CHAPTER1

INTRODUCTION

1 INTRODUCTION
 Energy in the world is increasing day by day. The conventional energy resources
such as hydro electric power, thermal power, and nuclear power are coping with
this increasing demand.
 But many non-conventional energy which were in research stage a few years ago
have established their usefulness over the years.
 Though they may in smaller quantity and less stable compared to conventional
energy resources when included in the power grid can take a considerable amount
of load.
 This survey makes an attempt to study the process and utilization of non
conventional energy resources such as solar energy, wind energy, biomass energy,
geo thermal energy and energy from the ocean.

1.1 Introduction to Energy Sources

 Energy is the basic power source to perform work. All energy sources follow the
law “energy can neither be created nor be destroyed”. Thus, the input energy is
converted from one form to another in the process work is done and losses are
accounted.
 The energy sources can be divided into following categories
Based on usability of energy
 Primary resources
 Secondary resources
 Supplementary resources
Based on traditional use
 Conventional energy
 Non-conventional energy
Based on long term availability
 Non-renewable
 Renewable
Based on commercial application
 Commercial energy source
 Non-commercial energy source
Based on origin
 Fossil fuels Energy
 Nuclear Energy
 Hydro Energy
 Solar Energy
 Wind Energy
 Biomass Energy
 Geothermal Energy
 Tidal Energy
 Ocean thermal Energy
 Ocean wave Energy

1.1.1 Based on usability of energy

 Primary energy source
The energy sources, which provide net supply of energy, are called the
Primary energy sources. The examples for this type of energy are coal, oil, natural
gas, uranium etc., the energy required to extract energy from these sources are
much smaller than what they yield.
Though their yield ratio is high and accelerated their supply is very
limited.
The energy yields ratio of an energy extraction process is defined as
follows:
Energy yield ratio = Energy received from raw energy source
Energy spent to obtain raw energy source
  Secondary energy source
They produce no net energy. They are necessary for the economy but does
not produce energy per se. Agriculture is the example for this kind.
 Supplementary energy source
These are defined as the energy sources whose net energy yield is zero.
These require highest investment is high. Thermal energy is an example.

1.1.2 Based on traditional use

 Conventional energy
Conventional energy resources which are being traditionally used for
many decades and were in common use around the oil crisis of 1973, are called
conventional energy resources.
E.g.: Fossil fuels, Nuclear and Hydro resources.
 Non-conventional energy
Non-conventional energy resources which are considered for large-scale
use after the oil crisis of 1973, are called non-conventional energy sources.
E.g.: Solar, Wind, Biomass, etc.

1.1.3 Based on long term availability

 Non-renewable
Non-Renewable energy resource which are finite and do not get
replenished after their consumption are called non-renewable.
E.g., fossil fuels, uranium, etc.
 Renewable
Resources which are renewed by nature again and again and their supply
is not affected by the rate of their consumption are called renewable.
E.g., solar, wind, biomass, ocean, geothermal, hydro, etc.
1.1.4 Based on commercial application
 Commercial Energy Source
The energy sources that are available in the market for a definite price are
known as commercial energy. The secondary usable energy forms such as
electricity, petrol, diesel, gas etc., are essential for commercial activities and are
categorized as commercial energy resources. The economy of the country depends
on its ability to convert natural raw energy into commercial energy.
 Non-commercial energy source
The energy derived from nature and used directly without passing
through a commercial outlet is called anon-commercial sources.
E.g., wood, animal dung cake, crop residue, etc.,

1.2 World Energy Trend

Energy consumption as a measure of prosperity

 Energy is important in all sectors.

 Standard of living ∞ per capita energy consumption.
 Energy Crisis is due to the two reasons
 Population
 Standard of living
 Per capita energy consumption is a measure of the per capita income or the per
capita energy consumption is a measure of the prosperity of the nation.
Country Electricity
consumption per
capita in (Kwhr)
World’s average 2970
China 2480
Germany 7530
USA 14600
Canada 19100
India 630
 If the present energy trend continues the conventional sources of energy
will deplete soon. Non-conventional energy resources such as renewable energy
may be the future trend.
The study on alternative energy strategies result in these conclusions
o The supply of oil will fail to meet the increasing energy demand.
o Demand for energy will grow in spite the actions to conserve energy.
o Renewable sources of energy will be demand more than ever.
o Energy efficiency will play a very big role in energy utilization.

1.3 Conventional energy resources

Major sources of energy include
 Fossil fuel: solid fuels available from inside the earth consist of fossil fuel. Coal,
petroleum, coke etc., are this type.
 Potential energy of water: mainly the hydropower generated from the dams
constitutes these.
 Nuclear energy: the energy from nuclear fission is this form.

1.3.1 Conventional Energy sources:

Coal, oil, gas, uranium and hydro are commonly known commercial E.S.
 Coal - 32.5%

 Oil – 38.3%

 Gas – 19.0%

 Uranium – 0.13%

 Hydro – 2.0%

 Wood – 6.6%

 Dung – 1.2%

 Waste – 0.3%
  World energy supply comes mainly from fossil fuels
1.3.2 Coal
Stages of coal formation
 As decaying plant material loses gas and moisture, carbon concentration
increases.
 PEAT is the first thing formed.
 When peat burns it releases large amounts of smoke because it has high
concentrations of water and impurities.
 Over time, heat and pressure cause the peat to change into lignite coal.
 As the lignite coal becomes buried by more sediments, heat and pressure change it
into bituminous coal.
 When bituminous coal is heated and squeezed during metamorphism, anthracite
coal forms.
1.3.2.1 Limitations
 Its shipping is expensive.

