UNIT-1
ENERGY SCENARIO
By
Mr. K. Trinadh Babu
Asst. Professor
Dept. Of EEE
ANITS
Introduction:
• Various types of energy sources are there that can be divided into
different parts.
• Geothermal energy, nuclear The sun is not only the source of
energy.
• energy, biomass, wind energy, and petrol are some of the other
important sources from which energy can be extracted.
• Based on the characteristic of sustainability, energy is classified into
two main types of energy sources.
• Energy can be extracted from both renewable and non-renewable
sources.
• Conventional and non-conventional sources of energy are two other
types of energy sources that play an important role in the
consumption and usage of energy.
Cont….
• Classification of Energy:
• Energy can be classified as the core ability to do any work.
• The ability of a particular system to perform any task is regarded as
energy.
• Energy is such a property, present in an object that can be
transferred into various objects
• Energy can also be converted into different forms.
• Another example of chemical energy is a candle in which the energy
is stored as a form of chemical energy and it has to be burnt to
extract this energy.
• Burning is such a process with which any kind of chemical energy
can be converted into heat energy.
Cont….
• Renewable and non-renewable sources of energy:
• The two most important sources of energy are renewable and non-
renewable energy.
• Natural resources of energy such as geothermal, solar, wind, tidal,
hydropower, and biomass energies are renewable energies that are
sustainable in nature .
• These energy sources are safe for the environment.
• Non-renewable sources of energy are limited in supply.
• This type of source of energy is mainly based on earth and possesses
a limitation with which it can be finished.
• Natural gas, hydrocarbon gas liquids, petroleum, coal, and nuclear
energy are some important examples of non-renewable energy.
Cont…
Cont….
• In recent times, the global usage of renewable energy has increased
very much. Wind power and hydropower consumption and
generation have also increased from before.
• Difference between renewable and non-renewable sources of energy.
Cont….
• Energy needs of India, and energy consumption
patterns:
• As per the reports from various news agencies, power consumption
in India rose by 13.31% annually.
• The total power consumption in India is 127.39 billion units as of
September 2022.
• Everything, from humans to machines, relies on energy to function.
• Around the world, energy is being consumed at an alarming rate,
and Energy consumption in India is no exception.
• India’s most pressing issues are its growing population and, as a
result, its rising energy demand.
• After the United States and China, India is the world’s third-largest
energy consumer.
Cont…
• Consumption of Electricity in India:
• Because of its growing GDP and stable economy, India’s energy
consumption has increased significantly since its independence.
• India is one of the world’s biggest electricity consumers.
• In addition, India was ranked third among the top electricity
consumers in 2020.
Cont….
• World wide potential of these Sources:
• According to the American Energy Information Administration (EIA)
and to the International Energy Agency (IEA), the world-wide energy
consumption will on average continue to increase by 2% per year.
• The graph below shows the actual values starting from 1980 until
today in blue and the predictions of the energy consumption until
the year 2030 in orange.
Cont….
• Energy Efficiency:
• Energy efficiency is the use of less energy to perform the same task
or produce the same result.
• Energy-efficient homes and buildings use less energy to heat, cool,
and run appliances and electronics, and energy-efficient
manufacturing facilities use less energy to produce goods.
• Energy efficiency is one of the easiest and most cost-effective ways to
combat climate change, reduce energy costs for consumers, and
improve the competitiveness of U.S. businesses.
• Energy efficiency is also a vital component in achieving net-zero
emissions of carbon dioxide through decarbonization.
• The Office of Energy Efficiency and Renewable Energy (EERE)
champions clean energy through its technical offices and programs
that fund research and development and promote energy efficiency
across all sectors of the U.S. economy.
Cont….
• Energy Efficiency Benefits:
• Energy efficiency saves money, increases the resilience and
reliability of the electric grid, and provides environmental,
community, and health benefits.
• COST SAVINGS:
• At home, you can save money on energy bills by making energy-
efficient and weatherization upgrades—such as adding insulation,
using LED lighting, and installing a heat pump—that reduce your
energy use and can improve comfort.
• Energy-efficient buildings cost less to heat, cool, and operate, while
industry and manufacturing plants can make products at lower cost.
