Shift in energy strategy sought

Ficci and the Petroleum Conservation Research Association (PCRA) has called for bringing down unsustainably high energy intensity and laid down a few steps to avert a possible deceleration of growth.

Ficci and Pcra have called for a shift in India's energy strategy from supply domination to an integrated approach, a judicial mix of investment in supply and operational efficiency, T&D loss reduction and a thrust on renewable technologies.

The paper noted that the time was ripe for giving a strategic fillip to energy service companies to develop, instal and finance projects designed to improve energy efficiency and maintenance cost for facilities over a 7-10 year time frame and pointed that integrated resource planning and demand side management, including active promotion of efficiency in electricity end uses, should form the core of the energy strategy.

The paper further pointed that India's energy intensity per unit of GDP is 4.5 times higher than that of Japan, 1.4 times higher than Asia and thrice as much as the US which indicates a 'very high energy wastage and the potential of substantial energy saving.'

It also said that in order to meet the Planning Commission's projection of 7.4 per cent economic growth in the period 1997-2012, there has to be a commensurate growth in commercial energy sources especially fossil fuels and electricity which would in turn require a fresh capacity addition of 100,000 MW and an investment of $160 billion.

The paper suggested that an 'ESCO movement' should be launched with the focus on energy efficiency given the magnitude of the requirements.

The ESCO movement will 'disseminate the best international ESCO practices to national companies to enable energy auditors to save energy and protect the environment',the paper added.

The paper also suggested that the government and donor agencies can stimulate the market for affordable financial options through various means such as soft loans or grants for projects and ESCO business expansion, support to demonstration projects for information dissemination, information and education programmes for financiers and evolving appropriate financial guarantee mechanism against loans.