 Coal is pollutant and when burnt it produces CO2 and CO.

 Extensive use of coal as a Source energy is likely to disturb the ecological balance
of CO2 since vegetations in the world would not be capable of absorbing such
large proportions of CO2 produced by burning large quantities of coal

1.3.3 Gas
 Gas is incompletely utilized at present and huge quantities are burnt off in the oil
production process, because of the non availability of the ready market.

 Transportation cost is more

 Large reserves are estimated to be located in inaccessible areas.

 Gaseous fuels can be classified as

 Gases of fixed composition such as acetylene, Ethylene, methane
  Composite industrial gases such as producer gas, coke oven gas, water gas, blast
furnace gas etc.,
1.3.4 Agriculture and organic wastes
 At present small quantities of agriculture and organic wastes consisting of draw
saw dust, bagasse, garbage, animal dung, paddy husk and corn steam accounting a
major energy consumption.

 Most of the remaining material was burnt or left, unused causing considerable
environmental problems.
 Waste should be utilized near the source, in order to reduce the transportation
cost.

 Appropriate equipments for burning or extracting energy from the materials

should be developed to suit the local conditions and meet the rural areas.

1.3.5 Water Power

 Water power is developed by allowing to fall under the force of gravity, it is used
almost exclusively for electric power generation.

 PE is converted in to mechanical energy.

 Cheap where water is available in abundance.

 Although Capital Cost is higher, but operating cost is less.

 It is renewable non depleting source, it does create any pollution.

1.3.5.1 Development rate of hydro power is still low, due to the following problems
 6- 10 years (Planning, investigation and construction)

 High capital cost

 Problems on relocation of villages involved, compensation for damage and

environmental impact.

 Long transmission lines are required.

1.3.5.2 Measures to improve Development rate Hydro power
  Mini or Micro projects to supply electric power to remote area.

 In order to reduce the cost

 Develop low cost turbines and generators

 Participation of villages in the development and operation of the project.

 Using the appropriate technology.

1.3.6 Nuclear Power

 Controlled fission chain reaction neutrons split the nuclei of atoms such as of
Uranium, Thorium, Plutonium & release energy (heat).
 The energy released by One kg of U235 is equal to burning 4500 tones high grade
coal.

 Nuclear power stations can produce large amounts of energy from small amounts
of nuclear fuel. (Radioactive materials naturally release heat)

 Nuclear radiation is extremely dangerous

 High safety standards are needed

 Waste materials stay radioactive for thousands of years

 There have been some disastrous accidents at nuclear power stations which have
affected all living things in the area
1.4 Importance of Renewable Energy sources

 The demand of energy is increasing by leaps and bounds due to rapid

industrialization and population growth, and hence the conventional sources of
energy will not be sufficient to meet the growing demand.
 Conventional sources (except hydro) are non-renewable and are bound to finish
up one day.
 Conventional sources (fossil fuels, nuclear) also cause pollution; thereby their use
degrades the environment.
 Large hydro resources affect wildlife, cause deforestation and pose various social
problems.
 In addition to supplying energy, fossil fuels are also used extensively as feed stock
materials for the manufacture of organic chemicals. As reserve deplete, the need
for using fossil fuels exclusively for such purpose may become greater.
1.5 Renewable Energy Sources
The available renewable energy sources are listed below:
 Solar energy
 Wind energy
 Bio-energy
 Geothermal energy
 Energy from the ocean
1.5.1 Solar Energy
 It is radiation from the Sun capable of producing heat, causing chemical reactions
or generating electricity.
 The Sun is an extremely powerful energy source and solar radiation is by far the
largest source of energy received by the Earth, but its intensity at the Earth's
surface is actually quite low. This is partly because the Earth's atmosphere and its
clouds absorb or scatter as much as 54 percent of all incoming sunlight.
  Despite this, in the 20th century solar energy became increasingly attractive as an
energy source owing to its inexhaustible supply and its nonpolluting character,
which are in stark contrast to such fossil-fuel sources as coal, oil, and natural gas.
 The sunlight that reaches the ground consists of nearly 50 percent visible light, 45
percent infrared radiation and smaller amounts of ultraviolet light and other forms
of electromagnetic radiation. This radiation can be converted either into thermal
energy (heat) or into electrical energy, though the former is easier to accomplish.
 Two main types of devices are used to capture solar energy and convert it to
thermal energy: flat-plate collectors and concentrating collectors. Because the
intensity of solar radiation at the Earth's surface is so low, both types of collectors
must be large in area.
 Even in sunny parts of the world's temperate regions, for instance, a collector
must have a surface area of about 430 square feet (40 square m) to gather enough
energy to serve one person for one day.
 The most widely used flat-plate collectors consist of a blackened metal plate,
covered with one or two sheets of glass that is heated by the sunlight falling on it.
 This heat is then transferred to air or to water, called carrier fluids, that flows past
the back of the plate. Flat-plate collectors are commonly used for hot-water
heating and house heating. Flat-plate collectors typically heat carrier fluids to
temperatures ranging from 66° to 93° C (150° to 200° F).
 The efficiency of such collectors ranges from 20 to 80 percent, depending on the
design of the collector.
1.5.1.1 Applications of Solar Energy
 Heating and cooling residential building
 Solar water heating
 Solar distillation
 Solar engines for water pumping
 Food refrigeration.