• Energy-efficient transportation results in fuel savings.
• COMMUNITY BENEFITS:
• Energy-efficiency programs improve community resilience and
address energy equity by bringing efficient, cost-effective
technologies and infrastructure to underserved communities,
including communities of color
Cont….
• These communities are disproportionately affected by air pollution
and have a higher energy burden, which is the percentage of gross
household income spent on energy costs.
• ENVIRONMENTAL BENEFITS:
• Reducing energy use is essential in the fight against climate change,
because traditional power plants burn fossil fuels that release
greenhouse gases and contribute to air pollution.
• Energy-efficient homes and buildings are also better equipped to
switch to renewable energy, which does not produce harmful
emissions.
• RESILIENCE AND RELIABILITY:
• Energy-efficiency improvements reduce the amount of electricity on
the grid at one time, known as load, minimizing congestion and
stress on the U.S. electric grid.
• Less load prevents power disruptions.
Cont…..
• HEALTH BENEFITS
• Reducing fossil fuel use results in cleaner air, water, and land, all of
which directly affect human health—especially those in
marginalized communities and people with conditions that are
exacerbated by pollution.
• ENERGY SECURITY:
• It is defined as the uninterrupted availability of energy sources at
an affordable price.
• Long-term energy security deals with timely investments to supply
energy in line with economic developments and environmental
needs.
• Short-term energy security focuses on the ability of the energy
system to respond promptly to sudden changes in the supply-
demand balance.
Cont…..
• Significance of Energy security:
• India aims to become leading global economic power which will fuel
energy needs for providing infrastructure, provisioning of basic
necessities, developing human skill, employment generation and
manufacturing abilities.
• India’s economic fortunes continue to be tied to the sharply
fluctuating international price of oil.
• Challenges for India’s Energy Security:
• Policy Challenges:
• Failure to attract international investment in domestic
hydrocarbon exploration e.g. NELP failed to attract interest of large
international energy corporations.
• Major investments will have to be made to acquire hydrocarbon
reserves abroad.
• Coal mining in India suffers from delays due to regulatory and
environmental clearances.
• Indo-US nuclear helped fuel domestic power plants and give India
access to critical technologies in strategic areas but deal did not lead
to India setting up foreign-built reactors.
Cont…..
• Accessibility Challenge:
• The household sector is one of the largest consumers of energy in
India. It is responsible for about 45% of the total primary energy use.
In rural areas, biomass accounts for 90% of total primary fuel
consumption for cooking. This has serious health impacts on the
rural people.
• Presently, 304 million Indians do not have access to electricity and
around 500 million Indians are dependent on solid biomass for
cooking.
• Promotion of Renewable Energy:
• A renewable energy capacity of 100 GW should be achieved by
2019-20 so as to contribute to achievement of 175 GW target by 2022.
• Solar Energy Corporation of India Limited (SECI) should develop
storage solutions within next three years to help bring down prices
through demand aggregation of both household and grid scale
batteries.
• A large programme should be launched to tap at least 50% of the bio-
gas potential in the country by supporting technology and credit
support through NABARD by 2020.
Cont….
• Energy and its environmental impacts:
• Some major environmental Issues are as follows:
• Non-renewable resources such as coal and petroleum cause more
harm to the environment when compared to renewable resources,
in the form of air and water pollution, generation of toxic wastes, etc.
• Coal gives out sulfur as emissions that harm the trees. Moreover,
their extraction plants contaminate rivers and lakes and affect the
aquatic ecosystem adversely.
• Oil production and usage result in releasing the poisonous carbon
oxides into the air.
• Even renewable resources are not completely eco-friendly.
• The generation of energy from the wind, the sun, tides, etc. also
creates harmful environmental impacts and affects biodiversity to a
significant level.
Cont…..
• The exhausts from natural gas release nitrogen and even methane
oxides, which affect people and animals that use water from the
affected water bodies.
• Biomass also results in the generation of harmful gases.
• Ash created on burning the biomass is another unwanted waste that
causes disposal issues due to its lead and cadmium content.
• Manufacturing the photovoltaic (PV) cells produces toxic chemicals.
• Although hydropower does not cause air or water pollution, it severely
impacts the fish population.
