. States and city governments also lack the
capacity to plan and implement projects to provide/augment public transport.
If the share of public transport is to be maintained at a level of about 70%–
75% till 2031, the Government of India must provide financial support and
technical assistance to cities with a population of 500000 or more in a ‘mission
mode’ to establish/augment public transport facilities. It is estimated that if
by 2031, the public transport share is increased to 75%, the fuel demand
will get reduced by about 100 MTOE (42%) of the total fuel demand for
Institutional passenger transportation in 2031 (~Rs 200000 crore in current prices). As per
arrangements Ministry of Urban Development (MoUD) estimates, to improve the status of
urban transport sector and promote the usage of public transport in 87 cities
for dealing with (currently with above 0.5 million population) would require an investment of
urban transport in around Rs 435 380 crore, which includes investment on mass transport system
the Government (54%); intermediate public transport (IPT); terminals (1%); non-motorized
of India are transport (NMT) (4%); urban roads (33%); traffic improvements and road
safety (6%); and urban transport planning and operation data (2%).
fragmented between
ministries Institutional arrangements for dealing with urban transport in the Government
of India are fragmented between ministries. The Ministry of Road Transport and
19
Highways is responsible for administering the laws relating to public transport

It would be
and laying down emission standards; the MoUD has formulated the NUTP and
is responsible for promoting sustainable urban transport, and the Ministry of desirable to set
Heavy Industry is responsible for the automobile industry. All three ministries up a committee
have suggested/laid down policies that will help discourage the use of personal comprising
vehicles and promote public transport. However, these are not being implemented
in an integrated manner, and often their impact is diluted by conflicting signals secretaries from
or emphasis. It would be desirable to set up a committee comprising secretaries the concerned
from the concerned ministries, including finance, law, and health, to address ministries, including
issues relating to urban transport in an integrated manner.
finance, law, and
health, to address
Policy and institutional framework for a sustainable
issues relating to
energy path
urban transport
‘...the great differences in the wealth of nations are mainly due to differences in in an integrated
the quality of their institutions and economic policies.’ manner
- Olson Mancur 1996
The focused interventions identified above would need to be supported by a

