CHAPTER 1.

INTRODUCTION TO ENERGY
Energy is one of the most fundamental parts of our universe. The ability or capacity of a body to do work is called energy. We use energy to do work. Energy lights our cities. Energy powers our vehicles, trains, planes and rockets. Energy warms our homes, cooks our food, plays our music, gives us pictures on television. Energy powers machinery in factories and tractors on a farm. Energy is defined as:

"the ability to do work."

When we eat, our bodies transform the energy stored in the food into energy to do work. When we run or walk, we "burn" food energy in our bodies. When we think or read or write, we are also doing work. Many times it's really hard work! Cars, planes, light bulbs, boats and machinery also transform energy into work. Work means moving something, lifting something, warming something, lighting something. All these are a few of the various types of work. But where does energy come from? There are many sources of energy. In The Energy Story, we will look at the energy that makes our world work. Energy is an important part of our daily lives. The forms of energy we will look at include:

Electricity Biomass Energy - energy from plants Geothermal Energy Fossil Fuels - Coal, Oil and Natural Gas Hydro Power and Ocean Energy Nuclear Energy Solar Energy Wind Energy Transportation Energy

1.1 TYPES OF ENERGY

1.1.1 FOSSIL FUELS Although there are many different types of fossil fuels, we have chosen three that we feel are especially important: coal, petroleum, and natural gas. Because virtually all fossil fuel uses produce energy in pretty much the same way. 1.1.2 FISSION Fission is already an established method of energy production. Countries around the world possess fission reactors capable of powering whole cities. The benefits in energy production, however, are 1

shadowed by disturbing accounts of harm to the environment and dangerous nuclear waste byproducts. Chernobyl, Hiroshima, and Nagasaki are frightening precedents in the field of fission development and are not to be ignored. 1.1.3 HYDROELECTRIC Man has utilized the power of water for years. Much of the growth of early colonial American industry can be attributed to hydropower. Because fuel such as coal and wood were not readily available to inland cities, American settlers were forced to turn to other alternatives. Falling water was ideal for powering sawmills and grist mills. 1.1.4 BIOMASS Although chances are that you have never heard of "biomass" before, it is one of the oldest and most well-established energy sources in the world. Biomass is simply the conversion of stored energy in plants into energy that we can use. . 1.1.5 SOLAR The name "solar power" is actually a little misleading. In fact, most of the energy known to man is derived in some way from the sun. When we burn wood or other fuels, we are releasing the stored energy of the sun. In fact, there would be no life on earth without the sun, which provides energy needed for the growth of plants, and indirectly, the existence of all animal life. 1.1.6 WIND Mankind has made use of wind power since ancient times. Wind has powered boats and other seacraft for years. Further, the use of windmills to provide power for the accomplishment of agricultural tasks has contributed to the growth of civilization. This important renewable energy source is starting to be looked at again as a possible source of clean, cheap energy for years to come. 1.1.7 GEOTHERMAL The center of the earth can reach 12000 degrees Fahrenheit. Just imagine if we could tap that heat for our own use. Well, geothermal systems do just that. Convection (heat) currents travel quite near the surface in some parts of the world. 1.1.8 FUSION For years now people have been turning to fusion as the "energy of the future." Not only does fusion appear to be an extremely effective source of energy production, it is environmentally friendly and virtually inexhaustible. Too good to be true, you say? Perhaps we should look more closely at fusion, both as a scientific theory and as what may prove to become mankinds energy source for the 21st century and beyond. 2

CHAPTER 2: ENERGY MANAGEMENT

Managing energy efficiently requires a range of techniques to identify and implement both energy and cost reduction measures. A structured and formal energy management policy can allow you to save as much as 20%, while energy savings of up to 10% are possible through no-cost measures.

2.1 GETTING COMMITMENT

It is important that senior managers are involved and committed. Your energy management policy should contain a statement of commitment from senior management. Find out about your stakeholders - are they interested in your organisation's environmental performance. The whole organisation has to be seen to be taking the energy management programme seriously in order for it to be effective. Make someone responsible for energy in the workplace. This should be a senior manager or a member of staff supported by senior management.

2.2 MOTIVATING STAFF

Keeping staff motivated and encouraging them to help implement energy saving measures will help keep energy wastage down. Raise awareness by distributing leaflets at staff meetings, through staff magazines or by having posters in key areas. Motivate staff to identify, report and implement energy saving suggestions. Training should be undertaken to provide staff with a better understanding of the importance of energy efficiency within the organisation. New staff should also be asked for feedback as they may be able to spot problems more readily than those who have been there for some time. Involve staff as energy monitors to walk around the building at certain times of the day/week/month to check for energy wastage.

2.3 HOUSEKEEPING
Energy management is an ongoing process and there should be a continuous focus on energy saving. Conduct Regular Energy Walk-Rounds Check energy saving measures that have been implemented are still being followed. Use a walk-round checklist to help you to identify energy savings and compare one walk-round with another. 3

 Check:

Look for new measures that can be introduced. Temperature settings of any heating and cooling equipment are set to the appropriate levels. Occupancy activity levels and the temperature requirements of the process have remained the same. Time settings of any heating and cooling equipment match occupancy or product requirements.

2.4 UNDERSTANDING ENERGY MANAGEMENT

In order to implement energy saving measures and manage your energy consumption, you need to understand how and where your energy is being used. Energy is a controllable cost! In order to implement energy saving measures and manage your energy consumption you need to understand how and where your energy is being used. Clearly structured and formal energy management could enable you to maximise energy efficiency and achieve savings of up to 20%. Work out the occupancy activity levels and the temperature requirements of the process. Check the time and temperature settings of any heating and cooling equipment, and compare to occupancy and/or product requirements. Find out what your out of hours electricity use is. Find out who is responsible for switching equipment off at the end of the day. Look at how the lighting is managed during both occupancy and out of hours.

2.5 IMPLEMENTING AN ENERGY MANAGEMENT POLICY

A suitable policy should be developed and implemented. It is important to have an energy policy as it will communicate the companys commitment to energy management. The policy needs to have the agreement and commitment of senior management. Without this commitment targets are unlikely to be reached, and lack of support could prevent the necessary changes being made within the organisation. An Energy Policy Should: Raise awareness and provide the basis for action in the workplace, stating targets and timescales for achievement. Provide information on how these targets are to be achieved. This could be in the form of an action plan.

Have an ongoing review which will highlight whether goals have been successfully achieved.

A Policy Should Include: A statement of commitment from senior management - this should be signed by the most senior person in the organisation. A plan of implementation details of how the policy objectives will be met. Details of everyones involvement this should make everyones responsibility and involvement clear. Applicability this defines which parts of the organisation are covered by the policy.

2.6 MONITORING
Metering is a key way of measuring if energy saving measures are successful. Monitoring your energy costs will allow you to see where your main expenditure is, the areas to concentrate on and the results of any energy saving measures. Analyse Your Energy Consumption Read meters at least monthly. This will identify new areas where energy consumption has increased since the last reading and so should be investigated. It will also show how successful the energy management strategy has been over time. Where you have half hourly metering of electricity use, make sure you obtain the data from your energy supplier many provide graphing and analysis tools for you to use. Look for inconsistencies from day to day or week to week. Where possible, use energy consumption data to benchmark your organisation's energy consumption against that of similar organisations. Develop a meter reading sheet to collect the data in a consistent and accurate way, and always record the time and date alongside the meter reading. Consider Sub-Metering This allows closer monitoring of energy intensive equipment by separately recording the energy consumption of individual items of equipment, processes or buildings.

CHAPTER 3: FOSSIL FUEL USE

Fossil fuels or mineral fuels are fuels formed by natural resources such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years. These fuels contain high percentage of carbon and hydrocarbons. Fossil fuels range from volatile materials with low carbon:hydrogen ratios like methane, to liquid petroleum to nonvolatile materials composed of almost pure carbon, like anthracite coal. Methane can be found in hydrocarbon fields, alone, associated with oil, or in the form of methane clathrates. It is generally accepted that they formed from the fossilized remains of dead plants and animals by exposure to heat and pressure in the Earth's crust over hundreds of millions of years. This biogenic theory was first introduced by Georg Agricola in 1556 and later by Mikhail Lomonosov in the 18th century. The burning of fossil fuels produces around 21.3 billion tonnes (21.3 gigatonnes) of carbon dioxide per year, but it is estimated that natural processes can only absorb about half of that amount, so there is a net increase of 10.65 billion tonnes of atmospheric carbon dioxide per year (one tonne of atmospheric carbon is equivalent to 44/12 or 3.7 tonnes of carbon dioxide). Carbon dioxide is one of the greenhouse gases that enhances radiative forcing and contributes to global warming, causing the average surface temperature of the Earth to rise in response, which climate scientists agree will cause major adverse effects.

