125 questions — 75 objective (1 mark), 39 short (5 marks), 11 long (10 marks). Every answer is checked against the 2014 BEE guidebook and carries its book section reference plus an explanation. ▶ Practice this chapter interactively (timer, read-aloud, progress saving).
Objective questions (1 mark) — 75
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
1. Energy consumption per unit of GDP is called as:
energy elasticity
energy intensity
energy per capita
none of above
Answer: B) energy intensity
Confirmed vs Book-1 §1.11 — Energy intensity is defined as the ratio of gross inland energy consumption to GDP, i.e. energy consumed per unit of GDP (toe per million US$). 'Energy elasticity' is the ratio of % growth in energy demand to % growth in GDP, not consumption per unit GDP, and 'energy per capita' divides energy by population, not GDP.
Source: Sep 2021
📖 §1.7 Indian Energy Scenario — Electrical Energy Supply (Table 1.12)
2. What is the present share of thermal power in the total installed power generating capacity in India?
about 65%
about 50%
less than 45%
about 18%
Answer: A) about 65%
Confirmed vs Book-1 §1.7 — Table 1.12 gives total thermal capacity as 1,63,305 MW out of 2,38,743 MW installed, i.e. 68.4%. Of the four choices, 'about 65%' is the only one in that range. 'About 50%' corresponds roughly to coal alone (58.9%) and 18% is close to hydro (16.84%), so both are wrong.
Source: Apr 2010
📖 §1.7 Indian Energy Scenario — Electrical Energy Supply (thermal cycle)
3. The major share of energy loss in a thermal power plant is in the
generator
boiler
condenser
turbine
Answer: C) condenser
Confirmed — in a Rankine-cycle thermal station the single biggest energy loss is the latent heat rejected to cooling water in the condenser (roughly half the fuel energy). Boiler losses (flue gas, radiation) are much smaller, and turbine/generator losses are only a few percent, so the condenser is the correct choice.
Source: Apr 2010
📖 §1.7 Indian Energy Scenario — Electrical Energy Supply (station heat rate)
4. The performance parameter for thermal power station is
kWh/kCal
kCal/kWh
kWh/MT
kCal/kg
Answer: B) kCal/kWh
Confirmed — the performance yardstick of a thermal power station is the heat rate, the heat input required per unit of electricity generated, expressed in kCal/kWh. Its inverse (kWh/kCal) is not used, and kCal/kg is a fuel calorific value, not a station performance figure.
Source: Apr 2010
📖 §1.2 Primary and Secondary Energy
5. Which of the following is not a primary energy source?
electricity
coal
wood
natural gas
Answer: A) electricity
Confirmed vs Book-1 §1.2 — primary energy is energy extracted or captured directly from natural resources (coal, natural gas, wood/biomass). Electricity is produced by converting primary energy in a power plant, so the book classifies it as secondary energy. Wood is a tempting distractor but it is a natural (biomass) primary source.
Source: Nov 2009
📖 §1.7 Indian Energy Scenario — Nuclear Power Supply (Table 1.12)
6. Installed capacity of nuclear power plants in India as a % of total installed capacity is
10%
25%
3%
55%
Answer: C) 3%
Confirmed vs Book-1 §1.7 — nuclear capacity is 5,780 MW of 2,38,743 MW total, i.e. 2.42%; the text states nuclear contributes 'only about 2 per cent of the total installed capacity'. Of the options given, 3% is the only value in that range. 10% and 25% are far above the book figure, and 55% is close to coal's share, not nuclear.
Source: Nov 2009
📖 §1.8 Sector wise Energy Consumption in India (Figure 1.4)
7. Name the sector which is the biggest consumer of commercial energy
industry
agriculture
transport
residential
Answer: A) industry
Confirmed vs Book-1 §1.8 — Figure 1.4 shows industry consuming almost 44% of total commercial energy, the largest of all sectors, followed by transport at 17%. Agriculture (7%) and residential/commercial (14%) are much smaller, so industry is the biggest consumer.
Source: Nov 2009
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
8. Which among the following has the highest flue gas loss on combustion due to Hydrogen in the fuel?
Natural gas
furnace oil
coal
light diesel oil
Answer: A) Natural gas
Confirmed — natural gas is essentially methane (CH4) and has by far the highest hydrogen content per kg of the fuels listed. Hydrogen burns to water vapour, and the latent heat carried away by that vapour is the loss due to hydrogen in fuel, so gaseous fuel gives the largest such flue-gas loss. Coal has the least hydrogen and hence the smallest H2 loss.
Source: 2019
📖 §1.7 Indian Energy Scenario — Energy Supply (India R/P ratios)
9. Which of the following has the highest Reserve to Production (R/P) ratio in India?
Lignite
Petroleum
Coal
Natural gas
Answer: C) Coal
Confirmed vs Book-1 §1.7 — the book states 'India's oil and gas reserves are estimated to last just 17.5 years and 40.2 years respectively at the current R/P ratio. Coal is likely to last for 100 years.' Coal's 100 years is therefore the highest; petroleum (17.5 years) is the tempting wrong pick because it is the fuel most discussed, but it has the lowest R/P.
Source: 2019
📖 §1.15 Energy Conservation and its Importance
10. Select the wrong statement.
Energy Efficiency and Energy Conservation are distinct and interrelated
Unscheduled power interruption is an Energy conservation measure
Productivity improvements leads to energy conservation
Energy Efficiency is an integral part of energy conservation
Answer: B) Unscheduled power interruption is an Energy conservation measure
Confirmed vs Book-1 §1.15 — the book defines energy conservation as reducing the growth of energy consumption, achievable through productivity increase or technological progress, and states that energy efficiency is an integral part of energy conservation. An unscheduled power interruption is a supply failure that cuts output as well as energy, so it is not a conservation measure — statement (b) is the wrong one.
Source: 2019
📖 §1.2 Primary and Secondary Energy
11. Which of the following is not true?
Primary energy is converted to secondary energy in industries
Secondary energy is converted to primary energy in industries
Coal is primary energy
Electricity is secondary energy
Answer: B) Secondary energy is converted to primary energy in industries
Confirmed vs Book-1 §1.2 — 'Primary energy sources are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or gas converted into steam and electricity.' The conversion runs primary → secondary, never the reverse, so statement (b) is the untrue one. Coal is primary and electricity secondary, so (c) and (d) are true.
