MEMBERS' REFERENCE SERVICE

LARRDIS
LOK SABHA SECRETARIAT, NEW DELHI

REFERENCE NOTE

No.37/RN/Ref./July/2017
1
For the use of Members of Parliament NOT FOR PUBLICATION

ENERGY SECURITY

Prepared by Shri Naushad Alam, Additional Director (23034299) and Smt. Shalima Sharma, R.O. of Lok Sabha
Secretariat under the supervision of Shri Atul Kaushik, Additional Secretary, Smt. Kalpana Sharma, Joint
Secretary and Smt. Anita Khanna, Director.-

----

The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is not for
publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the
end/in the text.
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ENERGY SECURITY

Introduction

The International Energy Agency (IEA) defines energy security as "the

uninterrupted availability of energy sources at an affordable price". Energy security
concerns are a key driving force of energy policy. These concerns related to the
robustness (sufficiency of resources, reliability of infrastructure, and stable and
affordable prices); sovereignty (protection from potential threats from external agents);
and resilience (the ability to withstand diverse disruptions) of energy systems.

The National Energy Policy

The National Energy Policy (NEP) aims to chart the way forward to meet the
Government’s bold announcements in the energy domain. All the Census villages are
planned to be electrified by 2019, and universal electrification is to be achieved, with
24x7 electricity by 2022. Our Intended Nationally Determined Contribution (INDCs)
target at reduction of emissions intensity by 33%-35% by 2030, achieving a 175 GW
renewable energy capacity by 2022, and share of non-fossil fuel based installed
capacity in the electricity mix is aimed at above 40% by 2030. In view of the fact, that
energy is handled by different Ministries that have the primary responsibility of setting
their own sectoral agenda, an omnibus policy is required to achieve the goal of energy
security through coordination between these sources. There are four key objectives of
our energy policy which are:

Four Key Objectives of Energy Policy

 Access at affordable prices,
 Improved energy security and
Independence
 Greater Sustainability and
 Economic Growth.
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Improved energy security, normally associated with reduced import dependence.

Today, India is heavily dependent on oil and gas imports while also importing coal.
Energy security may be enhanced through both diversification of the sources of
imports and increased domestic production and reduced requirement of energy. Our
fossil fuel requirements, which comprise nearly 90% of our commercial primary
energy supply, are increasingly being met by imports. This means that cutting fossil
fuel consumption would promote the twin goals of sustainability and security.

Renewable Energy Sources

The steps initiated by the Government to achieve the up-scaled targets of power
generation by Renewable Energy and to move towards its goal, inter-alia, include
suitable amendments to the Electricity Act and Tariff Policy for strong enforcement of
Renewable Purchase Obligation (RPO) and for providing Renewable Generation
Obligation (RGO).

During the period from April 2016 to January 2017, a total of 1038.422 Billion
Units (BUs) of electricity have been generated in the country including 70.129 BU
from various renewable energy sources. The State-wise details of the Renewable
Energy generated during the year 2016-17 (upto January17) is given at Annexure-I.

The Government has revised its target of renewable energy capacity to 175
GW (Gigawatt) by end of 2022, making it the largest expansion in the world and
providing plenty of opportunities for investors. The New and Renewable Energy
sector has witnessed the highest ever-solar power and wind power capacity addition
over the last two years since April 2014.
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The achievements of the New and Renewable Energy Sector is given in

following table:

Key achievements in the sector during the last 2 years are:

 The world's largest 648-MW solar power plant was commissioned in Tamil
Nadu on September 21, 2016.
 A 157% increase in solar power capacity addition (4132 MW) during the last
two years (FY2014-15 and FY 2015-16).
 Highest ever wind power capacity addition of 3300 MW in 2015-16.
 34 solar parks of aggregate capacity of 20,000 MW have been sanctioned
for 21 states. INR 356.63 crores has been released to Solar Energy Corporation
of India for the projects.
 31,472 solar water pumps were installed in 2015-16; this is higher than total
number of pumps installed during the last 24 years since 1991.
 501 MW grid connected solar rooftop projects have been installed in the
country.