ORIGIN
Fossil fuels are formed by the anaerobic decomposition of remains of organisms including phytoplankton and zooplankton that settled to the sea (or lake) bottom in large quantities under anoxic conditions, millions of years ago. Over geological time, this organic matter, mixed with mud, got buried under heavy layers of sediment. The resulting high levels of heat and pressure caused the organic matter to chemically alter, first into a waxy material known as kerogen which is found in oil shales, and then with more heat into liquid and gaseous hydrocarbons in a process known as catagenesis. There is a wide range of organic, or hydrocarbon, compounds in any given fuel mixture. The specific mixture of hydrocarbons gives a fuel its characteristic properties, such as boiling point, melting point, density, viscosity, etc. Some fuels like natural gas, for instance, contain only very low boiling, gaseous components. Others such as gasoline or diesel contain much higher boiling components. Terrestrial plants, on the other hand, tend to form coal. Many of the coal fields date to the Carboniferous period of Earth's history. Terrestrial plants also form type III kerogen, a source of natural gas.

IMPORTANCE
Fossil fuels are of great importance because they can be burned (oxidized to carbon dioxide and water), producing significant amounts of energy. The use of coal as a fuel predates recorded history. Coal was used to run furnaces for the melting of metal ore. Semi-solid hydrocarbons from seeps were also burned in ancient times, but these materials were mostly used for waterproofing and embalming. Commercial exploitation of petroleum, largely as a replacement for oils from animal sources (notably whale oil) for use in oil lamps began in the nineteenth century. Natural gas, once flared-off as an un-needed byproduct of petroleum production, is now considered a very valuable resource. Heavy crude oil, which is much more viscous than conventional crude oil, and tar sands, where bitumen is found mixed with sand and clay, are becoming more important as sources of fossil fuel. Oil shale and similar materials are sedimentary rocks containing kerogen, a complex mixture of highmolecular weight organic compounds, which yield synthetic crude oil when heated (pyrolyzed). These materials have yet to be exploited commercially. These fuels are employed in internal combustion engines, fossil fuel power stations and other uses. Prior to the latter half of the eighteenth century, windmills or watermills provided the energy needed for industry such as milling flour, sawing wood or pumping water, and burning wood or peat provided domestic heat. The wide-scale use of fossil fuels, coal at first and petroleum later, to fire steam engines, enabled the Industrial Revolution. At the same time, gas lights using natural gas or coal gas were coming into wide use. The invention of the internal combustion engine and its use in automobiles and trucks greatly increased the demand for gasoline and diesel oil, both made from fossil fuels. Other forms of transportation, railways and aircraft also required fossil fuels. The other major use for fossil fuels is in generating electricity and the petrochemical industry. Tar, a leftover of petroleum extraction, is used in construction of roads.

LIMITS AND ALTERNATIVES

Global fossil carbon emission by fuel type, 1800-2004 AD. The principle of supply and demand suggests that as hydrocarbon supplies diminish, prices will rise. Therefore higher prices will lead to increased alternative, renewable energy supplies as previously uneconomic sources become sufficiently economical to exploit. Artificial gasolines and other renewable energy sources currently require more expensive production and processing technologies than conventional petroleum reserves, but may become economically viable in the near future. See Energy development. Different alternative sources of energy include nuclear, hydroelectric, solar, wind, and geothermal.

CHAPTER 4: FUTURE OF ENERGY IN INDIA

India is a land of contrasts. It has a multilingual and multiethnic population of 1.2 billion, with extreme wealth and poverty bracketing an educated middle class. Its greatest assets are a strong democracy, an independent judiciary and media, an effi cient administration, a tradition of learning that has produced a huge technical workforce, and economic growth. These factors could make India a global leader in the energy sector. Indias rich natural resources, hospitable terrain, over 2,000 years of Indo-Gangetic civilization, and its tolerant and nonviolent traditions made it a fertile ground for foreign invasions throughout history the last being the British, who left in 1947 after nearly two centuries of domination. During these years, India was perceived more as a market than as a factory, and lost out severely in technological development. Not until independence did India establish sound foundations of scientific and technological learning and research in the 1950s and 1960s. Today, India has had tremendous successes in atomic energy and space technology, having developed one of the most advanced nuclear reactors and put a vehicle on the moon. Nevertheless, 40 percent of the population, particularly in rural areas, lack electricity and other kinds of commercial energy like modern cooking fuels. Rising levels of literacy, now close to 70 percent, as well as access to electronic media, rapid democratic empowerment, and political awareness warrant the widespread availability of affordable energy as soon as possible. This is the greatest challenge in the energy sector. Availability of and access to energy are the catalysts for growth and the eradication of poverty. India ranked as the worlds seventh-largest energy producer and the fifth-largest energy consumer in 2004 and could soon move to the third position. Its per capita energy consumption, at 455 kilograms of oil equivalent (kgoe), was low compared to the global average of 1,750 in that year. India needs to sustain a 9 percent economic growth rate over the next 20 years, to eradicate poverty. It must increase primary energy supply by 3 to 4 times, and its electricity generation and supply capacity by 5 to 6 times over 200304 levels to meet the basic energy needs of its citizens. The current domestic production of crude oil is about 42 million tonnes. Coal India Ltd, which is a monopoly coal producer, expects to produce 460 million tonnes this year. Private operations have grown rapidly in recent years. An independent electricity regulatory apparatus was set up in 1998, and a very liberal Electricity Act enacted in 2003, opening generation and transmission to private players. The grid-connected power generation capacity is now 160,000 MW, and nearly 50,000 MW are proposed to be added by 2012. There is an inadequate petroleum regulator, while a coal regulator is expected soon.

The production and control of coal, oil, and natural gas is within the constitutional jurisdiction of the central government. Electric power is administered jointly by the central and the state governments. Water and water power are state regulated. This raises coordination issues, particularly in hydropower and the transmission of power. The coal sector needs more private enterprise for more efficient operation, as well as an independent regulator. The oil and gas sector was long controlled by foreign corporations, but was nationalized in the mid-1970s. After liberalization in 1997, the private sector became involved in exploration and production. This has led to the commercialization of a huge offshore gas find in the Bay of Bengal. The marketing and distribution of petroleum products remains in the hands of the three major public-sector companies. Administered retail prices, which have kept private companies away in the past, are now showing signs of being market driven. Demand for petroleum has risen steeply due to phenomenal growth of road transport and higher incomes among Indias population. The share of cargo transported by road increased from 14 percent in 195051 to 61 percent in 200405, and passenger road transport rose from 15 to over 80 percent. In 2004, India had 73 million registered automobiles. The automobile industry expects to continue to grow between 10 and 15 percent in the coming years.

4.1 COAL AND NUCLEAR: MAINSTAYS OF THE POWER SECTOR

One good development in recent years has been the public listing and increasing private ownership of almost all major public-sector energy companies, making them more transparent and efficient. Interestingly, all government-controlled energy companies are earning handsome profits and offer sound investment opportunities. Government control over these companies, accompanied by parliamentary scrutiny, has made them serve the larger public good through balanced regional development and restricted profits. However, the efficiency, boldness, and speed of decision making and project execution that thrive better in a competitive private sector are often constrained by an overcautious or complacent approach. Competition, efficiency, and largescale private investment are urgently needed in Indias energy sector. Through most of the second half of the last millennium, the energy sector was largely state owned and subject to centralized planning. Though the government was resolved to providing a sound public infrastructure, private initiative and investment were lacking. The time has now come to reintroduce private investment through effective regulation and competition. This will also help depoliticize the price of energy for consumers, who will have to pay the retail price of power, including appropriate subsidies for the poor. While public-sector monopolies are bad, those in the private sector can be worse. Coal is Indias primary domestic energy source. At current consumption levels, reserves will last 80 more years. The projected 56 percent increase in production would deplete them in 40 years. Oil reserves will probably last about 20 years, and gas a little over 30 years. The hydroelectric potential is about 84,000 MW at 60 percent plant load factor (PLF), and about 40 percent have already been harnessed. A 50,000-MW hydroelectric initiative was launched in 2003. These projects are making slow progress due to stringent environmental rules and difficult access and working conditions in remote areas. They offer good business opportunities for tunneling and civil construction. Water will have to be stored in the coming years. India is expected to require nearly 800,000 MW by 203132, the bulk of which will have to come from domestic and imported coal. Nearly 64 percent of the new capacity coming up for commissioning by 2012 and 2017 will be coal based, for lack of other fuel options. Private investment in generation in recent years has been remarkable. In order to add capacity faster, the government initiated Ultra Mega Power Projects (UMPP) with assured inputs like land, advance power procurement, environment clearances, transmission connectivity, and dedicated coal mines for pithead locations. Projects are allocated through a highly competitive, transparent, tariff-based 10