conducive policy framework that works towards the same goals. The macro
goals that hold the key to India’s transformation to sustainable energy use are The macro goals
maximizing energy efficiency, securing the physical energy resources, attracting that hold the
investments, promoting R&D, altering our structural development paths, and key to India’s
strengthening our institutions.
transformation
to sustainable
Maximizing energy efficiency
The levels of energy efficiency in the economy can, in turn, be best achieved by energy use are
a combination of factors that need to work in concert. These include a pricing maximizing energy
strategy that clearly reflects the cost (real and opportunity) of energy service efficiency, securing
provision; a fiscal regime on appliances, equipment, and infrastructure that
the physical energy
clearly incentivizes efficiency; ensuring competition in demand satisfaction at
every point along the supply chain; and a regulatory framework that progressively resources, attracting
rewards efficiency-related innovations. investments,
Energy pricing and competition The desirable elements of efficient pricing have promoting
been stressed for decades in various committee reports of the government and
are reiterated, in principle, in the Electricity Act 2003. However, it is obvious R&D, altering
that real concerns on issues of affordability and political acceptability of moving our structural
to cost-of-service pricing have impeded the implementation of such a pricing development paths,
regime. The government must take advantage of the high technological prowess
and strengthening
of the country to design effective and transparent subsidies that overcome the
challenge of energy access in a progressive manner (see section on Energy our institutions
Access for further details). Energy pricing itself must recognize the trade-offs
and substitutability between various energy sources, and must be undertaken
in an integrated manner with full consciousness of their implications for driving The pricing of
consumer choices and substitution possibilities, both in the short and long terms.
primary energy
Pricing of petroleum products, natural gas, and electricity has been the subject
of raging debates in recent times. As a general guideline, this paper recommends resources must
the following. reflect their
PP In an increasingly open economy, the pricing of primary energy resources opportunity cost at
must reflect their opportunity cost at the border, when there is the option of
international trade. Therefore, trade pricing of crude oil should reflect the cost the border
20
insurance and freight (CIF) price of crude that India imports, but the free on
The pricing of
board (FOB) price of any crude quality that it exports.
secondary energy PP When a resource is not tradeable, either due to global surpluses or due to quality
forms, along the considerations, then a rational and rigorous process for domestic discovery of
supply chain, must prices should be facilitated. If this requires a restructuring of energy markets
(for example, coal), then an expeditious action plan needs to be drawn up for
be left to the market the purpose with necessary amendments to laws and regulatory frameworks.
PP Pricing of secondary energy forms, along the supply chain, must be left to the
market, under effective regulatory oversight, and must allow players to benefit
from any competitive advantage arising from efficiency investments as they
deem fit.
PP India’s energy infrastructure—be it the transmission and distribution networks
Infrastructure or the natural gas pipelines or even the energy production/generation/import
expansion is driven infrastructure—needs major expansion and upgrading. Infrastructure
expansion is driven by several factors including projected long-term energy
by several factors demand and considerations of regional growth—it cannot be responding
including projected merely to current needs! As such, and in order for a planned development of
long-term energy such infrastructure, the government must pursue its strategy of competitive
bidding for both infrastructure expansion and upgrading projects. As we move
demand and down the supply chain, the cost of energy would be the sum of the energy
considerations of infrastructure service cost and the energy resource cost.
regional growth— PP Where infrastructure needed for energy transport is shared with other
it cannot be beneficiaries (as in the case of railways), the tariff determined for the transport
service provided must recognize the implications that it may have for the
responding merely competitiveness of the energy resource concerned. It is necessary that such
to current needs tariffs are established in consultation with the institution responsible for energy
price oversight, and in accordance with the principle of proportionality.
PP Congestion pricing (time-of-day pricing in case of electricity supply) must
be resorted to in order to signal capacity constraints and avoid high-cost
infrastructure expansion needs.
PP Energy subsidies to targeted consumers must be provided as far down the
Congestion pricing supply chain as possible so as to encourage efficiencies and prevent subsidy
(time-of-day leakages in the system.
pricing in case of Finally, the treatment of by products and ‘waste’ products should be consistent
electricity supply) and supportive of the energy sector. Under the Ministry of Environment and
must be resorted to Forests (MoEF) notification, all coal- and lignite-fired power stations have to
in order to signal dispatch fly ash free of cost to anybody desirous of having it, including cement
