INDIA S ENERGY SYSTEM Economic Statistics Division, CSO, India
INTRODUCTION The energy sector holds the key in accelerating the economic growth of India Future economic growth crucially depends on the long term availability of sources that are affordable, accessible and environment friendly. India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and natural gas are the three primary commercial energy sources. India s energy policy, till the end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far the largest source of energy. However, India s primary energy mix has been changing over a period of time.
INTRODUCTION India ranks sixth in the world in total energy consumption Accounts for 3.4% of global energy consumption. India is rich in coal and renewable energy sources (solar, wind, hydro and bio-energy sources) but it has very less hydro carbon reserve ( 0.4% of worlds reserve) India is a net importer of energy. More than 25% of primary energy needs is met through imports mainly in form of crude oil and natural gas. There is heavy dependence on non renewable sources of energy (coal, petroleum, natural gas) to meet the increasing demand.
GLOBAL ENERGY SCENARIO WORLD POPULATION EXPECTED TO GROW TO 8 BILLION IN 2020 WILL REQUIRE 90 BILLION bpd OF OIL 7 B.TONS OF COAL/YR 40 TRILLION Cu.M/YR OF NG 50% OF THIS ENERGY WILL BE REQUIRED IN THE DEVELOPING WORLD
INDIA,S ENERGY SCENARIO 16% OF WORLD POPULATION WITH 0.6% OF OIL & 6% OF COAL RESOURCES. IN 2000-01, ENERGY SHORTAGE - 7.8%, PEAK LOAD SHORTAGE -13%. PER CAPITA ENERGY CONSUMPTION IS FAR LESS COMPARED TO GLOBAL STANDARDS (482 kwhr IN 1997 - CHINA 922 - WORLD 1562). BY 2025, INDIA WILL BE THE MOST POPULOUS COUNTRY IN THE WORLD. COUPLED WITH THE GDP GROWTH REQUIREMENTS, THE ADDITIONAL ENERGY REQUIREMENT WILL BE MIND BOGGLING. THE ANSWER WILL HAVE TO BE FOUND ON BOTH SIDES OF THE EQUATION. ENERGY SUPPLY = ENERGY DEMAND (SOURCE, TECHNOLOGY, EFFICIENCY) (ALTERNATIVES, EQUIPMENT, LIFE STYLE)
AVAILABLE SOURCES OF ENERGY COAL FOSSIL FUEL OIL NATURAL GAS SOLAR PV / THERMAL RENEWABLES HYDRO WIND BIO - MASS OTHER NUCLEAR
COAL India ranks third amongst the coal producing countries in the world. Coal Being the most abundant fossil fuel in India till date, it continues to be one of the most important sources for meeting the domestic energy needs. It accounts for 55% of the country s total energy supplies. Most of the coal production in India comes from open pit mines contributing to over 81% of the total production. Underground mining accounts for rest of the national output.
COAL As on 31.03.12 the estimated reserves of coal was around 293.5 billion tones. There has been an increase of 2.67% in the estimated coal reserves during the year 2011-12. The estimated reserve of lignite as on 31.03.12 was 41.96 billion.
COAL Coal production in the country during the year 2011-12 was 539.94 million tonnes The estimated total consumption of raw coal by industry was ed from 72.95 during 2011-12, with a CAGR of 4.86%. India currently faces coal shortage of 23.96 MT. This shortage is likely to be met through imports mainly by steel, power, and cement sector. India exports insignificant quantity of coal to the neighbouring countries. The traditional buyers of Indian coal are Bangladesh, Bhutan, and Nepal. About 75% of the coal in the country is consumed in the power sector.
OIL AND NATURAL GAS The production of crude oil in the country has increased from 6.82 MT in 1970/71 to 38.09 MT in 2011-12. The estimated consumption of crude oil has a steady increase, from 18.38 MTs during 1970-71 to 211.42 MTs during 2011-12 with CAGR of 5.99%. India is highly dependent on import of crude oil. Both gross and net imports of crude oil have increased from 11.68 MTs during 1970-71 to 171.73 MTs during 2011-12. The export of petroleum product has increased from a mere 0.33 MT during 1970-71,to 8.37MTs during 2000-01 and to 40.78 MTs during 2007-08. During 2011-12,exports stood at 60,084 MT. In the year 2011-12, the production of Petroleum Products in the country was 196.71MTs as against 190.32 MTs during 2010-11
OIL AND NATURAL GAS The production of natural gas increased from 1.4 BCM (billion cubic metres) to 47.56 BCM during the same period. The consumption of natural gas was 46.48 BCM during 2011-12. It increased from 0.66 BCM in 1970-71 with a CAGR of 10.71%. India s consumption of natural gas has risen faster than any other fuel in the recent years. Industries such as power generation, fertilizer, and petrochemical production are shifting towards natural gas. India s natural gas consumption has been met entirely through domestic production in the past. However, in the last 4/5 years, there has been a huge unmet demand of natural gas in the country, mainly required for the core sectors of the economy.
