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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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- Kumho Petrochemical, South Korea
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- Eastern Energy - Thailand
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- CNBM International Corporation - China
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Globalindo Alam Lestari - Indonesia
- Semirara Mining Corp, Philippines
- VISA Power Limited - India
- Uttam Galva Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- Pendopo Energi Batubara - Indonesia
- London Commodity Brokers - England
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- The State Trading Corporation of India Ltd
- Rashtriya Ispat Nigam Limited - India
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Coal Association
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- SMG Consultants - Indonesia
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Sindya Power Generating Company Private Ltd
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Coal Council - USA
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Directorate Of Revenue Intelligence - India
- International Coal Ventures Pvt Ltd - India
- Bhatia International Limited - India
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Power Finance Corporation Ltd., India
- Kapuas Tunggal Persada - Indonesia
- Samtan Co., Ltd - South Korea
- Electricity Authority, New Zealand
- Minerals Council of Australia
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Merrill Lynch Commodities Europe
- Makarim & Taira - Indonesia
- Sical Logistics Limited - India
- Cigading International Bulk Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Kepco SPC Power Corporation, Philippines
- PTC India Limited - India
- Trasteel International SA, Italy
- South Luzon Thermal Energy Corporation
- SMC Global Power, Philippines
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Aditya Birla Group - India
- Meralco Power Generation, Philippines
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- McConnell Dowell - Australia
- ICICI Bank Limited - India
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Meenaskhi Energy Private Limited - India
- Cement Manufacturers Association - India
- Thai Mozambique Logistica
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- Standard Chartered Bank - UAE
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Kideco Jaya Agung - Indonesia
- Essar Steel Hazira Ltd - India
- Salva Resources Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Romanian Commodities Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- Sree Jayajothi Cements Limited - India
- AsiaOL BioFuels Corp., Philippines
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Bangladesh Power Developement Board
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- Bayan Resources Tbk. - Indonesia
- Indian Oil Corporation Limited
- Ministry of Mines - Canada
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- PNOC Exploration Corporation - Philippines
- Mercuria Energy - Indonesia
- Bhushan Steel Limited - India
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Deloitte Consulting - India
- Central Java Power - Indonesia
- Formosa Plastics Group - Taiwan
- The Treasury - Australian Government
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Petrochimia International Co. Ltd.- Taiwan
- Latin American Coal - Colombia
- Planning Commission, India
- OPG Power Generation Pvt Ltd - India
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- Parliament of New Zealand
- Intertek Mineral Services - Indonesia
- Independent Power Producers Association of India
- Bharathi Cement Corporation - India
- Bukit Baiduri Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- Jaiprakash Power Ventures ltd
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Chamber of Mines of South Africa
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
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