Transcript ENERGY PROSPECTIVE OF THE TRANSPORT SECTOR IN INDIA

ENERGY PROSPECTIVE OF THE
TRANSPORT SECTOR IN INDIA
International Seminar on
ENERGY EFFICIENT ELECTRICAL
SYSTEM IN RAIL SECTOR
A VEHICLE FOR TURNAROUND
New Delhi – January 22, 2007
Harry Dhaul
Director General, IPPAI
India – Energy Scenario



India sixth largest energy consumer in
the world
Annually consumes around 3% of the
world’s energy – net energy importer
Demand for imported fuel mounting,
given the projected economic growth
of 7% to 8% over next two decades
IPPAI
India – Energy Scenario




India’s energy intensity – 2.88 times that of
rich countries (IEA, 2002)
Annual domestic consumption of oil
products at 120MT while domestic crude
production is only 34MT. Oil Imports
currently at 72%, and growing.
The share of oil in India’s fuel mix currently
34% and rising
Around 26.5% of oil consumption pertains
to the transport sector
IPPAI
Regulation of Energy



Autonomous development of regulatory
framework in different segments of the
energy sector – very little coordination or
alignment
Different energy sectors in different stages
of deregulation
Need of the hour - Switch from command
and control mode of governance to
independent regulation and public private
partnerships
IPPAI
The Prognosis





Increasing dependence on foreign sources for
energy and conventional fossil fuels
Price not the only critical factor, but ‘access to
energy’ itself
Imminent peaking of global oil production – High
vulnerability to oil shocks
Previous energy transitions (wood to coal and
coal to oil) were gradual and evolutionary; Oil
peaking will be abrupt and revolutionary
Urgent need for limiting dependence on transport
fuels
IPPAI
The Prognosis




With India’s nuclear energy cooperation
initiative with the US, access to nuclear fuel &
progressive technology is within arms reach
Substantive surge in power generation
capacities expected, optimising both availability
and cost of electricity
Electrification of transportation the most
beneficial alternative to conventional petroleum
The electrification drive mandated by strategic
importance of petroleum conservation, to limit
the consumption of diesel oil
IPPAI
Coal & Railways




Coal traffic constitutes around 46% of the total
goods traffic earnings for the railways, while 53%
of coal transport is done by rail
Despite substantial growth in coal production the
share of coal movement by Railways has declined
from 70% in 1983-84 to 53% in 2002-03
Alarming trend, since railways are 5 to 6 times
more energy efficient, 4 times more efficient in
land use and superior from the standpoints of
environment impact and safety than road transport
Coal being India’s dominant fuel for power
generation, the provision of high value coal
transportation service by railways is imperative for
the development of the Indian electricity sector
IPPAI
Global experiences



During World War II, Switzerland survived a
total oil embargo for six years with
electrified transportation
France has adopted a ‘grand strategy’ of
using domestic nuclear and hydroelectric
power to operate electrified inter-city
transportation and urban rail
In countries like the US, a Strategic Railcar
Reserve has been proposed to supplement
and extend the Strategic Petroleum Reserve
IPPAI
Electrified Rail Transport Advantages



100 route kilometres (RKM) of electrified rail lines
would result in an annual saving of more than 10
million litres of diesel oil
As on date, nearly 17500 RKM out of over 63000
RKM of rail lines India are electrified, with
energising targets being surpassed in the 9th Plan
as well as the 10th plan
Even at the current load of 440 Billion TonneKilometre (BTKM) of freight traffic, the potential for
savings with enhanced rail electrification is
tremendous
IPPAI
Electrified Rail Transport Advantages


Though only around one fourth of the rail
network in India is electrified, more than
62% of freight and 49% of passenger traffic
is hauled by electric traction - a clear
indicator of the energy efficiency of railway
electrification
Electrified
rail
transportation
system
provides many more freight tonne-Km per
BTU and passenger-Km per BTU than the oil
fuelled road transportation alternatives
IPPAI
Electrified Rail Transport Advantages

High-speed electric trains can compete favourably
with airplanes on relatively short routes. Key urban
centres connected by the Shatabdi expresses are
an excellent case in point

Undoubtedly, an extensive network of inter-city
trains would decrease both airport and highway
congestion. For eg. the average queuing time at
Delhi and Mumbai airports are approx 30 minutes

Besides the social and environmental benefits,
electrified rail transport translates to considerable
savings in our energy bill, which, considering just
the savings on diesel oil, could exceed Rs.200
Billion annually
IPPAI
Railway Electrification Issues



Electricity tariffs for railway
traction among the highest in
the country
There is an immediate need
for re-balancing the tariffs for
railways to reduce the rate of
cross subsidisation
Given the role of Indian
railways in providing bulk
transport for man & material
as well as energy and
environmental
efficiencies,
rationalisation of tariff for
railway traction is imperative
for overall development
IPPAI
States
Tariff
MAHARASHTRA
4.27
UTTAR PRADESH
4.19
TAMIL NADU
3.90
WEST BENGAL
3.66
ANDHRA PRADESH
4.25
HARYANA
4.12
RAJASTHAN
3.65
MADHYA PRADESH
5.97
GUJARAT
4.59
ORISSA
3.73
BIHAR
3.90
KARNATAKA
4.13
DELHI
4.18
PUNJAB
3.92
Integrated Energy Policy

The Integrated Energy Policy (Report of the Expert
Committee) published by The Planning Commission,
Government of India in August 2006 has emphasised
on the need for Railway Electrification among the
policy options for energy security
“If all of the goods traffic was carried by Railways
using electric traction, the diesel saved would have
been around 8 Mt in 2003-04. Thus a significant
saving of diesel is possible if Railway operations can
be upgraded to win back the haulage lost to road
traffic.” [Clause 4.3.1.(c)]
“Dedicated corridors for goods traffic should be
developed, preferably on electric traction, between
metro cities.” [Clause 4.3.1.(c)(iv)]
IPPAI
Conclusion


Indian railways has already planned various
measures, including increased container
movement and time-tabling of freight trains,
to regain transport shares, targeting 40%
by 2010
Railway electrification will continue to be a
key driver for India’s energy security and
preparedness for the imminent ‘peak oil’
crisis
IPPAI
Thank you
IPPAI