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Energy and Climate Summit -2009

Energy and Climate Summit -2009. Sectoral Analysis – Greenhouse Gas Emission Control . 3 rd February 2009. Outline. Introduction Sectors Electricity Supply Electricity Demand Transportation Iron & Steel Cement Cross Sector Barriers. Outline. Introduction Sectors Electricity Supply

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Energy and Climate Summit -2009

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  1. Energy and Climate Summit -2009 Sectoral Analysis – Greenhouse Gas Emission Control 3rd February 2009

  2. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  3. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  4. Five key energy intensive sectors analyzed: Electricity Supply Energy Demand Transportation Iron and Steel Cement Policy and implementation analysis carried out by ICF International and IRADe in consultation with CCAP India's Emission Source Profile Emissions by sector Source: India’s NATCOM, 2004

  5. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  6. Electricity Supply Sector : Background • Approximately 30% of India’s total GHG emissions come from the power sector • ~78% of the total coal production consumed by power sector • ~ 520 MtCO2 emitted from grid connected power plants in 2007-08 • Coal based power plants main contributor to GHG emissions

  7. Electricity Supply Sector : Mitigation Options • Integrated Gasification Combined Cycle (IGCC) with Carbon Capture and Storage (CCS) with domestic coal

  8. Electricity Supply Sector : Policy Options • Policy Options for coal based IGCC • Government grants and support for demonstration projects • Central Body to facilitate R&D in IGCC Technology • Preferential tariffs for IGCC based plants • Fiscal policies including tax incentives for commercial projects • Policy Options for encouraging CCS • Setting up of a R&D test centre with central government funding • Tax incentives for CCS Demonstration and Commercial Projects

  9. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  10. Energy Demand Sector : Background • India currently ranks sixth in the world in terms of primary energy demand • Over the last five years India’s electricity demand has grown by over 6% annually

  11. Energy Demand Sector : Mitigation Option • Energy Efficiencyin Products and Equipments • Old and inefficient technologies replaced by new energy efficient appliances in the market. • Existing technologies upgraded to the latest technology • Large scale promotion and special benefits to the manufacturers. • Energy Efficiency in Buildings • Set the baseline minimum efficiency requirements for all buildings. • Improved building construction and renovation techniques, improved building maintenance and operations training • Above code programs must also be implemented

  12. Energy Demand Sector : Policy Options • Policy Options: Energy Efficient Products and Equipments • Standards and Labeling • Tax/ Duty Exemptions • Policy Options: Energy Efficient Buildings • Building Energy Codes • Above Code Building Labeling • Tax Incentives • Time Zones

  13. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  14. Global GHG Emissions from Transportation Sector Transportation Sector : Background • Indian CO2 emissions were 1.9% of the global emissions in 2002 • Changed by 15% since 1990 and was projected to change by 92% from 2002 to 2020

  15. Transportation Sector : Mitigation Options • Biofuel use in all forms of transport • Electric vehicles in urban transportation

  16. Transportation Sector : Policy Options • Policy options for expansion of biofuel use • National Biofuel Policy • Collaboration with Integrated Wasteland Development Programme • Quality control on fuel blending • Labeling the feedstock plantation sites • Phasing out of subsidy on gasoline and diesel • Developing financing mechanisms for plantation and extraction • Policy options for electrical vehicles • Financing and Soft Loans • Mandatory Type Approval and Conformity of Production • End-to-end service • Electric Vehicle exclusive route • Fuel-switch at all levels of the value chain • Research and Development

  17. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  18. Crude steel production in India in 000 metric tonnes Iron & Steel Sector : Background • India is the fifth largest producer of steel accounting for 4% of global production • According to IISI, steel sector accounts for ~5 % of total world GHG emissions • On average, 2.7 tCO2 emitted per tonne of crude steel produced • It is possible to have 1.7tCO2 emitted per tonne of crude steel produced.

  19. Iron & Steel Sector : Mitigation Options • Enhanced energy efficiency in existing production units • Increased use of Instrumentation, automation, IT, and raw material quality control • Adoption of green technology for new units • Setting up captive thermal power plants

  20. Iron & Steel Sector : Policy Options • Developing adequate financing mechanisms • Direct government subsidies for rural sector • Grants from national/international funds • Clean Development Mechanism • Private financing • Setting benchmark for energy efficiency • BEE to set efficiency target for short-mid term (existing units) • Planning a long term technology shift • Providing mechanisms through energy conservation act for maintenance of infrastructure & equipments • Collaborating with equipment manufacturer and consultancy houses

  21. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  22. Cement Sector : Background • Indian cement industry consumes 22 million tones coal/annum and 14 billion units power/annum • third largest user of coal in the country • GHG emissions per tonne cement produced, followed a downward trend

  23. Cement Sector : Mitigation Options • Production of blended cement with higher ratio of additives/cement • Switch to less carbon intensive fuel in kiln • Waste heat utilization for power generation/co-generation • Implementing energy efficiency improvement measures • Energy management

  24. Cement Sector : Policy Options • Financial incentives (taxes, appropriations) • Research and development (R&D) • Awareness programmes • Categorization of blended cements • Construction codes of central/state governments modified to allow use of PPC and slag

  25. Outline • Introduction • Sectors • Electricity Supply • Electricity Demand • Transportation • Iron & Steel • Cement • Cross Sector Barriers

  26. Cross Sector Barriers • High initial investment • Infrastructural constraints • Lack of leadership from private and public sector • Conflict of interest between regulatory and implementing agencies • Lack of trained professionals • Lack of awareness among consumers

  27. ICF International 2nd Floor, Western Wing Thapar House,124 Janpath New Delhi 110001 Phone: +91 11 4354 3000 Web: www.icfi.com/ IRADe C-50 Chhota Singh Block, Asian games Village Complex New Delhi 110011 Phone: +91 11 2649 5522 Web: http://www.irade.org/ For More Information

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