Energy Production & Distribution

The World is in a transition phase and energy is central to it. India has been responsible for almost 10% of the increase in global energy demand since 2000. India’s energy demand in this period has almost doubled, pushing the country’s share in global demand up to 5.7% in 2013 from 4.4% at the beginning of the century. The primary energy demand in India has grown from about 441 Mtoe in 2000 to about 775 Mtoe in 2013. This demand is expected to increase to about 1250 (estimated by International Energy Agency) to 1500 (estimated in the Integrated Energy Policy Report) million toe in 2030.

India’s energy consumption has almost doubled since 2000 and the potential for further rapid growth is enormous. Yet the increase in domestic energy production is far below than India’s consumption needs.

By 2040 more than 40% of primary energy supply will be imported, up from 32% in 2013. It may also be noted that no country in the world has been able to achieve a Human Development Index of 0.9 or more without an annual energy supply of at least 4 toe per capita. Consequently, there is a large latent demand for energy services that needs to be fulfilled in order for people to have reasonable incomes and a decent quality of life.

Improving the energy efficiency meets the dual objectives of promoting sustainable development and of making the economy competitive. Recognizing the formidable challenges of meeting the energy needs and providing adequate and varied energy of desired quality in a sustainable manner and at reasonable costs, improving efficiency have become important components of energy policy. In addition, the environmental and health burdens arising out of the use of hydrocarbons may also force mankind towards energy efficiency and clean energy systems. Energy Conservation has also assumed enhanced importance with a view to conserve depleting energy resources.

A proper operational audit of Electricity Company provides a platform for technical experts to have a deep dive into the study and assessment of operational efficiency and revenue assurance. Generation of electricity is associated with complex parameters related to production in machine utilization efficiency, material consumption (Coal, Naphtha, and Uranium etc) , cost of man power deployed etc.

It will also throw light into the distribution costs like transmission loss, costs for leased lines, repairs for transmission lines and towers. This audit will bring out important information with which a critical review can be carried out in operational area.

There exist a number of government schemes for subsidizing the power industry by allowing price subsidies through interventions. The cost data brought out by the audit provides a chance for a meaningful revisit into the price-subsidy economics. The audit can also travel and touch the industries those enjoy the subsidy benefits and can relook on the propriety sense of subsidizing the said industry.