Coal sector is to be in the prime source of energy of our country. Majority 0f Indian cola resources spread over the states of Andhra Pradesh, Assam, Chhattisgarh , Jharkhand , Madhya Pradesh , Maharashtra, Meghalaya, Orissa and West Bengal and few other states , they account for a total reserve of 257.38 billion tones (as on 1.4.2008) .coal production projection in XI plan period , CIL to produce 520.50 million tones and 160 million tons by other producers. In the process of exploration, mine development extraction, beneficiation, handling etc enormous amount of energy is used in the form of both electrical and thermal energy (Liquid fuel , lubricants and coal for boiler operation etc). Coal industry in India also account for employing the largest work force in its operations. The energy consumed by the employees in coal sector alone will be few hundred MW (As per the coal industries norms, free supply of 30 kWh (units) per house per month is to provided), since over 4lakh quarters in colonies, are to be provided air, water and electricity. The industrial sector in India is a major energy user, accounting for about 48% of commercial energy consumption. The sector has become increasingly energy-intensive over time, which is partly due to investments made in basic and energy intensive industries due to the emphasis laid in the past development plans on achieving self-reliance. There are wide variations in energy consumption among different units within the same industrial sector using comparable technology. The energy savings potential in this sector is estimated to be up to 20%. Despite the large potential for energy efficiency investments having financially attractive returns, only a small fraction is actually being tapped. There is thus a need for concerted efforts, whether voluntary or otherwise to promote energy efficiency in the industrial sector.
1.1 ENERGY SCENARIO IN INDIA.
1.1.1 Energy demand
India is both a major energy producer and a consumer. India currently ranks as the worldâs seventh largest energy producer, accounting for about 2.49% of the worldâs total annual energy production. It is also the worldâs fifth largest energy consumer, accounting for about 3.45% of the worldâs total annual energy consumption in 2004. India is considered a fast growing economy and with a targeted GDP growth rate of 9% during the Eleventh Five-year Plan (2007-12), the total primary energy demand is expected to be of the order of 715 Million Tones of Oil Equivalent (MTOE) by2011/12(Planning Commission) Coal will continue to play a major role in meeting energy requirements.
There are many challenges that the Indian energy sector is facing:
â¢ The rising costs of energy supply
â¢ Shortages of electricity (both peak and energy)
3. The significant demand-supply gap is expected to increase in the coming Years. With this growing demand-supply gap, the import dependency will rise, and this would have an overall impact on the economy in terms of Energy security and foreign exchange requirements. (TERI University-Ph.D. Thesis, 2010). Industrial energy consumption in India is projected to sustain the worldâs second-highest rate of GDP growth, averaging 5.6% per year from 2006 to 2030. This translates into a 2.3% average annual increase in delivered energy to the industrial sector. Indiaâs economic growth over the next 25 years is expected to derive more from light manufacturing and services than from heavy industry, so that the industrial share of total energy consumption falls from 72% in 2006 to 64% in 2030. The changes are accompanied by shifts in Indiaâs industrial fuel mix, with electricity use growing more rapidly than coal use in the industrial sector (U.S.Energy outlook 2009) At present, most of the coal enterprises in India a have the unfavorable problems, such as large energy consumption and low effective utilization. With the rising of energy prices, severe shortage of water day by day, and more prominent contradictions between supply and demand of electric power, it is necessary for coal enterprises to strengthen energy management, reduce energy consumption, and change the mode of economic growth, in order to achieve sustainable development.
In our country the following are the main problems.
â¢ Peak demand shortage of around 14% and an energy deficit of 8.4%
â¢ 6% increase in India’s GDP imposes an increased demand of 9 % on its energy sector
â¢ Hence, capacity addition of 115,794 MW proposed in next 11 years by GOI
The sector wise energy consumption in India is shown in the Pie chart 1.1. The energy available in different sources according to different country wise is presented in Table 1.1. The figure represents the consumption. The sector wise final energy consumption (past and projected) is presented in pie chart 1.2. The source the electricity demand for up to year 2011-2012 is 1067.88 billion units and coal demand 173.47 million tons (Planning commission BUA) are presented in Table1.2 (Putri Zalila Yaacob et al., 1993)
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