Energy

Introduction

Energy is amongst the most important resources for economic development and for improving the quality of life. Every possibility is grown out of energy. In the age of globalization, ever growing needs, the annual per capita consumption of energy is increasing in the world, so is the case with India. And there is serious Concern as India lacks and with its ever growing needs it can not fulfill the primary requirements easily. There is a vast different in energy consumption in big cities, small cities and villages, still there are a large number of villages which have no access to electricity. And this shortage and lack of access shows its effect in the growing economy, although growing with a reasonable speed India is still far behind from its true potential and it needs to identify and take Major reforms in order to get true value but despite these problems India's energy sector offers huge potential for investors, operators and developers across power generation, power transmission, it's regular and healthy distribution.

Policy framework in place:

The energy policy of India is characterized by tradeoffs between four major drivers:

  • Rapidly growing economy, with a need for dependable and reliable supply of electricity, gas, and petroleum products;
  • Increasing household incomes, with a need for affordable and adequate supply of electricity, and clean cooking fuels;
  • Limited domestic reserves of fossil fuels, and the need to import a vast fraction of the gas, crude oil, and petroleum product requirements, and recently the need to import coal as well;

Indoor, urban and regional environmental impacts, necessitating the need for the adoption of cleaner fuels and cleaner technologies. All these things are playing crucial role and Government polcies are changing and to be true are being revolutionized in last 12 years. Reforms are making India better and India is improving (though needs are too high) but still energy sector is becoming more efficient, effective and competitive. The central government is operating on their national basis requirements where as almost 24 states have established their own state electricity board since 1998 and many of them are realizing their potential and trying their hands with various companies into various processes and practices involved in power generation, power transmission and power distribution. They are also improving the law system and trying to improvise the system and transparency.

Demand, Supply and opportunities

Demands are ever increasing and based on the demand projections made in the 16th Electric Power Survey, over 100,000 MW additional generation capacity needs to be added by 2012 to bridge the gap between demand and supply of power. In order to achieve that India needs a strong formation to revolutionize the basic architecture of India's energy Generation, Transmission and distribution.

It should be accessible by everyone at an affordable price. India needs to work on every possible sector which includes energy; Which Indian Government and many public private and private organizations are doing to meet the challenges ahead.

Coal

Coal is one of the most ancient and primary sources of energy. For India, it accounts for about 55% of the total energy consumption. Out of 75% of the total coal in India is consumed in the power sector. Coal is governed by Ash content and calorific values, Indian coal has high ash content and low calorific value and with the ever growing economy and its needs the shortage in coal supply is going to be continuing.

This shortage is supposed to be filled through one and only one medium, Imports. In India Coal reserves are basically concentrated in the eastern region. Total Reserves are expected to Be 260 Billion Tones, out of that 65 % is believed to be in eastern region and rest is in distributed in various parts of India.

For India it is a very important part of power trading. The large coal reserves (although not very efficient) in the country are a pivotal source of energy and gives us a little security. But with time the total demand for coal is projected to increase is 150% from 2006 to 2012.

Coal will be the most important fuel for power generation till 2012 and beyond. But India needs to consider the better option to utilize its resources and instead of burdening other sector it should pay its attention to efficient transmission and distribution. The Deeaar Group has a deep understanding and knowledge of India’s power sector. We Deeaar group offers implementable, quality advisory, engineering and capacity building services in energy covering coal, renewable and other segments of power sectors to multilateral, government and private sector clients.