Source: 2019
📖 §1.5 Global Primary Energy Reserves — Natural Gas (Table 1.5)
12. Trillion cubic meters is a unit normally used for
Crude oil
Lignite
Bituminous coal
Natural Gas
Answer: D) Natural Gas
Confirmed vs Book-1 §1.5 — Table 1.5 reports proven natural-gas reserves in trillion cubic metres (world 185.7 tcm). Crude oil reserves are quoted in billion barrels/tonnes and coal and lignite in million tonnes, so volume units in trillion cubic metres belong to natural gas.
Source: 2019
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
13. Which of the following is not true of natural gas?
Requires more excess air compared to oil
Consists mainly of methane
Becomes liquefied when cooled to -161°C
All of the above
Answer: A) Requires more excess air compared to oil
Confirmed vs Book-1 §1.7 — the book states natural gas consists primarily of methane and becomes LNG when cooled to −161 °C, so (b) and (c) are true. Being a gas it mixes readily with air and needs the LEAST excess air of all fuels (far less than liquid oil), so 'requires more excess air compared to oil' is the untrue statement.
Source: 2019
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
14. For determining the Energy intensity at the national level, which of the following are not required? (i) Gross domestic product (ii) Total final consumption, (iii) R/P ratio in years (iv) Prevailing prices of various fuels
(i) & (iv)
(i) & (ii)
(iii) & (iv)
(ii) & (iii)
Answer: C) (iii) & (iv)
Confirmed vs Book-1 §1.11 (option (d) repaired — it duplicated option (a)) — energy intensity EI = total final consumption (toe) ÷ GDP (million US$), so only items (i) GDP and (ii) total final consumption are needed. The R/P ratio (iii) is a reserves-life measure and fuel prices (iv) do not enter the formula, so (iii) & (iv) are the items NOT required. Option (b) names exactly the two inputs that ARE required.
Source: 2019
📖 §1.13 Electricity Pricing in India — demand side management
15. Which of the following is true of DSM?
results in energy and/or demand reduction
enables end-users to better manage their load curve
can improve the profitability of power supply company
All of the above
Answer: D) All of the above
Confirmed — DSM shifts and trims load, so it produces energy and/or demand reduction, lets end-users flatten their own load curve, and by avoiding costly peaking power it improves the supply company's profitability. Since all three statements hold, 'All of the above' is correct; picking any single one would be incomplete.
Source: 2019
📖 §1.5 Global Primary Energy Reserves — unconventional oil
16. What is shale Oil?
Sedimentary rock containing solid bituminous materials
Heavy black viscous oil combination of clay, sand, water and bitumen
A form of naturally compressed peat
combustible brownish-black sedimentary rock
Answer: A) Sedimentary rock containing solid bituminous materials
Confirmed vs Book-1 §1.5 — 'Oil shale generally refers to any sedimentary rock that contains solid bituminous materials (called kerogen) that are released as petroleum-like liquids when the rock is heated…' Option (b) is the book's definition of oil (tar) sands — a combination of clay, sand, water and bitumen — which is the tempting distractor.
17. Which of the following has the lowest energy content in terms of MJ/kg
LPG
Diesel
Bagasse
Furnace oil
Answer: C) Bagasse
Confirmed — bagasse is a wet biomass residue with roughly 2,200–2,500 kcal/kg (about 9–10 MJ/kg), far below LPG (~45 MJ/kg), diesel (~42 MJ/kg) and furnace oil (~40 MJ/kg). Its moisture content is what drags the energy content down, so bagasse has the lowest MJ/kg.
Source: 2018
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
18. _________ and _______ consume major share of Natural Gas consumption in Indi
Domestic sector and Transport sector
Transport sector and Fertilizer Industry
Power Generation and Fertilizer Industries
Domestic Sector and Fertilizer Industries
Answer: C) Power Generation and Fertilizer Industries
Confirmed vs Book-1 §1.7 (option (a) repaired — the label 'a)' was printed twice) — the book states 'Power generation and fertiliser industry dominate the natural gas consumption at 62%.' Domestic and transport (CNG) use is only an emerging application, so options naming the domestic or transport sector are wrong.
Source: 2018
📖 §1.13 Electricity Pricing in India — demand side management
19. Which of the following is not a Demand Side Management measure?
Implementing Time of the Day (ToD) Electricity Tariff
Maximizing fossil fuel based energy utilization
Replacement of inefficient electrical appliances
Use of ice bank system
Answer: B) Maximizing fossil fuel based energy utilization
Confirmed — DSM measures act on the demand side: ToD tariffs shift load off the peak, efficient appliances cut consumption, and an ice-bank system stores cooling off-peak. Maximising fossil-fuel based energy utilisation increases supply-side generation and consumption, so it is not a DSM measure.
Source: 2018
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
20. Energy consumption per GDP is termed as ___.
Energy factor
Energy intensity
Energy Efficiency index
All of the above
Answer: B) Energy intensity
Confirmed vs Book-1 §1.11 — energy consumption per unit of GDP is defined in the book as energy intensity. 'Energy efficiency index' benchmarks a specific process or product against a reference, not the whole economy against GDP, so it is not the term asked for.
Source: 2018
📖 §1.15 Energy Conservation and its Importance
21. In a boiler, fuel substitution of coal with rice husk results in
energy conservation
energy efficiency
both energy conservation and energy efficiency
carbon neutrality
Answer: D) carbon neutrality
Confirmed — replacing coal with rice husk does not reduce the quantity of energy used (so it is not energy conservation, which per §1.15 means reducing the growth of energy consumption) nor does it lower energy per unit output (so it is not energy efficiency). Rice husk is biomass whose CO2 was recently absorbed from the atmosphere, so the substitution gives carbon neutrality.
