global ccs institute - day 1 - panel 2 - ccs in developing countries

PANEL 2 CCS IN DEVELOPING COUNTRIES Tone Skogen – Government of Norway Alice Gibson – Global CCS Institute Dr Carlos Serralde – Mario Molina Centre Amit Kumar – TERI

CCS in India

Amit Kumar TERI, India

Outline

• India’s energy scenario • Challenges • CCS economics • Barriers • Capacity development needs

India's energy scenario

Total primary energy supply mix in India

40%

24%

6%

1% 2%

27%

Coal Oil Natural gas Nuclear Hydro Biomass and waste

Energy supply

Coal – Major energy source, – 81% of total thermal generation

Electricity – Installed generating capacity ~ 207006.04 MW (CEA,

August 2012) – Suffering from huge shortages (2011-12)

• 8.5% energy shortage (likely to increase to 9.3% in 2012-13)

• 10.6% peak shortage Target: 15000 MW annually for next 7 years Captive power generation

– Currently 30,000 MW using fossil fuels

Sector wise energy consumption

48%

15%

13%

8%

9% 7%

Industry Transport Residential and Commercial Other energy users Non-energy users Agriculture

Sectoral break-up of India’s CO2 emissions

66%

27%

7%

Energy Industry LULUCF

Electricity fuel mix (As on August 31,2012)

137,936

4,780

39,291 24,998

207,006

34,444

0

50000

100000

150000

200000

250000

Thermal Nuclear Hydro RES Total Captive

Break-up of emissions from energy sector

72%

14%

7% 7%

Electricity Transport Residental Others

Break-up of emissions from industrial sector

32%

2% 29%

7%

30%

Cement Ammonia Iron and steel

Food processing Others

India’s Projected CO2 emissions in 2031-32

Challenges

Concerns of:

Energy access

– Increasing energy supply for sustained economic growth

– Energizing rural areas

– Socio-economic development

Energy security

– Energy import vulnerabilities

Ensuring long-term sustainability of energy use

Climate change

Challenges

Poor electrification status

Over 289 million people without access to electricity (~ 74 million households)

Over 31,000 villages are yet to be electrified

Electricity supply situation is generally poor even in electrified villages

Over 80% of rural India dependent on traditional fuels for cooking

Challenges

Urban and peri-urban

Rapid pace of urbanisation

Use of commercial energy increasing rapidly in residential and commercial sectors

Electricity supply plagued with black-outs and brown-outs

Challenges

India’s energy demand is growing

Government’s endeavour for “Electricity for all by 2012”

Per capita electricity consumption: ~ 800 kWh/year

– World average: 2596 (2005)

– Target is to increase the availability to 1000 kWh/year by 2012.

Challenges

Total commercial energy consumption is estimated to increases from 284 mtoe in 2001 to 1727 mtoe in 2031

The import dependency in 2031 could reach

– Oil: 88%

– Coal: 72%

Challenges

Community services e.g. health, drinking water, education, and ICTs suffer due to lack of energy services

CCS in India

Levelized cost of electricity

Imported coal Indian Oil

LCOE without capture (Rs/kWh) 3.97 3.50

LCOE with capture (Rs/kWh) 5.52 4.90

LCOE with CCS (Rs/ kWh) 5.58 4.95

LCOE with CCS and monitoring (Rs/kWh) 5.61 4.99

Increase in LCOE due to CCS and monitoring 41% 42%

Barriers

CCS has not yet been proven to be a viable option for large scale GHG mitigation in the power sector.

India to consider it once large-scale deployment is taken place internationally.

One major barrier to CCS deployment in India is the lack of accurate geological storage site data.

The cost of electricity increases in CCS power plants while reducing net power output.

Barriers

CCS deployment is held to run counter to India’s ambitious goals for electrification, especially given the present electricity deficit and energy situation in the country.

As far as enhanced oil recovery (EOR) route of CCS is concerned, India does not have many depleted oil fields.

Requirement of specialised manpower and suitable infrastructure.

Monitoring of the stored CO2 to assure against leakage.

Legal issues related to land acquisition, ground water contamination, CO2 leakage, etc.

Objective

“To create an enabling environment for CCS deployment in India.”

Needs

Knowledge building and capacity development of policy makers and regulators

Capacity development on technical issues

Technology sharing and transfer

Capacity development of Financial Institutions

Public Engagement

Knowledge sharing

Knowledge building of policy makers and regulators

Some knowledge regarding CCS does exist at the decision-making levels.

However, there is a need to go deeper in to the nuances of different elements of CCS and the associated benefits and risks.

Global regulations and policies, along with progress in CCS related activities in other parts of the world, may be highlighted.