Energy Independence with global cooperation

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Civil Aviation Minister, Praful Patel | 29 Jan, 2009
The ongoing global crisis has brought out into the open an important point, that the world is one boat, and we are all passengers. Our chance of achieving a peaceful and prosperous future depends upon our realizing that if that boat start taking in water, it doesn’t matter which end of the boat we are in. Today we can’t separate our fate from the fate of others, and we invite catastrophe if we attempt to go it alone. This situation is true whether one is speaking of country-specific energy independence or more recognized global security.

For instance, the growth of India’s Aviation sector is linked to energy security. Only a few months back India’s booming aviation sector, which was hoping for massive expansion, witnessed a slowdown. The global economic slowdown coupled with the steady rise in the prices of aviation fuel since March 2008 led to a hike in fares, and slowing down passenger traffic, drastically impacting the industry’s growth plans.

Therefore, in this increasingly interdependent world we rely on each other for energy security, i.e., energy independence which include not merely to the assurance of energy supplies in ample quantities but supply of good quality energy at affordable prices, which helps in creation of wealth for all.

Energy is the lifeblood of our economies. Affordable, available energy is at the heart of our competitiveness and our standard of living. Energy is essential to fulfill the aspirational goals of our society. Next to water, energy and climate change have emerged as two most important issues for global security and development.

In the Civil Aviation sector – be it the construction and modernisation of airports or the establishment of new airlines – all of them showcase the dynamism of India’s growth story. Thus, if India’s growth has to be sustained, there is need for more trade and travel, people need to go to far out lands and visitors from all corners of the world need to come here. And to achieve this is required first-rate infrastructure driven by smooth flow of energy.

However, oil & gas reserves in India are quite limited though there is always scope for discovery of new reserves through exploration. At the rate by which things are growing the import bill for crude oil will put a major burden on the economy and thus these facts require new strategies to deal with the rising energy demand.

Therefore, there is need of a new paradigm of energy independence to address the development needs. This paradigm would have to focus on several issues like:

A less-energy intensive path of development.
An increasing use of non-conventional and renewable energy sources, also aimed at reducing carbon emissions, and
Improving efficiency in production and consumption.

Such a strategy needs to be based on coordinated development and judicious use of domestic as well as global resources. The integrated energy policy developed under the leadership of the Hon’ble Prime Minister, Dr. Manmohan Singh, intends to expand the existing energy resource base and hunt for new and emerging energy sources. Enhancing energy supply and access is, therefore, a key component of the national development strategy.

Meeting this vision not only means developing an energy mix but most importantly, to focus on technologies that maximize energy efficiency, demand side management and conservation. The government is committed to the development of nuclear energy. As for solar energy, India is blessed with an abundance of this source and it could be a major energy resource in the years to come. However, commercialization of solar energy requires huge investment in terms of R&D efforts.

The main goal today is to work towards responsible growth that reconciles economic development with environmental protection. Achieving this will require careful and meticulous planning on the part of industry in consultation with the Government, inter-Governmental institutions and civil society.

The future of energy independence is in technology – for oil, for natural gas, for alternative energy and for automation industry, be it venicular population or jet-speed Boeings. A technology lens provides a vision and, this path emphasizes three priorities:

Diversification through innovation,
Mutual interdependence, and
Human resources

Of late, independent oil producing companies are re-fashioning themselves as producers of energy. This trend of vigorous pursuit of all forms of energy is a step towards turning insecurity of supply and demand into security of supply and demand. Coal, gas, oil, hydro and nuclear along with renewals such as wind and solar power, all these forms of energy are under focus. While there is a competition for the energy sources in the world. It can only be addressed by enhanced cooperation in technology research, development, deployment and transfer.

Further on, in the future, energy and climate change are increasingly becoming vital factors in driving energy prices higher. They are spurring competition for resources; igniting public and private investment in alternative energies and challenging the relentless growth of energy demand, particularly in emerging economies like India.

In order to mitigate climate change, the dispersal and proliferation of clean energy technologies cannot be left to market forces and commercial interest alone. Otherwise, clean technologies will not be affordable or accessible to those countries which need energy most and are the fastest growing.

Another challenge for us is that climate change monitors expect developing countries to de-couple energy consumption and growth. But developing countries like India want mechanisms that will help them shape economies that are emissions-free without at the same time hampering their development and poverty-reduction goals. This would entail vast investments technology, as well as of funding to seed alternative energy initiatives. It would also require establishing an innovative financial tool that could leverage funds for adoption of clean energy projects, and that is where India needs global cooperation.

Therefore the greatest challenge for the global community is to foster understanding between and among energy producers and consumers. And this understanding must be built on the premise that mutual inter-dependence should be at the heart of the new global energy dynamic.

To wean the global economy from oil, gas and coal, two generation of talent and technology will be needed. One way or other, though, new demand patterns and alternative and renewable sources will eventually come to reign. In practice, a ‘license to operate’ will go to those who develop the next generation of clean applications – including oil, coal, and gas. The paramount challenge is how to arrive there safely without a turmoil in international affairs and in the energy markets.

On the human resource front, India reinforce its competitive advantage by training the next generation of energy workers. The average age of workers in the energy industry is in the range of 46 to 49, full 10 years older than in most other industries – and the majority of the skilled workers will retire within the next decade. This will create an enormous knowledge gap and therefore collective efforts are required to replenish the pool of skilled energy workers.

Ultimately, the way forward for both producers and consumers of energy must be mutual interdependence. The challenge of change, created by the convergence of climate change and energy independence is upon all the global players. The key is creating the framework for understanding that sets out the balance of interests that translate into mutual inter-dependence and trust.

We require common development through sharing of cleaner technologies. Developed countries should contribute to sustainable development by providing the requisite funding support for development of cleaner technologies in the public domain, for adoption in developing countries

The nature of energy business is such that we are not talking of tomorrow, or the next month, or even the next year. Large investments can take decades to bear fruit reductions in greenhouse gases will change nothing overnight. But that doesn’t change the fact that the energy we use currently is difficult and unsustainable one. Energy independence will come only through multi-lateral agreements, multiple cooperation across borders and the commitment of the scientific community. All efforts must accompany the action to create a global blueprint of energy security for all.

* The author is the Civil Aviation Minister of India
* The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of SME Times