manufacturers, traders, and exporters who can, in turn, sell it at any price they
capacity constraints desire. Under this regime, wherein the value of fly ash is largely being derived
and avoid high- by middlemen, neither is the electricity sector benefiting from the potential
cost infrastructure revenues nor are the government or the common man benefiting from the lower
raw material costs od cement manufacture. In sum, the loss to electricity and
expansion needs cement consumers is providing windfall profits to the traders, exporters, and
cement manufacturers. Properly priced, fly ash used by cement producers could
result in electricity price reduction of nearly 10 p/unit.
Fiscal regime The taxes and subsidies on energy resources and on energy-
using appliances/equipment must be designed to support energy efficiency in
the economy and reflect externality costs. While coordinated action in this area
at the central level is feasible, the challenge of ensuring this at the state level
would be significantly bigger. The central government must clearly specify the
fiscal responsibility of states with regard to state-level taxes and subsidies. At the
21
state level, the coordinating committee of the state finance ministers needs to
incorporate this prioritization of energy-efficient appliances while determining At the state level,
the common taxation framework across different states. the coordinating
Regulation for efficiency One of the biggest dilemmas for service providers is committee of the
what is referred to as the ‘rebound’ effect—if service providers were to get involved
state finance
in encouraging energy efficiency amongst their consumers, it would reduce the
size of their market! This is a typical challenge faced by most distribution utilities ministers needs to
across sectors and countries. The energy regulators need to be constantly reviewing incorporate this
and implementing innovative pricing and regulatory mechanisms for overcoming prioritization of
this challenge and rewarding (reducing the pain) service providers for this effort.
This would require high level expertise among regulatory bodies on regulatory energy-efficient
economics, price elasticity concepts and estimation (both in the short and long appliances while
runs), and associated welfare effects. Regular training of regulators by professional determining the
institutions on the technical, regulatory, economic, and environmental aspects of
common taxation
the energy business should be made a requirement of service.
framework across
Securing energy resources different states
Securing India’s energy supplies, after ensuring its most efficient utilization, is
a function of domestic resource exploitation, tying up international resources—
either directly or through equity investments—creating the necessary import/
transport infrastructure and developing/accessing technologies for harnessing We need to
energy resources efficiently. As seen from the scenarios defined above, there exists reevaluate the
significant potential for reducing our demand for energy resources by ensuring relative economics
energy-efficient development paths and maximizing the use of renewable energy.
Energy imports Even with the aggressive push towards efficiency and renewable
of entering into long
energy, India would still need to have to import coal at a peak level of ~200 MT term contracts vis-
and crude oil of ~300 MT between now and 2030. At these significantly higher à-vis making equity
manageable levels of imports, we need to reevaluate the relative economics of investments abroad
entering into long-term contracts vis-à-vis making equity investments abroad.
Assuming that other major international consumers of fossil fuels would also
be moving along similar paths as being defined by India, the global demand
for these energy forms could soften substantially. While evaluating this option, The failure of
the experience of allowing the corporate sector to make such investments as the coal ministry
part of competitively bid projects (for example, coal mines acquired by private
to bring about
companies for power-generation purposes) should be borne in mind.
Coal After decades of make believe that we had enough coal resources to reforms in the
last us for another 200 years, the Government of India has finally accepted that sector—including
the life of the resource may be limited to about 45 years. However, recognizing productivity
that any country’s ability to rely heavily on this highly polluting energy form
would be short lived, India must restrategize its coal development to exhaust its improvements,
reserves in the next 30 years or so. The new coal-based thermal power generating private
capacity should be limited at a level that is sustainable with available domestic participation, and
resources without having to invest in new import infrastructures. The failure of
competition—and
the coal ministry to bring about reforms in the sector—including productivity
improvements, private participation, and competition—and the vulnerabilities the vulnerabilities
this creates in the power sector, indicate the need to set up a joint commission, this creates in
comprising government, industry, and representatives of the power sector and the power sector,
the coal sector. The commission would be empowered to revise policy, establish
and implement competition policies, and provide the necessary environment for indicate the need
private-sector participation. to set up a joint
The Government of India’s strategy to link coal mines to private power plants commission
would ensure a more efficient production profile from coal mines, which would
22
enhance production levels.