The steps taken by the Government to increase the generation of Renewable

Energy sources are:

 Incentives in the forms of generation based incentives/subsidies, fiscal

incentives such as accelerated depreciation, concessional customs duty, excise
duty exemptions, income tax holiday for 10 years and viability gap funding from
National Clean Energy Fund (NCEF).
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 Up-scaling of the target of renewable energy capacity to 175 GW (Gigawatt) by

the year 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW
from bio-power and 5 GW from small hydro-power;
 Amendments in the Tariff Policy for strong enforcement of Renewable Purchase
Obligation (RPO) and for providing Renewable Generation Obligation (RGO);
 Setting up of exclusive solar parks;
 Development of power transmission network through Green Energy Corridor
project;
 Identification of large government complexes/ buildings for rooftop projects;
infrastructure status for solar projects;
 Raising tax free solar bonds;
 Making roof top solar a part of housing loan by banks/National Housing Bank
(NHB);
 Incorporating measures in Integrated Power Development Scheme (IPDS) for
encouraging distribution companies and making net-metering compulsory;
 Raising funds from bilateral and international donors as also from the Green
Climate Fund to achieve the target; and
 Creation of Surya Mitras for installation and maintenance of the Solar Projects.

Power Generation Scenario

The Overall generation (including generation from grid connected renewable

sources) in the country has been increased from 1173.458 BU during 2014-15 to
1173.603 BU during the year 2015-16 and 1242.010 BU during 2016-17. The annual
growth in power generation during recent years is given at Annexure-II.
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The performance of Category wise generation during the year 2016-17 is given
in the following table :-

Table: Performance of category-wise Generation

Thermal Increased by 5.34 %

Hydro Reduced by 0.82 %
Nuclear Increased by 1.34 %
Bhutan Import Increased by 7.11 %
Renewables Increased by 24.46 %
Overall Growth rate 5.83 %

India Energy Security Scenarios (IESS), 2047

In 2013, the erstwhile Planning Commission had undertaken an energy scenario

building exercise, called the India Energy Security Scenarios, 2047. The first version
of the IESS, 2047 was publicly launched on 28th February 2014. This was further
developed by NITI Aayog in 2014-15, the successor institution of the Planning
Commission, to incorporate the bold ambitions of the new Government for a large
share of clean energy and high growth rate of the Gross Domestic Product (GDP).

The tool has revealed that there is a large potential for India to raise its energy
supply from domestic sources, particularly renewable ones. It aims to explore a range
of potential future energy scenarios for India, for diverse energy demand and supply
sectors leading up to 2047. It explores India’s possible energy scenarios across energy
supply sectors such as solar, wind, bio fuels, oil, gas, coal and nuclear and energy
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demand sectors such as transport, industry, agriculture, cooking and lighting

appliances. The purpose of the IESS tool is to engage various stakeholders in the
country’s energy planning and facilitate informed debates at different levels. This tool
will enable policy makers and parliamentarians make a more secure and sustainable
energy future for India.

Conclusion

Energy is a key determinant of growth and India needs sustainable energy

sources to continue to grow at 7-8 percent annually. Inadequate availability of
hydrocarbons along with decline in coal production forces India to remain dependent
on oil imports and consequently increase its import bills. India imports approximately
70 percent of its oil, most of it is from the Middle East. In addition, demand for
hydrocarbons is rising globally compelling India to ensure energy security, establishing
energy security as one of the biggest challenges faced by India. Environmental
concerns coupled with inadequate supply of hydrocarbons and natural gas have
resulted in India now aiming at a diversified basket of energy.

Fully reliable provision of power and new employment opportunities in the

manufacturing sector give extra impetus to India’s economic and social development
and its transition to an urban society. The additional demands on the energy system
come primarily from industry, not only from energy-intensive sectors, but also from
other industries that are targeted by the “Make in India” campaign such as textiles,
food processing, machinery and industrial equipment. Energy use for road freight,
residential consumption and for a more mechanised and productive agricultural sector
also rise. To avoid that this extra demand exacerbates energy security and
environmental strains requires an even-stronger commitment to energy efficiency as a
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central pillar of India’s energy strategy, alongside an unwavering push for low-carbon
energy and high standards of pollution control.

Bibliography:

1. Lok Sabha Unstarred Question No. 3677 dated 23.03.2017

2. Rajya Sabha Unstarred Question No. 483 dated 21.11.2016
3. Rajya Sabha Unstarred Question No. 1666 dated 09.05.2016
4. PIB Release dated 28.08.2015
5. http://powermin.nic.in/en/print/133
6. http://niti.gov.in/content/niti%E2%80%99s-energy-sector-planning-tool-iess-
2047
7. http://www.iea.org/topics/energysecurity/subtopics/whatisenergysecurity/
8. www.iiasa.ac.in
9. pibphoto.nic.in
10.India. Niti Aayog, Draft National Energy Policy (www.niti.gov.in)
 Annexure-I

State-wise and Source-wise power generation from various renewable energy

sources during the the period of April 2016 to Jan 2017.

