For India, which maintained that it will not sign any global agreement on limiting emissions, rather that it will take voluntary steps in the area of energy efficiency and reduction of emissions, the ninth annual PricewaterhouseCoopers report, Energy and Efficiency: Utilities Global Survey 2007, comes as a shot in the arm.
For the report shows that while power companies across the world consider global warming and climate change as issues that concern them, they are looking at voluntary ways in which technology and fuel choices can help them address these concerns.
So renewable sources of energy, nuclear power, cleaner fuels and energy efficiency have now made it to the agenda of 114 power companies across 44 countries. Nearly 50% of the power utilities polled for the report expect wind and nuclear power to provide an increasing share of their market’s energy consumption in the next five years. This compared to only 17% and 19% of utilities who held a similar view last year. Climate change appears to have cemented its place in utility company strategies.
Of course, this is not enough. Effective and consistent regulatory and market frameworks are required for any actual progress. The climate of thinking and action around cleaner power, renewables and energy efficiency is shifting fast. The big question is the extent and pace of the actual shift that will take place in the energy mix. Economic signals and incentives will be critical for utility companies to be able to make a big shift.
Kameswara Rao, executive director and India utilities leader, PricewaterhouseCoopers, said, “The electricity sector in India, the fifth largest in the world, needs significant investments to overcome current shortages. It must also invest to improve efficiency of invested capital and modernise processes. The government of India has taken steps to bring in investment in thermal, hydro, nuclear energy, renewable energy and in transmission. But to achieve desired results, further regulatory reforms and more sincere efforts in restructuring are necessary.”
India’s current energy consumption by households is very low. According to statistics published by the International Energy Agency, the average annual per capita consumption of electricity in India for 2004-05 was 612.5 kWh compared to Australia’s 11,126 kWh, the US’s 13,338 kWh and Brazil’s 1,955kWh.
In such a situation when India is working at raising its standards to that of an acceptable world average, a binding agreement could derail India’s energy policy, which seeks to raise per capita consumption to at least 1,000 kWh. Instead, New Delhi would like to impress upon developed countries the need to co-operate in promoting more efficient biomass convergent technology which has the potential to stem shift to fossil fuel.
As a growing economy which is working at increasing both energy production and usage, the government is steadfast about promoting best practices in the area of energy efficiency. However, when it comes to technology choice for obvious reasons India will adopt only cost-effective technologies. New Delhi is clear that all feasible steps in the area of energy efficiency will be taken as part of its efforts to deal with the present situation of energy shortage.
The survey shows an industry that believes that technological advances can take the world into a new era of energy efficiency. Expectations that technology can have an impact on energy efficiency have again shot up over the last 12 months — from 22% to 81% among American respondents, from 33% to 43% in Europe and from 41% to 62% world-wide.
Utility companies believe that the greatest energy efficiency gains could come from end-users, of all kinds — industrial, commercial and, especially, residential customers. Although utility companies feel that governments and end-users must set a lead on energy efficiency, companies are ready to invest significantly in efficiency, not just in their own production and transmission but also to help their customers become more energy efficient. Indeed, 72% of respondents from companies with supply businesses are making some investment in demand-side efficiency measures.
“Utilities in India have a strong incentive to invest in energy efficiency as it goes some way to bridge the shortages. More so as end-user inefficiency is the highest among consumer groups that are charged subsidised tariffs. Our studies show that proper targeting of energy efficiency interventions, along with local participation such as through distribution franchisees, a good return on investment can be achieved,” adds Kameswara Rao.
For the report shows that while power companies across the world consider global warming and climate change as issues that concern them, they are looking at voluntary ways in which technology and fuel choices can help them address these concerns.
So renewable sources of energy, nuclear power, cleaner fuels and energy efficiency have now made it to the agenda of 114 power companies across 44 countries. Nearly 50% of the power utilities polled for the report expect wind and nuclear power to provide an increasing share of their market’s energy consumption in the next five years. This compared to only 17% and 19% of utilities who held a similar view last year. Climate change appears to have cemented its place in utility company strategies.
Of course, this is not enough. Effective and consistent regulatory and market frameworks are required for any actual progress. The climate of thinking and action around cleaner power, renewables and energy efficiency is shifting fast. The big question is the extent and pace of the actual shift that will take place in the energy mix. Economic signals and incentives will be critical for utility companies to be able to make a big shift.
Kameswara Rao, executive director and India utilities leader, PricewaterhouseCoopers, said, “The electricity sector in India, the fifth largest in the world, needs significant investments to overcome current shortages. It must also invest to improve efficiency of invested capital and modernise processes. The government of India has taken steps to bring in investment in thermal, hydro, nuclear energy, renewable energy and in transmission. But to achieve desired results, further regulatory reforms and more sincere efforts in restructuring are necessary.”
India’s current energy consumption by households is very low. According to statistics published by the International Energy Agency, the average annual per capita consumption of electricity in India for 2004-05 was 612.5 kWh compared to Australia’s 11,126 kWh, the US’s 13,338 kWh and Brazil’s 1,955kWh.
In such a situation when India is working at raising its standards to that of an acceptable world average, a binding agreement could derail India’s energy policy, which seeks to raise per capita consumption to at least 1,000 kWh. Instead, New Delhi would like to impress upon developed countries the need to co-operate in promoting more efficient biomass convergent technology which has the potential to stem shift to fossil fuel.
As a growing economy which is working at increasing both energy production and usage, the government is steadfast about promoting best practices in the area of energy efficiency. However, when it comes to technology choice for obvious reasons India will adopt only cost-effective technologies. New Delhi is clear that all feasible steps in the area of energy efficiency will be taken as part of its efforts to deal with the present situation of energy shortage.
The survey shows an industry that believes that technological advances can take the world into a new era of energy efficiency. Expectations that technology can have an impact on energy efficiency have again shot up over the last 12 months — from 22% to 81% among American respondents, from 33% to 43% in Europe and from 41% to 62% world-wide.
Utility companies believe that the greatest energy efficiency gains could come from end-users, of all kinds — industrial, commercial and, especially, residential customers. Although utility companies feel that governments and end-users must set a lead on energy efficiency, companies are ready to invest significantly in efficiency, not just in their own production and transmission but also to help their customers become more energy efficient. Indeed, 72% of respondents from companies with supply businesses are making some investment in demand-side efficiency measures.
“Utilities in India have a strong incentive to invest in energy efficiency as it goes some way to bridge the shortages. More so as end-user inefficiency is the highest among consumer groups that are charged subsidised tariffs. Our studies show that proper targeting of energy efficiency interventions, along with local participation such as through distribution franchisees, a good return on investment can be achieved,” adds Kameswara Rao.
gas emissions
energy efficiency
Kameswara Rao
PricewaterhouseCoopers
Climate Change
Utilities Global Survey