Oil India’s oil vulnerability is well documented. At the same time, we are
unable to generate enough interest in exploration and production activities
despite various improvements made in the different rounds of the NELP. The
NELP programme was started nearly 10 years ago, but only 20% of the country’s
sedimentary basins can still be classified as ‘well explored’. India needs to quickly
TERI, in move towards the Open Acreage Licensing Policy so as to exploit any potential
partnership with resources towards alleviating its medium-term energy security challenge.
Oil and Natural In addition, all efforts must be made to maximize the sustainable flow of oil
from existing wells. TERI, in partnership with Oil and Natural Gas Corporation
Gas Corporation,
(ONGC), has demonstrated the economic attractiveness of its microbiologically
has demonstrated enhanced oil recovery (MEOR) processes. The cost of this technology is less than
the economic half of that of the conventional enhanced oil recovery methods. If applied to the
attractiveness of its ~7000 stripper oil wells within India itself, an additional 3 million barrels of oil
per year can be generated. India could explore licensing this technology to the
microbiologically oil-rich countries for a certain percentage of the incremental oil generated!
enhanced oil Natural gas While natural gas consumption must increase, its use for power
recovery processes generation is suggested primarily for industrial captive use purposes and for
fertilizer production—both limited to the extent of domestic availability of the
resource. Larger domestic finds would, of course, result in gas increasingly
substituting for coal. As such, the existing gas, import facilities that have been
established should suffice for the longer term as well. The significance of the
Iran–Pakistan–India gas pipeline in the context of energy security can diminish
substantially!
The significance of The natural gas pricing policy needs to be clarified at the earliest to give a push
the Iran–Pakistan– to natural gas and related infrastructure sectors. Rather than pursuing multiple
India gas pipeline prices and the pricing system as currently existing in the country, it is suggested
that natural gas from various sources be pooled and supplied to consumers
in the context of though a transparent bidding/auctioning process. The role of the regulator in
energy security ensuring smooth and fair functioning of the process is immense.
can diminish Nuclear energy India has done well to conclude the civil nuclear agreement
with the US. It now also has to urgently give attention to other dimensions of
substantially
establishing nuclear capacity in the country. Putting in place and creating public
awareness on its nuclear safety and accident prevention protocols, identifying
potential nuclear power plant sites and initiating public dialogues, creating
the requisite capacity in educational institutions to meet the human resource
requirements, addressing concerns on waste disposal, among other initiatives,
are all proactive measures that are best undertaken sooner than later. The
Scaling up nuclear nuclear establishment carries with it a public perception of secrecy and a defence
power generation, connotation. Scaling up nuclear power generation and possibly inviting the private
sector to participate require a much more open and transparent consultative
and possibly
process to be institutionalized.
inviting the Waste-to-energy Some of the existing gap between demand and supply of
private sector to electricity in cities can be met by using waste as a source of energy. Though
participate, require energy generation from industrial waste sources like distillery, paper and pulp,
bagasse, dairy, and slaughterhouse waste is well practised in the country, energy
a much more open generation from urban waste, especially municipal solid waste (MSW), is still not
and transparent a feasible option.
consultative MSW generated in the country contains on an average 40%–50% organic
waste and 15%–20% recyclable waste (primarily paper and plastic wastes). These
process to be
waste streams can be used as a feedstock by biomethanation and refuse-derived
institutionalized fuel (RDF) processes to generate power in units ranging from 1 MW to 10
23
MW capacities. It is estimated that the annual power generation potential from

