DNEP-2017

1. Presented To:
Asst. Prof. Shakthi S.
Presented By:
Abhisek
Gagan
Jogesh

2. WHAT IS ENERGY ?
 Energy lights our cities, powers our vehicles, and runs machinery in factories.
It warms and cools our homes, cooks our food, plays our music, and gives us
pictures on television.
 Energy is defined as the ability or the capacity to do work.
TYPES OF ENERGY
RENEWABLE ENERGY:
Renewable energy can be generated continuously practically without decay
of source.
• Ex- Solar energy , Wind energy , Geothermal energy , Hydro energy.
NON-RENEWABLE ENERGY:
Non-renewable energy is energy that comes from the ground and is not replace
in a relatively short amount of time.
e.g. energy generated from combustion of fossil fuels , coal , gas etc.

3.  Let’s Take an simple example :
• let us assume electricity is available for Rs.4.00 per unit , a 100 watt bulb
is used for 8 hrs a day then:
•If we replace a 100 watt bulb with 22 watt CFL ,
• The annual saving would be…
• Power saved : 100W– 22W = 78W

4. Niti Ayog's Draft National Energy Policy( DNEP) aims to create independence in the
energy sector. The aim of govt to provide 24x7 hours "Power To All" is included in this
draft. Energy being the vehicle to drive develpment has an important place in DNEP.
The features of DNEP are as follows:-
(i) Focus on energy independence through rationalisation of costs, subsidy & boost to
renewable sector
(ii) The aim to produce 75 GW energy from the renewable sector till 2022.
(iii) Emphasis on transition from the coal to clean energy for domestic use.
(iv) Focus on the infrastructure development ie. the projects like TAPI to development the
gas pipelines.
What are the notable points in the draft?
• It foresees India’s power demand shooting up over four-fold.
• The draft policy has made a case for higher tax on big cars, SUVs and promotion of
mass transport system like metro rail to improve air quality.
• The renewable energy mix by 2022 is targeted at 175 GW.
• There has been a mention on phasing out IC engine vehicles but not much emphasis
has been given.

5. By 2040, India’s electricity demand will rise 4.5 times over 2012 levels. While clean
energy (like renewables, nuclear and hydro) may account for 13.5%
of electricity produced by 2040 (from 3.7% in 2012), the share of coal, oil and
natural gas may fall by just two percentage points to 78%.
Greater efficiency and technology can cut energy demand in 2040 by 16.6%; up to
90% of this reduction is possible in transport, industry and construction. New
buildings codes could cut energy use by 50% in new construction.
If most Indian vehicles were electric by 2030, pollution levels in cities could drop
80-90%, and India could save $100 billion, a sum over two times larger than the
current defence budget
What will 2040 look like?
By 2040, India’s population is predicted to increase to 1.6 billion, and the rate of
urbanisation (projected average rate of change of the size of the urban population
over a given period of time) of this population will be 47%. The share of
manufacturing in the country’s gross domestic product (GDP) will double from its
current levels to 30%. As of 2017, nearly 25% of the population is still without
access to electricity and 40% without access to clean cooking fuel.

6. The two pathways, “business as usual” and “ambitious”, are based on two factors: A
transition towards cleaner sources of energy and more domestic resources (like coal)
for increased energy security, assuming that the government’s target of adding 175
GW of renewable energy by 2022 is met; and continued addition of renewables post
2022, even if there are no targets set.
In 2012, coal, oil and natural gas provided over 80% of India’s primary energy supply,
while renewable and clean energy sources provided 3.7% of supply. Under the
“ambitious” pathway, the proportion of renewable and clean energy in supply would
increase to 7.3% in 2022, and 13.5% in 2040. At the same time, the contribution of the
fossil fuels would remain over 80% in 2022, but reduce to 78% by 2040.
Of the fossil fuels, the share of coal in India’s commercial primary energy supply was
55% in 2015-16 and is expected to remain high at 48-54% in 2040. Imports
contributed 25% of the coal supply in 2015-16, the NEP said.
“Cutting fossil fuel consumption would promote the twin goals of sustainability and
security. Hence the policy lays heavy emphasis on decarbonisation through the twin
interventions of energy efficiency and renewable energy,” it added.