(Million Units)
S. No State Wind Solar Small Hydel Bio-Power Total
1 CHANDIGARH 0.00 12.37 0.00 0.00 12.37
2 DELHI 0.00 4.00 0.00 106.85 110.84
3 HARYANA 0.00 38.74 267.49 87.96 394.20
4 HP 0.00 0.00 1885.33 0.00 1885.33
5 J&K 0.00 0.49 278.24 0.00 278.73
6 PUNJAB 0.00 676.06 372.73 632.44 1681.23
7 RAJASTHAN 4857.24 1740.36 3.83 224.46 6825.89
8 UTTAR PRADESH 0.00 165.56 22.07 2257.69 2445.31
9 UTTARAKHAND 0.00 25.09 726.65 45.57 797.30
NTPC DADRI+FBD+
10
UNCHAHAR+SINGRULI 0.00 38.06 0.00 0.00 38.06
11 OIL INDIA LTD 173.57 19.09 0.00 0.00 192.67
12 CHHATTISGARH 0.00 97.66 39.65 1045.79 1183.10
13 NTPC RAJGARH 0.00 67.59 0.00 0.00 67.59
14 GUJARAT 6578.73 1409.65 20.26 8.16 8016.80
15 MADHYA PRADESH 3015.17 1090.63 189.76 98.80 4394.36
16 MAHARASHTRA 6950.36 464.55 444.34 2152.25 10011.49
DADRA AND NAGAR
17
HAVELI 0.00 0.96 0.00 0.00 0.96
18 DAMAN & DIU 0.00 10.95 0.00 0.00 10.95
19 ANDHRA PRADESH 2769.94 1228.48 135.17 423.90 4557.49
20 TELANGANA 183.69 960.99 45.54 310.36 1500.59
21 KARNATAKA 5411.24 343.47 1491.55 1358.97 8605.23
22 KERALA 66.43 20.92 374.73 44.43 506.51
NTPC RAMAGUNDAM+
23
ANANTAPURAM 0.00 271.12 0.00 0.00 271.12
24 TAMIL NADU 11153.53 1477.88 89.80 1065.36 13786.57
25 LAKSHADWEEP 0.00 1.17 0.00 0.00 1.17
26 ANDAMAN &NICOBAR 0.00 5.26 12.17 0.00 17.43
27 BIHAR 0.00 83.01 20.05 0.00 190.52
28 JHARKHAND 0.00 31.63 0.00 87.46 31.63
29 ODISHA 0.00 166.37 218.15 0.00 442.36
30 SIKKIM 0.00 0.00 34.38 57.85 34.38
31 WEST BENGAL 0.00 11.71 92.84 0.00 1297.49
32 DVC 0.00 0.00 121.46 1192.94 121.46
NTPC
33
ANDAMAN+TALCHER 0.00 16.48 0.00 0.00 16.48
 ARUNACHAL
34
PRADESH 0.00 0.13 13.40 0.00 13.53
35 ASSAM 0.00 79.85 78.73 0.00 158.58
36 MANIPUR 0.00 0.01 0.00 0.00 0.01
37 MEGHALAYA 0.00 0.00 54.75 0.00 54.75
38 MIZORAM 0.00 0.00 42.57 0.00 42.57
39 NAGALAND 0.00 0.00 86.41 0.00 86.41
40 TRIPURA 0.00 0.00 40.03 0.00 40.03
41 NEEPCO 0.00 5.65 0.00 0.00 5.65
41159.91 10565.90 7202.06 11201.23 70129.11
Total

Source: Central Electricity Authority (CEA)

Note: Data as received from State Load Dispatch Centre (SLDC) of the respective states of the electricity department.
 Annexure-II

Power Generation

GROWTH IN
GROWTH IN GROWTH IN
YEAR TOTAL GENERATION
CONVENTIONAL GENERATION (%) RENEWABLE GENERATION (%)
(%)

2008-09 2.7 - -
2009-10 6.6 - -
2010-11 5.56 - -
2011-12 8.11 - -
2012-13 4.01 - -
2013-14 6.04 - -
2014-15 8.43 - -
2015-16 5.64 6.47 5.69
2016-17 4.72 24.46* 5.83
2017-18 (Upto April
3.91 22.00* 4.79
2017