Energy Law & PolicySection A

Short Notes:

1. Geothermal Energy:

Geothermal energy is thermal energy generated and stored in the Earth. The geothermal energy of the Earth's crust originates from the original formation of the planet and from radioactive decay of minerals. The geothermal gradient, which is the difference in temperature between the core of the planet and its surface, drives a continuous conduction of thermal energy in the form of heat from the core to the surface. The adjective geothermal originates from the Greek roots ge meaning earth, and thermos, meaning hot.

From hot springs, geothermal energy has been used for bathing since Paleolithic times and for space heating since ancient Roman times, but it is now better known for electricity generation. Worldwide, 11,400 megawatts (MW) of geothermal power is online in 24 countries in 2012. Geothermal power is cost effective, reliable, sustainable, and environmentally friendly, but has historically been limited to areas near tectonic plate boundaries. Recent technological advances have dramatically expanded the range and size of viable resources, especially for applications such as home heating, opening a potential for widespread exploitation. Geothermal wells release greenhouse gases trapped deep within the earth, but these emissions are much lower per energy unit than those of fossil fuels. As a result, geothermal power has the potential to help mitigate global warming if widely deployed in place of fossil fuels.

Geothermal energy comes in either vapor-dominated or liquid-dominated forms. Larderello and The Geysers are vapor-dominated. Vapor-dominated sites offer temperatures from 240-300 C that produce superheated steam.

Liquid-dominated plants

Liquid-dominated reservoirs (LDRs) are more common with temperatures greater than 200 C (392 F) and are found near young volcanoes surrounding the Pacific Ocean and in rift zones and hot spots. Flash plants are the most common way to generate electricity from these sources. Pumps are generally not required, powered instead when the water turns to steam. Most wells generate 2-10MWe. Steam is separated from liquid via cyclone separators, while the liquid is returned to the reservoir for reheating/reuse. As of 2013, the largest liquid system is Cerro Prieto in Mexico, which generates 750 MWe from temperatures reaching 350 C (662 F). The Salton Sea field in Southern California offers the potential of generating 2000 MWe.

Lower temperature LDRs (120-200 C) require pumping. They are common in extensional terrains, where heating takes place via deep circulation along faults, such as in the Western US and Turkey. Water passes through a heat exchanger in a Rankine cycle binary plant. The water vaporizes an organic working fluid that drives a turbine. These binary plants originated in the Soviet Union in the late 1960s and predominate in new US plants. Binary plants have no emissions.

Thermal energy

Lower temperature sources produce the energy equivalent of 100M BBL per year. Sources with temperatures from 30-150 C are used without conversion to electricity for as district heating, greenhouses, fisheries, mineral recovery, industrial process heating and bathing in 75 countries. Heat pumps extract energy from shallow sources at 10-20 C in 43 countries for use in space heating and cooling. Home heating is the fastest-growing means of exploiting geothermal energy, with global annual growth rate of 30% in 2005[32] and 20% in 2012.

Approximately 270 petajoules (PJ) of geothermal heating was used in 2004. More than half went for space heating, and another third for heated pools. The remainder supported industrial and agricultural applications. Global installed capacity was 28 GW, but capacity factors tend to be low (30% on average) since heat is mostly needed in winter. Some 88 PJ for space heating was extracted by an estimated 1.3 million geothermal heat pumps with a total capacity of 15 GW.

Heat for these purposes may also be extracted from co-generation at a geothermal electrical plant.

Heating is cost-effective at many more sites than electricity generation. At natural hot springs or geysers, water can be piped directly into radiators. In hot, dry ground, earth tubes or downhole heat exchangers can collect the heat. However, even in areas where the ground is colder than room temperature, heat can often be extracted with a geothermal heat pump more cost-effectively and cleanly than by conventional furnaces.[33] These devices draw on much shallower and colder resources than traditional geothermal techniques. They frequently combine functions, including air conditioning, seasonal thermal energy storage, solar energy collection, and electric heating. Heat pumps can be used for space heating essentially anywhere.