RENEWABLE ENERGY RESOURCES India has one of the highest potentials for the effective use of renewable energy. There is a significant potential in India for generation of power from renewable energy sources. The total potential for renewable power generation as on 31.03.12 is estimated at 89774 MW. wind power potential of 49130 MW (54.73%), SHP (smallhydro power) 15399 MW (17.15%), Biomass power 17,538 MW(19.54%) and 5000 MW (5.57%) from bagassebased cogeneration
RENEWABLE ENERGY RESOURCES The total installed capacity of grid interactive renewable power, which was 19,971.03 MW as on 31.03.2011 had gone up to 24,914.24 MW as on 31.03.2012 indicating growth of 24.75% during the period. Out of the total installed generation capacity of renewable power as on 31-03-2012,wind power accounted for about 69.65%, followed by small hydro power (13.63%)and Biomass power (12.58%)..
RENEWABLE ENERGY RESOURCES Other renewable energy technologies, including solar photovoltaic, solar thermal, small hydro, and biomass power are also spreading. Greater reliance on renewable energy sources offers enormous economic, social, and environmental benefits. The potential for power production from captive and fieldbased biomass resources, using technologies for distributed power generation, is currently assessed at 19 500 MW including 3500 MW of exportable surplus power from bagassebased cogeneration in sugar mills.
ELECTRICITY Access to affordable and reliable electricity is critical to a country s growth and prosperity. The country has made significant progress towards the augmentation of its power infrastructure. The total installed capacity for electricity generation has increased from 16,271 MW as on 31.03.1971 to 2,36,387 MW as on 31.03.2012, registering a compound annual growth rate (CAGR) of 6.58%. All India gross electricity generation from utilities, excluding that from the captive generating plants, was 55,828 Giga Watt- Hours (GWh) during 1970-71. It rose to 1,10,844 GWh during 1980-81, to 2,64,329 GWh during 1990-91 and to 9,23,203 GW during 2011-12.
ELECTRICITY The estimated electricity consumption increased from 43,724 GWh during 1970-71 to7,72,603 GWh during 2011-12, showing a CAGR of 7.08% The growth in electricity consumption could be due to high growth of the service sector and efficient use of electricity. Of the total electricity sales in 2011-12, industry sector accounted for the largest share (44.84%), followed by domestic (22.01%), Agriculture (17.30%) and commercial sector (8.97%). The consumption of energy in peta Joules was in the form of Electricity which accounted for about 57.57% of the total consumption during 2011-12. Coal and Lignite were second (19.91%), while Crude Petroleum (18.75%) was third. The total consumption of energy from conventional sources increased from 44,448 peta joules during 2010-11 to 47,264 peta joules during 2011-12, showing an increase of 6.33%.
Institutional arrangement for energy statistics in India
ORGANISATION The Indian energy sector is being handled by 4 different ministries- Ministry of coal Ministry of power Ministry of petroleum and natural gas Ministry of new and renewable energy
ORGANISATIONS Each of the line Ministries/organizations collects, compiles and disseminates Energy Statistics pertaining to its domain. The data sources are the production companies/organizations Dominance of the energy sector in India by large state monopolies at both central and state levels State monopoly facilitates compilation of statistics, Though Privatization is being encouraged the success achieved so far is limited.
Role of CSO Annual Publication on Energy Statistics Coordination of Information to be sent to International Bodies CSO is member of UN Oslo City Group on Energy Statistics
Data Coordination and standardization The CSO is nodal statistical organization of the Govt. of India, which is responsible for standardization and coordination of official statistics including Energy Statistics. CSO provides the necessary guidance in respect of developing concepts, definitions, methodologies etc. to these line Ministries. CSO brings out an annual publication Energy Statistics which is compiled on the basis of the information provided by the various line Ministries. Trained and qualified statisticians are working in the various line Ministries for collection, compilation and dissemination of official Energy Statistics. The CSO also maintains the coordination through COCSSO
The energy team Multidisciplinary energy team required for effective measurement and compilation of energy statistics. It involves geologists, engineers, technicians, accountants, statisticians, etc.. Functional distribution of the responsibilities for planning, policy making and development of energy resources among the line ministries, which are responsible for production, transmission and distribution of the energy resources, including generation of Official Statistics. These line ministries get the data from the producers and suppliers of various energy resources under their jurisdiction. Energy consumption data are collected through the household consumer expenditure survey of the NSSO and the industrial energy consumption data in respect of utilities and registered manufacturing are collected through the Annual Survey of Industries conducted by the CSO.
