19-11-2012, 05:35 PM
ENERGY CONSERVATION-A KEY FACTOR FOR PRODUCTIVITY
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Energy Policy of India –Short term
•Maximize returns from the existing assets
•Reduce losses in transportation and in end use
•Initiate action to reduce energy intensity of different consuming sectors and promote conservation through organizational and fiscal measures
•Initiate steps to meet the basic energy need of rural and urban households so as to reduce the existing inequities.
•Maximize satisfaction of demand for energy from indigenous resources
Energy Policy of India –Medium term
•Progressive steps to substitute petroleum products by coal, natural gas and electricity
•Action for accelerated development of all renewable energy resources especially hydro potential
•Promote programmes to achieve self-reliance in energy sector
•Create appropriate organizational changes in consistent with the over all energy strategy
Energy Policy of India –Long term
•Promote an energy supply system, largely based on renewable sources of energy
•Promote technologies of production, transportation and use of energy that are environmentally benign and cost effective
Energy Conservation Act 2001
•EC Act 2001 empowers the union government and in some instances the state government to:
–Notify energy-intensive industries, establishments and commercial buildings as designated consumers
–Prescribe energy consumption norms and standards for designated consumers
–Direct designate consumers to appoint certified energy managers for efficient use of energy
–State Government to amend the energy conservation building codes to suit regional and local climatic conditions
Potential for Energy Conservation
•India’s energy intensity per unit of GDP is higher compared to Japan, US and Asia by 3.7, 1.55 and 1.47 times respectively. This indicates inefficient use of energy but also substantial scope for energy saving.
•One unit of energy saved at the consumer end avoids nearly 2.5 to 3 times of capacity augmentation due to PLF, auxiliary consumption and T & D losses
•The conservative estimate of potential of energy saving in India is creating nearly 25,000 MW of new capacity
Demand Side Management
•DSM means managing the demand for power among some or all its customers to meet current or future needs.
•Under this process the demand is shifted from peak to off peak hours there by reduce the need of buying expensive imported power during peak hours.
•DSM enables to better manage their load curve and enhance the profitability
•Potential energy saving through DSM is treated at par with new additions on the supply side in MWs and DSM can reduce the capital needs for power capacity expansion
Standards and Labelling
•Energy efficiency standardsbasically involves a set of procedures and regulations that define the energy performance of manufactured products sometimes prohibiting the sale of products in which energy consumption is higher than the minimum standard
•Energy efficiency labels on the other hand, informative markers affixed to manufactured products that provide consumers with the details necessary for making informed purchases.
Funding Agencies
•In recent years there has been growing urgency to implement energy conservation projects.
•Given this, financing of such projects acquires new significance.
•Financing backing for such projects has been coming from various agencies including multilateral and bilateral financiers, commercial banks and financial institutions.
Conclusion
•The main reasons for higher specific energy consumption in Indian Industries are obsolete technology, lower capacity utilization and poor operating and maintenance practices.
•EC has received increased attention in India since the mid seventies but its impact is felt at a low face due to inhibiting attitudes, insufficient technical know-how, market distortions, high cost of efficient end use devices, capital shortage etc.
•There is a need to design interventions in terms of policies and institutions which addresses these issues and create incentives for energy conservation.
•Now that the EC Act, 2001 has given new impetus to the Energy Conservation issues and the ESCOs and the financial institutions are in place to implement the EC projects through performance guarantee contract mechanisms, energy conservation projects are bound to be successful in the future