Page 16 - Driving Force for Energy Demand
P. 16
ving Forces for Energy Demand 2010
efficiencies had not been implemented, it is uncertain if the S-curve seen in 2-4
would have had the shape or if growth would have continued further before
levelling off due to income restraints.
As seen under the demand factors, power generation one of the largest energy
demand factor. It is also an area that generates a lot of waste as electricity
production requires on average three times its final energy content consumption
(Can, Letschert, McNeil, Zhou, & Sathaye, 2009). Final energy consumption
represents the direct amount of energy consumed by end users while primary
energy consumption includes final consumption plus the energy that was
necessary to produce and deliver electricity. In the case of India, the factor that
converts final electricity consumption to primary energy is relatively high and
was equal to 4.2 in 2005 (Can, Letschert, McNeil, Zhou, & Sathaye, 2009). As a
result, consuming one unit of energy from electricity is equal to consuming more
than four units of energy at the source of generation. Two reasons explain this
large primary energy conversion factor: first electricity distribution and
transmission losses are substantial, representing 31% of electricity production in
2004 and second electricity is generated for a large part (82%) with the use of
fuel combustion with low efficiency (26% for coal, 28% for oil and 41% for gas).
Indian transmission and distribution losses are among the highest in the world.
(Can, Letschert, McNeil, Zhou, & Sathaye, 2009). Based on this, there exists a
huge potential for reducing energy lost before it reaches the consumer, which
should result in increased energy efficiency without the risk of the take-back
effect, unless generators pass on the savings to consumers. This could potentially
be regulated through taxes or other measures by policymakers.
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 16
efficiencies had not been implemented, it is uncertain if the S-curve seen in 2-4
would have had the shape or if growth would have continued further before
levelling off due to income restraints.
As seen under the demand factors, power generation one of the largest energy
demand factor. It is also an area that generates a lot of waste as electricity
production requires on average three times its final energy content consumption
(Can, Letschert, McNeil, Zhou, & Sathaye, 2009). Final energy consumption
represents the direct amount of energy consumed by end users while primary
energy consumption includes final consumption plus the energy that was
necessary to produce and deliver electricity. In the case of India, the factor that
converts final electricity consumption to primary energy is relatively high and
was equal to 4.2 in 2005 (Can, Letschert, McNeil, Zhou, & Sathaye, 2009). As a
result, consuming one unit of energy from electricity is equal to consuming more
than four units of energy at the source of generation. Two reasons explain this
large primary energy conversion factor: first electricity distribution and
transmission losses are substantial, representing 31% of electricity production in
2004 and second electricity is generated for a large part (82%) with the use of
fuel combustion with low efficiency (26% for coal, 28% for oil and 41% for gas).
Indian transmission and distribution losses are among the highest in the world.
(Can, Letschert, McNeil, Zhou, & Sathaye, 2009). Based on this, there exists a
huge potential for reducing energy lost before it reaches the consumer, which
should result in increased energy efficiency without the risk of the take-back
effect, unless generators pass on the savings to consumers. This could potentially
be regulated through taxes or other measures by policymakers.
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 16