• It causes the relocation of the people and animals living near the dam
sites. Moreover, it changes the water temperature.
• Thus, all energy resources have an impact on the environment.
• There is no such thing as a ‘clean’ source of energy.
• The consolation is that renewable resources cause lesser
environmental impacts than non-renewable resources of energy.
Cont….
• Global environmental concern:
• As early as 1896, the Swedish scientist Svante Arrhenius had
predicted that human activities would interfere with the way the
sun interacts with the earth, resulting in global warming and climate
change.
• His prediction has become true and climate change is now
disrupting global environmental stability.
• The last few decades have seen many treaties, conventions, and
protocols for the cause of global environmental protection.
• Few examples of environmental issues of global significance are:
1. Ozone layer depletion 2. Global warming 3. Loss of biodiversity.
• One of the most important characteristics of this environmental
degradation is that it affects all mankind on a global scale without
regard to any particular country, region, or race.
Cont….
• The whole world is a stakeholder and this raises issues on who
should do what to combat environmental degradation.
• Kyoto Protocol:
• Kyoto Protocol, in full Kyoto Protocol to the United Nations
Framework Convention on Climate Change, international treaty,
named for the Japanese city in which it was adopted in December
1997, that aimed to reduce the emission of gases that contribute
to global warming.
• In force since 2005, the protocol called for reducing the emission of
six green house gases in 41 countries plus the European Union to 5.2
percent below 1990 levels during the “commitment period” 2008–12.
• It was widely hailed as the most significant environmental treaty
ever negotiated, though some critics questioned its effectiveness.
• Greenhouse gases, such as carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), perfluorocarbons (PFCs), hydrofluorocarbons
(HFCs), and sulfur hexafluoride (SF6), affect the energy balance of
the global atmosphere in ways expected to lead to an overall
increase in global average temperature, known as global warming.
Cont….
• Concept of Clean Development Mechanism (CDM):
• Article 12 of the Kyoto protocol defines the Clean Development
Mechanism, CDM.
• The purpose of CDM is to:
• a) contribute to sustainable development in developing countries;
• b) help Annex I-countries under the Kyoto Protocol to meet their
target.
• The below table shows the ANNEX-I countries under the Kyoto
Protocol :
Cont:
Cont….
• How CDM works?
• An investor from a developed country, can invest in, or provide
finance for a project in a developing country that reduces
greenhouse gas emissions so that they are lower than they would
have been without the extra investment - i.e. compared to what
would have happened without the CDM under a business as usual
outcome.
• The investor then gets credits - carbon credits - for the reductions
and can use those credits to meet their Kyoto target.
• If the CDM works perfectly it will not result in more or less emission
reductions being achieved than were agreed under the Kyoto
Protocol, it will simply change the location in which some of the
reduction
Cont….
• With the help of CDM, countries which have set themselves an
emission reduction target under the Kyoto Protocol (Annex I
countries) can contribute to the financing of projects in developing
countries (non-Annex I countries) which do not have a reduction
target.
• These projects should reduce the emission of greenhouse gases
while contributing to the sustainable development of the host
country involved.
• The achieved emission reductions can be purchased by the Annex I
country in order to meet its reduction target.
• Requirements for Participating in CDM:
• The requirements for participating in Clean Development
Mechanisam(CDM)are listed below
Cont:
Cont…
• Project cycle for CDM:
• The project cycle for CDM is as shown
Cont….
• There are seven basic stages;
• the first four stages are performed prior to the implementation of
the project,
• while the last three stages are performed during the lifetime of the
project.
• While investors profit from CDM projects by obtaining reductions at
costs lower than in their own countries, the gains to the developing
country host parties are in the form of finance, technology, and
sustainable development benefits.
• Projects starting in the year 2000 are eligible to earn Certified
Emission Reductions (CERs) if they lead to "real, measurable, and
long-term" GHG reductions, which are additional to any that would
occur in the absence of the CDM project.
• This includes afforestation and reforestation projects, which lead to
the sequestration of carbon dioxide.
Cont…
• At COP-7, it was decided that the following types of projects would
qualify for fast-track approval procedures:
• - Renewable energy projects with output capacity up to 15 MW
- Energy efficiency improvement projects which reduce energy
consumption on the supply and/or demand side by up to 15 GWh
annually –
• Other project activities that both reduce emissions by sources and
directly emit less than 15 kilotons CO2 equivalent annually.