Source: 2017
📖 §1.14 Energy Security — strategies for the future
22. Which of the following is an energy security measure?
fully exploiting domestic energy resources
diversifying energy supply source
substitution of imported fuels for domestic fuels to the extent possible
all of the above
Answer: D) all of the above
Confirmed vs Book-1 §1.14 — the listed strategies include expanding/exploiting domestic energy resources, diversifying energy supply sources (mix of fuels, sourcing from different countries) and substituting imported oil/gas with domestic alternatives such as ethanol, biodiesel and coal-to-oil. All three are book strategies, so 'all of the above' is right and any single choice is incomplete.
Source: 2017
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
23. The energy intensity of countries that rely on import of carbon-intensive goods when compared with those producing it, would in all probability be
Higher
Lower
Almost equal
No correlation
Answer: B) Lower
Confirmed vs Book-1 §1.11 — 'a country that relies on trade to acquire (import) carbon-intensive goods will — when all other factors are equal — have lower energy intensity than the countries that manufacture the same goods for export.' The energy is spent in the exporting country, so the importer's energy/GDP is lower, not higher.
Source: 2016
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
24. Energy intensity is the ratio of ____.
Fuel consumption / GDP
GDP/fuel consumption
GDP/ energy consumption
Energy consumption / GDP
Answer: D) Energy consumption / GDP
Confirmed vs Book-1 §1.11 — EI = total final energy consumption ÷ GDP (toe per million US$), i.e. energy consumption / GDP. Option (a) 'fuel consumption/GDP' is the tempting near-miss: energy intensity uses total final ENERGY consumption (all forms, including electricity), not fuel alone, and the book's own end-of-chapter key wording is energy consumption/GDP.
Source: Jul 2022
📖 §1.7 Indian Energy Scenario (Table 1.8)
25. As per primary commercial energy consumption mix in India, the fuel dominating the energy production mix in India is ____.
Natural gas
Oil
coal
Nuclear energy
Answer: C) coal
Confirmed vs Book-1 §1.7 — Table 1.8 gives coal 324.3 Mtoe = 54.5% of India's 595 Mtoe primary energy consumption, and the text states coal contributes about 55% of total primary energy production. Oil is second at 29.5% and natural gas only 7.8%, so coal dominates.
Source: Jul 2022
📖 §1.14 Energy Security
26. Which of the following statement is not true regarding energy security?
impaired energy security can even reduce agricultural output
energy security is strengthened by minimising dependence on imported energy
diversifying energy supply from different countries weaken energy security
increasing exploration to find oil and gas reserves improves energy security
Answer: C) diversifying energy supply from different countries weaken energy security
Confirmed vs Book-1 §1.14 — the book explicitly calls for 'diversification of sources of oil imports' and lists diversifying supply sources as a security strategy, so statement (c) reverses the book and is the untrue one. The book also warns that disruption in oil supply forces farmers to cut pump and tractor use, lowering agricultural output — making (a) true.
Source: 2013
📖 §1.5 Global Primary Energy Reserves — R/P ratio definition
27. Which of the following statements with respect to Reserve / Production (R/P) ratio is true?
is a constant once established
varies every year with changes in production
varies every year with changes in reserves
varies every year with changes in production and reserves
Answer: D) varies every year with changes in production and reserves
Confirmed vs Book-1 §1.5 — 'if the reserves remaining at the end of the year are divided by the production in that year, the result is the length of time that the remaining reserves would last…'. Both the numerator (reserves, altered by discoveries and depletion) and the denominator (that year's production) change annually, so the ratio varies with changes in BOTH — it is never a constant.
Source: 2013
📖 §1.13 Electricity Pricing in India — demand side management
28. Which of the following statement is not correct regarding Demand Side Management (DSM)?
agriculture and municipalities are potential areas for DSM activities
savings accrued through DSM cannot be treated as avoided capacity on supply side
under DSM, demand can be shifted from peak to off peak hours thereby avoiding imported power during peak hours
DSM programs may result in demand as well as energy reduction
Answer: B) savings accrued through DSM cannot be treated as avoided capacity on supply side
Confirmed — energy and demand saved through DSM removes the need to build fresh generating capacity, so DSM savings ARE treated as avoided capacity (equivalent to a supply-side addition). Statement (b) denies this and is therefore the incorrect statement; (a), (c) and (d) all describe genuine DSM practice.
Source: 2013
📖 §1.13 Electricity Pricing in India — Time of Day tariff
29. Which of the following statements regarding TOD tariff is true?
an incentive to induce user to draw more power during peak period
discourages user from drawing more power during off peak period
both a and b are true
none of the above
Answer: D) none of the above
Confirmed — a ToD tariff charges MORE during peak hours and LESS during off-peak hours, so it discourages peak drawal and encourages off-peak drawal. Statement (a) inverts the peak incentive and (b) inverts the off-peak incentive, so neither is true and 'none of the above' is correct.
Source: 2013
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
30. The major constituent of natural gas is
Methane
Ethane
Propane
Hydrogen
Answer: A) Methane
Confirmed vs Book-1 §1.7 — 'Natural gas is a gaseous fossil fuel consisting primarily of methane but also includes small quantities of ethane, propane, butane and pentane.' Ethane and propane are present only in small quantities, and hydrogen is not a natural-gas constituent at all.
Source: 2013
📖 §1.5 Global Primary Energy Consumption (Table 1.6)
31. Largest share of global primary energy consumption is from which of the following fuels:
oil and natural gas
coal and oil
oil and nuclear
coal and nuclear
Answer: B) coal and oil
Confirmed vs Book-1 §1.5 — Table 1.6 gives oil 33%, coal 30% and natural gas 24% of the 12,730 Mtoe global primary energy consumption. The two largest are therefore oil and coal. 'Oil and natural gas' is the tempting pair, but gas (24%) is below coal (30%).
Source: 2012
📖 §1.5 Global Primary Energy Reserves — R/P ratio definition
32. Which of the following with respect to fossil fuels is true?
Reserve / Production (R/P) ratio is a constant once established
R/P ratio varies every year with only changes in production
R/P ratio varies every year with only changes in reserves
R/P ratio varies every year with changes in both production and reserves
Answer: D) R/P ratio varies every year with changes in both production and reserves
Confirmed vs Book-1 §1.5 — R/P = reserves remaining at year end ÷ production during that year. Reserves change with new discoveries, revisions and depletion, and production changes year to year, so the ratio varies with BOTH. Options (b) and (c) each hold only one term constant, which the definition does not permit.
