22 December 2008

'India will have to reduce energy consumption by 20%’

The Economic Times, 21 Dec 2008

CHENNAI: Some sections view the current economic meltdown as a direct fall-out of consumption exceeding money supply. Power policy makers of the country seem to have stuck on the analogy to caution energy con-sumption in urban India.

“In fact, we need to expand energy con-sumption in this country, mainly to the two-thirds of our population who have scarce or no access to electricity, and non-biomass fuels,” said Planning Commission principal adviser (energy) Surya P Sethi. India’s per capita consumption of power is 20% the world average, 4% that of the US, and 28% that of China.

“To achieve a desirable human development index growth, the pres-ent power consumers will have to cut their usage by 20%, by which growth may come down by a percentage point or two”. Speaking at the panel discussion on sustainable electricity in India, at Pan IIT, an IIT alumni conference, at the Indian institute of technology Madras on Saturday, he said the situation was potentially explosive unless we invest talent, technology and innovation in equitable allocation of basic resources like energy, water and land.To achieve 20% energy conservation we need to increase the energy efficiency of our appli-ances by 20%, he said.

“Theft happens 90% in urban industrial lines, and not in rural areas, as many of us have misconceived,” Mr Sethi said. “As electricity is stolen only to be consumed, the basic problem is a supply-demand mismatch.” According to AES corporation director Sanjeev Agarwal, the three main issues hindering the advancement of power projects in India are land acquisition, environmental clearance and evacuation infrastructure. The government, by taxing the infrastructure compa-nies, has created a special purpose vehicle to get all clearances in a quicker manner.

“Even then, supply systems may not be the ultimate solution as our present rate of consumption demands a commissioning of 25000 mw of power every year, which is not realistic,” Mr Sethi said. Petroleum and Natural Gas Regulatory Board member Sudha Mahalingam quoted green buildings as the most effective way of saving power in cities.

“With growing temperature and congestion, air conditioning has be-come a necessity in our cities now. But, that usage can be reduced by constructing buildings with plenty of access to natural air and light-ing,” she said. She also asked for a regulation on the usage of captive generation as the fuels used for those purposes were also likely to run out in the long term. Despite the buzz about renewable energy, the panel unanimously agreed that coal is something that the country cannot do without.

The panel estimated that if solar power gets a breakthrough such that it becomes seven to eight times less expensive and solar power being seasonal and time specific, if power storage technologies were devel-oped, then India could become energy secure through the renewable route. “Today, we are hesitant to subsidise solar power to the con-sumer as that is likely to slow down efforts to achieve higher effi-ciency and cost effectiveness in solar technology,” Mr Sethi said.

Copyright © 2008 Bennett Coleman & Co. Ltd. All rights reserved

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