bidding process for a 4,000-MW supercritical thermal plant. Four of the 14 identified projects are already under way. The emphasis for coal-based projects will be on supercritical. India is now becoming a hub for the manufacture of supercritical generating equipment like boilers and turbines and is looking at ultrasupercritical and IGCC thermal technologies for maximizing efficiency gains and controlling emissions. In the field of nuclear power, India was one of the pioneers. Owing to limited domestic sources of natural uranium and abundant thorium resources, a three-stage nuclear power program was envisaged about 50 years ago. The first stage involved pressurized heavy-water and light-water reactors (about 10,00020,000 MW); the second stage, plutonium or fast-breeder reactors; and the third stage, thorium-based breeder reactors. This program would have provided the highest energy security to India. Restrictions on nuclear fuel slowed down the first stage. The decks are now being cleared quickly, and an indigenous 500-MW fast-breeder reactor for the second stage is also nearing completion. This technology demonstrator is a shot in the arm for Indian science and engineering. With an additional 150,000 MW coming up by 2017, a robust and reliable high-voltage transmission system has already evolved through a national grid, although open access through some states is causing problems. The interregional transfer capacity will soon touch 33,000 MW. The entry of the private sector in high-voltage transmission has been slow. It should catch up fast. In the power sector, the state entities, particularly at the distribution end, need vast improvement and an injection of funds. Power exchanges have come up, and power is moving across the country on HVDC, 765-kV, 440-kV, and 220-kV lines. In the distribution segment, a performancebased, IT-controlled 15 billion dollar reform program was introduced in 2008 to bring aggregate transmission and commercial losses down to 15 percent from the presently unacceptable 30 percent. The viability of the Indian power program could hinge on success or failure in this sphere. The state-owned distribution segments of the power business in the states have been running huge losses owing to unremunerative tariffs, outmoded systems, and power theft. Fortunately, with Indias strong IT sector, distribution reform in many states and smart grid initiatives in some pockets are in a reasonably mature state for takeoff under the restructured distribution reform program. The Government of India has launched a 9 billion dollar, 90 percent funded program for connecting the 125,000 unconnected villages and 23 million poor households. This is a stupendous challenge in terms of execution and maintenance. Though the preference is for grid supply, it is obvious that nearly 25,000 villages will have to receive power from decentralized

11

sources. For the program to be sustainable, the distribution entities or franchisees will need to recover the cost of power supply.

4.2 MAKING WAY FOR SOLAR AND WIND

The flavor of the season in energy supply and use in India in the coming decades will be a very aggressive energy efficiency program and the development of affordable new renewables, particularly solar power. The Prime Ministers National Action Plan for Climate Change has already launched two landmark missions the Mission for Energy Efficiency and the Solar Mission. Under the Perform, Achieve and Trade mechanism of the Energy Efficiency Mission, nearly 700 industrial units, accounting for 50 percent of all fossil fuel consumption, will be ordered to reduce their energy consumption by a specified percentage. They would be entitled to trade their excess savings. This is in addition to an aggressive standard and labeling program, energy conservation building codes, and innovative demand-side management. These are hard areas, where credit is not easily forthcoming. Only a liberal dose of concessional international or multilateral funding can make it happen in developing countries. India was the first country to have a separate Ministry for Renewable Energy. Out of the nearly 16,000-MW grid of interactive power, wind power accounts for over 11,000 MW and continues to grow. The National Solar Mission that was announced in January 2010 heralds a paradigm shift and a quantum leap for solar power. From a current base of only 10 MW, the Government of India proposes to add 1,000 MW of solar power by 2013 in the grid by blending it with cheaper thermal power, and 20,000 MW solar power by 2022 through solar PV and solar thermal devices. Given Indias vast solar potential, with most parts of the country receiving 47 KWh per square meter per day, it makes perfect sense to develop and establish domestic solar technology assuming that volume will reduce the price. The future energy business in India presents a whole range of opportunities, encompassing coal mining and transportation; oil and natural gas exploration and transportation; thermal, hydro, nuclear, and solar power generation and the accompanying state-of-the-art equipment manufacture; energy-efficient devices, appliances, and building materials; smart grid opportunities and distribution modernization; and efficient, affordable vehicle engines. For entrepreneurs, success will lie in the latest technology, the large volume of business, and affordable competitive prices. There is enough local enterprise for joint ventures. Environmental stewardship is strongly rooted in Indian culture, though avoidable violations persist, particularly regarding water sources. The worship of animals, trees and water is a common religious practice in India. The combined habits of frugal lifestyle and tolerating harsh climatic extremes have 12

kept greenhouse gas emissions low. Per capita emissions are among the lowest in the world, only about onefourth of the global average. Fortuitously, the energy intensity in Indias growth has been reduced by half from the early 1970s. Currently, Indians consume 0.16 kgoe per dollar of GDP compared to a global average of 0.21, and 0.22 for the USA, 0.17 for Germany and the OECD, and 0.15 for Japan. Although environmental issues are important to the citizens of India, climate change awareness is not widespread. The greatest public concerns are population growth and eradication of poverty. There is good news, too, though: On World Environment Day, June 5, 2010, a global survey by the National Geographic Society and Globescan consultancy showed that India had not only retained its top position as the greenest consumer from 2009, it even increased its lead. India has to grow, and it must grow prudently and fast. It needs the 5 Es Energy, Equity, Environment, Efficiency, and Enterprise for maximizing the common good.

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CHAPTER 5: ENERGY MANAGEMENT IN INDIA

India is a Developing nation. Its per capita Energy Consumption is very low. To achieve Economic Growth, we need to & have to use more & more energy to increase the pace of development. India need to increase the manufacturing of good in Quality & Volume. It is estimated that Industrial energy use in developing countries constitutes about 45-50 % of the total commercial energy consumption. Much of this energy is converted from imported oil, the price of which has increased tremendously so much so that most of developing countries spent more than 50 % of their foreign exchange earnings. Not with standing these fiscal constraints, developing countries need to expand its industrial base like us if it has to generate the resources to improve the quality of life of its people. The expansion of industrial base does require additional energy inputs which becomes more & more difficult in the present scenario. Generation of power needs resources. Resources available on earth are of Diminishing Nature. It is getting depleted very fast with time as use is increasing exponentially. There are some resources, which are Renewable e.g. Solar Power, Wind Power and Geothermal Power. Technology is also being developed to harness these Renewable Resources to generate Power. The capital investment requirement is very high as compared to normally available resources. It can be quoted here that with the available technology, we could hardly generate 5% of total power generation as on date .Hence, to restrict the use or increase the life of diminishing type of resources. Let us see the other aspect of life, whereas everybody cant understand all technical reasons or benefits of the whole world until he himself realizes some benefit for his action or efforts. In this competitive world, cost competitiveness is very very essential for survival of every individual. To establish any work / motive or task, energy in one or other form is an essential component. Thus the need to conserve energy, particularly in industry and commerce is strongly felt as the energy cost takes up substantial share in the overall cost structure of the operation. The concept of energy management in India is a baby. And like all other babies this baby also needs to grow, provided large level energy consumers have a direction to move into. Now, many would be thinking why does a developing economy like India need management of energy?.Let us give you some facts to present solidification in our concept of energy management. If we talk on a whole then India produces about 2.4% of the worlds total energy and consumes about 3.4% of the same. This means India is ranked 11th on the production list and 6th on the consumption list. Let me give you another stunning fact to clarify the need of energy management in India. According to DOE/ EIA, India consumed 9.24 quadrillion Btu in 1993. And compared to the same it 14

consumed 14.03 quadrillion Btu in 2003. This shows that energy consumption increased by 50% in a period of 10 years. Now, you might be feeling the indispensability of this concept of energy management. Let me give you some more stats and facts, this time singularly on electricity consumption. India consumed some 369.8 billions of kilowatt hours in 1993 and comparatively consumed about 519 8 billions of kilowatt hours in 2003. Now let me not spend too much time on facts and figures as we move more closer to the concept of energy management. In India over the industrialization has increased, so has the dependency on power and electricity. The power and electricity factor costs a hefty amount to any commercial organization. So, if the energy management is put in place, then the amount saved can be phenomenal. As I clear one thing on energy management in India, another doubt creeps up. What should we look in a product when we decide to manage our energy resources?. Let me tell you some important features of a good energy management product. First and foremost it should be energy efficient. Your choice of product should be cost effective. Broadly speaking it should provide environmental benefits by the reduction of greenhouse gas emissions and local air pollution by decreasing the reliance on fossil fuels. Try and make sure that your energy manager must enable AMI and Intelligent grid. It should incorporate key features like Data Storage, time of use rates, remote programmability and much more. If real energy management in India needs to be carried out then a proper network of software is a must. Last but not the least the key factor for energy management in India is Demand Response. This is a quite a level of user friendliness that can be achieved in energy management. This a unique feature to say the least. It enables you to keep upbeat information on your electricity usage that will allow you to realign consumption patterns. It helps you keep a track record of you energy consumption. Lower stress on Transmission and Distribution networks, decrease in need to build peaking power plants are some of the attached benefits. By now you must have realized the importance of energy management in India. Hence we can safely assume that energy managed is energy produced. Hence it calls MANAGEMENT OF ENERGY or in other words MANAGEMENT OF RESOURCES or ENERGY CONSERVATION. It becomes clear from the above data & statement that Energy needs to be Managed / Resources needs to be managed irrespective of a DEVELOPED NATION or A DEVELOPING NATION. HOW TO MANAGE ? Energy management is not by chance / incident / accident. It is a Mission with a Target. It cant be done single handedly or by sitting on a table. It needs coordinated effort by team of energy conscious people with a milestone to be established. 15