1.5.2 Wind Energy

 Winds are caused because of two factors.
 The absorption of solar energy on the earth’s surface and in the atmosphere.
 The rotation of the earth about its axis and its motion around the sun.
 Because of these factors, alternate heating and cooling cycles occur, Differences
in pressure are obtained, and the air is caused to move.
 The Potential of Wind energy as a source of power is large. This can be judged
From the fact that energy available in the wind over the earth’s surface is
Estimated to be 1.6x107 K.W Besides the energy available is free and clean. The
problems associated with Utilizing wind energy are that:
 The energy is available in dilute form, because of this conversion
 Machines have to be necessarily large.
 The availability of the energy varies considerably over a day and with the
Seasons. For this reason some Means of storage have to be devised if a
Continuous supply of power is required. Wind mill converts the kinetic energy of
moving air into mechanical Energy that can be either used directly to run the
machine or to run the Generator to produce electricity.

1.5.2.1 Different types of windmill

 Multiblade type wind mills.

 Sail type wind mills

 Propeller type wind mills

 Savonius type wind mills

 Darrieus type wind mills

1.5.2.2 Characteristics of wind mills

 Renewable energy source

 Non polluting

 Avoid fuel provision and transport

 Small scale systems (few kilowatts) is less costly.

1.5.2.3 Problems associated with wind energy
 Wind energy available is dilute and fluctuating in nature.

 Noisy in operation

 Large area is required

 Wind velocity in India are relatively low (5 km/hr to 20 km/hr)

1.5.3 Bio-Electricity
 Electricity is the key to economic development for any country. The conventional
fossil fuel resources for power generation are fast depleting and there is a growing
concern over the environmental degradation caused by conventional power plants.
 Against such implications, power generation from non-conventional resources
assumes greater significance. Among the various renewable energy sources,
biomass conversion technologies appear to be one of the best suited for
conversion to shaft power/electricity.
 Among the various renewable energy sources, bio-resources, of which agro-
residue forms a major component, hold special promise as future fuel and
feedstock. Biomass-based systems are the only energy generating systems, which
have the combined benefits of renewability, decentralization, and availability on
demand without need for separate storage.
 Taking into account the energy requirements of collection, processing and
conversion to convert forms of that, biomass still assures a bright future from
energy point of view.
 Worldwide, biomass is the fourth largest energy resource after coal, oil, and
natural gas.
 It is used for heating (such as wood stoves in homes and for process heat in bio-
processing industries), cooking (especially in many parts of the developing
world), transportation (fuels such as ethanol) and, increasingly, for electric power
production.
1.5.3.1 Advantages
 Biomass is available all round the year. It is cheap, widely available, easy to
transport, store, and has no environmental hazards.
 Biomass-based power generation systems, linked to plantations on wasteland,
simultaneously address the vital issues of wastelands development, environmental
restoration, rural employment generation and generation of power with no
distribution losses.
 As a renewable fuel, biomass is used in nearly every corner of the developing
world as a source of heat, particularly in the domestic sector.
 Biomass is a versatile source of energy, which can be converted to ‘modern’
forms such as liquid and gaseous fuels, electricity and process heat.
 Bio-energy also permits operation at varying scales. For example, small-scale (5–
10 kW), medium-scale (1–10 MW) and large-scale (about 50 MW) electricity
generation systems or biogas plants of a few cubic meters (Indian and Chinese
family plants for cooking) to several thousand cubic meters (Danish systems for
heat and electricity). This variety of scales is useful for power generation for
decentralized applications at the village level as well as for supply to the national
grids.
 Modern biomass energy systems could be set up in virtually any location where
plants can be grown or domestic animals reared. Support from the government
Exploitation of the abundant biomass energy resources available in our country is
being accorded a high priority by the MNES (Ministry of Non-conventional
Energy Sources).
 The implementation of projects is being facilitated through comprehensive
programmes by the ministry, which seeks to create a favorable policy
environment, encourage technology up gradation and ensure market for the power
generated.
 In pursuance of the national agriculture policy, a National Biomass Resource
Atlas is being prepared with the specific intention of boosting power generation
form biomass.
  The national agriculture policy had called for increasing power generation from
renewable sources for meeting the needs of agriculture. The national Biomass
Resource Assessment Programme has been assigned this task.
 According to a recent initial assessment made by the MNES about 500 million
tonnes of biomass is generated every year from crop residues, bagasse, agro
residue and forest sources. So far bagasse-based cogeneration has achieved a
capacity of 222 MW and about 332 MW capacity is under installation.

1.5.4 Tidal Energy

 Solar energy which may be used directly creates other forms of energy that can
also be harnessed to generate power. One, the wind, is caused by the uneven solar
heating and cooling of the earth’s crust combined with the rotation of the earth.
 Another is the result of the absorption of the seas and oceans of solar radiation,
which causes, like the wind, ocean currents and moderate temperature gradients
from the water surface downward, especially in tropical waters.
 The oceans and seas constitute some 70 percent of the earth’s surface area, so
they represent a rather large storage reservoir of the solar input. The temperature
gradient can be utilized in a heat engine to generate power. This is called ocean
temperature energy conversion (OTEC). OTEC may be considered solar energy
once removed. Because the temperature difference is small, even in the tropics,
OTEC systems have very low efficiencies and consequently have very high
capital costs.
 Another source of energy in the oceans that can be exploited for power generation
is the tides. Tides are primarily caused by lunar and only secondarily by solar,
gravitational forces acting together with those of the earth on the ocean waters to
create tidal flows. These manifest themselves in the rise and fall of waters with
ranges (height differences) that vary daily and seasonally and come at different
times from day to day.
 They also vary widely from place to place, being as low as few centimeters but
may exceed 8 to 10 m (25 to 30ft) in some parts of the world. The potential
 energy of the tides can be trapped to generate power, but at extremely high capital
costs.
 As the seas and oceans of the earth constitute about 70 percent of its surface area,
the total terrestrial solar energy incidence on them is immense, being equal to the
total extra terrestrial solar energy received by the earth, which is about 1.516 E
+18 Kwh/year or about 5.457 E+18 MJ/year, times an average clearness index of
0.5 times the fraction of area 0.7 or about 0.53 E+18 kWh/year, or 1.9 E+18
MJ/year.

