Energy Policies

The need for energy in a developing economy can hardly be over-emphasised. It is a basic input required to sustain economic growth and to provide basic amenities of life to the entire population of a country. It is energy which is the dividing line between a subsistence economy and a highly developed economy. In the affluent United States, an average American consumes nearly 40 times as much energy as an Indian does in our country. Empirically, it has been established that “inadequate supplies of energy can inhibit development and that assurance of an adequate supply and mix of energy inputs can be a great stimulus to development”.

The three-fold objective of energy policy in India has been:
To achieve a balance between energy supplies and demand in the short and medium lemon by accelerating exploitation of domestic conventional resources and managing demand through appropriate measures.

ii) Energy conservation and management to increase energy productivity, and optimising the utilisation of existing capacity; and

iii) Exploitation of new and renewable energy resources to form the basis of energy development strategy in the long run.

In pursuance of these objectives, the various measures taken by the State can be divided into two parts, viz., (1) energy pricing measures, and (2) non-pricing measures.
Energy Pricing Policies adopted in India have generally aimed at the following:

a) Meeting the maximum energy needs of low-income consumers.

b) Encouraging the shift from oil products to domestically produced fuels.

Providing pricing subsidies to sectors such as agriculture and specific industries where energy prices for consumers were held down to provide enough margin between output price and the costs of inputs. di Permitting price stability and avoiding frequent and abrupt adjustments.
The overall trend, however, is towards greater efficiency in pricing and recent pricing decisions have certainly passed on the burden of increased import prices fully and, by and large, equitably to all categories of producers.
Non-price measures relied largely on allocation measures. The government concentrated. immediately on substitution of heavy fuel oil (furnace oil) by coal whenever this was technically feasible.
Efforts have also been made towards regulation and management of energy demand, as also to improve the efficiency of energy use in different sectors of the economy On the supply side, efforts have been intensified for larger production of both crude oil and refined products, as also of alternative sources of energy, both conventional and non-conventional,
To check the transmission and distribution losses the in October 1989 the Power Grid Corporation (erstwhile National Power Transmission Corporation) to take over the transmission generated by the Central Sector Power Companies.

Suggestions :

Certain suggestions can be given which will help deal with the problem of the energy crisis. +
Greater emphasis should be placed on increasing uses of coal, first’ as an energy source, and second, as a feed-stock of fertiliser plants. → Several steps can be taken to curtail petroleum demand in the transportation sector which can reduce demand by nearly 40 million tonnes by 2009-10.
Technological options: weight reduction of vehicles, improving the aerodynamic design, use of radial tyres, etc.
Fuel alternatives: compressed natural gas, battery-powered vehicles, ethyl and methyl alcohols, etc.
Modal mix: like the shift to the use of more efficient means of transportation, and
Proper maintenance, development and use of roads and vehicles. +
In the agriculture sector, consumption of oil as a primary energy source can be reduced by on, more efficient foot valves for lift irrigation, better farm machinery, use of agro-residues and other non-commercial sources of energy such as gobar gas. As regards secondary use of petroleum for the production of fertilisers, new plants based on liquid oil products should be discouraged and these should be based on the use of natural gas or coal as feedstocks of which the country has plentiful resources.
In the industrial sector, Petroleum Conservation Research Association has identified a saving potential of about 12%. Various steps to reduce energy consumption may include such measures as result in a progressive improvement in energy efficiency, such as extensive energy audit programmes of key sectors, training and fiscal incentives, etc.
Energy auditing may comprise getting acquainted with the energy systems in question, gathering information on energy systems utilisation, production etc., to serve as a basis for the energy balance, planning and execution of energy measurement, gathering, information on the energy systems development, to serve as a basis for designing energy-saving measures, etc.
A massive attempt should be made to increase the exploitation of potential hydroelectric resources.
Producers of equipment to tap renewable sources of energy may be given tax incentives and concessions.
Conservation of non-commercial energy sources is an equally important aspect to be considered. It may be mentioned here that despite the oil shocks and increase in energy prices, India is characterised by a high degree of what environmentalists have termed “resource illiteracy”.
Sustained efforts to discover oil both on-shore and off-shore need be made.

Here are the notes for Educational Policies.