7. GRID INTEGRATION OF RENEWABLE ENERGY
GRID INTEGRATION CHALLENGES
Renewable Energy is known as intermittent source of electricity, where intermittency consists of two distinct
aspects-
• “Predictibility or Uncertainity” refers to lack of accurate knowledge about future energy generation (e.g. sudden
drop in solar power)
• “Variability” in renewable energy generation (e.g. wind peak during monsoon and reduced availability in other
seasons) just as exists on demand side currently (e.g. low demand at mid night and high demand during late
afternoon)
STRATEGIES
1. Upgrade grid technology
2. Upgrade grid operation protocols
a. Grid codes
b. Scheduling and dispatching
3. Expand balancing areas
4. Promote flexible demand and supply resources
ENERGY SUPPLY
OIL AND GAS
• In India shares of oil and gas in energy consumption in 2015-16 were 26% and 6.5% respectively. A supportive
regime for gas has to be put in place for rise upto 8-9% by 2040.
• From 2005-06 to 2015-16, oil production increased by 15% while consumption of petroleum products increased
by 62% and gas production remained static whereas consumption increased by 38%. Policy robust
interventions have to be made whichwill arrest trend and enhance domestic production.
• India has
nearly 3.17 million square km of sedimentary area, out of which only 19% has been moderately-to well-explored.

8. • Out of the 26 sedimentary basins, only 7 basins are producing ones while exploration has not been initiated in 15 of
them.
• Upstream regulatory regime and contract administration need to be separated. The former function will be
distanced from government and placed in a statutory body while latter will remain with government.
• Upstream infrastructure is often a challenge in offshore and difficult terrains. For this government will issue
guidelines for mandatory sharing of surplus infra on lines of common carrier downstream infrastructure.
• Storage of crude and petroleum products has not grown in India in keeping with global practice, to assure crude
supplies at times of supply disruption. Strategic stocks are available only for 5.33 MT against annual consumption
of 183.5 MT of products in 2015-16, which is expected to keep rising. Stocking of crude and products is the norm in
countries where market norms are the prevalent practice.
• Raise the utilisation of gas pipelines and LNG terminals, thereby boosting the share of gas in our energy mix. This
may also assist renewable electricity, which is in the need of a balancing power supply.
• encourage competition by entry of private sector in a big way, so as to raise efficiency and consumer satisfaction
levels.
• Availability of petroleum products in rural areas needs to be enhanced for supply of clean cooking fuels on a
sustained basis. The role of private traders in connecting these areas needs to be tapped by easing the licensing
regime for petroleum trade.
• The two most significant consumer needs (after lighting), transportation and cooking, will be the first candidates for
inter-play of market forces, which will be reinforced by technological advancements in areas of Electric Vehicles
and induction cooking. The Government will encourage these developments by removing distortions in pricing and
taxation, and encouraging trade and creation of related infrastructure.
COAL
• Approximately 7% of the world’s proven coal reserves are located in India,
• The large planned new coal based thermal capacity is likely to put pressure on coal resources. Coal based power
generation capacity of 125 GW in 2012 is likely to go up to more than 330-441 GW by 2040 (192 GW in FY 2017).
• The share of coal in India’s commercial primary energy supply was 55% in 2015-16 and is expected to remain high
at 48-54% in 2040. Imports contributed 25% of the supply in 2015-16.

9. • Experts agree that once the costs of supporting technologies such as battery
storage (already falling at the rate of 10% per year) make the cost of variable
renewable power viable, coal based power will phase out. This makes the
task of projecting the demand for coal difficult.
• At present, CIL is making a yearly investment of nearly $1 billion to augment
capacity to meet the target of 1 billion tonnes of coal production by 2019.
• The concept of ‘pass-through’ of coal price in power sector whereby coal is
supplied to power companies at subsidized rates compared to the market
price so that they may sell electricity at subsidized prices does not encourage
efficient mining, and is also responsible for low productivity of coal in CIL. A
change in present policy is required to move towards market pricing.
• The installed coal based generation capacity is expected to grow to 330- 441
GW by 2040. This is likely to translate into a coal demand of 1.1-1.4 billion
tonnes. The known levels of proven coal reserves (138 billion tons as of
31.03.2016) may only be able to support an annual peak production of 1.2-1.3
billion tonnes till 2037, with a gradual decrease thereafter.