Iceland is the world leader in direct applications. Some 93% of its homes are heated with geothermal energy, saving Iceland over $100 million annually in avoided oil imports. Reykjavk, Iceland has the world's biggest district heating system. Once known as the most polluted city in the world, it is now one of the cleanest.

Enhanced geothermal

Enhanced geothermal systems (EGS) actively inject water into wells to be heated and pumped back out. The water is injected under high pressure to expand existing rock fissures to enable the water to freely flow in and out. The technique was adapted from oil and gas extraction techniques. However, the geologic formations are deeper and no toxic chemicals are used, reducing the possibility of environmental damage. Drillers can employ directional drilling to expand the size of the reservoir.

Small-scale EGS have been installed in the Rhine Graben at Soultz-sou-Forects in France and at Landau and Insheim in Gremany.

2. Solar Energy:

Solar energy, radiant light and heat from the sun, is harnessed using a range of ever-evolving technologies such as solar heating, solar photovoltaics, solar thermal electricity,

Solar technologies are broadly characterized as either passive solar or active solar depending on the way they capture, convert and distribute solar energy. Active solar techniques include the use of photovoltaic panels and solar thermal collectors to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favorable thermal mass or light dispersing properties, and designing spaces that naturally circulate air.

Major use of solar energy is to generate electricity. Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). CSP systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. PV converts light into electric current using the photoelectric effect.

Concentrated solar power/ Solar ThermalConcentrating Solar Power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. The concentrated heat is then used as a heat source for a conventional power plant. A wide range of concentrating technologies exists; the most developed are the parabolic trough, the concentrating linear fresnel reflector, the Stirling dish and the solar power tower. Various techniques are used to track the Sun and focus light. In all of these systems a working fluid is heated by the concentrated sunlight, and is then used for power generation or energy storage.

Solar PhotovoltaicsA solar cell, or photovoltaic cell (PV), is a device that converts light into electric current using the photoelectric effect. The first solar cell was constructed by Charles Fritts in the 1880s. The eeifiency of solar photovoltaics is less compared to conventional sources. By 2012 available efficiencies of solar photvoltaics exceed 20% and the maximum efficiency of research photovoltaics is over 40%.

3. Urban Energy Planning:

The use of energy, the types of energy used and the lack ofaccess to sufficient energy have far reaching implicationsfor economic development of urban area, its environmental healthand for the poor. The burning of fossil fuels to provideenergy is the major contributor to excess carbon in theatmosphere which is the cause of global warming. Citieswhich implement sustainable energy and climate actionplans reduce their vulnerability to energy scarcity and toenergy price rises, they have less traffic congestion and lowerenergy input costs, they have cleaner air and their low-carboneconomies can afford them a competitive economic edgeglobally. And, specifically for cities in developing countries, asustainable urban energy planning should consider. The aims of sustainable energy planning are optimalenergy-efficiency, low- or no-carbon energy supply andaccessible, equitable and good energy service provision tousers. Urban Energy Planning is based on consideration of the broaderconcerns of the whole economy, environment (particularlycarbon mitigation) and society, not just a least financialcost focus. And, it is led by the demand for energy services.

These are the key characteristics of sustainable energy andclimate planning:

All energy sources and energy-related activities areconsidered as a whole system

Carbon mitigation is a key determinant in the developmentof the plan and choice of project options

The demand for energy services, rather than what energycan be supplied, is the basis for planning

Energy conservation, energy efficiency and demand-sidemanagement are considered prior to supply-side solutions

Environmental and social costs are clearly considered

Energy sector linkages with the economy are included

Ehe plan is flexible and can anticipate and respondto change

Path towards sustainable urban energy planning:

Reduce carbon emissions

Reduce dependence on fossil fuels

Introduce cleaner fuels

Increase use of renewable energy

Promote diversification of energy sources

Support local and decentralised power supply

Focus on energy efficiency and provide supportand information to users

Make efficient resource use the basis of economicdevelopment

Ensure that citizens have appropriate access to energyservices and information on best energy use practises toreduce poverty

Plan for efficient spatial development

Develop efficient and accessible public transport usingcleaner fuels

Communicate! Create a sustainable and low-carbon energyvision for the future.