• The CDM will be supervised by an executive board, and a share of
the proceeds from project activities will be used to assist developing
countries in meeting the costs of adaptation to climate change
Cont….
• Prototype Carbon Fund (PCF):
• Recognizing that global warming will have the most impact on its
borrowing client countries, the World Bank approved the
establishment of the Prototype Carbon Fund (PCF).
• The PCF is intended to invest in projects that will produce high
quality greenhouse gas emission reductions that could be registered
with the United Nations Framework Convention on Climate Change
(UNFCCC) for the purposes of the Kyoto Protocol
• To increase the likelihood that the reductions will be recognized by
the Parties to the UNFCCC, independent experts will follow vali-
dation, verification and certification procedures that respond to
UNFCCC rules as they develop.
• The PCF will pilot production of emission reductions within the
framework of Joint Implementation (JI) and the Clean Development
Mechanism (CDM).
Cont….
• The PCF will invest contributions made by companies and
governments in projects designed to produce emission reductions
fully consistent with the Kyoto Protocol and the emerging
framework for JI and the CDM
• Contributors, or "Participants" in the PCF, will receive a pro rata
share of the emission reductions, verified and certified in
accordance with agreements reached with the respective
countries"hosting" the projects.
• Factors favoring and against Renewable energy Source:
• Favoring:
• One major advantage with the use of renewable energy is that as it is
renewable it is therefore sustainable and so will never run out.
• Renewable energy facilities generally require less maintenance than
traditional generators.
• Their fuel being derived from natural and available resources
reduces the costs of operation.
Cont…
• Even more importantly, renewable energy produces little or no
waste products such as carbon dioxide or other chemical pollutants,
so has minimal impact on the environment.
• Renewable energy projects can also bring economic benefits to
many regional areas, as most projects are located away from large
urban centers and suburbs of the capital cities.
• These economic benefits may be from the increased use of local
services as well as tourism.
• Against:
• with renewable energy is that it is difficult to generate the quantities
of electricity that are as large as those produced by traditional fossil
fuel generators.
• This may mean that we need to reduce the amount of energy we use
or simply build more energy facilities.
• It also indicates that the best solution to our energy problems may
be to have a balance of many different power sources.
Cont….
• Renewable energy often relies on the weather for its source of
power.
• Hydro generators need rain to fill dams to supply flowing water.
• Wind turbines need wind to turn the blades, and solar collectors
need clear skies and sunshine to collect heat and make electricity.
• When these resources are unavailable so is the capacity to make
energy from them.
• This can be unpredictable and inconsistent.
• The current cost of renewable energy technology is also far in excess
of traditional fossil fuel generation.
• This is because it is a new technology and as such has extremely
large capital cost.
Cont…
• Integrated Resource Plan(IRP):
• An integrated resource plan is a roadmap that large utilities use to
plan out generational acquisitions over five, 10, or 20 years (or
more).
• Many utilities use integrated resource plans for coal, natural gas,
and smart grid energy.
• RPs examine foreseeable future resources with regard to
transmission lines, substations, power plants, end users, and the
utilities and operators responsible for taking care of the
transmission and distribution of electricity.
• Their ultimate purpose is to answer one question: How, as a utility,
do we plan to meet future electricity needs? The IRP outlines the
necessary actions to enable the utility to continue providing the
public with electricity.
• The IRP also addresses contributing factors that impact electricity
supply and delivery, ranging from government regulations and
expectations at both federal and state levels, to physical assets such
as transmission lines or coal plants, to customer demand and other
drivers. Essentially, an IRP states: “We have these resources and this
problem. This is how we will use the first to solve the second.”
Cont…
• IRPs are important for three reasons:
• 1. Utilities are making huge, multimillion-dollar investments in
energy. They want to—and must—do their due diligence to ensure
that their investments make sense and will be profitable. An
integrated resource plan helps “prove” the value of an investment
not only to the utility but also local and state governments, private
backers, and the public.
• 2. An integrated resource plan provides transparency to consumers.