Very concerted efforts in a planned manner to established Energy Management. Strategy needs to be established based on the Target of Energy Conservation. Strategy / Methodology of Energy Management: Having established the need of Energy Management / Conservation. A systematic approach needs to be discussed and concluded. Same of steps to reach to the target of Energy Conservation can be listed as below: 1) Identification of Inefficient areas / Equipments: _ Enlistment or knowledge of type of energy being used. _ Study of machines / Technology employed. _ Process study and identification of major energy consumption areas. _ In depth process study to identify the inefficient use of energy. 2) Identification of Technology / Equipment requirement. 3) Discussion, Brain storming & Conclusion of resources requirement. 4) Management of resources like Manpower, Machine or Technology. 5) Evaluate your actions / efforts to estimate the Rate of Return INEFFICIENT ACTION / EFFORTS CAN NOT GIVE EFFICIENT RESULTS. ONLY EFFICIENT EFFORTS & ECONOMIC IDEAS NEED TO BE TESTED. 6) Implementation of New Process / New Technology / New Machines. 7) Re-evaluate your actions / Your Efforts.

5.1 ENERGY MANAGEMENT TECHNIQUES

1) Self knowledge & Awareness among the masses 2) Re-engineering & evaluation 3) Technology Upgradations 1. Self Knowledge & Awareness Among The Masses: For the successful Energy management & implementation, the knowledge of process & machine for the leader is very important. On the first instance, there is always a resistance from the user. There might be psychological mind blocks in the users mind. This needs to be made known & clarified. It is further more important to make the owner of the process understand the cost benefit of the energy conservation. Creating Awareness to the process owner can give most economic & low cost solutions to save energy. We have realized about 5 % of energy saving just because of Awareness of the people. e.g.:A. We advertised the concept of 16

Zero Production = Zero Power consumption. People realized this concept and they started switching off the Auxiliaries during Idling of main machines. B. Later on, we introduced microprocessor-based timer to auto switch off auxiliary equipments during Idle period of machines. 2. Re-engineering and Technology Up gradations: After utilizing the low cost or awareness concept, we need to do in depth study the process / machine. We need to ascertain, the scope & extent of Energy Conservation in the area under consideration. Evaluate the existing situation / employed technology interms of process requirements & production capacity & capability. Sometimes, we do land into a situation of handicap with machine capacity & capability for the sake of Energy Conservation. It must not be done. Once it is established, that there is a potential of energy optimization. We need to start evaluation & reengineering of the process / equipment. It may be terms of layout, motor capacity, types of starters employed, nature of loads etc. 3. Technology Upgradations: After having established the scope of energy conservation in the specified area. The latest technology availability is suitability, sustainability & pricing needs to be studied. Economics needs to be worked out like Pay back period, Return of Investment, Quality of energy savings etc.

5.2 IMPERATIVES AND INITIATIVES IN INDIA

India's growing economy spurs expansion of its manufacturing industry, typically the largest consumer of energy. Several of the country's high-growth process industries, such as cement and metals, are energy guzzlers, with energy constituting almost 30 percent of total production cost for some. Therefore, it is imperative for manufacturing companies to strategize and reduce their energy consumption by increasing their focus on energy management. The country, despite ranking eleventh among the world's major energy- producing countries and sixth among the world's major energy-consuming countries, lacks adequate energy supply. The growth of the country's manufacturing industry further aggravates the situation. With the country remaining energy deficient, energy management assumes special importance. Manufacturing companies should focus on energy management strategies for improving energy efficiency and invest in energy-efficient equipment and systems that help conserve energy. 17

CHAPTER 6. ENERGY POLICY & FUTURE ENERGY DEMAND

6.1 ENERGY POLICY
India follows an energy policy which is divided into short term, medium term and long term measures. These can be summarised as follows: 6.1.1 SHORT-TERM

maximise returns from the assets already created in the energy sector. initiate measures for reducing technical losses in production, transportation and end-use of all forms of energy. initiate action to reduce the energy intensity of the different consuming sectors of the economy and promote conservation and demand management through appropriate organisational and fiscal measures.

initiate steps for meeting fully the basic energy needs of the rural and urban households, so as to reduce the existing inequities in energy use. maximise satisfaction of demand for energy from indigenous resources. initiate steps towards progressive substitution of petroleum products by coal, lignite, natural gas and electricity so as to restrict the quantum of oil imports to the 1991 level. initiate action for accelerated development of all renewable energy resources, especially the available hydro-electric potential. promote programmes to achieve self-reliance in the energy sector. initiate appropriate organisational changes in the case of different energy sub-sectors consistent with the overall energy strategy.

6.1.2 MEDIUM-TERM

6.1.3 LONG-TERM

promote an energy supply system based largely on renewable sources of energy promote technologies of production, transportation and end-use of energy that are environmentally benign and cost effective.

These policy elements were built on the hypothesis that foreign and private investments would be forthcoming at desired levels. As lack of procedures to fulfill accountability norms have resulted in poor response from investors, the performance is not in conformity with the laid down policy.

6.2. FUTURE ENERGY DEMAND

Expert consultations at the Asia Energy Vision 2020, organised under the auspices of the World Energy Council, agreed on energy demand projection in India, up to 2020, as given in Table 1: Table 1: Future Demand for Commercial Energy in India 18

Unit 1991-92 1996-97 2009-10 2020-21* TWH 231 336 725 1300 (1745)** 2. Coal mt 229 311 690@ 1345 3. Petroleum Products mt 57 81.2 165 335 4. Natural Gas bcum 18.6 30.2 65 130 Ref: Planning Commission, Government of India - September 1995 & September 1996 Projections to 2020-21 made on the basis of `business as usual'. J.N. Maggo - R&D Needs for Energy Sector - September, 1996 ** Electricity generation capacity of 1745 TWH will be required to take care of T&D losses and Plant Load Factor. Corresponding installed generation capacity will be 378,000 MW at present day PLF and T&D loss level. Efficiency improvement is likely to make a substantial difference. Efficiency in generation and improvement in PLF will mean higher energy supply for the same primary input; and efficiency in use will reduce the demand of final energy. The combined effect in these--supply side and demand side-through proper management can be close to 1.5 to 2 per cent per year or about 25 to 30 per cent by the year 2020. The ultimate demand for installed power generation capacity can come down to the range of 275,000 MW to 300,000 MW; requiring additional capacities at an average rate of 10,000 MW per year up to year 2020. Projections up to year 2020 have been made as the present trend of primary energy dominance will be replaced by a shift towards `Bio-Nuc' era. Nuclear energy is expected to have installed capacity up to 20,000 MW and biomass consumption in terms of fuelwood will be about 200 mt per year..

Source 1. Electricity

6.3 ACTOIN PLAN FOR ENERGY MANAGEMENT

The economic development of a country is often closely linked to its consumption of energy. Although India ranks sixth in the world so far as total energy consumption is concerned. It still needs much more energy to keep pace with its development objectives. Indias projected economic growth rate is slated at 7.4 % in the period 1997-2012. This would necessitate commensurate growth in the requirement of commercial energy, most of which is expected to be from fossil fuels and electricity. Indias proven coal reserves may last for more than 200 years, but the limited known oil and natural gas reserves may last only 18 and 26 years respectively, which is a cause of concern. The continued trend of increasing share of petroleum fuels in the consumption of commercial energy will lead to more dependence on imports and energy insecurity. Recognising the importance and benefits of energy efficiency, the government of India has enacted the Energy Conservation Act, 2001 which has come into force from 1st march, 2002. The Act empowers the Central Government and, in some instances, state governments to 19

notify energy intensive industries, other establishments, and commercial buildings as designated consumers, establish and prescribe energy consumption norms and standards for designated consumers, direct designated consumers to designate or appoint certified energy manager in charge of activities for efficient use of energy and its conservation, prescribe energy conservation building codes for efficient use of energy and its conservation in commercial buildings (State governments to amend the energy conservation building codes to suit regional and local climatic conditions),

direct owners or occupiers of commercial buildings to comply with the provisions of energy conservation building codes, direct mandatory display of label on notified equipment and appliances, specify energy consumption standards for notified equipment and appliances, and prohibit manufacture, sale, purchase and import of notified equipment and appliances not conforming to standards.