Source: 2012
📖 §1.12 Long Term Energy Scenario — APDRP / R-APDRP
33. Which of the following is not the activity related to restructured APDRP?
separate feeders for agricultural pumps
energy auditing at distribution transformer level
GIS mapping of the network and consumers
establishing targets for reducing power consumption
Answer: D) establishing targets for reducing power consumption
Confirmed vs Book-1 §1.12 — R-APDRP focuses on demonstrable performance in loss reduction: it targets AT&C losses of 15% through IT interventions such as GIS mapping, consumer indexing, energy audit/accounting at feeder and distribution-transformer level, and feeder separation. Setting targets for reducing power CONSUMPTION is a demand-side/energy-efficiency activity, not an R-APDRP activity.
Source: 2012
📖 §1.13 Electricity Pricing in India — demand side management
34. Which of the following statements regarding DSM is incorrect?
potential areas for DSM thrust activity are agriculture, domestic and municipalities
savings accrued through DSM can be treated as new power addition on supply side
under DSM, demand can be shifted from off-peak to peak hours thereby avoiding imported power during off peak hours
DSM programs may result in demand as well as energy reduction
Answer: C) under DSM, demand can be shifted from off-peak to peak hours thereby avoiding imported power during off peak hours
Confirmed — DSM shifts demand FROM peak TO off-peak hours so that expensive peak-hour purchases are avoided. Statement (c) reverses this direction and is therefore incorrect. Agriculture, domestic and municipal loads are indeed prime DSM areas and DSM savings can be counted as new supply-side capacity, so (a), (b) and (d) are correct.
Source: 2012
📖 §1.5 / §1.7 Oil Sector — India's share of world oil reserves
35. India’s share of world oil reserves is _________
5%
2%
0.5 %
3%
Answer: C) 0.5 %
Confirmed — Book-1 §1.7 puts India's oil reserves at 5.7 billion barrels (800 Mt), 'only about 0.3% of the total world reserves' (Table 1.3 also shows India 0.3%). Of the four options, 0.5% is the only value of that order; 2%, 3% and 5% are several times the book figure and are wrong by an order of magnitude.
Source: 2012
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
36. Of the total natural gas used in India, the largest share goes to__________sector.
petrochemicals
fertilizers
power
domestic
Answer: C) power
Confirmed vs Book-1 §1.7 — 'Power generation and fertiliser industry dominate the natural gas consumption at 62%', with power generation the single largest user. Fertilizers is the close second and hence the tempting distractor, while petrochemicals and domestic use take much smaller shares.
Source: 2012
📖 §1.7 Indian Energy Scenario — Coal Sector (Clean Energy Cess)
37. The Government of India levies Clean Energy Cess on which of the following:
Electricity
Coal
Diesel
Biodiesel
Answer: B) Coal
Confirmed vs Book-1 §1.7 — 'The Government levies Clean Energy Cess or coal tax, on all the coal, peat and lignite mined within the country or imported since July 1, 2010… A tax of Rs. 100 would be levied on every tonne of coal.' The cess is on the solid fuel at the mine/import point, not on electricity or on petroleum products such as diesel.
Source: Guidebook
📖 §1.2 Primary and Secondary Energy — toe conversion
38. One tonne of oil equivalent is
10,000 kcal
1000 kcal
1000 kg of oil
10 Mcal
Answer: C) 1000 kg of oil
Confirmed vs Book-1 §1.2 — 'One tonne of oil equivalent (toe) = 1 x 10⁷ kcal = 11630 kWh = 41868 MJ.' A toe is literally the energy in one tonne, i.e. 1000 kg, of oil, so (c) is right. Options (a) 10,000 kcal, (b) 1000 kcal and (d) 10 Mcal (= 10,000 kcal) are all a thousand times or more below the book's 10⁷ kcal.
Source: Guidebook
📖 §1.15 Energy Conservation / NAPCC missions (Book-1 Ch.10 linkage)
39. Which of the following is not a national mission under the Prime Minister's National Action Plan on Climatic Change
National solar mission
National mission for enhanced energy efficiency
National mission on CFC alternatives
National mission for green India
Answer: C) National mission on CFC alternatives
Confirmed — the NAPCC (2008) has eight missions: Solar, Enhanced Energy Efficiency, Sustainable Habitat, Water, Sustaining the Himalayan Ecosystem, Green India, Sustainable Agriculture, and Strategic Knowledge for Climate Change. There is no 'National Mission on CFC alternatives' — CFC phase-out is handled under the Montreal Protocol, not the NAPCC.
Source: Guidebook
📖 §1.5 Global Primary Energy Consumption (Table 1.7)
40. The country that accounts for largest energy consumption is
USA
Russia
China
India
Answer: C) China
Confirmed vs Book-1 §1.5 — Table 1.7 gives China 2,852.4 Mtoe (22.4% of world) against the US 2,265.8 Mtoe (17.8%), Russia 699 Mtoe and India 595 Mtoe. China is therefore the largest energy consumer; the USA is the tempting answer but the book's 2013 data place it second.
Source: Guidebook
📖 §1.5 Global Primary Energy Reserves — Coal (Table 1.1)
41. Coal in our planet is expected to last for about
45 years
65 years
200 years
113 years
Answer: D) 113 years
Confirmed vs Book-1 §1.5 — 'there are around 892 billion tonnes of proven coal reserves worldwide… enough coal to last around 113 years at current rates of production', and §1.5 repeats 'Coal is likely to last for 113 years.' 45 and 65 years are near the oil (53) and gas (55) figures, and 200 years is not a book number.
Source: Guidebook
📖 §1.7 Indian Energy Scenario — Electrical Energy Supply (Table 1.12)
42. The major source of electrical power generation in India is
thermal
hydel
nuclear
wind
Answer: A) thermal
Confirmed vs Book-1 §1.7 — of the 2,38,743 MW installed, thermal accounts for 1,63,305 MW (68.4%), against hydro 40,195 MW (16.84%), nuclear 5,780 MW (2.42%) and renewables 29,463 MW (12.34%). Thermal (mainly coal) is therefore the major source; hydel is a distant second.