MSW alone in the country would be around 36000 MW. However, as we do not
have sufficient experience in operating these technologies on commercial levels,
technology customization and indigenization would be required. High capital cost
is one of the most important barriers to MSW-based waste-to-energy processes
in India. Based on projects implemented as on date, the cost of a typical 5 MW
unit comes to around Rs 40–60 crore, with each MW of electricity consuming
150 tonnes of municipal waste annually. This amounts to an investment of Rs
8–10 crore per MW, or three to four times the cost of conventional thermal
power. While it will be difficult for such plants to compete economically with
conventional plants, the incidental benefits in terms of waste management and Favourable
avoided health damage could make this an attractive option. Favourable power power purchase
purchase agreements, combined with capital cost-based incentives, could be
designed for such projects. agreements,
combined with
Attracting private investments capital-cost-based
The scale of the energy challenge that the country faces compels it to seek incentives, could be
aggressive private sector participation. While it is essential and non-negotiable to designed for such
follow due process when awarding projects to the private sector, a few key points
need to be kept in mind. projects
PP Clear delineation of long-term policy and regulatory framework that would
enhance investor confidence.
PP The need to provide a level playing field to all players, including the public
sector organizations.
PP The high economic cost of delays .
R&D in the energy sector

India’s R&D efforts have often been criticized for being sub-optimal and lacking
in goal orientation. The situation in energy-related R&D is perhaps even more The country’s scarce
serious. The challenge of the sector, as brought out in earlier pages, is too large financial resources
for it to be continued to be treated as a vehicle of social largesse and diffused
capacity building. should be targeted
While India may not be able to match the R&D resources of the developed strategically and
world, it is all the more imperative that its scarce financial resources are with purpose
targeted strategically—to bring about cost reductions, develop/exploit context-
specific resources, and develop relevant applications—and with purpose. Some
technologies that could be on the verge of commercial deployment, with just an
additional resource injection for design improvements, which the government
could place on its priority list, include the following.
PP Biomass gasification systems Several organizations in the country have related
biomass gasification systems that require critical innovations relating to gas
clean-up systems and engine design. Such systems could also be modified
for providing clean cooking energy solutions for school canteens, dhabas, and India would do well
other establishments, with appropriate safety features built in.
to focus its solar
PP Biofuels A second generation biofuels programme needs to be designed and
implemented in a mission mode. R&D efforts on
PP Solar energy R&D on solar PV and thermal technologies, per se, has advanced developing context-
significantly at the global level. India would do well to focus its R&D efforts on specific applications
developing context-specific applications and research on grid interface issues.
PP Wind energy Resource mapping exercises have to be refined to be in line with
and research on
new technology developments globally, with a particular emphasis on offshore grid interface issues
24
wind resources.
PP SME sector Designing, developing, and demonstrating energy-efficient
technologies to suit specific conditions of SME clusters.
PP Smart grids The increasing share of renewable energy in India’s energy mix
and the greater emphasis on energy efficiency could have serious implications
on—and be limited by—the nature of electricity grids. India needs to implement
pilot projects on the concept of ‘smart’ grids that would prepare us for such
large-scale integration of non-firm and distributed energy sources into our
energy systems and their management.
In line with the general call for an integrated approach to this sector, it may
be worthwhile creating an integrated energy R&D fund administered under the
guidance of a research advisory committee at the highest level.
An efficient public
transport system Altering structural development paths
can redirect the The choices offered to India’s population for meeting its mobility needs would
savings effected determine the demand this sector would place on energy resources. Adequate
investments are needed in efficient public and intermediate transport systems
from avoided energy early enough to avoid entirely new generations of Indians becoming addicted to
subsidies towards private transport modes.
subsidizing public An efficient public transport system can redirect the savings effected from
avoided energy subsidies towards subsidizing public modes of transport—this
modes of transport
translates to as much as 30% of the current ticket value of buses and ~20% (Rs
3–4/passenger trip) in the case of Metro systems!
Regulating efficiency in road transport sector
Availability of adequate and more convenient public transportation services is a prerequisite to encouraging
a larger shift away from the use of personalized modes. In practical terms, this would translate into having
well-equipped, modern buses, dedicated bus corridors, rider information systems, inter-modal (bus and
intra-city rail) connectivity, and integrated ticketing.
While these measures are already contained in the National Urban Transport Policy (NUTP), it is
A special fund essential to accelerate its implementation and have proper institutional mechanisms at the city level to
may be created for facilitate better coordination amongst various operators and urban public transport system service providers.
Appropriate public–private partnership (PPP) mechanism, on an international competitive bidding basis,
promotion of public may be needed to be put in place for provision of the transport infrastructure and services, with government
transport providing the basic infrastructure and specifying the quality of supply and service norms and the private
agencies investing in rolling stock, operating and maintaining services, and running the business.
A special fund may be created for promotion of public transport. Revenue for this fund may be
generated through increased rates for road tax on personalized vehicles, specifically cars. Congestion taxes
on personalized vehicles and tax incentives for efficient engines could also be considered at a later stage,
only when an efficient and sustainable public transport is in place.
While the laying down of consistent and progressive norms on efficiency and emission levels would be
important to encourage manufacturers to move towards more efficient vehicles, complementary policies at
The government the consumers’ end should also be mandated to allow/disallow the use of inefficient vehicles.
must define the