The mission of Bureau of Energy Efficiency (BEE) is to institutionalise energy efficiency services, promote energy efficiency delivery mechanisms, and provide leadership to improvement of energy efficiency in all sector of the economy. The primary objective of BEE is to reduce energy intensity in the Indian economy. The broad objectives are:

To assume leadership and provide policy framework and direction to national energy efficiency and conservation efforts and programmes, To coordinate policies and programmes on efficient use of energy and its conservation with the involvement of stakeholders, To establish systems and procedures to measure, monitor and verify energy efficiency results in individual sectors as well as at national level, To leverage multi-lateral, bi-lateral and private sector support in implementation of the Energy Conservation Act and programmes for efficient use of and its conservation, To demonstrate energy efficiency delivery mechanisms, as envisaged in the energy conservation Act, through private- public partnerships, To plan, manage and implement energy conservation programmes as envisaged in the Energy Conservation Act.

CHAPTER 7: STRATEGIES FOR THE TARGETED SECTORS AND SUPERIOR ENERGY MANAGEMENT
7.1 TARGETED SECTORS
7.1.1 INDUSTRIAL SECTOR
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Nearly 50% of the total conventional energy available is consumed in the Indian industries. The large and medium scale industries have taken up many programmes in past to conserve energy. To maintain the tempo, the current awareness programme will focus on this sector through the organisation of sector specific workshops on energy conservation.

7.1.2 COMMERCIAL SECTOR

The issue in this sector can be addressed effectively through print media by insertions on tips to save electricity. Organizing of workshops, and symposiums, demonstration of energy efficient lighting system in the Trade Fairs, etc. does contribute in achieving the objective in effective manner.

7.1.3 DOMESTIC SECTOR

Domestic Sector being in the category of unorganized sector, it requires a mix of strategies for a sustainable energy conservation awareness campaign. The Bureau of Energy Efficiency will be releasing insertions on regular basis on simple trips on how to save electricity in the lighting, refrigerators , air-conditioners and other electrical appliances. Bureau also plans to launch Voluntary Labeling Scheme, to start with, on refrigerators and fluorescent tube lights.

7.1.4 AGRICULTURAL SECTOR

Regular insertions would be made by the Bureau of Energy Efficiency in the print media on simple tips to save energy in the electricity and diesel operated agricultural pump sets. Further, manufactures of these pump sets are being involved in demonstrating the improved energy efficiencies in the modern designs of agricultural pumps in various Trade Fairs, seminars, workshops etc. as well as local Fairs. Some of the industrial units have already committed to organize awareness programme for the farmers and villagers.

7.1.5 EDUCATIONAL INSTITUTES

In the campaign, organized this year thrust is placed on the messages that can stimulate active involvement of the young to attitudinal changes in regard the energy saving habits since their childhood. The objective is to make energy saving practices as part of their involuntary actions of their daily life. The effort is also intended to expand the campaign impacts by involving the school children so as to spread the energy conservation messages through their friends, parents and other relatives.

7.1.6 COMMUNICATION STRATEGIES FOR THE NATIONAL CAMPAIGN 2006

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In order to enable the programme of National Campaign 2006 for Energy Conservation a great success, it would be prudent to chalk out the appropriate strategy to interact with various target groups. Selective media are planned to be utilized to reach people all over the country rapidly and effectively. Combined communication strategies will be applied to effectively penetrate specific target groups, which have proved to be highly successful in many projects.

7.2 SUPERIOR ENERGY MANAGEMENT

Superior energy management is good business. Recent research suggests that leaders in energy management are able to achieve superior financial performance. Whether your business is commercial, industrial, or institutional, energy is part of your value chain and managing it strengthens your bottom line.

7.2.1 MAKE COMMITMENT Organizations seeing the financial returns from superior energy management continuously strive to improve their energy performance. Their success is based on regularly assessing energy performance and implementing steps to increase energy efficiency. No matter the size or type of organization, the common element of successful energy management is commitment. Organizations make a commitment to allocate staff and funding to achieve continuous improvement. To establish their energy program, leading organizations form a dedicated energy team and institute an energy policy. Form A Dedicated Team 22

Appoint an Energy Director - Sets goals, tracks progress, and promotes the energy management Establish an Energy Team - Executes energy management activities across different parts of

program.

the organization and ensures integration of best practices. 7.2.2 INSTITUTE AN ENERGY POLICY

Institute an Energy Policy - Provides the foundation for setting performance goals and

integrating energy management into an organization's culture and operations. Asses Performance Understanding current and past energy use is how many organizations identify opportunities to improve energy performance and gain financial benefits. Assessing performance is the periodic process of evaluating energy use for all major facilities and functions in the organization and establishing a baseline for measuring future results of efficiency efforts. Key aspects include: 7.2.3 DATA COLLECTION AND MANAGEMENT

Gather and track data - Collect energy use information and document data over time. Establish baselines - Determine the starting point from which to measure progress. Benchmark - Compare the energy performance of your facilities to each other, peers and

Baselining and Benchmarking

competitors, and over time to prioritize which facilities to focus on for improvements. 5.2.4 ANALYSIS AND EVALUATION

Analyze - Understand your energy use patterns and trends. Technical assessments and audits - Evaluate the operating performance of facility systems and

equipment to determine improvement potential. Assessing your energy performance helps you to:

Categorize current energy use by fuel type, operating division, facility, product line, etc. Identify high performing facilities for recognition and replicable practices. Prioritize poor performing facilities for immediate improvement. Understand the contribution of energy expenditures to operating costs. Develop a historical perspective and context for future actions and decisions. Establish reference points for measuring and rewarding good performance.

7.2.5 SET GOALS

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Performance goals drive energy management activities and promote continuous improvement. Setting clear and measurable goals is critical for understanding intended results, developing effective strategies, and reaping financial gains. Well-stated goals guide daily decision-making and are the basis for tracking and measuring progress. Communicating and posting goals can motivate staff to support energy management efforts throughout the organization. The Energy Director in conjunction with the Energy Team typically develops goals. To develop effective performance goals:

Determine scope - Identify organizational and time parameters for goals. Estimate potential for improvement - Review baselines, benchmark to determine the potential Establish goals - Create and express clear, measurable goals, with target dates, for the entire

and order of upgrades, and conduct technical assessments and audits.

organization, facilities, and other units. Setting goals helps the Energy Director:

Set the tone for improvement throughout the organization Measure the success of the energy management program Help the Energy Team to identify progress and setbacks at a facility level Foster ownership of energy management, create a sense of purpose, and motivate staff Demonstrate commitment to reducing environmental impacts Create schedules for upgrade activities and identify milestones

SUGGESTIONS When setting goals, be sure to use the Energy Team's wide range of knowledge to help set aggressive, yet realistic goals. Have management review your goals to enlist their feedback and support. 7.2.6 CREATE ACTION PLAN With goals in place, your organization is now poised to develop a roadmap to improve energy performance. Successful organizations use a detailed action plan to ensure a systematic process to implement energy performance measures. Unlike the energy policy, the action plan is regularly updated, most often on an annual basis, to reflect recent achievements, changes in performance, and shifting priorities. While the scope and scale of the action plan is often dependent on the organization, the steps below outline a basic starting point for creating a plan.

Define technical steps and targets Determine roles and resources 24

Get buy-in from management and all organizational areas affected by the action plan before finalizing it. Work with the Energy Team to communicate the action plan to all areas of the organization. 7.2.7 IMPLEMENT ACTION PLAN People can make or break an energy program. Gaining the support and cooperation of key people at different levels within the organization is an important factor for successful implementation of the action plan in many organizations. Reaching your goals frequently depends on the awareness, commitment, and capability of the people who will implement the projects defined in your action plan. In addition to implementing the technical aspects of your action plan, consider the following:

Create a communication plan - Develop targeted information for key audiences about your Raise awareness - Build support all levels of your organization for energy management Build capacity - Through training, access to information, and transfer of successful practices, Motivate - Create incentives that encourage staff to improve energy performance to achieve Track and monitor - Using the tracking system developed as part of the action plan to track and

energy management program.

initiatives and goals.

procedures, and technologies, you can expand the capacity of your staff.

goals.

monitor progress regularly. 7.2.8 EVALUATE PROGRESS Evaluating progress includes formal review of both energy use data and the activities carried out as part of the action plan as compared to your performance goals. Evaluation results and information gathered during the formal review process is used by many organizations to create new action plans, identify best practices, and set new performance goals. Key steps involved include:

Measure results - Compare current performance to established goals. Review action plan - Understand what worked well and what didn't in order to identify best

practices. Regular evaluation of energy performance and the effectiveness of energy management initiatives also allows energy managers to: Measure the effectiveness of projects and programs implemented Make informed decisions about future energy projects Reward individuals and teams for accomplishments

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Document additional savings opportunities as well as non-quantifiable benefits that can be leveraged for future initiatives.

7.2.9 RECOGNIZE ACHIEVEMENTS Providing and seeking recognition for energy management achievements is a proven step for sustaining momentum and support for your program. Providing recognition to those who helped the organization achieve these results motivates staff and employees and brings positive exposure to the energy management program. Receiving recognition from outside sources validates the importance of the energy management program to both internal and external stakeholders, and provides positive exposure for the organization as a whole. Key steps in providing and gaining recognition include:

Providing internal recognition - to individuals, teams, and facilities within your organization. Receiving external recognition - from government agencies, the media, and other third party

organizations that reward achievement.