Source: Guidebook
📖 §1.7 Indian Energy Scenario — Nuclear Power Supply
43. Nuclear energy development in India is constrained by
low % of Uranium in the ore
inadequate supply of Uranium
constraints in import of Uranium
all of the above
Answer: D) all of the above
Confirmed vs Book-1 §1.7 — 'India's ability to develop nuclear power is restricted as we do not have adequate supply of Uranium… Indian ores contain only about 0.1% Uranium compared to 12-13% in the Uranium ores mined abroad', and imports have historically been restricted. All three constraints apply, so 'all of the above' is correct.
Source: Guidebook
📖 §1.13 Electricity Pricing in India — What is ABT?
44. Availability based tariff is applicable to
oil
coal
natural gas
electricity
Answer: D) electricity
Confirmed vs Book-1 §1.13 — ABT is 'a performance-based tariff system for the supply of electricity by generators owned and controlled by the central government', introduced in 2003 for inter-state sale of POWER, with day-ahead schedules and unscheduled-interchange charges. It is a bulk electricity tariff mechanism, so it applies to electricity, not to oil, coal or gas.
Source: Guidebook
📖 §1.2 Primary and Secondary Energy
45. Which of the following is a primary energy source?
Coal
Electricity
Producer gas
Steam
Answer: A) Coal
Confirmed vs Book-1 §1.2 — primary energy is extracted or captured directly from natural resources, so coal (mined) qualifies. Electricity, producer gas and steam are all products of an energy-conversion process and are classed as secondary energy in Figure 1.1.
Source: Mar 2023
📖 §1.4 Renewable and Non-Renewable Energy
46. Which among the following is considered as renewable source of energy?
Tidal
Coal
Nuclear
Natural Gas
Answer: A) Tidal
Confirmed vs Book-1 §1.4 — the book lists wind, solar, geothermal, TIDAL and hydroelectric power as renewable resources that are essentially inexhaustible. Coal and natural gas are fossil fuels that take millions of years to form, and nuclear (uranium) is likewise listed under non-renewable in §1.2.
Source: Mar 2023
📖 §1.14 Energy Security — strategies for the future
47. Energy security measure includes ____.
fully exploiting domestic energy resources
diversifying energy supply source
substitution of imported fuels for domestic fuels to the extent possible
all of the above
Answer: D) all of the above
Confirmed vs Book-1 §1.14 — the book's strategy list covers expanding and fully exploiting domestic energy resources (IOR/EOR, CBM, new domestic sources), diversifying energy supply sources, and substituting imported oil/gas with domestic alternatives. Since all three appear in the book, 'all of the above' is right.
Source: Jul 2022
📖 §1.8 Sector wise Energy Consumption in India (Figure 1.4)
48. The top two commercial energy consuming sectors in our country are ____.
Industry and Agriculture
Agriculture and Transport
Residential and Industry
Industry and Transport.
Answer: D) Industry and Transport.
Confirmed vs Book-1 §1.8 — Figure 1.4 shows industry at almost 44% and transport at 17%, the two largest commercial energy consuming sectors. Residential and commercial together take 14% and agriculture only 7%, so pairs containing agriculture or residential are wrong.
Source: Jul 2022
📖 §1.4 Renewable and Non-Renewable Energy
49. Inexhaustible energy sources are known as:
Primary energy
Secondary energy
Commercial energy
Renewable energy
Answer: D) Renewable energy
Confirmed vs Book-1 §1.4 — 'Renewable energy is the energy obtained from natural sources which are essentially inexhaustible.' Primary/secondary is a classification by conversion stage and commercial/non-commercial by whether the energy is traded for a price, so neither describes inexhaustibility.
Source: Jul 2022
📖 §1.13 Electricity Pricing in India — demand side management
50. Energy saving through DSM is treated as equivalent to:
A reduction in electricity tariff
New additions on the supply side in MWs
Import of cheaper electricity
Government subsidies
Answer: B) New additions on the supply side in MWs
Confirmed — a MW of demand avoided by DSM removes the need to build a MW of new generating capacity, so DSM savings are counted as equivalent to new supply-side additions in MW (this is the standard 'negawatt' treatment used in the exam). It is not a tariff reduction, an import, or a subsidy.
Source: Sep 2025
📖 §1.12 Long Term Energy Scenario — APDRP / R-APDRP
51. What is the main aim of the Accelerated Power Development and Reform Programme (APDRP)?
To eliminate subsidies for agricultural consumers
To privatize all power plants in India
To promote only renewable energy in the power sector
To cut AT&C losses by audits and system improvements
Answer: D) To cut AT&C losses by audits and system improvements
Confirmed vs Book-1 §1.12 — APDRP was introduced by the Ministry of Power in 2002-03 to improve distribution reliability and utility viability, 'targets towards the commercial viability of the utilities by reducing their Aggregate Technical & Commercial (AT&C) losses to 15%', with technical, commercial, financial and IT interventions. It is neither a privatisation nor a renewable-only programme.
Source: Sep 2025
📖 §1.13 Electricity Pricing in India — What is ABT?
52. Availability Based Tariff (ABT) was introduced in India to:
Encourage solar roof-top for industries
Reduce dependence on oil imports
Subsidise rural electrification
Improve grid discipline and frequency control
Answer: D) Improve grid discipline and frequency control
Confirmed vs Book-1 §1.13 — 'Introduction of Availability Based Tariffs (ABT) and unscheduled interchange charges for power, introduced in 2003 for inter-state sale of power, have reduced voltage and frequency fluctuations.' ABT enforces day-ahead schedules with rewards and penalties, i.e. grid discipline and frequency control — it has nothing to do with rooftop solar, oil imports or rural subsidies.
Source: Sep 2025
📖 §1.7 Indian Energy Scenario — Energy Supply (India R/P ratios)
53. The Reserves-to-Production (R/P) ratio of coal in India is high compared to oil and gas. This implies:
Coal reserves can provide secure supply for decades
India has surplus oil reserves to meet its demand
Natural gas is India's most secure long-term option
India's coal imports will vanish completely
Answer: A) Coal reserves can provide secure supply for decades
Confirmed vs Book-1 §1.7 — India's coal R/P is about 100 years against oil 17.5 years and gas 40.2 years, so coal reserves can secure supply for decades. India has no oil surplus (it imports over 75% of crude) and gas reserves are only 0.7% of the world's, so (b) and (c) are wrong; and the book expects coal imports to rise, not vanish.