1.5.5 Geothermal Energy

 It is the power obtained by using heat from the Earth's interior. Most geothermal
resources are in regions of active volcanism.
 Hot springs, geysers, pools of boiling mud, and fumaroles (vents of volcanic
gases and heated groundwater) are the most easily exploited sources of such
energy. The greatest potential for geothermal energy, however, lies in the
generation of electricity.
 Geothermal energy was first used to produce electric power at Larderello, Italy, in
1904. By the late 20th century, geothermal power plants were in operation in Italy,
New Zealand, Japan, Iceland, Mexico, the United States, and elsewhere, and
many others were under construction in other countries.
 The most useful geothermal resources are hot water and steam trapped in
subsurface formations or reservoirs and having temperatures ranging from 176° to
662° F (80° to 350° C).
 Water and steam hotter than 356° F (180° C) are the most easily exploited for
electric-power generation and are utilized by most existing geothermal power
plants. In these plants the hot water is flashed to steam, which is then used to
drive a turbine whose mechanical energy is then converted to electricity by a
generator.
 Hot, dry subsurface rocks may also become more widely used as a source of
geothermal energy once the technical problems of circulating water through them
for heating and conversion to steam are completely resolved.
  The development of geothermal resources has become increasingly attractive
owing to the rising cost of petroleum and the non polluting character of
geothermal energy production.

1.5.6 Advantages of Renewable Energy source

 Non conventional sources are available in nature free of cost.

 They produce no or little pollution. Thus by and large, they are environment
friendly.
 They are inexhaustible.
 They have a low gestation period
1.5.7 Disadvantages of Renewable Energy Sources
 The energy available in dilute form from these sources.
 Though available freely in nature, the cost of harnessing energy from
 A non conventional source is generally high.
 Availability is uncertain; the energy flow depends on various natural
 Phenomena beyond human control.
 Difficulty in transporting such forms of energy.

1.6 Power Scenario in India

 India is now the eleventh largest economy in the world, fourth in terms of
purchasing power. It is poised to make tremendous economic strides over the next
ten years, with significant development already in the planning stages.
 In recent years, India has emerged as one of the leading destinations for investors
from developed countries. This attraction is partially due to the lower cost of
manpower and good quality production.
 The expansion of investments has brought benefits of employment, development,
and growth in the quality of life, but only to the major cities. This sector only
represents a small portion of the total population. The remaining population still
lives in very poor conditions.
 Fig.:1.6 Energy map of India

1.6.1 Installed Capacity of Energy Resources in India

Table : 1.6.1 Installed Capacity of RES and NRES in India
 Table: 1.6.2 Installed Capacity of RES and NRES Sector-wise in India

 Renewable energy sources are sources that are continuously replenished by

natural processes. For example, solar energy, wind energy, bio-energy - bio-fuels
grown sustainably, hydropower etc., are some of the examples of renewable
energy sources.
 A renewable energy system converts the energy found in sunlight, wind, falling-
water, sea waves, geothermal heat, or biomass into a form, we can use such as
heat or electricity. Most of the renewable energy comes either directly or
indirectly from sun and wind and can never be exhausted, and therefore they are
called renewable.
 Solar: India receives solar energy in the region of 5 to 7 kWh/m2 for 300 to 330
days in a year. This energy is sufficient to set up 20 MW solar power plant per
square kilometer land area.
 Wind Energy: India has been rated as one of the most promising countries for
wind power development, with an estimated potential of 20,000 MW.
 Biomass fuels account for about one-third of the total fuel used in the country. It
is the most important fuel used in over 90% of the rural households and about
15% of the urban households. Using only local resources, namely cattle waste and
other organic wastes, energy and manure are derived. Thus the biogas plants are
the cheap sources of energy in rural areas
  Cogeneration: Cogeneration improves viability and profitability of sugar
industries. Indian sugar mills are rapidly turning to bagasse, the leftover of cane
after it is crushed and its juice extracted, to generate electricity.
 This is mainly being done to clean up the environment, cut down power costs and
earn additional revenue.
 According to current estimates, about 3500 MW of power can be generated from
bagasse in the existing 430 sugar mills in the country. Around 270 MW of power
has already been commissioned and more is under construction.