It shows if a company is investing in green technology, fossil fuels,
etc., and gives the public a way to comment on the strategy.
• 3. For interested vendors and companies, an integrated resource plan
is an excellent way to identify relevant partnership opportunities.
When an IRP is published, companies can review it to see what
potential projects will be coming their way, identify projects they
might like to become involved with, and more.

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UNIT-1-ENERGY SCENARIO.pptx.PDFzzzzzzzzzzz

  • 1. UNIT-1 ENERGY SCENARIO By Mr. K. Trinadh Babu Asst. Professor Dept. Of EEE ANITS
  • 2. Introduction: • Various types of energy sources are there that can be divided into different parts. • Geothermal energy, nuclear The sun is not only the source of energy. • energy, biomass, wind energy, and petrol are some of the other important sources from which energy can be extracted. • Based on the characteristic of sustainability, energy is classified into two main types of energy sources. • Energy can be extracted from both renewable and non-renewable sources. • Conventional and non-conventional sources of energy are two other types of energy sources that play an important role in the consumption and usage of energy.
  • 3. Cont…. • Classification of Energy: • Energy can be classified as the core ability to do any work. • The ability of a particular system to perform any task is regarded as energy. • Energy is such a property, present in an object that can be transferred into various objects • Energy can also be converted into different forms. • Another example of chemical energy is a candle in which the energy is stored as a form of chemical energy and it has to be burnt to extract this energy. • Burning is such a process with which any kind of chemical energy can be converted into heat energy.
  • 4. Cont…. • Renewable and non-renewable sources of energy: • The two most important sources of energy are renewable and non- renewable energy. • Natural resources of energy such as geothermal, solar, wind, tidal, hydropower, and biomass energies are renewable energies that are sustainable in nature . • These energy sources are safe for the environment. • Non-renewable sources of energy are limited in supply. • This type of source of energy is mainly based on earth and possesses a limitation with which it can be finished. • Natural gas, hydrocarbon gas liquids, petroleum, coal, and nuclear energy are some important examples of non-renewable energy.
  • 6. Cont…. • In recent times, the global usage of renewable energy has increased very much. Wind power and hydropower consumption and generation have also increased from before. • Difference between renewable and non-renewable sources of energy.
  • 7. Cont…. • Energy needs of India, and energy consumption patterns: • As per the reports from various news agencies, power consumption in India rose by 13.31% annually. • The total power consumption in India is 127.39 billion units as of September 2022. • Everything, from humans to machines, relies on energy to function. • Around the world, energy is being consumed at an alarming rate, and Energy consumption in India is no exception. • India’s most pressing issues are its growing population and, as a result, its rising energy demand. • After the United States and China, India is the world’s third-largest energy consumer.
  • 8. Cont… • Consumption of Electricity in India: • Because of its growing GDP and stable economy, India’s energy consumption has increased significantly since its independence. • India is one of the world’s biggest electricity consumers. • In addition, India was ranked third among the top electricity consumers in 2020.
  • 9. Cont…. • World wide potential of these Sources: • According to the American Energy Information Administration (EIA) and to the International Energy Agency (IEA), the world-wide energy consumption will on average continue to increase by 2% per year. • The graph below shows the actual values starting from 1980 until today in blue and the predictions of the energy consumption until the year 2030 in orange.
  • 10. Cont…. • Energy Efficiency: • Energy efficiency is the use of less energy to perform the same task or produce the same result. • Energy-efficient homes and buildings use less energy to heat, cool, and run appliances and electronics, and energy-efficient manufacturing facilities use less energy to produce goods. • Energy efficiency is one of the easiest and most cost-effective ways to combat climate change, reduce energy costs for consumers, and improve the competitiveness of U.S. businesses. • Energy efficiency is also a vital component in achieving net-zero emissions of carbon dioxide through decarbonization. • The Office of Energy Efficiency and Renewable Energy (EERE) champions clean energy through its technical offices and programs that fund research and development and promote energy efficiency across all sectors of the U.S. economy.