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CHAPTER 8: POWER BARGAINING ON ENERGY TRADING

WITH increasing globalisation of business transactions, the competitiveness of Indian industry would hinge on an efficient energy services sector that, among other things, channels scarce commercial energy resources for productive use. Also, the sector has assumed significance because of the overarching need to protect the environment, by promoting energy management and sustainable resource use. In this context, it has become imperative for India to draw up a mandate for negotiations on liberalisation of energy services at the WTO. Energy services, in general, include exploration, development, extraction, production, marketing, consumption and management of energy products and fuels. Transport, transmission and distribution of energy are considered core energy services; the others include consulting in energy efficiency, conservation and renewable sources of energy. Also, construction, maintenance of networks and services related to distribution, such as metering and billing, fall in the realm of energy services. Despite the identified economic advantages, energy services were not treated as a distinct category in the Uruguay Round. The reason, perhaps, being the sector at that time was the preserve of state-owned enterprises, functioning based on the regulatory environment in the country concerned. Hence, WTO members made very few commitments that can be clearly defined as falling under energy service, and much of the industry is yet to be covered under the specific commitments of GATS. It is common knowledge that the domestic energy sector is characterised by erratic supplies and inefficient operations. This has resulted in product prices of both the manufacturing and primary sectors rising and power/fuel prices continuing to be high. For instance, in 2002-03, while fuel prices rose 5.6 per cent, the general price index and manufactured product prices went up by 3.4 per cent and 2.7 per cent respectively. This implies that input prices are rising more sharply than those of final products. This dampens the competitive advantage of industry, by squeezing profit margins. Also, investments would be hit, especially in units that just about manage to cover their costs. The high cost of energy services is the single most important factor limiting the competitiveness of Indian industry. Hence, to be globally competitive it is essential to raise energy efficiency to international standards. And this would be achieved, inter alia, by opening up the sector to domestic and foreign competition. Most of the developed countries participating in the negotiating process look for market access and export gains for their industry. This suits the interests of developing countries such as India, which do not have the technology edge in energy services. Hence, the opening up of the sector in identified areas may lead to significant gains. In such a scenario, the real issue before India would be obtaining the best possible deal at the negotiating table. Market access should be given only to the extent the foreign

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country has a well-established comparative advantage. And there should be an element of reciprocity during negotiations at the WTO. The opening up of the energy services industry should, however, be done with caution. This is because, though regulation in the industry has been changing, the basic need for government intervention to address problems of market failures has not disappeared altogether. There is no gainsaying the need for regulatory policy to reduce systemic risks while enhancing competition. Hence, undue haste in transiting to a competitive environment should be avoided. Besides, as the country started opening up of the energy segment only recently, there is enough room for negotiations in the manner and form in which the trade should take place. Also, a longer transition period for opening up of the sector further must be bargained for. A major difficulty during negotiations could be about the definition of energy services. This is because the industry itself has traditionally not drawn a distinction between energy goods and service activities. The energy sector is dominated by state-owned, vertically integrated utilities in production, distribution and related activities. At the same time, the segment is subject to restrictive and discriminatory regulatory systems which pose a serious barrier to market entry. Besides, the sectoral classification list of GATS does not include energy services as a comprehensive category. India would do well to recognise the complex and highly regulatory nature of this sector and structure its arguments at the WTO in such a way that the scope of negotiations is limited to energy services and not extended to ownership or operation of energy systems, as this would have implications on energy security. Care should be taken to protect national interests in the areas of energy security, supply reliability, environmental preservation and public safety. Gains from opening up would accrue only with the strengthening of the domestic sector through reforms. In this context, though, post-liberalisation, private sector participation has been extended from generation to transmission and distribution, much more attention should go to improving the efficiency of the distribution system. At the same time, competitive conditions should be created to attract more foreign funds, particularly in long-term equity. This deserves special consideration at the policy and implementation levels. The sector will have to gear itself for the post-WTO situation, which would be characterised by increased competition from the global players. In the near-term, industrial economies will have the competitive edge and, hence, are likely to remain the major suppliers of energy services globally. Reforms in the energy sector have to be carried out with the objective of facilitating the emergence of major domestic players. To reap the benefits of globalisation, the country should enter into strategic alliances with select global players and, based on our comparative advantage, increase exports of identified energy services to select developing markets. 28

CHAPTER 9: INTERNATIONAL ENERGY GAME: ENERGY BALANCE

In the words of Indian Prime Minister Manmohan Singh, "China is ahead of us in planning for its energy security -- India can no longer be complacent." These words conveyed the sense of urgency that India holds over meeting its energy needs. India is playing catch-up with other major players in the global energy game. This realization has not come a moment too soon given the advent of rising oil prices, India's unprecedented growth levels, lack of energy-efficient technologies and reliance on energy-heavy industries for its development. Power shortages and blackouts continue to plague India's major cities and undermine the confidence of investors and foreign companies operating in India. These power shortages have been fueled by a combination of burgeoning growth rates, inefficiencies by the state-run power sector and power being stolen or siphoned for votes. The growing popularity of gas-guzzling, sport utility vehicles and multi-purpose vehicles in India is also placing strains on its energy needs.

9.1. INDIA'S NEIGHBORHOOD: FESTERING DISPUTES PREVENT ACCESS TO ENERGY RESOURCES

While China has either resolved or shelved its border disputes, India has active conflicts on almost all of its borders with neighboring states. Apart from India's poor relations with Pakistan on its western borders, the ongoing violence in India's northeast with sporadic attacks on pipelines and India's poor relations with natural gas-rich Bangladesh and China-friendly Myanmar have prevented it from fully exploiting its proximity to a region rich in energy resources on its eastern borders. Frosty relations between Bangladesh and India are rooted in accusations by India that Bangladesh is fueling terrorist movements in India's northeast in the presence of rising Islamic fundamentalism and anti-India sentiment in Bangladesh under the Bangladesh National Party-led coalition government, illegal migration between both states, and Bangladesh accusing India of re-routing the Ganges and Brahmaputra river systems that traverse both states. These disagreements have slowed the progress for discussions on a natural gas pipeline from Myanmar to India, which will have to pass through Bangladeshi territory forcing India to look into the expensive option of creating a deep-sea pipeline through the Bay of Bengal that would bypass Bangladesh.

9.2 INDO-IRANIAN ENERGY COOPERATION: THE "PEACE PIPELINE"

The inability to resolve the Kashmir dispute between Pakistan and India has undermined the viability of an Iran-Pakistan-India natural gas pipeline. A Memorandum of Understanding was signed between Iran and India in 1993 for a $4 billion 1700km pipeline from Iran's South Pars field with 29

700km passing through Pakistani territory. Pakistan stands to benefit with gas to meet its own energy needs and $500 million in transit fees. The international community has also shown growing interest in the Iran-Pakistan-India pipeline, with the World Bank and Japan's Sumitomo Mitsui Banking Corporation willing to finance the project. Russia also supports the project although the U.S. opposes it, instead pushing for the competing trans-Afghan pipeline project.

9.3 CENTRAL ASIA

India is at a geographic disadvantage in Central Asia when compared to China. While China shares borders with Kazakhstan, Kyrgyzstan, and Tajikistan, as well as with Russia, India does not share a land border with any of the Central Asian states. That being said, however, India's warm relations with the Soviet Union during the Cold War have provided it with influence in Central Asia. Further, India also has its soft power to exercise, with historical links that go beyond the Indo-Soviet Treaty of Friendship to the Mughal period and Silk Road, as well as the popularity of Indian mass culture in the region such as Bollywood films and music.

9.4 INDO-RUSSIAN ENERGY COOPERATION: REVIVAL OF THE "STRATEGIC TRIANGLE"

India has recently stepped up efforts to access energy resources in Russia, the world's second largest oil producer and leading gas producer. India's O.N.G.C. Videsh Ltd (O.V.L.) holds a 20 percent stake in Sakhalin-1 of $1.7 billion, which is set to begin production this year eventually generating 2.3 billion barrels of oil and 17.3 trillion cubic feet of gas. India is also looking to invest in the Sakhalin-3 project, which is estimated to hold 4.6 billion barrels of oil and 770 billion cubic meters of gas as well as investing in the joint Russian-Kazakh Kurmangazy oilfield in the Caspian Sea. During Russian President Vladimir Putin's visit to India in December, the two countries also signed a Memorandum of Understanding for joint exploration and distribution of natural gas from the Caspian basin as well as for building underground gas storage facilities in India.

