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Monday, 07 December 09
HOW INDIA CAN CUT ITS ENERGY NEEDS BY 20%!
Using energy more efficiently can reduce our energy needs by one fifth; it is a strategy we must pursue even as we promote renewables, says Kirit Parikh.
India needs to grow at 8-10 per cent for the next two decades if the country is to eliminate poverty. This will require our energy consumption to grow four- to five-fold.
Our power capacity has to increase from around 170,000 Mw, including captive plants, to 800,000 Mw or 1,000,000 Mw by 2030.
With the full development of hydropower, an optimistic nuclear development scenario and improved availability of natural gas, we will need around 500 million tonnes (mt) of oil products, 200 billion cubic metres (bcm) of gas and around 2,000 mt of coal by 2030.
This compares with an oil consumption of 133 mt, gas consumption of 37 bcm and coal consumption of about 525 mt (Indian coal equivalent) in 2008. Even with the nuclear agreement, the nuclear capacity is not likely to reach more than 100,000 Mw by 2030.
Our import dependence may grow as high as 90 per cent for oil, 30 per cent for gas and 30 per cent for coal. We can reduce this by promoting energy efficiency and renewable resources.
Coal will remain our main energy source. It is generally believed that we have very little oil and gas, but large coal reserves. However, the currently known extractable coal reserves will run out in 45 years if our coal consumption keeps growing at 5 per cent per year, as it has in the past 25 years.
Thus, it is important to promote energy efficiency, including in coal use. The growing threat of climate change also requires this.
The first task in saving energy is to increase the efficiency of electricity use. A unit saved at the consumer end saves 1.25 units of generation and saves further energy, as coal does not have to be transported.
The Bureau of Energy Efficiency has taken a number of steps. An efficient lighting programme to replace incandescent bulbs by compact florescent lamps (CFLs), labelling of electrical equipment, a pilot programme to promote energy-efficient pumps for farmers, the launching of an energy conservation building code, standards and benchmarks for designated industries, etc, have been initiated. These will reduce energy, particularly electricity, consumption.
To get the full benefit from the labelling programme, public sector procurement officers should be enabled to purchase equipment based on life cycle cost instead of initial cost, without inviting Vigilance Commission investigation.
The government should issue an order specifying the price preference that may be given to equipment with a higher star rating. Thus, for example, an air conditioner with a three-star rating that saves Rs 1,500 per year in electricity bills over a two-star-rated air conditioner, may be given a price preference of Rs 3,600, which is the present discounted value of savings over three years at a 12 per cent discount rate.
While economic incentives are important, setting energy efficiency standards for equipment can play a very important role. By periodically tightening standards, the average annual energy consumption of refrigerators in the United States was brought down from 1,825 kwhr in 1974 to 476 kwhr by 2001.
Such efficiency gains are even more important for us, as with an 8 per cent growth rate, we will nearly double our capital stock in nine years. Energy-using equipment and appliances will also spread rapidly.
Thus, the manufacturers of equipment and appliances should be targeted to force the pace of improvement in energy efficiency.
Major opportunities also exist in cutting energy use in other areas.
Increasing the efficiency of coal-based power plants: The fuel conversion efficiency of the existing population of thermal power stations is on average around 30 per cent.
Super-critical boilers can provide an efficiency of 38-40 per cent. No new thermal power plant should be allowed without a certified fuel conversion efficiency of at least 38 per cent. The pace of efficiency improvement needs to be forced.
Shifting freight traffic to railways: Improve railway service to win back the long-distance freight traffic carried by trucks today that consume five times as much diesel per net tonne kilometre of freight carried.
The construction of dedicated freight corridors should be completed as soon as possible. Carrying 3,000 billion tonne kilometres (bt-km) of freight (half of the projected freight traffic in 2030) by rail instead of trucks can save approximately 50 mt of diesel per year.
Promoting urban mass transport: Promote urban mass transport by providing quality services which may be partially financed by imposing congestion, pollution and parking charges on those who use personalised motor transport.
Plan for future mass transport corridors in smaller cities and acquire right-of-way. As the city grows, the permissible built-up area may be gradually increased. However, the additional right to build should remain with the local government, which it can auction to finance mass transport and other urban infrastructure.
Increasing the fuel efficiency of vehicles: By promoting hybrid vehicles that are already available commercially internationally and flexi-fuel vehicles that can burn varying proportions of ethanol-blended fuels, we can improve efficiency by 20 per cent or more.
Fuel efficiency standards should be imposed on vehicle manufacturers to force the pace.
Promoting renewable energy such as solar is critical for our long-term energy security. Presently commercially available solar photovoltaic cells of 15 per cent efficiency covering 10 million hectares can more than meet all our energy needs projected for 2030.