Source: Sep 2025
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
54. The use of Purchasing Power Parities (PPPs) in energy intensity calculations ensures that:
GDP comparisons reflect only exchange rate fluctuations
GDP of all countries is valued at a uniform price level, showing only differences in real economic volume
GDP is measured exclusively in domestic currency terms
GDP comparisons ignore differences in goods and services consumed
Answer: B) GDP of all countries is valued at a uniform price level, showing only differences in real economic volume
Confirmed vs Book-1 §1.11 — 'The use of PPPs ensures that the GDP of all countries is valued at a uniform price level and thus reflects only differences in the actual volume of the economy.' Using market exchange rates instead would overstate the GDP of high-price countries, which is exactly the distortion option (a) describes.
Source: Sep 2025
📖 §1.15 Energy Conservation and its Importance
55. Which statement best describes the relationship between energy conservation and energy efficiency?
Energy conservation and energy efficiency are identical and interchangeable terms
Energy efficiency refers to reducing energy intensity per unit of output, while energy conservation refers to reducing overall consumption.
Energy efficiency requires lowering comfort levels, while energy conservation does not
Energy conservation excludes energy efficiency measures from its scope
Answer: B) Energy efficiency refers to reducing energy intensity per unit of output, while energy conservation refers to reducing overall consumption.
Confirmed vs Book-1 §1.15 — energy conservation is achieved when the GROWTH of energy consumption is reduced in physical terms, while energy efficiency is achieved when the energy intensity of a product or process is reduced WITHOUT affecting output, consumption or comfort levels. That rules out (c); and since the book calls efficiency 'an integral part of energy conservation', (a) and (d) are also wrong.
Source: Sep 2025
📖 §1.3 Commercial Energy and Non Commercial Energy
56. Which of the following is non-commercial energy?
Lignite
LPG
Solar energy for water heating
Hydro power
Answer: C) Solar energy for water heating
Confirmed vs Book-1 §1.3 — the book's own examples of non-commercial energy include 'firewood and agro waste in rural areas, SOLAR ENERGY FOR WATER HEATING, electricity generation, and for drying grain…', i.e. energy sourced within a community and not traded in the market. Lignite, LPG and hydro power are all sold for a definite price and are therefore commercial energy.
Source: Sep 2025
📖 §1.4 Renewable and Non-Renewable Energy
57. Which of the following is a non-renewable energy source?
Solar
Wind
Biomass
Coal
Answer: D) Coal
Confirmed vs Book-1 §1.4 — coal is a fossil fuel that 'takes millions of years to form and cannot be replaced as fast as it is being consumed', the book's definition of a non-renewable resource. Solar and wind are listed as renewable, and biomass is grown back within a season, so it is renewable too.
Source: Sep 2024
📖 §1.15 Energy Conservation and its Importance — energy efficiency
58. How is energy efficiency typically improved in industrial processes?
Reducing production rates
Optimizing equipment performance
Increasing labour
None of the above
Answer: B) Optimizing equipment performance
Confirmed vs Book-1 §1.15 — 'energy efficiency means using less energy to perform the same function', achieved without affecting output or comfort. Optimising equipment performance does exactly that. Reducing production rates cuts output rather than energy per unit, so it is conservation of a crude sort, not efficiency.
Source: Sep 2024
📖 §1.13 Electricity Pricing in India — demand side management
59. Which of the following is not objective of Demand Side Management?
Managing Demand by DISCOM to reduce peak demand
Increasing Load of Generator to meet Peak demand
Reducing Capital need for Power Capacity Expansion
None of the above
Answer: B) Increasing Load of Generator to meet Peak demand
Confirmed — DSM objectives are to manage and reduce peak demand at the distribution end, and thereby defer the capital needed for new generating capacity. Increasing generator loading to meet peak demand is a supply-side response, the opposite of DSM, so (b) is not a DSM objective.
Source: Sep 2024
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
60. Energy Intensity is ratio of
Fuel Consumption/GDP
GDP/Fuel Consumption
GDP/Energy Consumption
Energy Consumption/GDP
Answer: D) Energy Consumption/GDP
Confirmed vs Book-1 §1.11 — EI = total final energy consumption (toe) ÷ GDP (million US$). Options (b) and (c) invert the ratio (that would be energy productivity), and (a) restricts the numerator to fuel rather than total energy consumption.
Source: Sep 2024
📖 §1.5 Global Primary Energy Reserves — R/P ratio definition
61. Reserve per production (R/P) is estimated as
Reserves remaining at end of year X production in the year
Reserves remaining at end of year / production in the year
production in year / Reserves remaining at end of the year
None of the above
Answer: B) Reserves remaining at end of year / production in the year
Confirmed vs Book-1 §1.5 — 'If the reserves remaining at the end of the year are divided by the production in that year, the result is the length of time that the remaining reserves would last if production were to continue at that level.' Option (c) is the inverse (production/reserves, a depletion rate) and (a) multiplies instead of dividing, giving meaningless units.
Source: Sep 2024
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
62. Energy Intensity (EI) of an economy is defined as:
GDP ÷ Energy Consumption
Energy Consumption ÷ GDP
Energy Consumption × GDP
Energy Consumption ÷ Population
Answer: B) Energy Consumption ÷ GDP
Confirmed vs Book-1 §1.11 — the guidebook defines energy intensity as "the ratio between the gross inland consumption of energy and the gross domestic product (GDP) for a given calendar year", i.e. EI = FC / GDP, expressed in toe per million US$.
So energy consumption sits in the numerator and GDP in the denominator; a LOW value means less energy is used per unit of output.
Option (a) GDP ÷ Energy Consumption is the inverted ratio (energy productivity) and is not the book's definition; (d) is per-capita energy consumption, a different indicator.
Source: AI practice
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
63. Country A consumes 2000 toe and has GDP of 100 million US$. Its energy intensity is:
5 toe per million US$
10 toe per million US$
20 toe per million US$
200 toe per million US$
Answer: C) 20 toe per million US$
Confirmed vs Book-1 §1.11 — EI = FC / GDP = 2000 toe / 100 million US$ = 20 toe per million US$.
