Review of India’s power security
S. L. RAO
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Draws attention to the need for formulating holistic policies on energy
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INDIA’S ENERGY SECURITY: Edited by Ligia Noronha and Anant Sudarshan; Routledge, 912-915 Tolstoy House, 15-17 Tolstoy Marg, New Delhi-110001.
This book originated from a conference in September 2006 on “India’s Energy Security: Foreign, Trade and Security Policy Contexts.” It is divided into four parts: understanding India’s energy security concerns; the global context — trade and geopolitics; energy consumption and technology choices; and nuclear energy for India — the debate.
The chapters are logically sequenced and are mostly brief, giving succinct assessments. In the end, it leaves the reader dissatisfied because no solution is offered to the conundrum of necessary economic growth, consequent carbon emissions, resulting in climate change, and the lack of viable alternatives to burning coal. It comes to the conclusion that India will have to make some commitments on carbon emissions and must therefore step up its efforts on all fronts to find additional sources of oil and gas, improve efficiencies in generating power and using fossil fuels, develop alliances with countries in similar situations, and speedily develop alternatives to coal.
Dilemma
The book does highlight the dilemma of a developing country whose rural poor have to burn wood, dry leaves, etc. for meeting their energy needs and cannot afford commercial energy. But it has no suggestions to offer on how the situation can be changed. In 2000-01, two-thirds of India’s population used one-third of the global per capita average of primary energy. Modern, commercial energy must be made accessible to all at lifeline levels. Among the issues to be tackled are unaffordable prices, environmental constraints, and poor energy infrastructure. Poor targeting of subsidies and programmes for the poor compound the problem. The book fails to discuss the present regime of energy subsidies, what modifications are required to ensure that the benefits reached the target groups, and how much will that cost even in the most delivery-efficient ways.
Energy products
The book starts by contextualising India’s energy security in a manner different from the classical definitions of the term ‘energy security’ by relating it to poverty, growth, and local and global environmental concerns. The two areas of real concern for India are the continued dominance of coal and the slow pace of reform in the transportation and housing sectors. Both are constrained by technology, evolving lifestyles, and institutions and organisations. Given the limited domestic resources, India’s energy security vitally needs a smooth flow of energy products imported from abroad. To finance these imports, India needs to step up its exports. It must also join hands with other countries that are similarly placed and endeavour to augment energy resources through better management of supply and demand. It must especially develop a programme of active cooperation with China on efficient use of fuels, geopolitical concerns, market-related interventions, and research and development. India must also reduce its maritime vulnerabilities to secure its growing need for fossil fuels.
Adopting sustainable lifestyles is a necessary and complementary means of controlling energy consumption and promoting energy security. However there is no discussion on how this can be brought about in a globalised and interconnected world where Western lifestyles are the norm for all classes of people.
Forecasting model
A forecasting model is discussed. It shows that the greatest reduction in energy consumption can be achieved by interventions in power generation to make it more efficient in converting fossils into electricity, and in more efficient use in the transport and housing sectors (public transport, green buildings, etc). Technology choices are also indicated in the order of economic merit, starting with hydro. India must also invest heavily in R&D in deep sea natural gas exploration, exploiting coal from seams more than 300 metres deep, coal gasification and gas hydrates. Developing and using new technologies has risks, and institutional frameworks must be developed to regulate them — markets, regulatory incentives, information provision, development of codes, standards, certification processes, and access to finance through risk-guarantee mechanisms. The chapter on nuclear energy dismisses its potential for significantly altering India’s energy security situation on grounds of high cost and serious safety concerns. This part is the least satisfying of all since it does not discuss any other point of view. The context of France which gets most of its energy from nuclear power could well be an example for India.
This book marks a good beginning in that it has drawn attention to the need for formulating holistic policies on energy security. However, it offers few specific proposals for change. There is little discussion on the financial implications of achieving the various objectives.
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