Legal Backing on Energy Statistics Legal/statutory backing facilitates data collection by making it binding on the producers and consumers of energy for supply of relevant information to the data collecting agencies. Energy Statistics are generated with legal backing in respect of coal and electricity. No such legal backing is available for generation of statistics pertaining to new and renewable energy sources. In case of coal, the Coal Controller is the Statistics Authority of Coal Statistics under the Collection of Statistics Act, 1953 and Rules framed there under. Besides, it enjoys the legal authority under Coal Mines (Conservation and Development) Act 1974 and the Colliery Control Order 2000. The Central Electricity Authority generates the Electricity Statistics under Section 73 of the Electricity Act, 2003. The Act empowers the Authority (i) to collect and record the data concerning the generation, transmission, trading, distribution and utilization of electricity and carry out studies relating to cost, efficiency, competitiveness and such like matters (ii) to make public from time to time information secured under this Act, and provide for the publication of reports and investigations and (iii) to promote research on matters affecting the generation, transmission, distribution and trading of electricity.
Conformity to International Standards ALL energy units and indicators are to be based on internationally accepted standards, concepts and definitions. Adherence to international standards on energy statistics facilitates price fixation and international comparison. In India, the energy statistics are generated in the respective line departments. Only the figures of energy production from various energy sources are expressed in energy unit ( peta joule). This is done at CSO by applying appropriate conversion factors as recommended in respect of Indian energy resources. Energy statistics are compiled according to National Industrial Classification, which is based on International Standard Industrial Classification of all Economic Activities (ISIC) and the 8-digit codes of Indian Trade Classification(based on Harmonized Coding System(HS)).
Scope of Energy Statistics in India Energy mix Comprises Primary sources( coal, crude oil, natural gas, fuel wood), Secondary sources(coal gas, coke, petroleum products, charcoal, electricity (thermal, hydro, nuclear)), Renewable sources (mini-hydro, wind energy, solar energy, biogas), Non-renewable resources (fossil fuels), Commercial (coal, oil, petroleum products, natural gas and electricity), and Non-commercial sources (fuel wood, dung cake, vegetable waste).
Types of Data Generated The parameters include: reserve, potential, install capacity, capacity utilization, production, import &export, availability, consumption, wholesale price Index, man days worked, productivity (output per man shift), transmission & distribution, physical capital formation, etc. Financial accounts, physical capital formation, infrastructure development, etc. are maintained by the respective energy companies/organizations. The Energy Statistics in India brought out by the CSO does not include these information at present. In the publication Annual Infrastructure Statistics by the CSO, include one chapter on energy infrastructure comprising indicators on availability, affordability, accessibility, acceptability, economic & financial regulation and environmental regulation.
Energy Statistics Objective: To meet the information needs of national and international policy makers, administrators and researchers concerned with the energy sector. It contains time series data relating to reserves, installed capacity, production, capacity utilization, availability, import, export, consumption, price indices and commodity balance of major sources energy in India. Coverage (Sectoral) Coal, Petroleum & Natural Gas, Electricity New & Renewable Energy. Nuclear Energy
Energy Statistics Coverage (Indicators) i. Production, ii. iii. iv. Consumption, Import & Export, Wholesale Price. v. Estimated Reserves, vi. Estimated Potential vii. Capacity Generation viii. Energy Commodity Balance ix. Energy Efficiency Indicators
Existing data gaps Incompleteness of Energy consumption data unorganized coal production not fully captured Inconsistency between energy consumption data of utilities generated through ASI and suppliers figures, Poor energy balance
Future scenario Increasing pressure of population and increasing use of energy in different sectors of the economy is an area of concern for India. India s gas consumption to grow at an average annual rate of 5.1%, thereby reaching 2.8 trillion cubic feet by 2025 with the share of electric power sector being of 71% by that time. Coal consumption is expected to increase to 315 MT over the forecast period.
Future scenario In India, slightly less than 60% of the projected growth in coal consumption is attributed to the increased demand of coal in the electricity sector while the industrial sector accounts for most of the remaining increase. The use of coal for electricity generation in India is expected to increase by 2.2% per annum during 2002 25, thus requiring an additional 59 000 MW of coal-fired capacity. Oil demand in India is expected to increase by 3.5% per annum during the same time.