1.6.2 Renewable Energy Sources in India

 Renewable energy is derived from natural processes that are replenished

constantly. In its various forms, it derives directly from the sun, or from heat
generated deep within the earth.
 Included in the definition is electricity and heat generated from solar, wind,
ocean, hydropower, biomass, geothermal resources, bio fuels and hydrogen
derived from renewable resources.
1.6.2.1 Biomass and Biogas Energy
 The potential to generate power from biomass, as an alternative source of energy
in India is to the extent of more than 50% of the total requirement. India is
predominantly an agricultural economy, having huge quantity of biomass
available in the form of husk, straw, bagasse, jute, cotton, shells of coconuts wild
bushes etc. Biomass is produced in nature through photosynthesis achieved by
solar energy conversion.
 Biomass means organic matter. In simplest form, the process of photosynthesis is
in the presence of solar radiation.
 An estimated production of 350 million tons of agricultural waste every year,
biomass is capable of supplementing coal to the tune of about 200 million tones
producing of power.
 The large quantities of cattle dung can be used in bio energy technologies viz.,
biogas, gasifier, biomass combustion, cogeneration etc., to produce energy
thermal or electrical energy.
 Biomass energy co-generation program is being implemented with the main
objective of promoting technologies for optimum use of biomass resources of
India.
 The biomass power generation potential in India is estimated at 30000 MW. It
results in a saving of about Rs.20,000 crores every year.
 Biomass can be used in three ways – gasification, methane gas production and
combustion.
 The technologies being promoted include combustion either for power in captive
or grid connected modes, or for heat applications.
1.6.2.2 Wind Energy
 Energy of wind can be economically used to generate electrical energy Wind can
also be used to provide mechanical power such as for water pumping.
 In India generally wind speeds obtainable are in the lower ranges. Therefore,
attempts are on the development of low cost, low speed mills for irrigation of
small and marginal farms for providing drinking water in rural area.
 The developments are being mainly concentrated on water pumping wind mill
 suitable for operation in a wind speed range of 8 to 36 kmph. In India high wind
speeds are obtainable in coastal areas of Saurashtra, western Rajasthan and some
parts of central India.
1.6.2.3 Small Hydropower
 Energy from small hydro is the oldest. It is most reliable of all renewable energy
sources.
 The development of small scale hydropower in India started almost in the pace
with the world’s first hydroelectric installation in 1882 at Appleton USA.
 The 130 KW installations in Sidrapong (Darjeeling) in the year 1897 was the first
installation in India.
 The other installations were Shivasamundram at Mysore (2000 kW), and
Bhoorisingh in Chamba (40 kW) in 1902, Galogi at Mussoorie (3000 kW) in
1907, Jubbal (50 kW) in 1911 and Chhaba (1750 kW) at Shimla in 1913.
 These plants were used primarily for lighting in important towns and are still
working. The country has an estimated SHP potential of about 15000 MW. So far
514 SHP projects with an aggregated installed capacity of 1693 MW have been
installed.
 The term ‘small hydro’ has a wide range in usage. It covers schemes having
installed capacities from a few kW to 25 MW. In India small hydro schemes are
further classified as
 Micro hydro up to 100 kW plant capacity, Mini hydro from 101
kW to 2000 kW and Small hydro up to 25000 kW plant
capacities.
1.6.2.4 Solar Energy
 Solar energy has the greatest potential of all the sources of renewable energy. If
only a small amount of this form of energy could be used, it will be one of the
most important supplies of energy specially when other sources in the country
have depleted energy comes to the earth from the sun.
 This energy keeps the temperature of the earth above than in colder space, causes
current in the atmosphere and in ocean. It causes the water cycle and generates
photosynthesis in plants.
  The solar power where sun hits atmosphere is 10 17 W. The solar power on the
surface of earth is 1016 W. The total worldwide power demand of all needs of
civilization is 1013 W.
 Therefore, the sun gives us 1000 times more power than we need. If we can use
5% of this energy, it will be 50 times what the world will require electrical energy
that can be produced from the solar energy by photovoltaic solar cells. SPV cell
converts the solar energy directly to electrical energy.
 The most significant applications of SPV cells in India are the energization of
pump sets for irrigation, drinking water supply and rural electrification covering
street lights, community TV sets, medical refrigerators ,other small power loads.

1.6.2.5 Ocean Thermal Energy

 This is also an indirect method of utilizing solar energy. A large amount of solar
energy is collected and stored in tropical oceans.
 The surface of the water acts as the collector for solar heat, while the upper layer
of the sea constitutes infinite heat storage reservoir. Thus the heat contained in the
oceans, could be converted into electrical energy by utilizing the fact that the
temperature difference between the warm surface waters of the tropical oceans
and the colder waters in the depth is about 20 - 250K.
  Utilization of this energy, with its associated temperature difference and its
conversion into work, forms the basis of Ocean Thermal Energy Conversion
(OTEC) systems.The surface water, which is at higher temperature, could be used
to heat some low boiling organic fluid and the vapors of which would run a heat
engine. The exit vapor would be conducted by pumping cold water from the
deeper regions.
 The amount of energy available for ocean is replenished continuously. All the
systems of OTEC method work on a closed Rankine cycle. It uses low boiling
organic fluids like ammonia, Propane, R - 12, R - 22 etc

1.6.2.6 Tidal Energy

 The tides in the sea are the result of the universal gravitational effect of heavenly
bodies like sun and moon on the earth. Due to fluidity of water mass, the effect of
this force becomes apparent in the motion of water.
 It shows a periodic rise and fall in levels. It is in synthesis with the daily cycle of
rising and setting of sun and moon. This periodic rise and fall of the water level of
sea is called tide. These tides can be used to produce electrical energy. It is called,
“Tidal Energy”. When the water is above the mean sea level, it is called, “Flood
Tide”.
 When the level is below the mean sea level, it is called, “Ebb Tide”. To harness
the tides, a dam is built across the mouth of the bay. It will have large gates in it.
It has low head hydraulic reversible turbines.
 A tidal basin is formed. It gets separated from the sea by dam. The difference in
water level is obtained between the basin and sea. By using reversible water
turbines, turbines can be run continuously, both during high tide and low tide. The
turbine is coupled to generator.
 Potential energy of the water stored in the basin as well as energy during high
tides used to drive turbine. It is coupled to generator to generate electrical energy.
1.6.2.7 Geo Thermal Energy
 This energy lies embedded n the earth. According to various theories the earth has
a molten core. The steam and the hot water come naturally to the surface of the
 earth in some locations of the earth.