  • 11. Cont…. • Energy Efficiency Benefits: • Energy efficiency saves money, increases the resilience and reliability of the electric grid, and provides environmental, community, and health benefits. • COST SAVINGS: • At home, you can save money on energy bills by making energy- efficient and weatherization upgrades—such as adding insulation, using LED lighting, and installing a heat pump—that reduce your energy use and can improve comfort. • Energy-efficient buildings cost less to heat, cool, and operate, while industry and manufacturing plants can make products at lower cost. • Energy-efficient transportation results in fuel savings. • COMMUNITY BENEFITS: • Energy-efficiency programs improve community resilience and address energy equity by bringing efficient, cost-effective technologies and infrastructure to underserved communities, including communities of color
  • 12. Cont…. • These communities are disproportionately affected by air pollution and have a higher energy burden, which is the percentage of gross household income spent on energy costs. • ENVIRONMENTAL BENEFITS: • Reducing energy use is essential in the fight against climate change, because traditional power plants burn fossil fuels that release greenhouse gases and contribute to air pollution. • Energy-efficient homes and buildings are also better equipped to switch to renewable energy, which does not produce harmful emissions. • RESILIENCE AND RELIABILITY: • Energy-efficiency improvements reduce the amount of electricity on the grid at one time, known as load, minimizing congestion and stress on the U.S. electric grid. • Less load prevents power disruptions.
  • 13. Cont….. • HEALTH BENEFITS • Reducing fossil fuel use results in cleaner air, water, and land, all of which directly affect human health—especially those in marginalized communities and people with conditions that are exacerbated by pollution. • ENERGY SECURITY: • It is defined as the uninterrupted availability of energy sources at an affordable price. • Long-term energy security deals with timely investments to supply energy in line with economic developments and environmental needs. • Short-term energy security focuses on the ability of the energy system to respond promptly to sudden changes in the supply- demand balance.
  • 14. Cont….. • Significance of Energy security: • India aims to become leading global economic power which will fuel energy needs for providing infrastructure, provisioning of basic necessities, developing human skill, employment generation and manufacturing abilities. • India’s economic fortunes continue to be tied to the sharply fluctuating international price of oil. • Challenges for India’s Energy Security: • Policy Challenges: • Failure to attract international investment in domestic hydrocarbon exploration e.g. NELP failed to attract interest of large international energy corporations. • Major investments will have to be made to acquire hydrocarbon reserves abroad. • Coal mining in India suffers from delays due to regulatory and environmental clearances. • Indo-US nuclear helped fuel domestic power plants and give India access to critical technologies in strategic areas but deal did not lead to India setting up foreign-built reactors.
  • 15. Cont….. • Accessibility Challenge: • The household sector is one of the largest consumers of energy in India. It is responsible for about 45% of the total primary energy use. In rural areas, biomass accounts for 90% of total primary fuel consumption for cooking. This has serious health impacts on the rural people. • Presently, 304 million Indians do not have access to electricity and around 500 million Indians are dependent on solid biomass for cooking. • Promotion of Renewable Energy: • A renewable energy capacity of 100 GW should be achieved by 2019-20 so as to contribute to achievement of 175 GW target by 2022. • Solar Energy Corporation of India Limited (SECI) should develop storage solutions within next three years to help bring down prices through demand aggregation of both household and grid scale batteries. • A large programme should be launched to tap at least 50% of the bio- gas potential in the country by supporting technology and credit support through NABARD by 2020.
  • 16. Cont…. • Energy and its environmental impacts: • Some major environmental Issues are as follows: • Non-renewable resources such as coal and petroleum cause more harm to the environment when compared to renewable resources, in the form of air and water pollution, generation of toxic wastes, etc. • Coal gives out sulfur as emissions that harm the trees. Moreover, their extraction plants contaminate rivers and lakes and affect the aquatic ecosystem adversely. • Oil production and usage result in releasing the poisonous carbon oxides into the air. • Even renewable resources are not completely eco-friendly. • The generation of energy from the wind, the sun, tides, etc. also creates harmful environmental impacts and affects biodiversity to a significant level.
