Some recommendations to new Government (Energy Sector)

August 6, 2019
No Comments

The challenge of ensuring India’s energy security has become critical as a result of growing energy demand to meet aspirations of people and depleting earth resources. The problem is compounded by the need to shift to clean energy resources to address climate change concerns. India thus urgently needs to put in place an integrated energy action plan that quickly reduces import bill, reduces CO2 as well as particulate emissions and is consistent with India’s long-term energy security. This calls for following actions to organise energy transition in the country at optimum cost :

 

 

  1. Enhance share of electricity and gas at the energy consumer end.
    • In addition to the thrust to renewable electricity generation and standalone solar pumps for agriculture:
      • Increase share of non-fossil base load electricity in our grids to assure optimum costs as we decarbonise electricity supply. Nuclear power is the only such option and therefore rapid increase in share of nuclear power is a crucial necessity.
      • Since nuclear power provides clean energy, it should be given level playing field with renewables in terms of ‘must run’ status and other clean energy related incentives.
      • In India’s case, share of nuclear power will remain around 2% unless urgent steps are taken to increase investment, reorganisation and cost competitiveness. NTPC, as well as oil PSUs should be encouraged to form Joint Ventures with NPCIL to increase needed investment in this sector. Government intervention is needed as NPCIL can neither raise equity from stock market, nor generate additional capital, at the level necessary, from internal sources.
      • Nuclear power is cost competitive with other sources of energy over 40 years project life cycle.
      • Nuclear power will reduce import dependency as cost of fuel is negligible. India also needs to maintain technological lead in strategic area.
      • Greater thrust to e-mobility including hybrids.
    • Emphasise Gas economy & develop related infrastructure.
      • Current share of gas in India is only at 6% as against 24% globally. Gas outlook is better than oil globally.
      • Investment in upstream gas fields overseas & long-term tie-up in supply chain is expected to lead to competitive landed cost with a fair degree of freedom from price volatility.
      • Gas price revision, within the limits of commercial marketability, can make marginal discoveries / discoveries in deep sea gas fields, commercially viable. This could make a significant quick addition to domestic gas production.
      • Decentralised CBG production using non-commercial energy/biomass/MSW primarily focussed on rural areas.
      • Accelerated thrust to CBM production.
  2. With the advent of 2G biofuel technology, crude import corresponding to entire gasoline requirement of the country can be eliminated and replaced with green fuel. Further leveraging bio-mass could lead to a major beneficial impact on rural economy.
    • Bio-ethanol: Several demo plants being deployed. To be made cost competitive through R&D and deployment strategy.
    • Bio-crude: Imported technology for fast pyrolysis of biomass for decentralised production of bio-crude is available. To be tested under Indian conditions.
    • Drop-in-fuels: Shell is conducting pilot scale trials for direct drop-in fuel (Petrol and Diesel) production using biomass, MSW and plastic waste. Economics to be ascertained.
  3. Other strategies to ensure energy security. (Some of these need massive India specific development effort with longer term focus.)
    • Solar thermal for bulk power and hydrogen generation. Could enable near 100% domestic value addition.
    • Co-generation (electricity & hydrogen – through steam electrolysis) to ensure fuller capacity utilisation of electricity generation plants.
    • Coal to liquid fuel (both on-surface and in-situ).
    • Gas hydrates.
    • Recycle CO2 to produce fuel and other useful materials.
Tags: , , ,

Leave a Reply

(required)

(required)