 Two ways of electric power production from geothermal energy has been
suggested.
 Heat energy is transferred to a working fluid which operates the power cycle.
 This may be particularly useful at places of fresh volcanic activity,
where the molten interior mass of earth vents to the surface through
fissures and substantially high temperatures, such as between 450 to
5500C can be found. By embedding coil of pipes and sending water
through them can be raised.
 Hot geothermal water and or steam is used to operate the turbines directly.
Presently only steam coming out of the ground is used to generate electrical
energy.
 The hot water is discarded because it contains as much as 30%
dissolved salts and minerals. These cause serious rust damage to
the turbine.
1.6.2.8 Hydrogen Energy and Fuel Cells
 In recent years hydrogen has been receiving worldwide attention as a clean and
efficient energy carrier with a potential to replace liquid fossil fuels.
 Significant progress has been reported by in the development of hydrogen energy
as an energy carrier and an alternative to fossil fuels.
 Depleting fossil fuel reserves, green house gas emissions and air quality are
driving this global transformation effort towards a hydrogen based economy.
 Hydrogen has high energy content, when burnt, it produces only water as a
byproduct.
 Therefore, it is environmentally benign. At present hydrogen is available as a by-
product from several chemical processes, plants or industries
1.6.2.9 Conclusion
 Renewable energy accounts for approximately 12% of a total 200 GW of power
generation capacity installed in India.
  Demand for power in India has been increasing due to the rising population,
growing economy, and changing lifestyles.
 Despite substantial capacity additions, the power sector is still in shortage of
energy.
 Peak demand shortage averages around 12%.
 Renewable energy installed capacity has grown at a healthy CAGR of 19% over
FY07-FY12.

1.7 World's Energy Scenario and Installed Capacity

 UNEP’s Global Trends in Renewable Energy Investment, and REN21’s

Renewables 2012 Global Status Report were launched on 11th June 2012.
 Against an increasingly rough and tumble competitive landscape, total investment
in renewables excluding large hydro last year increased 17% to a record $257
billion, a six-fold increase on the 2004 figure and 94% higher than the total in
2007, the year before the world financial crisis, says the UNEP report, Global
Trends in Renewable Energy Investment 2012.
 The report was prepared by the UNEP Collaborating Centre for Climate and
Sustainable Energy Finance in association with Bloomberg New Energy Finance.
 Although last year’s 17% increase was smaller than the 37% rise recorded in
2010, it was achieved against the backdrop of a widening sovereign debt crisis in
Europe and during a period of rapidly falling prices for renewable power
equipment.
 In more and more countries, renewable energy has outgrown its “niche player”
status and now represents a significant and rapidly growing share of total energy
supply.
 REN21’s Renewables 2012 Global Status Report notes that during 2011,
renewables continued to grow strongly in all end-use sectors - power, heating and
cooling and transport.
  Renewable sources have grown to supply 16.7 % of global final energy
consumption. Of that, traditional biomass's share has declined slightly, while
modern renewable energy’s share has risen.

Fig 1.7 World’s installed Capacity of RES

1.7.1 World's Appetite for energy
 World energy consumption has increased rapidly since the industrial revolution
introduced mechanized production methods.
 However, since the first Earth Day on April 22, 1970, the public has grown
increasingly conscious of the environment and the need to be prudent in the use of
natural resources.
 The rate of energy consumption has slowed in the United States since the 1980s,
but Americans continue to use energy lavishly compared with every other part of
the world.
 Americans consume about 100 quadrillion British thermal units(Btu) yearly. (An
engine burning 8 billion gallons [30 billion l] of gasoline produces about 1
 quadrillion [1015] Btu of energy; 1 Btu equals the energy
released in burning one wooden match.) The United States
consumes more energy than it produces, so it must import the
difference.
 The following table shows how the United States currently uses
its energy sources.
 Electric power production uses the biggest portion, about 40
percent, of all energy used in the United States.
 Transportation consumes 28.5 percent of the country’s energy
use, industry uses 21.1 percent, and residential and commercial
buildings use 10.4 percent. Lifestyle and a country’s type of
economics affect the rate at which residents consume energy.
 Many of the highest energy consumers produce very little of the
energy they use within their borders. Luxembourg, for example,
consumes a rather large amount of energy per capita, yet it
produces almost none of its energy.
 The countries that in the past decade have consistently used the
most energy per capita per year are the following:

Table.1.7.1 World’s Energy Consumption.

 Solar generation surged past wind power to become the renewable energy
technology of choice for global investors in 2011. Solar attracted nearly twice as
much investment as wind, driving the renewables sectors to yet another record-
breaking year, albeit one beset with challenges for the renewable industry. Total
investment in solar power jumped 52% jump to $147 billion. Competitive
challenges intensified sharply, leading to sharp drops in prices, especially in the
solar market - a boon to buyers but not to manufacturers, a number of whom went
 out of business or were forced to restructure.

1.8 Energy Conservation

 Energy Conservation means reduction in energy consumption but without making
any sacrifice in the quality or quantity of production.
 In other words, it means increasing the production from a given amount of energy
input by reducing losses/wastage and maximizing the efficiency.
1.8.1 Needs of Energy Conservation
 Energy conservation is necessary to reduce the wastage of energy.
 It helps to keep the domestic change payment constant even when the production
cost of electricity increase.
 It helps to maintain the profit in industries uniform even if the electricity change
increases.

