Wednesday 27 February 2013

Current Affairs-Indian Economic Survey-2012-13:Energy Production and Consumption: A Snap Shot


Energy Production and Consumption: A Snap Shot

During the 11th Five Year Plan, nearly 55,000 MW of new generation capacity was created. Yet there continues to be an overall energy deficit of 8.7% and peak shortage of 9%. The potential for energy generation depends on the country’s natural resource endowment and the technology to harness it. As on March, 2011 India’s estimated coal reserves were about 286 billion ton, 81 billion ton of lignite, 757 MT of crude oil and 1241 billion cubic meter (BCM) of natural gas. The estimated hydro potential (about 25 MW) is about 145 GW. The total potential for renewable power generation from various sources other than large hydro projects stood at 89,760 MW. The 12th Plan has projected total domestic energy production of 669.6 million tons of oil equivalent (MTOE) in 2016-17 and 844 MTOE in 2021-22. This will meet around 71% and 69% of expected energy consumption with the balance to be met from imports which are projected to be 267.8 MTOE in 2016-17 and 375.6 MTOE in 2021-22. Import dependence in case of crude oil is projected to be 78% while that in coal will be 22.4% by 2016-17. The report says that coal and lignite will continue to dominate the energy scenario in the country. By 2021-22, their share will be about 66.8% in the total commercial energy produced and about 56.9% in total commercial energy supply. 

The trend in production of the primary sources of conventional energy such as coal, lignite, crude petroleum, natural gas and electricity shows that in the last four decades i.e. from 1970-71 to 2010-11, the Compound Annual Growth Rate (CAGR) of production of coal, lignite, crude petroleum, natural gas and electricity (hydro and nuclear) generation was 5% , 6.1%, 4.3%, 9.1% and 4% respectively. In terms of energy equivalent of all primary energy sources in 2010-11, the share of coal and lignite, electricity (hydro and nuclear) and natural gas was 52%, 28% and 11% respectively. 

Trends in consumption of energy from conventional sources indicate that from 1970-71 to 2010-11, consumption of coal, lignite, crude oil in terms of refinery throughput, and electricity (thermal, hydro and nuclear) grew at a CAGR of 5.3%, 6.05%, 11.25% and 6.63% respectively. Growth of total energy consumption from all conventional sources in terms of peta joules was 6.04% during 1970-71 to 2010-11. The per capita energy consumption grew at an average annual rate of 5.3% during this period. The consumption pattern of energy by primary sources expressed in terms of peta joules indicates that electricity generation accounted for about 51% of the total consumption of all primary sources of energy during 2010-11, followed by coal and lignite which stood at 25% and crude petroleum which was pegged at 20%. 

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