  • 17. Cont….. • The exhausts from natural gas release nitrogen and even methane oxides, which affect people and animals that use water from the affected water bodies. • Biomass also results in the generation of harmful gases. • Ash created on burning the biomass is another unwanted waste that causes disposal issues due to its lead and cadmium content. • Manufacturing the photovoltaic (PV) cells produces toxic chemicals. • Although hydropower does not cause air or water pollution, it severely impacts the fish population. • It causes the relocation of the people and animals living near the dam sites. Moreover, it changes the water temperature. • Thus, all energy resources have an impact on the environment. • There is no such thing as a ‘clean’ source of energy. • The consolation is that renewable resources cause lesser environmental impacts than non-renewable resources of energy.
  • 18. Cont…. • Global environmental concern: • As early as 1896, the Swedish scientist Svante Arrhenius had predicted that human activities would interfere with the way the sun interacts with the earth, resulting in global warming and climate change. • His prediction has become true and climate change is now disrupting global environmental stability. • The last few decades have seen many treaties, conventions, and protocols for the cause of global environmental protection. • Few examples of environmental issues of global significance are: 1. Ozone layer depletion 2. Global warming 3. Loss of biodiversity. • One of the most important characteristics of this environmental degradation is that it affects all mankind on a global scale without regard to any particular country, region, or race.
  • 19. Cont…. • The whole world is a stakeholder and this raises issues on who should do what to combat environmental degradation. • Kyoto Protocol: • Kyoto Protocol, in full Kyoto Protocol to the United Nations Framework Convention on Climate Change, international treaty, named for the Japanese city in which it was adopted in December 1997, that aimed to reduce the emission of gases that contribute to global warming. • In force since 2005, the protocol called for reducing the emission of six green house gases in 41 countries plus the European Union to 5.2 percent below 1990 levels during the “commitment period” 2008–12. • It was widely hailed as the most significant environmental treaty ever negotiated, though some critics questioned its effectiveness. • Greenhouse gases, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6), affect the energy balance of the global atmosphere in ways expected to lead to an overall increase in global average temperature, known as global warming.
  • 20. Cont…. • Concept of Clean Development Mechanism (CDM): • Article 12 of the Kyoto protocol defines the Clean Development Mechanism, CDM. • The purpose of CDM is to: • a) contribute to sustainable development in developing countries; • b) help Annex I-countries under the Kyoto Protocol to meet their target. • The below table shows the ANNEX-I countries under the Kyoto Protocol :
  • 21. Cont:
  • 22. Cont…. • How CDM works? • An investor from a developed country, can invest in, or provide finance for a project in a developing country that reduces greenhouse gas emissions so that they are lower than they would have been without the extra investment - i.e. compared to what would have happened without the CDM under a business as usual outcome. • The investor then gets credits - carbon credits - for the reductions and can use those credits to meet their Kyoto target. • If the CDM works perfectly it will not result in more or less emission reductions being achieved than were agreed under the Kyoto Protocol, it will simply change the location in which some of the reduction
  • 23. Cont…. • With the help of CDM, countries which have set themselves an emission reduction target under the Kyoto Protocol (Annex I countries) can contribute to the financing of projects in developing countries (non-Annex I countries) which do not have a reduction target. • These projects should reduce the emission of greenhouse gases while contributing to the sustainable development of the host country involved. • The achieved emission reductions can be purchased by the Annex I country in order to meet its reduction target. • Requirements for Participating in CDM: • The requirements for participating in Clean Development Mechanisam(CDM)are listed below
  • 24. Cont:
  • 25. Cont… • Project cycle for CDM: • The project cycle for CDM is as shown
  • 26. Cont…. • There are seven basic stages; • the first four stages are performed prior to the implementation of the project, • while the last three stages are performed during the lifetime of the project. • While investors profit from CDM projects by obtaining reductions at costs lower than in their own countries, the gains to the developing country host parties are in the form of finance, technology, and sustainable development benefits. • Projects starting in the year 2000 are eligible to earn Certified Emission Reductions (CERs) if they lead to "real, measurable, and long-term" GHG reductions, which are additional to any that would occur in the absence of the CDM project. • This includes afforestation and reforestation projects, which lead to the sequestration of carbon dioxide.