1.8.2 Incentives in Energy Conservation.

The major incentives in energy conservation are:
 Decreasing the energy requirement
 Conserving the limited conventional assets of energy
 Saving the environment
 Feed-in-tariffs for both wind and solar energy
 Up to 80 percent accelerated depreciation for renewable energy investments
 Preferential tax rate of 15 percent, instead of the standard 30 percent
 Exemption from Central Sales Tax and customs duty concessions on soft loans for
the import of material, components, and equipment used in renewable energy
projects
 Establishment of the National Solar Mission (NSM), which aims to deploy 20
GW of solar energy by 2020
 Soft loans for setting up renewable energy enterprises
 Tax holiday for 10 years for Biomass power projects

1.8.3 General principles of Energy Conservation

The general principles of Energy Conservation are
 Recycling of waste
 Modernization of technology
 Waste heat utilization
 Proper house keeping
 Judicial use of proper types of energy
  Judicial use of proper type of fuel
 Training of manpower
 Adopting daylight saving time
 Proper operation and maintenance
1.8.4 Necessity of Energy Storage.
 The effective utilization of intermittent and variable energy source such as
sunlight, wind, etc., often requires energy storage
 Storing the energy and transporting it economically to a load centre.
 The vehicle must carry its energy supply, the storage system must be readily
transportable
 Energy storage is also required for load leveling in an electric utility to reduce the
overall cost of generating electrical power.

1.8.5 Energy Utility Factor

 The relation between useful thermal energy and the available chemical energy in
the fuel is expressed by means of the energy utility factor.
 Energy Utility Factor = Useful Thermal Energy
Available Energy in Fuel

1.9 Energy Conservation or Electricity Act, 2003

 The government has enacted Electricity Act, 2003 which seeks to

bring about a qualitative transformation of the electricity sector.
The Act seeks to create liberal framework of development for the
power sector by distancing Government from regulation.
 It replaces the three existing legislations, namely, Indian
Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the
Electricity Regulatory Commissions Act, 1998.
 The objectives of the Act are "to consolidate the laws relating to
generation, transmission, distribution, trading and use of
electricity and generally for taking measures conducive to
 development of electricity industry, promoting competition
therein, protecting interest of consumers and supply of electricity
to all areas, rationalization of electricity tariff, ensuring
transparent policies regarding subsidies, promotion of efficient
and environmentally benign policies, constitution of Central
Electricity Authority, Regulatory Commissions and establishment
of Appellate Tribunal and for matters connected therewith or
incidental thereto."

1.9.1 Salient Features of the Electricity Act, 2003

 The Central Government to prepare a National Electricity Policy

in consultation with State Governments. (Section 3)
 Thrust to complete the rural electrification and provide for
management of rural distribution by Panchayats, Cooperative
Societies, non-Government organizations, franchisees etc.
(Sections 4, 5 & 6)
 Provision for license free generation and distribution in the rural
areas. (Section 14)
 Generation being delicensed and captive generation being freely
permitted. Hydro projects would, however, need clearance from
the Central Electricity Authority. (Sections 7, 8 & 9).
 Transmission Utility at the Central as well as State level, to be a
Government company – with responsibility for planned and
coordinated development of transmission network. (Sections 38
& 39).
 Provision for private licensees in transmission and entry in
distribution through an independent network, (Section 14).
 Open access in transmission from the outset. (Sections 38-40)
 Open access in distribution to be introduced in phases with
surcharge for current level of cross subsidy to be gradually
 phased out along with cross subsidies and obligation to supply.
SERCs to frame regulations within one year regarding phasing of
open access. (Section 42)
 Distribution licensees would be free to undertake generation and
generating companies would be free to take up distribution
businesses. (Sections 7, 12).
 The State Electricity Regulatory Commission is a mandatory
requirement. (Section 82)
 Provision for payment of subsidy through budget. (Section 65)
 Trading, a distinct activity is being recognized with the safeguard
of the Regulatory
 Commissions being authorized to fix ceilings on trading margins,
if necessary. (Sections 12, 79 & 86).
 Provision for reorganization or continuance of SEBs. (Sections
131 & 172).
 Metering of all electricity supplied made mandatory. (Section 55).
 An Appellate Tribunal to hear appeals against the decision of the
CERC and SERCs. (Section 111).
 Provisions relating to theft of electricity made more stringent.
(Section 135-150).
 Provisions safeguarding consumer interests. (Sections 57-59,
166) Ombudsman scheme (Section 42) for consumers grievance
redressal.

1.10 Tariff:
Tariff: The rate at which electrical energy is supplied to the consumer.
1.10.1 Types of tariff:
 Simple tariff
 Flat rate tariff
 Block rate tariff
 Two port tariff
 Maximum demand tariff
 Power factor tariff
Simple tariff: When there is a fixed rate per unit of energy consumed.
In this type of tariff, the price charge per unit is constant. It does not vary with increase
or decrease in number of units consumed. The consumption of electrical energy is
recorded by an energy meter.

