Anindya Bhattacharya - Impact of Emissions Intensity Reduction

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    Anindya BhattacharyaIGES, Japan

    Asia Clean Energy Forum23rdJune, 2011

    Manila

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    Content Current status of growth indicators

    Historical trends of emissions intensity

    Energy infrastructural investment demand inIndia

    Impact of emissions intensity reduction on Indianenergy sector

    Future direction of investment

    6/28/2011Institute for Global Environmental Strategies 2

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    Current status of growth & energy indicators

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    National GDP growth rate is around 8% pa until2020

    Total final consumption of energy growth rate isaround 3% pa until 2030.

    Electricity sector growth rate is estimated around5% pa until 2030.

    Total CO2 emissions growth rate is around 3.5%pa until 2030.

    CO2 emissions from electricity sector itself isincreasing at the rate of 2.5% pa.

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    Historical trend of emissions intensity in India

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    Status & projection of emissions intensity reduction

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    National GDP growth rate is 2times the national CO2emissions growth rate irrespective of much effortIndia can achieve the overall

    25% emissions intensityreduction target.

    Around 500 Mt of CO2emissions less is required by2020 to achieve the emissions

    intensity target. Electricitysector needs around 300 Mtreduction.

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    Historical trend of energy sector emissions intensity in

    India

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    Projection of emissions intensity in Indian Electricity

    sector

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    Electricity sector needs attention its growth rate is two third of the GDP growth rate.Emissions intensity of electricity sector can itself reduce by 30% by 2020

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    Projected Energy infrastructure investment demand in

    India

    6/28/2011 Institute for Global Environmental Strategies 8Source: IEA, 2007

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    TIAM Reference Case Energy infrastructure for India by

    2030

    6/28/2011 Institute for Global Environmental Strategies 9

    Note: TIMES Integrated Assessment Model (TIAM) is technology rich bottom-up energy model.

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    Investment priority under emissions intensity

    reduction plan using NAPCC

    Mitigation scenario primarily follow National Action Plans on Climate Change : i)energy efficiency improvement & ii) renewable energy promotion Scenario targets:i) process efficiency improvement by 10% and ii) combined solar and wind energyin the electricity supply portfolio is 10% by 2020.

    Total investment in power generation is estimated to be $ 475 billion USD.

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    Impact of new electricity sector investment

    on GHG emissions

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    Future direction of power sector investment in India

    under the NAPCC scenario

    6/28/2011 Institute for Global Environmental Strategies 12

    Natural gas sector including LNG has huge potential of furtherinvestment.

    Energy trading is expected to grow- needs subsequent investment in thetrading infrastructural development (LNG terminals, advance portfacilities etc)

    Cross border energy infrastructure development including gridinterconnection, oil& gas pipelines etc are beneficial and expected togrow faster.

    Renewable energy sector investment will be predominant. More than

    80% of the total expected investment will go towards renewable.

    Solar PV with CSP technology will be gaining the highest level ofinvestment growth in India under the National Solar Mission Plan.

    Wind will follow the business as usual investment pattern.

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    6/28/2011 Institute for Global Environmental Strategies 13

    Thank you for your attention !

    For further detail please contact:

    Anindya BhattacharyaSenior Energy Economist, Economy and Environment Group

    Institute for Global Environmental Strategies

    2108-11 Kamiyamaguchi, Hayama, Kanagawa,JAPAN, 240-0115

    E-Mail: [email protected]

    mailto:[email protected]:[email protected]