mechanisms and
incentive systems Strengthening the institutional framework
Redefining the role of the government
needed to promote In line with the arguments made above, the role of the government has to be
clean and efficient limited to that of a policy making body, leaving regulatory aspects and service
development provision to the respective entities. In defining the energy pricing policy, the
25
government must define the mechanisms and incentive systems needed to

promote clean and efficient development of the sector. The government can also
play an extremely important role in facilitating access to quality information for
informed decision making of all stakeholders, and in designing mechanisms for
ensuring universal access to services.
Regulatory institutions
Several challenges face the institution of independent regulatory commissions
The regulator
today, which need to be addressed urgently for an effective functioning of energy
markets. In line with the arguments made in earlier sections, the following items should be
need urgent consideration. given complete
PP Move to a single energy regulator at the central level over the next three responsibility
years.
PP Give the regulator complete responsibility for regulating energy prices in a for regulating
coordinated manner. energy prices in a
PP Review the process of selecting members of the regulatory commissions for coordinated manner
greater effectiveness and credibility of the institution.
PP Make the regulator accountable to the Parliament for regulating the sector
towards a predefined direction. This would require the regulator to define, in
an open consultative manner, the overall direction in which the sector should
move, and ensure that regulations are defined in support of the same. Given
the fact that the regulator is to safeguard all stakeholders in the sector, and
indeed has to balance their diverse interests, this exercise would need to be Any obligations on
undertaken with great care.
the public sector
Unshackling the public sector organizations to shoulder social
While private sector investments are a necessity, and a level playing field for the responsibilities must
private sector is often called for, the challenges of being a public sector organization be transparent and
are often unseen. If the public sector organizations have to compete with the
private sector they must be provided full autonomy and power to function as costed separately
a corporate organization subject to the same governance regime as the private
sector. Any obligation on the public sector to shoulder social responsibilities
must be transparent and costed separately.
Energy education and awareness

In a number of areas, availability of trained human resources could also challenge Manpower
the move towards a desirable energy pathway. Manpower challenges have challenges have
already been identified in relation to the nuclear power sector, renewable energy
already been
engineers, and rural energy entrepreneurs. The educational institutes, as well as
the technical training institutes in the country, need to be geared up to meet the identified in relation
human resource needs of the emerging energy market. to the nuclear power
Apart from formal training, a general awareness programme has to necessarily sector, renewable
accompany any initiative of the government to steer the economy towards the
above defined pathway. Efforts such as the energy labelling programme of the energy engineers,
BEE need to be placed on a fast track with an accelerated effort to label/certify all and rural energy
appliances and equipment on their energy performance. Such labels must include entrepreneurs
easy-to-implement economic analysis functions, and must be accompanied by a
major drive to create awareness on application as well as redress if required. The
BEE has estimated that the introduction of energy efficiency labelling programme
for different star ratings for selected products can lead to a savings of about 1141
The Bureau of Energy Efficiency study, ‘Standards and labelling: energy saving, CO2 reduction, and
6
avoided capacity of power’
26
million units of electricity or 236 MW in terms of avoided capacity.6
Providing energy access

