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CURRENT FOCUS 2011 MINISTERIAL MEETING SHRI SUSHILKUMAR SHINDE SHRI SUSHILKUMAR SHINDE, INDIA’S UNION MINISTER OF POWER, IS ATTENDING HIS SECOND IEA MINISTERIAL MEETING AS THE AGENCY AND NEW DELHI BROADEN AND DEEPEN THEIR CO-OPERATION. HE SPOKE WITH IEA ENERGY. Following your participation in the 2009 IEA Ministerial meeting and given that you are also attending the 2011 meeting, how would you assess India-IEA co-operation? I am very pleased to say that our co-operation with the IEA has increased significantly in terms of scope and depth since the 2009 Ministerial. My participation in the 2009 Ministerial can be described as a catalytic moment for our collaboration, as it offered an excellent opportunity to take stock of our co-operation till then and allowed us to jointly decide on the strategic direction of our future activities. India, being a major contributor to the global energy economy, understands the need for action to address the key challenges of energy policy, improving global energy security, enhancing economic growth and development, and producing and using energy as efficiently as possible. We, continuing our co-operation with the IEA, have released a schedule of joint actions which will be further evolved through continuous mutual consultations. We have senior officials participating in the IEA Governing Board and senior committees, and we have been holding workshops and seminars in the areas of energy efficiency, renewable energy, energy security, clean coal and energy statistics. The concept of energy security has broadened to include electricity (generation, transmission and supply). What is electricity security in the Indian context? Electricity security is a major concern in the Indian context. We have added around 57 000 megawatts (MW) of generating capacity in the last five years. The manufacturing base for setting up new power plants has been improved substantially, and five new joint-venture companies have come up for the manufacturing of boilers and turbines. We have also been working on enhancing the efficiency of Indian coal-power stations by upgrading existing power plants (renovation and modernisation), moving towards super-critical technology and using better coal preparations. The transmission network has been strengthened and we have successfully worked towards the formation of the National Power Grid, which now spans 265 000 circuit kilometers with an inter-regional power transfer capacity of about 23 800 MW. Special emphasis has been made to strengthen the distribution network in rural areas through the central scheme RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana). We are also improving our network in urban centres with schemes like R-APDRP (Restructured Accelerated Power Distribution Reform Programme). During the 11th Plan, the energy shortage has decreased from 10% to 3.67% and the peak shortage from 13% to 7.2%. I am confident that our projects in all three sectors of electricity will help in decreasing the energy shortage and peak shortage. And of course we have very ambitious plans to further increase our already substantial share of renewable energy sources in the fuel mix. We aim to add 20 GW (gigawatts) of solar energy by 2022, and we already have the world’s fifth-largest wind generation capacity. India produces more dollar unit of GDP per energy unit, adjusted for purchasing power parity, than the average among OECD countries: how has India achieved such efficiency, and what are the remaining challenges? The GDP-to-energy ratio of the Indian economy has risen very fast, approximately 30% over a span of eight years (2000 to 2008). The liberalisation of the Indian economy has led to enhanced competition among domestic and global products, stimulating the manufacturing sector to enhance energy efficiency as a means of managing costs. The government of India, under the Energy Conservation Act, has launched various energy-efficiency programmes so as to provide consumers with an informed choice. Under the National Mission on Enhanced Energy Efficiency (NMEEE) we have launched the Perform, Achieve, Trade (PAT) scheme. Under the PAT, energy-efficiency improvement targets will be assigned to the country’s eight most energy-intensive industrial sectors, including fertiliser, cement, power stations and steel. Those units that exceed their benchmarks will be issued energy saving certificates which can then be sold to those units which fail to meet the set targets. These eight sectors will cover 65% of our total industrial energy consumption. We expect to save some 19 GW of energy and to reduce emissions by 98 million tonnes a year once the scheme is implemented. However, about 30% of Indian households still do not have access to electricity, and the current electricity consumption of those who do have access is only one-fifth of the global average. It is important that we increase the energy supply and to enhance quality of life of all citizens. So, one of the main challenges is the further acceleration of this trend of increasing the GDP/energy ratio. Energy-efficient products cost more than inefficient products. In a country of many poor people, this restricts the buying power, and tends to limit the purchase of All pictures in this article: © OECD/IEA, 2009 24 The Journal of the International Energy Agency
