Environmental Engineering Reference
In-Depth Information
explained by a combination of factors (Dées et al.
2008
; Hamilton
2008
; Kilian and Murphy
2010
)
such as speculative trading, supply shocks,
demand shocks and market structure
(Breitenfellner et al.
2009
). For example, busi-
ness cycle factors were responsible for the bulk
of the 1979/1980 oil price increase in conjunc-
tion with sharply rising speculative demand in
1979. Such fl uctuations are bound to happen time
and again like what happened in 1979, 1991 and
2008, and global consumers can do very little to
control them. The policymakers should encourage
energy conservation and promote development of
alternate energy to reduce the impact of price
fl uctuations on local and global economy.
shocks and disruption that can be reasonably
expected (
Planning Commission, India, 2006
).
It seems very diffi cult for a country like India
to make energy available to common man at an
affordable and competitive price while relying on
over 70 % of imported energy. Balance of trade
for crude stood at a defi cit of 3,546.9 thousand
barrels per day (Table
6
).
With over a billion population and limited
domestic fossil fuel reserves controlling global
price, enhancing affordability and accessibility
looks like a really diffi cult task. In such a sce-
nario moving towards a global energy security
system (GESS) seems a realistic option. As pro-
posed by Kalicki and Goldwyn (
2013
), under
GESS sharing technology and best practices,
from carbon sequestration to large-scale power
storage, and enhanced engagement with con-
sumers and producers to forecast supply and
demand, and respond to supply disruptions -
precisely, quickly and effectively could be done.
Such level of collaborative and mutually benefi cial
energy interdependence might reduce risk and
lead towards safe, fuel-powered economic
growth. For India, GESS could be one of the
ways to improve energy security. Another one of
the most important options is to harness renew-
able sources of energy for sustainable and long-
term energy security.
5.4
Availability Renewable
Sources
Renewable sources of energy such as wind and
solar are adequately available in various coun-
tries. Wind energy, like other power technologies
based on renewable resources, is widely available
throughout the world and can contribute to
reduced energy import dependence (IEA
2013
).
Even though renewable resources are available,
many countries are not seriously adopting renew-
able technologies due to the initial high cost.
Even with a carbon price, emerging renewable
energy technologies with good prospects for cost
cuts could be given additional incentives to
unlock their long-term potential (Philibert
2011
).
5.6
Associated Costs
A very important difference between most renew-
able energy generation and fossil and nuclear
power is the cost ratio between capital and oper-
ating costs (Heal
2009
; REN21
2013
). In case of
coal-, nuclear- and natural gas-based power
plants, the cost of fuel varies from moderate to
very high compared to renewables like solar and
wind where the fuel cost is zero. According to
Heal (
2009
), fossil fuel power stations have sig-
nifi cant fuel costs: a large coal-fi red power station
can use 10,000 tons of coal daily, costing between
$50 and $100 per ton, so that fuel costs can be
between half a million and a million dollars daily.
If the cost of carbon is added, then the competi-
tive price of coal-based power would signifi cantly
5.5
Self-Sustainability and Energy
Security
Self-sustainability is highly desirable; energy
security is even critical to ensure growth at a sus-
tained pace, especially in India. Energy security
means different things to different people and
country - security of oil and natural gas supply
(Tanvi
2009
), economic security, independence
from imports, protection against price volatility
(Pachauri
2005
), affordability, accessibility and
availability at competitive prices at all times and
with a prescribed confi dence level considering
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