It has been suggested earlier in the paper that subsidies, if any, should be provided
If all of the current as far down the supply chain as possible. This recommendation clearly recognizes
subsidy were to be the need for subsidies for certain well-defined categories of consumers or, in
some cases, even service providers. The government today has an annual energy
targeted to the below subsidy bill of at least Rs 100 000 crore on electricity and petroleum alone—and
poverty line families, this would be a conservative estimate! If all of the current subsidy were to be
it would translate targeted to the below-poverty-line families, it would translate into a per capita
energy subsidy of Rs 1156 per month for a below poverty line (BPL) family. Even
into a per capita
if it was spread evenly over all of India’s population, the cost of the energy subsidy
energy subsidy for a that the government would be providing would amount to Rs 393 per family
below poverty line per month. The added advantage of moving energy subsidies directly to the
family of consumer would be the incentive this offers consumers to use energy efficiently
and in the form they desire. The above estimation does not take into account the
Rs 1156 per month cross subsidies which are built into the economy often leading to competitive
disadvantages to the manufacturing and service sectors on account of energy
costs. The inefficiencies in the current system of energy pricing cannot be made
more glaring.
The power of information technology can, and should be, harnessed to provide
an income subsidy to identified households for the exclusive purpose of meeting
energy needs superior kerosene oil]/electricity/solar (LPG/SKO) through the
use of smart cards. An approach of this kind would empower poor families to
determine their priority needs, while also encouraging efficiency in use. TERI’s
proposal to the Ministry of Petroleum and Natural Gas, submitted in 2006, on
dealing with LPG and superior kerosene oil (SKD) subsidies could form the
basis for designing this scheme.
It is important According to National Sample Survey Organization (NSSO) data, the share
to focus on of households relying primarily on traditional fuels for their cooking needs is
technological still fairly high (85% of rural households and 36% of urban households). It is
unlikely that all sections of population especially in rural areas would be able
innovations with
to move away from the use of traditional fuels even by 2031. Therefore, it is
regard to efficient important to focus on technological innovations with regard to efficient and
and cleaner use of cleaner use of biomass to serve this section of the population that would continue
biomass to rely on traditional fuels for cooking. The government must revisit the option of
promoting biogas plants as well as explore the option of using biomass gasification
systems for meeting cooking energy needs, along with providing the capacity for
power generation. In other words, a much more comprehensive approach to rural
energization is needed, wherein entrepreneurship is encouraged for the provision
of total energy services, and not just for implementing the RGGVY programme.
India can keep in In conclusion

check its energy While the long term offers several opportunities for India, in concert with global
demand growth developments to mitigate its energy security challenge, in the short term, energy
and consequent efficiency would have to play a key role. What is clear from the above analysis
is that India can, while pursuing an aggressive economic growth path, keep in
environmental check its energy demand growth and consequent environmental impacts. The
impacts opportunity for doing so arises from the fact that a large part of its infrastructure
is yet to come in place, and is contingent on adequate support in the form of
access to efficient technologies and requisite financing.
27
A number of questions arise from the above analysis which force us to re-
consider or reiterate our current approach to energy planning.
PP The increasing concern over the apparent unsustainable mining of our coal
resources is set aside. However, a question about the desirability of large-scale Pursuing equity
investments in coal import infrastructure is raised.
PP The magnitude of impact that investments in efficiency along the supply chain investments for coal
can bring about is quite astounding. acquisition and
PP A number of technological and strategic options have fallen by the way side in tying the same in
this analysis.
with the integrated
• For example, it would be short-sighted for India to pursue the coal-to-
liquids (CTL) or gas-to-liquids (GTL) technology path. gasification
• In a similar manner, pursuing equity investments for coal acquisition and combined cycle
tying the same in with the integrated gasification combined cycle (IGCC) power generating
power generating technology would be futile if India phases out large-scale
additions to power generating capacity.
technology would be
• Even the challenge of oil and gas assets can be minimized quite substantially futile
by aggressively pursuing efficiency, smart transport infrastructure
investments, and alternative technologies.
What we have seen in these results is the need for a rapid electrification of the The need for a rapid
Indian economy with electricity needs being largely met by solar, wind, biomass, electrification of the
and hydro electric forms. What we have also seen is the need to have more Indian economy
decentralized energy options with the efficiency loss of smaller scale being more
with the electricity
than offset by the efficiency gains of lower transport/T&D losses. The summary
recommendations here are as follows. needs is largely
PP India’s energy policy, which should necessarily provide long-term, non-partisan met by solar, wind,
guidance to decision making in the sector, has to explicitly biomass, and hydro
• Recognize the guiding principles, within which this sector would develop,
as those based on maximizing efficiency along the value chain—therefore electric forms
recognizing the importance of rational pricing and competition; securing
resources through their development and acquisition in accordance
with long-term integrated energy demand forecasting; attracting private
investments aggressively; providing a level playing field to renewable energy,
clearly recognizing its relative advantage on environmental performance;
and focussing R&D activities to desired outcomes,
• Recognize the fact that the choice of structural development paths would
have a major implication on energy demand. As such, it must be possible
to signal a desirable energy path by specifying a sustainability premium on
different energy forms that would reflect their scarcity value, environmental
performance, import-related vulnerabilities, and so on. Long-term energy
policy would rest not only on initiatives on the supply side, but through
its considered application on sectors which determine demand. Building
energy-efficient homes and commercial establishments, and creating
extensive and energy-efficient public transport infrastructure would have
greater benefits for India than the discovery of a oilfield!
PP The institutional framework governing the energy sector should be strengthened
through
• A clear and consistent role definition of the various actors associated with this
sector (governments, regulators, judiciary, and public sector organizations)
and between the central and state governments.
• Energizing the mechanism for ensuring integrated and coordinated
28
development of the sector, and creating appropriate professional capacity

