INDIA’S QUEST FOR A LOWER
CARBON FOOTPRINT
Ajay Shankar
[email protected]
INDIA: THE PRESENT SITUATION
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Population
GDP
Per capita GDP
GDP Growth Rate
TPES Growth Rate
Electricity Capacity
1.2 billion (Census 2011)
$1.7 trillion (IMF April 2011)
$1,380 (IMF April 2011)
Around 8.5% over last ten years
8 to 10% over next two decades
Around 3.5% (IEA)
173,326MW (CEA India April
2011)
400 million without access to electricity in 2001
(Census 2001)
TOTAL PRIMARY ENERGY SUPPLY
SHARE OF TOTAL ENERGY SUPPLY IN
2008
INDIA’S RELATIVE POSITION
(Source Selected Indicators 2008: Key World Energy Statistics 2010 IEA )
EMISSION INTENSITY
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India’s Emission Intensity fell 35% between
1994- 2007
India’s Voluntary National Target is to further
lower emission intensity by 20-25% between
2005-2020
(Source Selected Indicators 2008: Key World Energy Statistics 2010 IEA )
ENERGY EFFICIENCY
(Source Selected Indicators 2008: Key World Energy Statistics 2010 IEA )
FOSSIL FUELS IN ENERGY SUPPLY
(Source Selected Indicators 2008: Key World Energy Statistics 2010 IEA )
EMISSION INTENSITY
(Source Selected Indicators 2008: Key World Energy Statistics 2010 IEA )
ENERGY EFFICIENCY
Market Mechanism
 Cross subsidy in Electricity Pricing. De facto carbon Tax
Over 50%
 Price signal + Competitive market structure
 Global Hub For Small Fuel Efficient Cars
 Energy Intensive Manufacturing; Steel, Cement, Paper
Plants: Among Global Best
 Rapid Penetration of CFLs
Regulatory Authority
 Electricity Conservation Act. Bureau of Energy Efficiency.
 Labeling of Appliances
 Standards. Moving Target Approach with Trading System
Envisaged
CHALLENGES AND OPPORTUNITIES
Challenges
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Contra Effect of Rising Incomes
Opportunities
Immediate. Technically Easy
 Waste in Subsidized Sector.
 Farmers Pump Sets For Irrigation
 SMEs
 Technical Losses in Electricity Supply
 Smart Grid
Technically Difficult
 Green Buildings: Cost Competitiveness.
 Smart Green Cities
 Energy Efficient Urban Design
 Transport: Intra and Inter City. Key Parameter
 Electric Vehicles
LOWERING CARBON EMISSIONS FROM
ENERGY SUPPLY
Need to Pursue All Options and Create
Winners
 Policy Environment of:
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Fiscal Deficit and Very Limited Resource
 Price Sensitivity in a Low Income Democracy
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Renewable Energy Focus
 Separate Ministry since Eighties
 State Electricity Commissions (SERCs)
 Mandated by Electricity Act 2003 to Increase
Share of Renewable Energy in Portfolio of
Utilities.
 Marginal Increase in Cost to Consumer.
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WIND
Successful.
 Fifth Largest in World. Over 14,000 MW.
Doubling of Capacity since 2007.
 Near Grid Parity. Growth Sustainable.
 Private Sector. Liberal Tax Incentives.
 Competitive Manufacturing Industry.
 Indian Firm Suzlon Reported World’s 3rd Largest
 Onshore Potential 60-70,000MW
 Offshore Yet To Begin
 Energy Potential from Wind Modest
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SOLAR MISSION
Program for 20,000MW by 2020 launched.
 First Phase 1000MW .
 Private Sector.
 Competitive Market Structure.
 Prices 30% Lower In One Year.
 Still High.
 Hope for Grid Parity.
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NUCLEAR
Domestic Industry
 Three Stage Program
 Grid Parity
 Civil Nuclear Agreement
 Prime Minister Singh Reiterates Commitment
 Target 20,000MW by 2020
 Rapid Scaling Up Thereafter
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OTHER OPTIONS
Biomass
 Small Village Level Plants with
Cow Dung
 Crop Residue
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Carbon Capture and Storage (CCS)
 Indian Coal
 Pilot Project
Shale Gas
SUMMARY
Pursuit of Multiple Paths
 Competitive Market Structure + Scale Effect
 Innovation
 Frugal Engineering.
 Movement Down Cost Curve
 Grid Parity
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India`s Quest for A Lower Carbon Footprint