The book fixes the units of EI as toe per million US$ with GDP taken at constant prices, so no further conversion is needed.
Option (a) 5 comes from inverting the ratio (100/2000 × 100) and (d) 200 from a decimal slip; both contradict the §1.11 formula.
Source: AI practice
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
64. Two countries: A uses 2000 toe for GDP 100 M$ and B uses 2500 toe for GDP 140 M$. Which is MORE energy-efficient?
Country A (EI = 20)
Country B (EI ≈ 17.85)
Both equal
Cannot be determined
Answer: B) Country B (EI ≈ 17.85)
Confirmed vs Book-1 §1.11 — EI(A) = 2000/100 = 20 and EI(B) = 2500/140 = 17.86 toe per million US$.
The book states that a LOW energy intensity indicates the economy uses less energy per unit of GDP, so Country B is the more energy-efficient of the two.
Option (a) tempts because B consumes MORE absolute energy (2500 toe), but §1.11 compares energy per unit of GDP, not total consumption.
Source: AI practice
📖 §1.11 Energy Intensity on PPP — 'What is Purchase Power Parity (PPP)?'
65. Why is Purchasing Power Parity (PPP) used when comparing energy intensity across countries?
It increases the GDP of poorer nations artificially
It values all GDP at a uniform price level, removing currency distortion
It converts energy to a common toe basis
It accounts for population differences
Answer: B) It values all GDP at a uniform price level, removing currency distortion
Confirmed vs Book-1 §1.11 — the guidebook states that using actual market exchange rates "would overestimate the GDP of Japan with high price levels relative to India with low price levels", and that "the use of PPPs ensures that the GDP of all countries is valued at a uniform price level and thus reflects only differences in the actual volume of the economy".
Hence PPP removes currency/price-level distortion so energy intensity compares real economic volume.
Option (a) is wrong because PPP corrects a distortion rather than creating an artificial boost; (c) confuses PPP with the toe conversion factor.
Source: AI practice
📖 §1.5 Global Primary Energy Reserves and Commercial Energy Production (R/P ratio)
66. The Reserves-to-Production (R/P) ratio of a fuel gives:
Cost of extraction per tonne
The number of years reserves will last if production stays constant
The energy content per tonne
Annual growth in demand
Answer: B) The number of years reserves will last if production stays constant
Confirmed vs Book-1 §1.5 — "If the reserves remaining at the end of the year are divided by the production in that year, the result is the length of time that the remaining reserves would last if production were to continue at that level."
The answer is therefore a number of YEARS, e.g. world coal 113 years, gas 55.1 years, oil 53.3 years (BP Statistical Review 2014, as tabulated in the book).
Option (c) confuses R/P with calorific value and (a) with extraction cost — neither appears in the R/P definition.
Source: AI practice
📖 §1.5 Global Primary Energy Reserves — world R/P ratios (BP 2014)
67. Which fuel has the highest R/P ratio worldwide, giving the most secure long-term supply?
Oil (53 yrs)
Natural gas (55 yrs)
Coal (113 yrs)
All three have the same R/P ratio
Answer: C) Coal (113 yrs)
Confirmed vs Book-1 §1.5 — "At current R/P ratio, World oil and gas reserves are estimated at just 53 years and 55 years respectively. Coal is likely to last for 113 years."
Coal therefore has by far the highest R/P ratio and the most secure long-term supply; the book also notes coal is the most abundant and geographically dispersed fossil fuel (recoverable reserves in ~75 countries).
Options (a) and (b) quote the book's own oil and gas figures, which are barely half of coal's, so they are tempting but clearly lower.
Source: AI practice
📖 §1.2 Primary and Secondary Energy / §1.4 Renewable and Non-Renewable Energy
68. Which of the following is classified as NON-renewable energy?
Solar
Wind
Nuclear
Geothermal
Answer: C) Nuclear
Confirmed vs Book-1 §1.2 — primary energy is split into "Renewable (solar, wind, geothermal, tidal, biomass, hydel etc.)" and "Non-renewable (fossil fuels: crude oil and its products, coal, natural gas, nuclear, etc.)".
Nuclear is expressly listed on the non-renewable side, and Figure 1.2 also places Nuclear under Non-Renewable Energy.
Solar, wind and geothermal are all named as renewable in §1.2/§1.4, so options (a), (b) and (d) are excluded.
Source: AI practice
📖 §1.3 Commercial Energy and Non Commercial Energy
69. Which set lists only NON-commercial energy sources?
Coal, oil, natural gas
Electricity, lignite, coal
Firewood, cattle dung, agro waste
Petrol, diesel, LPG
Answer: C) Firewood, cattle dung, agro waste
Confirmed vs Book-1 §1.3 — "Non-commercial energy sources include fuels such as firewood, cattle dung and agricultural wastes, which are traditionally gathered, and used mostly in rural households."
Commercial energy is energy "available in the market for a definite price": electricity, lignite, coal, oil and natural gas.
Options (a), (b) and (d) are all lists of commercial fuels/energy carriers, so only (c) is entirely non-commercial.
Source: AI practice
📖 §1.2 Primary and Secondary Energy — toe conversion factor
70. 1 tonne of oil equivalent (1 toe) equals:
10^4 kcal
10^7 kcal = 11,630 kWh
860 kcal
41,868 kWh
Answer: B) 10^7 kcal = 11,630 kWh
Confirmed vs Book-1 §1.2 — "One tonne of oil equivalent (toe) = 1 x 10⁷ kcal = 11630 kWh = 41868 MJ."
This single line supplies every toe conversion in Paper-1; note that 10⁴ kcal is 1 kg of oil equivalent (Ch-3 §3.5), not 1 toe.
Option (d) is a trap: 41,868 is the MJ figure, not kWh; option (c) 860 kcal is 1 kWh, a different conversion altogether.
Source: AI practice
📖 §1.2 toe conversion (chapter short question S-4) / §3.5 MTOE conversions
71. 10,000 kg of coal with calorific value 4000 kcal/kg is equivalent to how many toe?
