Environmental Engineering Reference
In-Depth Information
relationships with many countries in the Middle
East and North Africa (MENA) region. India
needs to build mutually benefi cial relationships
in the MENA region to reduce geopolitical risk
associated with sourcing of fossil fuel especially
crude oil and natural gas. Overdependence on
any outside source for one or more forms of
energy means supply and demand are vulnerable
to external shocks arising out of geopolitical
tension or man-made disasters like terrorist
attacks. Any such undesirable event may disturb
supply causing energy imbalance in the country.
In order to reduce vulnerability and ensure higher
level of supply security, optimal energy mix with
higher contribution from renewables is highly
desirable. Global geopolitical dynamics certainly
need to be factored in while developing optimal
energy mix in a country like India. Unfavourable
geopolitical dynamics could be one of the major
drivers to harness domestic energy resources,
especially the renewables.
low-carbon and energy-effi cient technologies,
which include renewable energy supply products,
is projected to nearly triple to US$ 2.2 trillion by
2020. It has been observed that over the last
decade the emerging economies like China and
India have signifi cantly improved their exports of
renewable energy equipment such as solar panels,
wind turbines and solar water heaters. Apart from
exporting components of new technologies, vari-
ous developing countries are also expanding their
potential to export electricity from renewable
sources. Such trade activities would certainly
improve balance of trade and create healthy rela-
tionships with neighbouring importing countries.
For example, Nepal has an estimated 43,000 MW
hydropower generation capacity, but the actual
production is only 650 MW (Kaul
2012
). Nepal
recently signed an agreement with China to
develop a hydropower plant (750 MW) with an
investment support of $1.6 billion from China.
Power produced from the new plant will improve
electricity supply in Nepal, and surplus would be
supplied to China. India seems to be geared up for
further mutual agreement for power trading, and
very recently the chargé d'affaire at the Indian
Embassy in Nepal Jaideep Mazumdar said, “We
are positive about signing the agreement as it
would benefi t northern Indian states, which are
now depending on fuels like coal that is polluting
the environment” (The Himalyan News Service
2013
). India and Bhutan have already entered
power trade agreements in the 1980s. Bhutan is
exporting approximately 450 MW of hydropower
towards India and earning inconvertible Indian
currency, thereby boosting the pace of economic
growth of Bhutan (Sigdel
2007
). It is suggested
that a regional electricity grid in Asia should be
developed to capitalise on power shortage and
surplus. More specifi cally to share surplus elec-
tricity produced from renewables. Renewables are
considered to be the future of energy and a global
driver of green economy. Green fuels will drive
green industries, green production, green build-
ings, green transport, green products and green
job market. Some of the important forms of green
energy such as solar, wind, biomass, hydro and
natural gas that are likely to be important drivers
of green economy are discussed here.
6
Role of Green Fuel in Green
Economy
If green economy is to become a reality, most of
the countries having rich renewable resources
must move to renewable energy at the earliest.
Sectors that are important constituents of green
economy are buildings (residential, commercial
and industrial), manufacturing and transport.
Buildings account for almost a third of fi nal
energy consumption globally and are an equally
important source of CO
2
emissions. According to
EIA (
2011
), space heating and cooling as well as
hot water are estimated to account for roughly
half of global energy consumption in buildings.
Globally, the industrial sector consumes 51 % of
total energy followed by the transportation sector
(20 %), residential sector (18 %) and commercial
sector (12 %). The industrial and transportation
sectors are clear drivers of energy consumption
and should transition from fossil fuel to green
fuel. Transition to green fuel not only improves
environmental condition but creates additional
economic and trade activities also. A recent report
by UNEP suggests that the global market in
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