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CHAPTER 10: ENERGY MANAGEMENT SOFTWARE AND OPPORTUNITY IN INDIA

India is a software giant. Many Indians are good at software. Many Indian companies are among the software development leaders in the world. EMS India shoud be second to nature. The whole world is in the threshold of a new renewable energy mix. The end of fossil fuels is on the horizon. India like any other country is going full steam with renewable energy like Solar. Wind, hydro, Geothermal, etc, During this transition phase, it is important to utilize energy efficiently more so because a large percentage of the energy used now is from fossil fuels. India should be the place where Energy Management software should be developed. India should be the birth place for Energy management of software of the best capability. Due to lack of transparency at the state owned utility level and due to planned power theft etc it might be difficult to implement a software already in vogue in USA or Europe. Particularly if they happen to be Energy Management software that are utility centric. Many Energy Management software are meant for communities, new residential complexes, corporates, factories, colonies etc., One may have to either make necessary alterations to the software products available in USA for energy management or develop a product exclusively for the Indian market Many new residential communities will be keen on using such a software to efficiently use the energy. The primary purpose of energy management software is to achieve greater efficiency in using energy be it at home or in office or in communities or elsewhere. In early 2009, Microsoft launched a product called hohmz which was meant for efficiently managing energy at home. May be they were too early for the market. Energy Management Software may provide one or many of the following : utility bill tracking, real-time metering, 31

building HVAC and lighting control systems, building simulation and modeling, carbon and sustainability reporting, IT equipment management, and energy audits.

Some of the well known companies in this field are: Hara: Hara is led by a talented team of seasoned leaders with a unique combination of expertise in enterprise software, cleantech, energy, sustainability, and regulatory compliance. Haras environmental and energy management software tracks about 1,000 objects with an accompanying 26,000 lines of data on things like time the item is used, and the fuel source used etc. Haras Environmental and Energy Management software tracks about 1,000 objects (like a truck or a machine) with an accompanying 26,000 lines of data on things like time the item is used, and the fuel source used, etc. The pricing of the software is based on how many objects are tracked, and the software is supposed to deliver a customer a return on investment in three to 12 months via savings from cutting energy, fuel and other resources. http://www.hara.com/

EnergyCAP: EnergyCAP is the result of over thirty years of development experience providing industry leading utility bill and energy efficiency software to government, education, and business organizations. Energy Caps many innovative features provide powerful ways to save. Powerful enterprise energy management software for utility bill processing and energy reporting. Fully online energy efficiency software for managing utility bills and energy data.http://www.energycap.com/products

eComponents: eComponents Technology has a completely integrated enterprise energy management platform that includes energy meters, data acquisition systems, communication protocols, and enterprise class energy management software. eComponents software is highly adaptable that is

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designed to meet an organizations needs and it easily integrates into all levels of an organization used by CEOs, facility managers, engineers and accountants .http://ecomponentstech.com/

Pulse energy: Pulse Energy develops energy management software that saves building owners and occupants money by bringing intelligence to the demand for energy. A finalist for the BC Technology Industry Association's Most Promising Start Up Award and winner of a New Ventures BC prize, they've been recognized by Berkeley's Center for the Built Environment as a hot company to watch one of the top three energy visualization software companies in the market.http://tbe.taleo.net/NA5/ats/careers/jobSearch.jsp?org=PULSEENERGY&cws=1

Team: TEAM is the UKs leading supplier of Energy Monitoring & Targeting software, bureau and consultancy services. TEAM offers an integrated suite of energy and carbon management software for monitoring & targeting, CRC data management, reporting and risk arrangement, production and management of Display Energy Certificates, tenant billing, management of EDI utility invoices, utility bill query management etc.http://www.teamenergy.com/

NECPL (NAAC Energy Control Pvt Ltd): Offers the most advanced and best in World Power Quality Solutions with thrust in the key areas of energy audit India, energy saving and Power Quality Management India.http://www.naacenergy.com/index.html

PlotWatt: PlotWatt, founded in 2008 is a North Carolina based developer of home energy management software. PlotWatt offers a free application that features cloud-based algorithms to analyze home energy data and provide appliance-level insight, feedback, and recommendations to help save as much as 20 percent off electric bills. PlotWatt hopes to make its money from the service providers and vendors who would sell their wares to Energy Dashboard customers.

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CHAPTER 11: EXAMPLES

1. ENERGY/GAS UTILISATION AWARENESS WORKSHOP
GAIL (India) Ltd requested an energy awareness workshop for experienced managers and engineers to improve their knowledge and understanding of energy management and issues related to industrial processes.

Project Aims
The project objective was to provide a two-week workshop on energy awareness and energy efficiency involving technical issues such as industrial fuel conversions and advanced energy and environmental technologies. The workshop included theory and practical sessions in Advantica laboratories and at client sites.

Project Scope of Work

This workshop involved intensive and practical guidance combining theory, case studies and site visits to address relevant energy technologies. The programme included: Energy utilisation and technologies Combustion and flue loss analysis LPG, SNG and oil conversion to natural gas. Interchangeability Cooling and combined heat and power Gas burners and control systems in industrial processes Industrial conversions and plant performance Gas reburn and emissions control Energy audits Energy management and energy efficient practices Techno-economic energy studies Advanced software solutions for utility companies

Benefits to Customer
The workshop provided GAIL with valuable insight and in-depth knowledge, as well as practical experience in all aspects of energy technologies, energy management, energy efficiency and energy conversion of Industrial sites. GAIL is now better placed to provide quality assessment and sales and marketing proposals for industrial customers. Their success will lead to significant gas sales and better energy environment/utilization in India. A memorandum of understanding (MoU) has been created with GAIL for future co-operations. 34

2. ENERGY MANAGEMENT PRACTICES

Energy management is practiced to varying degrees by manufacturers throughout industry. No one company or industry dominates the practice. While it is easier to identify energy management leaders among Fortune 500 companies, there are also small, privately held companies that excel at stewardship of energy and other resources. Here is an overview of ten companies accomplishments: 3M. This diversified manufacturer seeks to reduce energy consumed (Btus) per pound of product by 20 percent over the 2000 2005 time frame. This goal will require 3Ms tier-1 plants (52 facilities worldwide) to achieve 3Ms own World Class energy management label. 3M has already surpassed that target and uses its energy performance in its product marketing. Superior energy cost control at 3M reduces the embedded energy cost that 3Ms customers would normally absorb. Notable feature: 3Ms executive management believes that resource stewardship makes good business sense. Energy management goals and results are routinely communicated to Wall Street analysts. 3M, and the manufacturers that purchase inputs from 3M, are responding to markets that increasingly demand products with low environmental impacts. C&A Floorcoverings. Based in Georgia, this privately held, five-plant company demonstrates successful energy management by a mid-sized manufacturer. C&A has implemented a management system for matching energy-efficiency initiatives with business goals. After two years, C&A achieved 10 percent savings on an annual natural gas expenditure of $824,500. Notable feature: C&A adopted MSE 2005, an ANSI-certified standard for energy management developed by Georgia Tech, as a template for an in-house energy management program. By the end of 2004, C&A was close to becoming the first organization to become fully certified per the MSE 2005 standard. Continental Tire North America. Continental began shutting down certain North American facilities due to energy waste and other cost inefficiencies. One Illinois-based facility became proactive at energy management and was rewarded by getting a larger share of overall production quotas. The Illinois plant used a combination of energy consultants and in-house management structures to achieve a 31 percent reduction in energy consumption per tire. Notable feature: Continental successfully partnered with an energy services company (ESCo) to design and implement energy management procedures that were self-sustaining after the ESCos tenure concluded. DuPont. With over 100 plants in 70 countries, energy management practices at DuPont are supported by two top-level strategies. The first is designating energy efficiency as a high priority corporate issue. The other is the application of Six Sigma methodology to the energy management process. Notable feature: Through 2002, DuPont applied Six Sigma to behavioral tasks, including plant utility management. Over 75 energy improvement projects, many requiring no capital, were implemented across the companys global operations. The average project netted over $250,000 in annual savings. 35

Frito-Lay. This leading snack food manufacturers energy management features aggressive energy reduction goals with a focus on results. This demands a high degree of monitoring, measurement, and communications. Frito-Lay organized the required engineering talent as its Resource Conservation Group. While surpassing intermediate targets on the way to even larger savings, Frito-Lays efficiency initiatives have returned over 30 percent on investment. Notable feature: Large and challenging energy reduction goals were used to rally and motivate staff to generate results. Shaw Industries. Concerted efforts to manage energy at Shaw Industries got underway in mid-2004. By primarily using the U.S. Department of Energys plant audit methods and BestPractices reference materials, a newly-hired demand-side engineer documented potential energy savings at a rate of $1 million per month for the first six months of his tenure. Notable feature: U.S. DOE resources were effectively adopted by in-house personnel to drive their energy auditing and remediation activities. Unilever HPC. Unilevers Health and Personal Care Divisions energy management program coordinates 12 facilities by combining energy-use targets with an energy service outsourcing strategy. A simple budget-to-actual spreadsheet compares energy performance at 14 facilities. Notable feature: Because its use resulted in a saving $4 million on energy and another $4 million in avoided costs, the spreadsheet has captured the attention of individual facility managers as well as Unilevers Board of Directors. A comparison of the 10 case studies presented here suggests that industrial energy management is not prescriptive in nature. It is tempting to argue that some companies approaches are stronger than others. Upon further thought, it is useless to suggest that Company A is somehow better at energy management because it achieved greater relative energy reductions than Company B. After all, one company may have already been somewhat more efficient to begin with. The structure of authorities within companies is a major factor. So too are market conditions and asset management strategies. Is energy management helped or hindered by corporate policies regarding investment, human resource development, and outsourcing? The answers are unique for every company.