  • 27. Cont… • At COP-7, it was decided that the following types of projects would qualify for fast-track approval procedures: • - Renewable energy projects with output capacity up to 15 MW - Energy efficiency improvement projects which reduce energy consumption on the supply and/or demand side by up to 15 GWh annually – • Other project activities that both reduce emissions by sources and directly emit less than 15 kilotons CO2 equivalent annually. • The CDM will be supervised by an executive board, and a share of the proceeds from project activities will be used to assist developing countries in meeting the costs of adaptation to climate change
  • 28. Cont…. • Prototype Carbon Fund (PCF): • Recognizing that global warming will have the most impact on its borrowing client countries, the World Bank approved the establishment of the Prototype Carbon Fund (PCF). • The PCF is intended to invest in projects that will produce high quality greenhouse gas emission reductions that could be registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the purposes of the Kyoto Protocol • To increase the likelihood that the reductions will be recognized by the Parties to the UNFCCC, independent experts will follow vali- dation, verification and certification procedures that respond to UNFCCC rules as they develop. • The PCF will pilot production of emission reductions within the framework of Joint Implementation (JI) and the Clean Development Mechanism (CDM).
  • 29. Cont…. • The PCF will invest contributions made by companies and governments in projects designed to produce emission reductions fully consistent with the Kyoto Protocol and the emerging framework for JI and the CDM • Contributors, or "Participants" in the PCF, will receive a pro rata share of the emission reductions, verified and certified in accordance with agreements reached with the respective countries"hosting" the projects. • Factors favoring and against Renewable energy Source: • Favoring: • One major advantage with the use of renewable energy is that as it is renewable it is therefore sustainable and so will never run out. • Renewable energy facilities generally require less maintenance than traditional generators. • Their fuel being derived from natural and available resources reduces the costs of operation.
  • 30. Cont… • Even more importantly, renewable energy produces little or no waste products such as carbon dioxide or other chemical pollutants, so has minimal impact on the environment. • Renewable energy projects can also bring economic benefits to many regional areas, as most projects are located away from large urban centers and suburbs of the capital cities. • These economic benefits may be from the increased use of local services as well as tourism. • Against: • with renewable energy is that it is difficult to generate the quantities of electricity that are as large as those produced by traditional fossil fuel generators. • This may mean that we need to reduce the amount of energy we use or simply build more energy facilities. • It also indicates that the best solution to our energy problems may be to have a balance of many different power sources.
  • 31. Cont…. • Renewable energy often relies on the weather for its source of power. • Hydro generators need rain to fill dams to supply flowing water. • Wind turbines need wind to turn the blades, and solar collectors need clear skies and sunshine to collect heat and make electricity. • When these resources are unavailable so is the capacity to make energy from them. • This can be unpredictable and inconsistent. • The current cost of renewable energy technology is also far in excess of traditional fossil fuel generation. • This is because it is a new technology and as such has extremely large capital cost.
  • 32. Cont… • Integrated Resource Plan(IRP): • An integrated resource plan is a roadmap that large utilities use to plan out generational acquisitions over five, 10, or 20 years (or more). • Many utilities use integrated resource plans for coal, natural gas, and smart grid energy. • RPs examine foreseeable future resources with regard to transmission lines, substations, power plants, end users, and the utilities and operators responsible for taking care of the transmission and distribution of electricity. • Their ultimate purpose is to answer one question: How, as a utility, do we plan to meet future electricity needs? The IRP outlines the necessary actions to enable the utility to continue providing the public with electricity. • The IRP also addresses contributing factors that impact electricity supply and delivery, ranging from government regulations and expectations at both federal and state levels, to physical assets such as transmission lines or coal plants, to customer demand and other drivers. Essentially, an IRP states: “We have these resources and this problem. This is how we will use the first to solve the second.”
  • 33. Cont… • IRPs are important for three reasons: • 1. Utilities are making huge, multimillion-dollar investments in energy. They want to—and must—do their due diligence to ensure that their investments make sense and will be profitable. An integrated resource plan helps “prove” the value of an investment not only to the utility but also local and state governments, private backers, and the public. • 2. An integrated resource plan provides transparency to consumers. It shows if a company is investing in green technology, fossil fuels, etc., and gives the public a way to comment on the strategy. • 3. For interested vendors and companies, an integrated resource plan is an excellent way to identify relevant partnership opportunities. When an IRP is published, companies can review it to see what potential projects will be coming their way, identify projects they might like to become involved with, and more.