Can energy conservation methods consolidate efforts to tackle power crisis?

Energy Intensity-Energy Efficiency-Energy Productivity-   
Energy Conservation


There is much confusion over what is meant by these terms. Most observers, however, agree that the first three of these terIns refer to the relation between energy consumption and activity, output, or distance, usually considered for a homogeneous activity like production of a commodity, transportation by a given mode, or heating of a home. The confusion arises because "efficiency" has two connotations. In an econoInic context, "efficiency" connotes whether a given good or service is produced for lowest cost, i.e., maximizing output for all inputs. Energy efficiency also connotes the ratio of output for energy inputs (i.e., ignoring other inputs). This connotation is well founded in mechanics and other aspects of physics applied to any process. But using it within an conomic context is difficult, because virtually every economic activity consists of a
myriad of physical processes taking place both serially (i.e., heating, drawing, mixing, cooling, drying) as well as in parallel. "Energy conservation" is a term often used to describe saving energy.

                        In this context, "conservation" means both investing in systems to reduce energy intensities or demanding less output, i.e., heating to lower telnperatures, driving less, producing less steel.    Energy intensity (energy/activity) times structure (the mix of activities) gives
total energy use. In fact, this is an identity. The reason we want to make the
disaggregation is simple: national and international trends in technology, energy prices, and state and national policies affect energy intensities. (All definitions from Energy Efficiency in California: A Historical Analysis; Schipper & McMohan 1995)
 

 As per the Integrated Energy Report of Planning Commission released in 2006, to meet the lifeline energy needs of all citizens, India needs to increase its primary energy supply by 3 to 4 times and, its electricity generation  capacity/supply by 5 to 6 times of their 2003-04 levels. With 2003-04 as the base, India’s commercial energy supply would need to grow from 5.2% to 6.1% per annum while its total primary energy supply would need to grow at 4.3% to 5.1% annually. By 2031-32 power generation capacity must increase to nearly 8,00,000 MW from the current capacity of around 1,60,000 MW inclusive of all captive plants.

Integrated Plan believes about energy efficiency aiming towards--> “Lowering the energy intensity of GDP growth through higher energy efficiency is important for meeting India’s energy challenge and ensuring its energy security. Lowering energy intensity through higher efficiency is equivalent to creating a virtual source of untapped domestic energy. It may be noted that a unit of energy saved by a user is greater than a unit produced, as it saves on production losses as well transport, transmission and distribution losses. Efficiency can be increased in energy extraction, conversion, transportation, as well as in consumption. Further, the same level of output or service can be obtained by alternate means requiring less energy. The major areas where efficiency in energy use can make a substantial impact are mining, electricity generation, electricity transmission, electricity distribution, water pumping, industrial production processes, haulage, mass transport, building design, construction, heating, ventilation, air conditioning, lighting andhousehold appliances. As the Indian economy opens up to international competition, it will haveto become more energy efficient. This is well demonstrated by India’s steel and cement industry.” 

In 2001, India passed Energy Conservation Act. Bureau of Energy Efficiency was operationalized in 2002. Government of India is designing National Mission on Enhanced Energy Efficiency (NMEEE), which is one out of eight missions planned under the National Action Planon Climate Change. In this mission, there certain steps which aim at accommodating manystakeholders. First step is The Perform Achieve and Trade scheme which is a market-based mechanism to enhance energy efficiency in the ‘Designated Consumers’ (large energy-intensive industries and facilities) Second step is Market Transformation for Energy Efficiency (MTEE) which includes a) ational CDM Roadmap, b)CDM Programme for lighting, Municipal DSM, Agricultural DSM, SME sector, Commercial building sector and for Distribution Transformers, c) Standards and Labeling, d)Public procurement, e)Technology program (replacement inefficient appliances with efficient one), f)Energy Conservation Building Code (ECBC), g) ESCos Promotion: Assuring ESCo quality through accreditation. h) Capacity building and information. Third step is Financing of Energy Efficiency: a) Fiscal instruments, b) Revolving funds, c) Partial Risk Guarantee Fund. Fourth step is Power Sector Technology Strategy: a) Adopting energy efficiency technologies and road map for demonstration plants and for fuel shift. Fifth step is to set up Energy Efficiency Services Ltd.

Sectoral gaps and challenges: a) Lack of appropriate technologies, b) Lack of technical knowledge in the financial sectors makes financing for energy efficient technologies a challenge, c) Range of domestic energy efficient technologies, d) Potential for increased role for Energy Service Companies.