ENERGY SECURITY ISSUSES IN INDIA

AMIR SYARIFUDIN BIN MOHAMAD PUAD

MUHAMMAS AMIRUL HAKIM BIN SAHRUDIN
PREVEN KUMAR RAJAMANY
NURUL NATASHA BINTI MOHAMMAD JAFRI
NUR FATIN AIMILIA BINTI ROZUKI
Introduction
 Currently expanding their
India is very well-known economy with the shift from
for the rapidly growing agriculture to manufacturing
population and services sector.

India needs clean and This will lead to an increase

stable energy supply at in energy intensity which has
sustainable prices resulted in an unprecedented
demand for energy sources
Total energy
consumption in India
in 2013
Energy Security Issues
Inadequate Upstream Infrastructure

The issues are accentuated

by the lack of domestic
India is facing a shortage of
expertise in the
oilfield services
manufacture of rigs,
particularly deep water rigs

Most of the rig assets held Shortage of other upstream-

by Indian companies are related infrastructure such
aging as process platforms,
pipelines, collecting stations
 Difficulties in Sourcing Long-Term
Gas Supplies from Abroad
The country is facing difficulties in sourcing long-term
LNG supplies due to competition from China, Japan and
South Korea

Qatar has recently agreed to fulfil all the long-term LNG

requirements of GAIL India and Petronet.

However, discussions were suspended due to pricing

issues
 Subsidized Petroleum Prices
This is resulting in significant
State-owned oil marketing
under-recoveries for OMC.
companies (OMC) continue to
Under-recoveries were
sell petroleum products at much
compensated by the
lower than the cost of
government in the form of oil
production.
bonds and cash.

The OMC are facing some issues

which may result in disruption in
sourcing imported crude,
leading to lower refinery
utilization and possible
shutdown of refineries.
India’s Climate and
Energy Policies
Emissions and Energy
On October 1, 2015, India formally submitted its intended nationally
determined contribution (INDC) to the climate agreement due in
December 2015 in Paris. Among its key elements:
1. To reduce the emissions intensity of its GDP by 33 to 35 percent by
2030 from 2005 level
2. To achieve about 40 percent cumulative electric power installed
capacity from non-fossil fuel based energy resources by 2030, with the
help of transfer of technology and low cost international finance
including from Green Climate Fund (GCF)
3. To create an additional carbon sink of 2.5 to 3 billion tons of CO2
equivalent through additional forest and tree cover by 2030.
 Policies Contributing to Climate
Mitigation
• The Strategic Plan for New and Renewable Energy
Renewable • National Solar Mission
Energy

• Photovoltaic and solar thermal

Solar • Increase the solar ambition to 100 GW

• plans to boost wind energy production to 50,000 to 60,000 MW

Wind • promote an offshore wind energy market.
 • Reducing CO2 emissions
Coal • Tax on coal has raised $2.85 billion for India’s clean energy fund

• Perform, Achieve and Trade (PAT) Mechanism

Energy
• Set a target to reduce energy consumption at participating facilities 4-5
Efficiency percent in 2015

• New vehicle fuel-economy standards

Transportation • Biofuel legislation has set a target of 20 percent blending of ethanol
and biodiesel in 2017

• Launched an initiative to create 100 “smart cities”

Smart Cities • Better transport systems, utilities, and energy networks
 Impacts of India’s national security
relationship with US and other world
stages
 Economic

• India, China and the United States are the world’s largest energy
consumers and greenhouse gas (GHG) emitters.
• They are accounting for almost half of global energy consumption.
• The International Energy Agency (IEA) anticipates that by 2040
China will consume a 22% share of global energy demand (same as
now), India an 11% share (a near doubling), and the United States a
12% share (shrinking from 16% today).
• Collaboration among these three nations on developing new and
innovative strategies could help accelerate the move to less carbon-
intensive energy systems and enhance energy security and overall
quality of life
 Politics

• U.S.-India Partnership to Advance Clean Energy (PACE) through a series of

priority initiatives,
1. new Energy Smart Cities Partnership to promote efficient urban energy
infrastructure;
2. a new program to scale-up renewable energy integration into India’s power
grid;
3. cooperation to support India’s efforts to upgrade its alternative energy
institutes and to develop new innovation centers;
4. an expansion of the Promoting Energy Access through Clean Energy (PEACE)
program to unlock additional private sector investment and accelerate the
deployment of cost-effective, super-efficient appliances
5. formation of a new Clean Energy Finance Forum to promote investment and
trade in clean energy projects.
 Effect of Energy Security for India
Relationship with United Sates, Iran
and China
• According to IMF World Economic Outlook on October
2016, GDP growth rate of India in 2016 is 7.6% and India is
fourth fastest growing nation of the world.
• For India, the demand for coal has forecasted to touch 980
MT, out of which production by 2017 is likely to touch 795
MT
• As an outcome of this, India, the country which has an
assessed 2,93,497 million tonnes of coal, was forced to
import coal from Indonesia and South Africa, at cheaper
costs than obtainable in national market.
• In order for India to conserve this energy security matter,
the nation has made some relationship with other countries
such as United States, China and Iran for Indian energy
strategy.
• In July 2005, President Bush and Indian Prime Minister
Manmohan Singh reached an agreement to provide India
with assistance for its civilian nuclear energy program
• New Delhi finds itself competing with the other power-
hungry Asian giant, China
• Beijing frequently outbids New Delhi or “sweetens the deal”
with other projects
Conclusion
• India with its infrastructural constraints from the supply side
and distribution energy sector of India is in doldrums as of
now.
• By diversifying more into solar and wind power to meet the
demand in future. Along with it a plan to reduce the
transmission losses is required for the electricity boards to be
profit making and attractive sector.