2011 MINISTERIAL MEETING CURRENT FOCUS energy-efficient equipment. Our challenge, therefore, is to ensure energy frugality which is within the means of our citizens. What steps is India taking to alleviate energy poverty? How can the international community most effectively help India in this effort? The government of India, through its policies and programmes, is committed to providing electricity access to all citizens and ensure quality and reliable power supply at reasonable rates. RGGVY is a major initiative to extend access of electricity to all households in the country. About 96% of the inhabited villages in India can now access electricity, and access by households has improved significantly from 44% (as per 2001 Census) to 70%. We intend to achieve 100% electricity access through this programme. In order to ensure quality and reliability of power, we have focused our attention on the implementation of distribution reforms and policies designed to promote competition, efficiency and investment in the power sector. The international community can contribute by sharing the best practices adopted by various countries for an effective and efficient power sector management and technological advancements in the sector. Plan. In the 12th Plan we propose adding about 75 000 MW at the rate of 15 000 MW a year. In addition, 15 000 MW from renewable energy sources and 13 000 MW from captive power plants are expected to be added during the 12th Plan. Inadequate manufacturing capacity of main plant and plant equipment has always been a major bottleneck in achieving high capacity targets. We have, therefore, taken a number of steps to address this concern. Large units with super-critical technology and Ultra Mega Power Projects (UMPPs) are being set up to improve the generation of power in the country. smart grids and to evolving the road map for implementation of smart grids in our country. The main functions of the Smart Grid Task Force are to ensure awareness, co-ordination and integration of the diverse activities related to technologies, practices and services for smart grid research and development; to co-ordinate and integrate other relevant inter-governmental activities; to collaborate on an interoperability framework; to review and validate the recommendations from the Smart Grid Forum, etc. India’s rapid economic growth depends greatly on increased electricity – the IEA predicts that demand will grow at least fivefold by 2050. How will this be achieved? Electricity, besides its importance in the growth of the country’s economy, plays a major role in the life of a common man and has a direct impact on the quality of life. In spite of capacity addition during the last 60 years, the demand for power has always exceeded the supply, leading to energy shortages in India. Our endeavour and commitment therefore is to provide reliable, adequate, affordable and quality power to all users. The Indian economy is aiming to grow at the rate of 8% to 10% during the next two Five- Year Plans. To sustain this growth, the infrastructure sector, including the power sector, will have to grow at a faster pace. This would require a huge capacity addition in the power sector apart from investment in transmission and distribution sectors. In the 11th Plan, we hope to add around 52,000 MW of fresh capacity, which would be almost 2.5 times of capacity addition achieved in the 10th Power Minister Shinde at the 2009 IEA Ministerial: he reports continuing and close Indian co-operation with the Agency. You launched the India Smart Grid Task Force and Smart Grid Forum in 2010. What do smart grids offer India? We envisage that smart grids will play a key role in our power system development and especially in enhancing the performance of rural electricity supply systems. For the systematic growth of smart grids in the country, the India Smart Grid Task Force and the India Smart Grid Forum have been set up under the aegis of the Ministry of Power. We are also a founding member of the IEA’s International Smart Grid Action Network (ISGAN) Implementing Agreement. The India Smart Grid Task Force is an Inter- Ministerial Group and will serve as the government’s focal point for activities related to The India Smart Grid Forum is a non-profit voluntary consortium of public and private stakeholders, research institutes and selected utilities with the prime objective of accelerating the development of smart-grid technologies in the Indian power sector. The goal of the forum is to help the Indian power sector to deploy smart grid technologies in an efficient, cost-effective, innovative and scalable manner by bringing together all the key stakeholders and enabling technologies. In July of this year, we launched the first renewable energy-based mini-grid system in collaboration with the Ministry of New and Renewable Energy. We expect that smart grids will help to optimise our transmission and distribution capacity and provide a fully-fledged opportunity to integrate renewable-based electricity into the power system. www.iea.org 25
Page 1 and 2: Issue No. 1 Autumn 2011 MINISTERIAL
Page 3 and 4: TO OUR READERS NEWS WELCOME TO A
Page 5 and 6: ISSUE NO. 1 - AUTUMN 2011 20 COVER
Page 7 and 8: NEW LEADERSHIP AT THE IEA NEWS Mari
Page 9: OUTSIDE PERSPECTIVE NEWS OPEC SECRE
Page 12 and 13: ENERGY MARKETS & SECURITY FOCUS SHA
Page 14 and 15: ENERGY MARKETS & SECURITY ON STATIS
Page 17 and 18: THE LONG VIEW ENERGY MARKETS & SECU
Page 19 and 20: HOT TOPIC ENERGY MARKETS & SECURITY
Page 21 and 22: 2011 MINISTERIAL MEETING CURRENT FO
Page 26: Now open for business. The new Airb
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Page 31 and 32: PRIVATE SECTOR CURRENT FOCUS integr
Page 33 and 34: CURRENT FOCUS PRIVATE SECTOR HOW TH
Page 35 and 36: TECHNOLOGY INNOVATION AND ENVIRONME
Page 37 and 38: ENERGY EFFICIENCY INNOVATION AND EN
Page 39 and 40: CLIMATE CHANGE INNOVATION AND ENVIR
Page 41 and 42: COMMENTARY INNOVATION AND ENVIRONME
Page 43 and 44: COUNTRY SPOTLIGHT GLOBAL REACH Awar
Page 45 and 46: TRAINING ACTIVITIES GLOBAL REACH RE
Page 47 and 48: GETTING IT RIGHT ENERGY, ETC FOSTER
Page 49 and 50: POWER TO THE PEOPLE ENERGY, ETC GIV
Page 51: WORLD ENERGY 2 0 11 OUTLOOK RELEASE

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