4. Finance, Account and Audit of Bureau (Chapter - VII):

This is part of Energy Conservation Act 2001 enacted by Parliament in the Fifty second Year of the Republic of Indiato provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto. The Chapter VII of the act talks about Finance, Account and Audit of Bureau as follows:

Grants and loans by Central Government19.The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Government grants and loans of such sums or money as the Central Government may consider necessary.

Establishment of Fund by Central Government20.(1) There shall be constituted a Fund to be called as the Central Energy Conservation Fund and there shall be credited thereto -

a. any grants and loans made to the Bureau by the Central Government under section 19;

b. all fees received by the Bureau under this Act;

c. all sums received by the Bureau from such other sources as may be decided upon by the Central Government.

(2) The Fund shall be applied for meeting -

a. the salary, allowances and other remuneration of Director-General, Secretary officers and other employees of the Bureau,

b. expenses of the Bureau in the discharge of its functions under section 13;

c. fee and allowances to be paid to the members of the Governing Council under sub-section (5) or section 4;

d. expenses on objects and for purposes authorised by this Act

Borrowing powers of Bureau21.1. The Bureau may, with the consent of the Central Government or in accordance with the terms of any general or special authority given to it by the Central Government borrow money from any source as it may deem fit for discharging all or any of its functions under this Act.

2. The Central Government may guarantee, in such manner as it thinks fit, the repayment of the principle and the payment of interest thereon with respect to the loans borrowed by the Bureau under sub-section (l).

22.The Bureau shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Bureau and forward the same to the Central Government.

23.The Bureau shall prepare, in such form and at such time in each financial year as may be prescribed, its annual report, giving full account of its activities during the previous financial year, and submit a copy thereof to the Central Government.

24.The Central Government shall cause the annual report referred to in section 23 to be laid, as soon as may be after it is received, before each House of Parliament.

25. 1. The Bureau shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

2. The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Bureau to the Comptroller and Auditor-General.

3. The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Bureau shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Bureau.

4. The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall forward annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

Section B

1. Define Energy Demand. How energy is demanded due to population growth and industrialization? Energy demand is the energy required for livelihood of population, for industrial and commercial activities. Electricity/power is a form of energy, whose demand is the amount of electricity being consumed at any given time. It rises and falls throughout the day in response to a number of things, including the time and environmental factors. Managing demand is key for utilities, and this became an increasing issue at the end of the 20th century, as utilities struggled to balance electricity needs with aging electrical grids.

Energy Demand due to Population Growth:

Population growth is one of the factors, which drive the worldwide energy demand, especially the demand of electricity. The two main factors which will greatly increase worldwide energy (electricity in particular) during the next century are: population growth and per capita economic growth in developing countries. To address the issue of the effect of population size and growth on energy demand, the fact that the link between population and energy involves two intermediate connecting elements must be recognized. The first link relates to levels and changes in economic development, approximated by income or gross domestic product (GDP) per capita. Typically, the greater a regions per capita income, the greater its per capita consumption of energy: The average per capita GDP and energy consumption of the worlds developing countries are, respectively, only about one-seventh and one-eighth those of industrial areas/ developed countries. Notwithstanding this marked per capita disparity, given the sheer population size of developing regionsover three-quarters of the world totalthe absolute amount of energy consumption and of GDP are relatively large: one-third of world energy use and about two-fifths of world GDP. Even though income and energy use are conspicuously correlated, the degree of the relationship is by no means perfect and unvarying, which raises the second point to consider in linking population and energy. Even at comparable levels of per capita GDP, the volume of energy use will differ among countries and regions, depending on structural characteristics of the economy, spatial features, climate, fuel and power prices, government conservation policies, and other factors. Actually, The change in energy use is the multiplicative product of the three factors Population, GDP per capita, Energy per unit of GDP. The decade of the 1990s saw economic growth (i.e., GDP per capita) dominating population growth as a factor in energy consumption growth in both industrialized and developing regions/countries, which will go on happening in developed countries. However, population growth has been dominating factor for energy demand for last decade and will be dominating the decade coming in the less developed and developing countries. Doubling of per capita energy consumption in the less developed countries over the next 50 years would correspond to only a very modest degree of economic development. Yet, combined with the predicted population growth, it would lead to two to three times increase of world energy consumption. For example, there will be increased demand from economic growth. Improvements will occur undoubtly in the efficiency of energy utilization, but in the face of excepted increase of demand due to the extent of population growth, these will only have relatively minor impact.Energy Demand due to Industrialization:

Industrialization in its path has a grave impact on energy demand during transition period of industrialization as well as post-industrialization. As an economy develops, it undergoes a series of structural changes. During initial stages of economic growth, the share of agriculture in the total output falls and the share of industry rises. This is the industrialization phase of development. In the later stages of development, the demand for services begins to increase rapidly, increasing its share to GDP. This latter stage is referred to as post-industrialized society. The growth of heavy industry & infrastructure development during the industrialization phase leads to enormous increase in energy consumption.Accordingly, the energy intensity of GDP increases as the share of industry in GDP increases. As development continues, however, the demand of financial services, communication, transportation and consumer goods grows rapidly. As a result, the share of services and consumer goods increases. Light industry (e.g., involved in production of consumer goods) and services require less energy per unit output than heavy industry. This leads to a reduction of overall energy intensity, i.e., energy input per out. Although economic development leads to declining growth rates of per capita energy demand in the industrial sector, substantial overall growth of energy demand will go on with the growth of light industry, services sector, transportation, residential and commercial sectors.2. What is energy planning? Describe the aims and benefits of energy planning.Energy planning is the process of envisioning a desired future state of sustainable energy supply and consumption based on existing concerns and realilities, and designing the appropriate measures to implement that energy future. It offers a number of opportunities and tools for nations and communities to deal with energy issues related to development. Energy planning is not a one-time exercise, but a continuous, iterative process in which the results are continuously reviewed and new information leads to new analyses.Aims of Energy Planning:

The broad aims of macro-level enrgy planning are:

To provide the basis for the policy framework and assist state agencies and other energy related organizations in setting the energy goals and making enrgy decisions that will contribute to a growing economy in a sustainable and environmentally sound manner.

To help in finding and allocating the resources (funds, technologies, skilled workforce, etc.) for meeting the specific energy requirements of all sectors in an optimal manner. This includes minimization of total costs energy, minimization of non-local resources, and maximization of overall system efficiency. To increase the use of design philosophies and features that improves enrgy performance, and enhances the quality of life. To develop compact and complete resource use patterns to increase the availability of alternatives. To promote the development and use of new, high efficiency and cleaner supply option.

To promote energy efficient technologies or service options in infrastructure and to increase the production of energy from local or regional distributed facilities.

More specific goals of local levels or project based energy planning may include:

Encouraging reductions in energy consumption and cost through energy audits and investments in efficiency opportunities.

Encouraging the planning, design and construction of energy efficient neighbourhoods and buildings in urban areas.

Assessing the scope and extent of energy use efficiency so that both energy and money are saved.

Exploring local renewable energy development potential.

Improving community livelihood by reducing local sources of pollution, reducing he need for transportation through proper urban design.

Increasing the use of cleaner energy alternatives.

Providing information and help the users to implement local energy plans.

Benefits of Energy Planning:

Energy planning has many benefits, some of which are outlined below:

GIS supported energy plan serves as demographic database, natural resource database and energy database.

Energy plans can be used as forecasting tools to make projections of energy supply and demand at intervals of 5 years and as policy analysis tools that stimulate and assess the technical economic, environmental effects of alternative energy programmes.