10. Non-Fossil Fuel Based Energy Supply
Renewable Energy
With rising maturity of renewable energy technologies, aided by decline in their
costs and upon environment considerations, the Government has already
articulated its decision to boost Renewable Energy capacity. While a cumulative
capacity target of 175 GW has been declared for the year 2022, by 2040 a likely
capacity of 597-710 GW is expected to be achieved. However, no targets are
proposed beyond 2022 as the growth is expected to take place autonomously. The
above capacity will translate into 50%-56% and 29%-36% Renewable Energy
(excluding large hydro) capacity in installed capacity and generation from all power
generation sources by 2040, in place of 14% and 6.5%, respectively in 2015-16.
Large Hydro-Power
While proposing policy action, the common issues of the two major Renewable
Energy sources – solar and wind – are in primary focus. However, the importance
of other Renewable Energy sources is also well recognized. Large hydro-power
can play a key role in balancing variable electricity due to its ability to store water in
comparison with small hydro power, which are essentially run-of-the-river projects.

11. New Technologies
• Smart grids have already been taken up on pilot basis in the country.
Now, this technology will be rolled-out across the country so as to
provide an efficient electricity distribution system, which also
supports Renewable Energy. Appropriate technology solutions may
be needed if RE has to drive the electric vehicle agenda. Along with
adequate equipment, even institutional and staffing arrangements
will need an upgrade. There is a need to set up Renewable Energy
Management Centres (REMCs) in all States to handle issues arising
out of variable renewable electricity.
• Renewable Energy can also be generated from off-shore locations
for which a National Off-shore Wind Policy has already been
announced in 2015. Similarly, floating solar panels on reservoirs,
lands held by government institutions and public buildings (including
government housing) may diversify generation, and ease stress on
land. Islands, hilly areas and remote locations ought to be the prime
candidates for application of off-grid renewable sources of electricity
supply.

12. • DEMERITS of DNEP:-
(i) Though DNEP sets ambitious goals but the main demerit is that it
envisages to achieve too many goals instead of setting roadmap to
achieve some critical ones.
(ii) It does not provide the ways to encourage the use of public
transportation services like railways & buses when the market of railways
is already under stress.
(iii) The projects like TAPI & Iran-Pakistan-India gas pipeline projects
need to be completed soon.
(iv) Liberation of gas sector is needed to enhance investment in this
sector.
(v) Electric vehicles need to be boosted more.
(vi) Energy subsidy is diverted & misused many times. This loopholes is
to be plugged.
The corruption free initiatives & efficient implementation of the schemes
like UDAY & UJJAWALA & National Hydrocarbon Exploration Policy can
help fulfil the aims of DNEP.

13. What are the issues with the draft?
 Coal - It has been estimated that coal-fired power capacity will grow to 330-
441 GW by 2040.
• This is in direct conflict with the declared twin goals of sustainability and comes
ironically at a time when solar and wind tariffs appear to be reaching historic
new lows.
• The Aayog also forecasts that “’our coal industry will emerge as an exporter of
coal” in the backdrop of the shocking drop in demand for coal from most
industrialised.
• Instead of focusing on phasing out our existing thermal power stations and
replacing them with clean energy alternatives, the proposal to geographically
locate power plants such that they do not damage air quality in human
habitations makes little sense.
 Gas - It suggests that India should try hard to construct the Iran–Pakistan–
India (IPI) and Turkmenistan–Afghanistan, Pakistan and India (TAPI) gas
pipelines.
promote LNG imports, incentivise shale and conventional gas exploration, replace
LPG in urban areas by piped gas and divert LPG to rural areas.
All these are great suggestions, but most have been made earlier.
Transnational gas pipelines like IPI and TAPI have been under discussion for over
20 years. But they have had no success
 Nuclear - The draft’s focus on Nuclear energy has been critiqued as they
neglect concerns regarding safety & intensive capital investment requirements.

14. What is the way ahead?
Considering the calls for redoing the entire exercise, the
government needs to consider the major changes to the draft
when coming out with the actual policy.
The contradictions in the draft need to be addressed & already
failed suggestions needs to be sidelined.
As articulated by some academics, the policy needs to be
more specific with steps for implementation rather than as a
framework vision document.