Disadvantages:
 There is no discrimination between different types of consumers since every
consumer has to pay equitably for fixed charges.
 It does not encourage the use of electricity.
Flat rate tariff:
 When different types of consumers are charged at different uniform per unit rates.
 In this type of tariff, the consumers are grouped into different classes and each class
of consumers is charged at a different uniform rate.
 For instance, the flat rate for kWh for lighting load may be 60 paise wherein various
it may be slightly less(say 55 paise for kWh) for power load.
Block rate tariff:
 When a given block of energy is charged at a specified and the succeeding blocks
of energy are charged or progressively reduced rates. In this type, the energy
consumption is divided into blocks and the price per unit is fixed in each block.
 The price per unit in the first block is highest and it is progressively reduced for
succeeding blocks of energy.
 The advantage of such tariff is that consumer gets incentives to use more
electrical energy. This increases the load factor of the system.
Two port tariff :
 When the rate of electrical energy is charged on the basis of maximum demanf of
the consumers and number of units consumed.
  In this type of tariff, the total charges to be made from the consumer is split into
two components(fixed charges, running charges.)
 Total charges=Rs(b*kW+c*kWh)
Where,
b= charges per kW of maximum demand
c= charges per kWh of energy demand
Maximum demand tariff:
 It is similar to two-part tariff with the only difference that the maximum demand
is actually measured by installing maximum demand meter in premises of the
consumer. This type of tariff is mostly applied to big consumers.
Power factor tariff:
 The rate in which power factor of the consumer’s load is taken into consideration.
 A low power factor increases the rating of the station equipment and line losses.
The following are the important types of power factor tariff:
(i) kVA maximum demand tariff: It is a modified form of two –part tariff. In this
case, the fixed charges are made on the basis of maximum demand in kVA and
not in kW.
(ii) kW and kVAR tariff: In this type, both active power(kW) and reactive power
(kVAR) supplied are charged separately. A consumer having low power factor
will draw more reactive power and hence shall have to pay more charges.
(iii) Sliding scale tariff: This is known average power factor tariff.
Three-part tariff:
 When total charge to be made from the consumer is split into three parts namely
fixed charge, running charge and semifixed charge.
Total charge=Rs(a+b*kW+c*kWh)
Where,
a=fixed charge made during each billing period. It includes interest and
depreciation on the cost of secondary distribution and labour cost of collecting revenues.
b= charges per kW of maximum demand
c= charges per kWh of energy demand
  Price of energy does not reflect true cost to society. The basic assumption
underlying efficiency of market place does not hold in our economy, since energy
prices are undervalued and energy wastages are not taken seriously.
 Pricing practices in India like many other developing countries are influenced by
political, social and economic compulsions at the state and central level. More
often than not, this has been the foundation for energy sector policies in India.

1.10 Incentives
Investment and other subsidies
1.10.1.1 Foreign Direct Investment (‘FDI’)

 The growth of the clean energy sector in India has been

impressive.

 India permits FDI up to 100 percent in the sector under the

automatic route in Renewable Energy Generation and Distribution
projects that are subject to the provisions of the Electricity Act of
2003. Under the Act, no prior approval of regulatory authorities is
required.

1.10.1.2 Financing

 The Indian Renewable Energy Development Agency has been established under
the Ministry for Non-Conventional Energy Sources as a specialized financing
agency to promote and finance renewable energy projects.

 Operating subsidies

1.11 Feed-in tariff

1.11.1 Generation Based Incentives (GBI)

  To attract foreign investors, the government has taken several initiatives such as
introducing GBI schemes to promote projects under Independent Power
Producers (IPP) mode for wind and solar power.

1.11.2 Accelerated depreciation

 Under the domestic income-tax law, companies involved in renewable energy

such as solar and wind was provided with accelerated depreciation at 80 percent.

 However, the government has restricted the accelerated depreciation of 80 percent

to windmills installed on or before 31 March 2012. Windmills installed after 31
March 2012 will be eligible for depreciation of 15 percent instead of 80 percent
on the written-down value method.

 It may be noted that 80 percent depreciation is still available for solar power
projects.

 Further, power companies have been provided with an option to claim

depreciation under straight line method. However, a company can claim either
accelerated depreciation or GBI (but not both).

1.11.3 Renewable Purchase Obligation (RPO)

 The current contribution of renewable energy is 12.5 percent of India’s total

generation installed capacity. The Ministry of New and Renewable Energy
estimates that this contribution will increase to around 16 percent or 17 percent by
the end of the 12th Five Year Plan in 2017.

 RPO is one of the tools for implementing this ambitious goal. Under RPO rules,
distribution companies, open access consumers and captive consumers are
obligated to buy a certain percentage of their power from renewable sources of
energy. We believe that going forward; the enforcement of RPO will create the
volumes needed for the Renewable Energy Certificate market.

1.11.4 Jawaharlal Nehru National Solar Mission (JNNSM)

 The JNNSM is a transformational initiative for solar energy development in India.

Its primary focus is to establish an enabling environment for solar technology,
 both at a centralized and decentralized level, with 20,000 MW of grid-connected
solar power capacity by 2022.

 Related to this initiative, the government has launched the Payment Security
Mechanism for Grid Connected Solar Power Projects and a Renewable Energy
Certificate Mechanism.

 The government has also created the Amendment in National Tariff Policy for
enabling a solar-specific Renewable Portfolio Obligation.

 The JNNSM program has been designed as a three-stage process with targets set
under each phase.

 Phase 1 (up to 2013) will focus on capturing available options in

solar thermal; promoting off-grid systems to serve populations
without access to commercial energy, and making a modest
increase in capacity to grid-based systems.

 Phase 2 (2013-2017), 10,000 MW grid-connected solar plants will

be implemented, including rooftop and other small-scale
applications. For off-grid solar applications, the cumulative target
for Phase 2 is 1,000 MW. Besides the national program, solar
programs at the state level also exist.

 The policy framework has generated tremendous interest in this space, and the
response JNNSM program has received from the market is overwhelming.

1.11.5 Carbon Credits and Clean Development Mechanisms (CDMs)

 The Clean Development Mechanism (CDM) is an arrangement under the Kyoto

Protocol.

 The mechanism allows developed (Annex 1) countries with a green house gas
(GHG) reduction commitment to invest in projects that reduce emissions in
developing countries as an alternative to more expensive emission reductions in
their own countries.
 The developed country gets carbon credits, while the developing country gets
capital and clean technology.

 India is the second largest seller of carbon credits. The country is also a leading
destination among non-Annex 1 countries with regards to CDM implementation.
 It has the highest rating of any CDM host country, with 32 percent of the world
total of 1,081 projects registered with CDM EB.