Energy planning helps to reduce energy expenditure of governments and taxpayers and saves non-energy capital and operating expenditures.

Energy Planning helps increase land values in urban areas through better land use planning.

Good energy planning can reduce cost for infrastructure.

Energy planning helps in cleaning up the environment through preservation of green spaces. It reduces climate change due to green house gas emission by reducing exclusive dependence on fossil fuel combustion. Energy planning achieves many socio-economic objectives , such as increased local employment and the creation jobs through investments in energy, lower annual energy bills, better indoor working conditions with advanced building, heating, cooling and lighting technologies.

Sustainable energy planning and practices can directly or indirectly generate new jobs and business. For example, they require investment in new technologies, insulation, light bulbs, energy efficient machineries, solar water heater, energy efficient windows, etc.

3. Elaborate the steps taken by India to promote non- conventional energy.

Followings are the steps taken for promoting non-conventional energy in India:

a) Awareness Creation: Ministry of Non-conventional Energy Sources (MNES) has been creating awareness through electronic and print media including newspaper, booklets, leaflets, brochures, newsletters, exhibitions, fairs on various renewable technologies in Hindi, English and regional languages all over the country. District advisory committees on renewable energy have also been constituted in 540 districts for co-ordination and awareness creation of renewable energy systems/programmmes at district levels. b) Solar Energy: Sagar Island is hailed as one of the first successful initiative of distributed generation utilizing non-conventional/ renewable sources, and received Ashden Award 2003 for its great work. PV and Wind Systems put in place by the West Bengal Renewable Energy Development Agency (WBREDA) have benefitted the islands residentsThe Jawaharlal Nehru National Solar Mission, also known as National Solar Mission, is one of the eight key National Missions which comprise Indias National Action Plan on Climate Change(NAPCC). NAPCC was launched on 30th June 2008which identified development of solar energy technologies in the country as a National Mission to fulfill the objective of long term energy security and ecological security.

Government of India launched the 'Akshay Urja' project to encourage usage of solar energy. Under the rural electrification programme, as many as 349 non-electrified villages of UP state have been given solar home-lighting and solar street-lighting systems. The government is also providing subsidy to encourage the use of solar water heaters and other equipments working on solar power. In order to make the solar equipments easily available, 'Akshay Urja' shops are being set up in every district, where such equipments will also be repaired. In Chhattisgarh also, roof mounted solar panels are distributed to villagers at almost no price towards home-solar lighting initiative.One of the biggest hurdle for development of solar energy is the solar panels are very costly and silicon (which is raw material for solar PV cells) production worldwide is low. At the moment, the effort is on by MNES, Govt. of India to promote silicon production units in India. Again, as the capital investment for setting up of solar power plant is very high, the generation tariff is high (Rs. 15 per unit). But to encourage the grid connected solar power generation, Govt. of India subsidies the solar power generation. The govt. of Gujarat and Rajasthan, specially encouraged solar PV power plants. c) Wind Power Generation: India has great potential of wind power generation as it is blessed with long coast line. Government of India as well as different state government encouraged wind power generation through build, operate and transfer concept to attract private invest in wind power.d) Electricity Generation from Biomass: Government encourages small scale initiative for electricity generation from biomass.e) Minimizing Import of Fossil Fuel like coal as low as practicable.f) Hydel Capacity: Planned to increase hydel power generation through inter-linking of rivers, expected to contribute additional 50,000 MW of power. Also, helps initiative to build small hydropower plants to electrify adjacent villages. Chhattisgarh has many such small hydro-projects.Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case Restoring Angolas Electricity Network and answer the following questions:Case Study: Restoring Angolas Electricity Network

Highlights

Electricity planning moves forward with the updating of 20-year-old maps.

Improved information leads to electricity service for more than 6,500 households.

GIS improves transparency and stakeholder participation in municipal planning.