at all levels.
• A review of the legal and regulatory frameworks guiding the development of
each energy and associated sector to be in line with the principles identified
in the policy document.
• Enhancing the responsiveness of the education sector in providing the
requisite human resource capacity to meet energy challenges.
PP Providing access to economically vulnerable sections of the population has
to be a priority that is fulfilled through a carefully designed, transparent, and
effective mechanism.
The set of policies and measures and technology support options identified above
would go a long way in addressing India’s development needs, energy security,
and climate contribution!
29
TERI’s Lighting
Solar photovoltaic a Billion Lives
panel installed at campaign. Visit
TERI Mukteshwar http://labl.teriin.org.
Solar photovoltaic
panel installed at
TERI Regional
Centre, Mukteshwar
A biomass gasifier
at TERI Gram, Gual
TERI’s jatropha (bio-diesel)
Pahari, Gurgaon
plantation in Elluru
TERI’s jatropha (bio-diesel)

plantation in Elluru
For further details, contact:

The Energy and Resources Institute Tel. 2468 2100 or 4150 4900
Darbari Seth Block Fax 2468 2144 or 2468 2145
IHC Complex, Lodhi Road India +91 • Delhi (0) 11
New Delhi – 110 003 Web www.teriin.org
India

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India Energy Security

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India’s energy security

new opportunities for a

The Energy and Resources Institute (TERI)

India’s energy security: new opportunities

more challenging for the government. Reconciling the energy pathway to be

Reading through the numbers: results of scenario analysis

Table 1 Description of future energy economy scenarios

Figure 1 Commercial energy consumption

Figure 3 Fossil import dependency across scenarios

PP Significant short-term gains (nearly 30%) are possible by increasing energy

Lighting a Billion Lives

Unelectrified/inadequately electrified rural communities/villages

Decentralized energy supply for the industry, commercial, and

The Solar Mission Case study: Australia’s solar initiatives

options across several applications, and a careful and dynamic design of

introduction of well-designed time-of-day pricing can, affect savings of nearly

Energy efficiency Green Buildings Initiative

and accountability of action by the project developers. A special mention should

Highways is responsible for administering the laws relating to public transport

The focused interventions identified above would need to be supported by a

enhance production levels.

MW capacities. It is estimated that the annual power generation potential from

R&D in the energy sector

must define the

government must define the mechanisms and incentive systems needed to

Energy education and awareness

avoided capacity of power’

million units of electricity or 236 MW in terms of avoided capacity.6

Providing energy access

India can keep in In conclusion

development of the sector, and creating appropriate professional capacity

TERI’s jatropha (bio-diesel)

For further details, contact:

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