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CHAPTER 12: CASE STUDY

INDIA WATERGY: WATER AND ENERGY MANAGEMENT

Project Background Increasingly irregular monsoon rains, growing populations, and rising energy tariffs, leave municipal officials with the ever greater challenge of meeting urban water demand in a cost effective manner. Often options are limited, and many Indian municipalities must pump water over long distances, requiring the costly conveyance infrastructure and elevated energy costs associated with these systems. Municipalities without the means to make these investments are forced into the difficult situation of simply not meeting user needs, often supplying water just a few days each week. This work seeks to develop the capacity of local officials charged with managing water systems to improve the efficiency of these systems in order to make use of existing water resources currently being wasted due to leaks and other system inefficiencies. Development Objective The effect of unreliable water supply impacts urban populations in multiple ways, resulting in detrimental health impacts, as well as significant social and economic costs. More efficient delivery systems translate into measurable energy savings due to reduced pumping requirements. Reduced pumping means lower energy costs and reduced environmental impacts, with the improved service customers want. By reducing rates of unaccounted-for water, as well as through other water efficiency and water conservation efforts, significant energy savings can also be realized. Systems operating at higher efficiency levels deliver higher quality water to consumers, as these systems are less prone to cross contamination resulting from the multiple points of entry found in systems with high rates of leakage. Better quality water for consumers leads to improved living and health conditions and the associated benefits that accompany them. Approach The widespread water and energy challenges faced by Indian municipalities led the Alliance to focus efforts upon an outreach and capacity building effort in Karnataka, and more recently in Andhra Pradesh, both are states with high rates of urban development in southern India. This work is designed to develop municipal efficiency models suitable to local needs, and to spread the word on how 37

municipal efficiency measures can be implemented. This phase of work seeks to go beyond Indias largest cities, reaching out to the countrys small and medium sized municipalities. USAID Role in Project While water provision is the immediate concern of water utilities, energy for water pumping and treatment is one of the main elements affecting a water utilitys total costs. In India, this basic service often represents over 70 percent of a municipalitys total energy expenditure. The fact that a large number of Indians still lack sufficient access to water places increasing pressure upon decision makers to develop sustainable energy and water management strategies to bridge this gap. USAID in partnership with the Alliance to Save Energy seeks to provide municipalities as well as the senior state officials overseeing the states municipal operations with a framework for addressing the states long-term water needs. Project Partners To effectively target this effort, the Alliance initiated partnerships with local institutions in the southern state of Karnataka and is working closely with Karnatakas Urban Development Department, Directorate of Municipal Administration, the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), the Karnataka Urban Water Supply and Drainage Board (KUWS&DB), and The Energy and Resources Institute / Tata Energy Research Institute (TERI). Project Activities The capacity building aspect of this project works to build the energy efficiency expertise of state urban management organizations, those groups focused upon the development of urban service infrastructure. To this end, KUIDFC, with USAID and Alliance support, established an Energy Management Cell (EMC) within its operational structure. This partnership stems from KUIDFCs established role as a leading state authority in the all areas of municipal infrastructure development. TERI is working with the Alliance to perform the water-energy audit phase of the project. The audits are establishing the current status of the municipal water infrastructure in four select municipalities, and have laid out the no and low-cost options available to local officials. As the initial audits are completed, findings and recommendations are being shared through a series of workshops with other municipalities throughout the state. As these audits are conducted and efficiency measures identified, KUIDFCs efficiency cell has become increasingly involved and integrated in promoting water and energy efficiency within the state. As the work of the efficiency cell has expanded, KUIDFC has become more active as an advocate for efficiency, pursuing implementation of more costly infrastructure upgrades within water and street

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lighting systems. While the costly measures are more difficult to enact, they have rapid paybacks, very often in the range of one to one and a half years. Project Results To date capacity building efforts in Karnataka have concentrated upon the work with KUIDFCs EMC, which has been instrumental in the development of two technical trainings reaching over 522 individuals and 125 institutions. Upon the completion of this component of the project, all of the states 208 urban local bodies will have received this training. As part of this work KUIDFC has committed funds from their budget to implement an additional eight audits and is currently seeking to implement efficiency measures outlined in two of the Alliance funded audits. The first of the outreach seminars was held in the municipality of Hubli in December 2002. Over 200 state and municipal officials attended to hear the results of the first round of audits. Some of the efficiency opportunities available to Hubli include the potential for US$325,000 of energy savings, with an investment of US$87,000. The identified annual energy cost savings potential works out to 14.5 percent of annual energy costs. As of result of these findings KUIDFC and TERI have established an MOU focused upon continuing the water and energy auditing work with state funding for interested municipalities. Through this MOU TERI has already completed six water and energy audits for interested municipalities. Development Impact The work of this activity is helping to address the desire of many Indian states to provide high quality affordable water service to residents. Water scarcity will continue to present major challenges tothese states; however, through the development of applicable efficiency models suitable to local conditions, major strides can be made in meeting these challenges. Not only can these models assist in meeting the water needs of local populations, but they will provide effective alternatives that preserve resources while reducing negative environmental impacts such as over extraction of ground and surface water, and poor air quality by reducing reliance upon fossil fuels for energy powering pumping and treatment equipment. Lessons Learned Focusing efforts at the state level allows for much greater interaction with relevant decision makers, while still presenting opportunities for leveraging infrastructure funding from other donor institutions. While the state level provides many interesting opportunities, it continues to be important to have well defined and mutually agreed upon milestones for accomplishing efficiency objectives.

CONCLUSION
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Although the processes and motives leading to--or not leading to--the creation of comprehensive energy management programs in different sectors are not well understood, and the cost effectiveness of various approaches needs to be investigated further, this lack of information does not seem to be a motive for a no-action strategy. We have showed that there are several major gains to be made for a nation by activating different sectors to move towards increased energy efficiency. Even in nations with very limited financial and personal resources, there are measures that could be taken which appears to pay off well. The Energy Policy in India lays emphasis on maximising returns from the systems already created in the energy sector. This includes reducing technical losses in production, transportation and end use of all forms of energy and to reduce the energy intensity of the different consuming sectors of the economy and to promote conservation and demand management through appropriate organisational and fiscal measures. In India, the focus is on large energy consumers, like data centres, but there is a catch-22 situation because of the need for more energy, while trying to reduce the consumption. Land prices are shooting up, especially when you look at expanding your centre for large operations. So, there is no room for additional generators and coolers, when the capacity is within/inside the building. Automation is adopted in the country, where, according to a recent study, there is 16 per cent power deficit. The cost of electricity will double in the next five years. Next, energy dilemma is coming and very quickly, it is going to hit homes, offices and elsewhere. Energy has always been a vital resource in the development of any nation. The prosperity of a nation is measured in terms of per capita energy consumption besides GDP, GNP, etc. While the world has seen hectic industrial activity in the past century it has also come face to face with serious problems arising out of haphazard utilization of the energy resources. The concept was More the resources (energy), more the development. Low fuel costs did not encouraged efficient utilization of energy. During the intensive process of industrialization the world observed consumption of majority stock of its energy resources and deterioration of the global environment. Energy made up a very small component of the total production cost and monopolized business enabled recovery of high cost of energy. The world is moving towards a sustainable energy future with an emphasis on energy efficiency and use of renewable energy sources. A finite planet cannot support infinitely increasing consumption of resources and hence the motto of present times must be to "REDUCE, REUSE, RECYCLE".

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BIBLIOGRAPHY
Library Resources
Muzumdar. B., A Text Book of Energy Technology : Both Conventional & Renewable Source of Energy, APH, 1999, v, 208 p, tables, figs, ISBN : 81-7648-101-7 Wayne C. Turner (Author), Steve Doty (Author), Wayne C. Truner (Author), Energy Management Handbook, 7th Edition (Hardcover) John Wiley and Sons - Wayne C. Turner, Energy management handbook Cape Hart, Turner and Kennedy, Guide to Energy Management Tripathy, S. C., Electric Energy Utilization and Conservation, Tata McGraw hill publishing company ltd. New Delhi John C.Andreas, Energy efficient electric motors selection and application Tyagi, Amit kumar, Hand book on Energy Audit and Management published by TERI(Tata energy research Institute) Paul W.O Callaghan, Energy management by McGraw hill book company Begamudre, Rakosh Das, Energy conversion systems, New age international publishers Murphy, W.R. & Butterworths, G.Mckey, Energy Management.

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