Angolans have suffered three decades of civil war, and only in recent years have they been able to begin the slow process of reclaiming their nation by rebuilding both the physical and social infrastructure necessary for peace, security and economic growth. A critical component of this progress is the restoration of the electricity network. The government of Angola has set a goal to provide 100 per cent electrification in urban areas and 60 per cent electrification in adjoining areas by 2012. The U.S. Agency for International Development (USAID) is assisting Angolas government in reaching this target. A pilot project is under way to address the electrification goals, piloting innovative methods to improve electrification in the adjoining areas.

Electricity network in the municipality of Kilamba Kiaxi, Luanda, created in GIS

To address this need, the Academy for Educational Development (AED), a leading nonprofit organization working globally to improve education, health, civil society, and economic development, is working with Empresa Distribuidor de Electricidade (EDEL), Angolas national electricity distribution company and two municipal governments to provide training in urban planning, engineering, and capacity building through the USAID-funded Angola Electricity Support Program (AESP).

Closing Information Gaps

Up-to-date maps are essential for planning and managing municipal infrastructure. Cadastral maps are critical for granting land titles and acquiring data necessary to establish an electricity connection. Prior to the launch of AESP, the most recent cadastral maps available in Angola dated back to 1989, a serious barrier to the design and implementation of electricity access programs.

Providing electricity to homes and businesses requires more than just installing poles and stringing cable, says Joao Baptista Borges, the chief executive officer of EDEL, which provides service to more than seven million people in and around Luanda. Maps, census, customer, and infrastructure datawhich are outdated or nonexistent in Angolaare fundamental in planning for and providing electricity.

One of the first activities under AESP was the systematic gathering of information about community resources, households, and infrastructure already in place in the pilot areas. AESP employed ArcView software to introduce its Angolan counterparts to GIS in order to develop accurate baseline information on residences and businesses in the municipalities of Kilamba Kiaxi and Viana. The information collected through surveys and site visits was added to geographic data and maps to create the most up-to-date geographic information systems for the two municipalities.

AED selected ArcView based on Esris reputation and because the software is easy to use for inputting and manipulating data for utility, governmental and community use.

The newly created maps contain information on land plots and existing electric networks and are providing EDEL with vital information, such as street addresses, meter numbers, and where houses are connected to the electrical system. That information will help EDEL deliver more accurate electricity bills, provide better customer service, and extend the network.

Surveyors in Kilamba Kiaxi map the municipality

A further breakdown of the layered datasets provides information detailing the extent of electrical infrastructure. With this information, AED and local stakeholders were able to gather and analyze trend information and establish a concrete understanding of who was benefiting from electricity, differentiating between legal and illegal connections and identifying which households were not electrified.

A Sustainable Intervention

In addition to upgrading the quality and type of information available, there is a capacity-building component to AESP. To date, EDEL and municipal government staff have been trained on the use and application of ArcView software and GIS principles. The training was so successfuland the software so usefulthat EDEL has secured its own ArcView software licenses.

As this project continues, training has been expanded to local stakeholders, including small businesses, civil servants, and residents. Within a forum of open dialog and transparency, municipal governments will have increased opportunities for iterative planning, flexibility, and adjustment. This will lead not only to improved electrical infrastructure but also to increased capacity through collective engagement, planning, and improved governance practices.

Community members in the AESP pilot areas place a high value on the information that has become available to them through the application of GIS. Equipped with information, community groups and individual households are better able to communicate their needs to EDEL and advocate improved service.

GIS has forged new paths and shed new light on underutilized power sources, forecasting, and long-term capital planning. AESP has increased access to electricity or improved electricity service for more than 6,500 households. Another 25,000 households will be supplied with electricity in 2009.

Question:

1. What do you mean by closing information gaps? How it inputs and manipulate data for utility, government and community use.

2. How can planning help in improving electricity service of any nation?3. Discuss the Angola Electricity Support Program (AESP). Explain the interventions by AESP.4. How the surveyors in Kilamba Kiaxi map the municipality? What was the analysis after mapping?5. Analyze the case study by using SWOT analysis and write down the case facts.