The cost of solar electricity today is about Rs 20 per kwhr, compared to around Rs 4 at the consumer end from coal power. The solar mission to be launched has the target to make solar cost-competitive to coal power by 2020.
There are, however, applications that use solar energy that are economical today that can reduce the need for energy from conventional sources. Solar water heaters are a case in point.
With 50 million home water heaters we can save 95 billion units of electricity generation, which means a saving of 65 mt of coal.
We are short on fossil fuels. Energy efficiency can reduce our energy needs by 20 per cent and is a major resource that we must use even as we promote renewables.
The author, a former member of the Planning Commission, is Chairman of Integrated Research and Action for Development (IRADe).
Source: Business.Rediff
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Monday, 14 December 09
RICHARDS BAY COAL TO FINISH EXPANSION IN 1ST QUARTER
Richards Bay Coal Terminal, which ships more than a quarter of Europe’s energy coal, said it will complete its Phase 5 expansion project in th ...
Monday, 14 December 09
SOUTH AFRICAN STEAM COAL PRICES FIRMING UP FOR Q1 TRADE
Reuters reported that Q1 South African coal prices firmed again slightly largely on Asian demand but European delivered prices were little changed.
...
Sunday, 13 December 09
THE FREIGHT MARKET SEEMS TO BE COMING OFF A BIT AND THE MARKET MAY BE SOFT NEXT WEEK - CAPT. REDDY
COALspot.com (Singapore): "The market softened this week especially in the Cape and Panamax segment , where as the Supramax and Handy size was ...
Sunday, 13 December 09
NAPOCOR CUTS COAL IMPORT PROJECTION FOR 2010
STATE-RUN National Power Corp. slashed its planned coal importation for 2010 to only 200,000 metric tons from 3.4 million MT this year, as the gover ...
Sunday, 13 December 09
CHINESE BUYERS SEEK LARGE TONNAGE OF SOUTH AFRICA STEAM COAL
Reuters reported that Chinese utilities on the coast and inland are seeking several cape cargoes each of South African coal for 2010 delivery becaus ...
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- Sical Logistics Limited - India
- Thai Mozambique Logistica
- Economic Council, Georgia
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- Central Java Power - Indonesia
- Electricity Authority, New Zealand
- Bhushan Steel Limited - India
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Sojitz Corporation - Japan
- Bangladesh Power Developement Board
- Ministry of Mines - Canada
- Sree Jayajothi Cements Limited - India
- Kapuas Tunggal Persada - Indonesia
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Deloitte Consulting - India
- The University of Queensland
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Global Green Power PLC Corporation, Philippines
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- Parliament of New Zealand
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Karaikal Port Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Agrawal Coal Company - India
- Wood Mackenzie - Singapore
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Interocean Group of Companies - India
- Merrill Lynch Commodities Europe
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Energy Development Corp, Philippines
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Heidelberg Cement - Germany
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Romanian Commodities Exchange
- Siam City Cement PLC, Thailand
- Indonesian Coal Mining Association
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Independent Power Producers Association of India
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Leighton Contractors Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Meralco Power Generation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Standard Chartered Bank - UAE
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Kumho Petrochemical, South Korea
- Toyota Tsusho Corporation, Japan
- Ambuja Cements Ltd - India
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Orica Mining Services - Indonesia
- Gujarat Sidhee Cement - India
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- Kobexindo Tractors - Indoneisa
- Xindia Steels Limited - India
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- Makarim & Taira - Indonesia
- Kepco SPC Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Medco Energi Mining Internasional
- Africa Commodities Group - South Africa
- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Eastern Energy - Thailand
- CNBM International Corporation - China
- Bharathi Cement Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- New Zealand Coal & Carbon
- Orica Australia Pty. Ltd.
- PetroVietnam Power Coal Import and Supply Company
- Bahari Cakrawala Sebuku - Indonesia
- Chettinad Cement Corporation Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- IHS Mccloskey Coal Group - USA
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- European Bulk Services B.V. - Netherlands
- Timah Investasi Mineral - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- TeaM Sual Corporation - Philippines
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- VISA Power Limited - India
- GMR Energy Limited - India
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Australian Coal Association
- Oldendorff Carriers - Singapore
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- Kaltim Prima Coal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Bukit Baiduri Energy - Indonesia
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Indo Tambangraya Megah - Indonesia
- Global Coal Blending Company Limited - Australia
- Kalimantan Lumbung Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- Chamber of Mines of South Africa
- The Treasury - Australian Government
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Metalloyd Limited - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The State Trading Corporation of India Ltd
- SMG Consultants - Indonesia
- Altura Mining Limited, Indonesia
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
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