1 toe
2 toe
4 toe
40 toe
Answer: C) 4 toe
Confirmed vs Book-1 §1.2 and chapter question S-4 — heat content = 10,000 kg × 4000 kcal/kg = 4 × 10⁷ kcal.
toe = (mass in kg × GCV in kcal/kg) / 10⁷ = 4 × 10⁷ / 10⁷ = 4 toe.
Option (d) 40 toe results from dividing by 10⁶ instead of 10⁷; option (a) 1 toe would need only 2500 kg of this coal.
Source: AI practice
📖 §2.3.3 Demand Side Management (DSM) — see also §1.14 Energy Security
72. Which of the following is NOT an objective of Demand Side Management (DSM)?
Reducing peak demand
Shifting load from peak to off-peak
Increasing generator load to meet peak demand
Treating saved MW as equivalent to added supply
Answer: C) Increasing generator load to meet peak demand
Confirmed vs Book-1 §2.3.3 — DSM is "managing of the demand for power, by utilities / Distribution companies, among some or all its customers"; DSM programmes "result in energy and / or demand reduction" and "demand can be shifted from peak to off peak hours", while "potential energy saving through DSM is treated same as new additions on the supply side in MWs".
Options (a), (b) and (d) are therefore all genuine DSM outcomes stated in the book.
Option (c) is the correct answer because increasing generator output is a SUPPLY-side action; §1.14 lists DSM under "Reducing energy requirements", i.e. the demand side.
Source: AI practice
📖 §1.15 Energy Conservation and its Importance (Figure 1.6)
73. Replacing a 60 W incandescent lamp with an 8 W LED giving the same 800 lumens is primarily an example of:
Energy efficiency
Demand side management only
Renewable energy
Energy security
Answer: A) Energy efficiency
Confirmed vs Book-1 §1.15 — "Energy efficiency is achieved when energy intensity in a specific product, process or area of production or consumption is reduced without affecting output, consumption or comfort levels", and "energy efficiency means using less energy to perform the same function".
Figure 1.6 uses this exact case: a 60 W incandescent lamp and an 8 W LED both giving 800 lumens (LED needs 1/8th the energy, CO₂ falls from 48.4 to 6.4 g/hr).
Option (b) is wrong because DSM is a utility-side load-management programme (§2.3.3), whereas this is simply equipment efficiency; conservation is the broader result to which efficiency contributes.
Source: AI practice
📖 §1.5 Global Primary Energy Reserves — R/P ratio (chapter objective Q7)
74. Which of the following with respect to fossil fuels is true?
R/P ratio is a constant once established
R/P varies every year with only changes in production
R/P ratio varies with only changes in reserves
R/P ratio varies every year with changes in both production and reserves
Answer: D) R/P ratio varies every year with changes in both production and reserves
Confirmed vs Book-1 §1.5 — the book defines R/P as "the reserves remaining at the end of the year ... divided by the production in that year", giving the number of years the remaining reserves would last at that level of production.
Both terms move every year: reserves change through new discoveries, revisions and depletion, and annual production changes too, so the ratio varies with BOTH.
The book's own tables show this — world coal 113 years, gas 55.1, oil 53.3, all quoted 'by end of 2013'.
Options (b) and (c) each freeze one term, which the definition does not allow, and (a) contradicts it outright.
Source: Book EOC
📖 §1.11 Energy Intensity on Purchasing Power Parity (chapter objective Q10)
75. Energy intensity is the ratio of
fuel consumption / GDP
GDP / fuel consumption
GDP / energy consumption
energy consumption / GDP
Answer: D) energy consumption / GDP
Confirmed vs Book-1 §1.11 — energy intensity is "the ratio between the gross inland consumption of energy and the gross domestic product (GDP) for a given calendar year", i.e. EI = FC (toe) / GDP (million US$).
On a PPP basis the book expresses the same indicator as kgoe per US$ PPP GDP.
Options (b) and (c) invert the ratio (that is energy productivity, not intensity), and (a) is the near-miss distractor because energy intensity uses TOTAL energy consumption, not fuel alone.
Source: Book EOC
Short questions (5 marks) — 39
📖 §1.2 Primary and Secondary Energy (Book-1 Ch.1 EOC S-3)
1. Give a short description about primary and secondary energy with examples.
Model answer: Primary energy refers to all types of energy extracted or captured directly from natural resources. It is of two groups: renewable (solar, wind, geothermal, tidal, biomass, hydel) and non-renewable (crude oil and products, coal, natural gas, nuclear). Primary energy is transformed in energy-conversion processes into more convenient forms called secondary energy, e.g. coal/oil/gas converted into steam and electricity, and crude oil refined into LPG, petrol and diesel. Primary energy can also be used directly, and some sources have non-energy uses (coal/gas as feedstock in fertiliser plants). The primary energy content of fuels is expressed in toe (tonne of oil equivalent).
Primary = straight from nature; secondary = converted form.
Source: Chapter end-question S-3
📖 §1.2 Primary and Secondary Energy — toe conversion factor (Book-1 Ch.1 EOC S-4)
2. Convert the following into tonnes of oil equivalent (toe): (i) 10,000 kg of coal with a calorific value of 4000 kcal/kg; (ii) 10 lac (10,00,000) kWh.
Model answer: Conversion factor: 1 toe = 1 x 10^7 kcal = 11,630 kWh = 41,868 MJ. (i) Heat in coal = 10,000 kg x 4000 kcal/kg = 4 x 10^7 kcal; in toe = 4 x 10^7 / 1 x 10^7 = 4 toe. (ii) 10 lac kWh = 10,00,000 kWh; in toe = 10,00,000 / 11,630 = 85.99 ~ 86 toe. So the answers are 4 toe and ~86 toe respectively.
Two routes to toe: via 10^7 kcal and via 11,630 kWh.
Source: Chapter end-question S-4
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP) (Book-1 Ch.1 EOC S-5)
3. What is meant by Purchasing Power Parity (PPP)? Why is energy intensity expressed on a PPP basis?
Model answer: A PPP exchange rate equalizes the purchasing power of different currencies in their home countries for a given basket of goods, i.e. it is the price relative showing the ratio of prices of the same good in different countries (book example: an egg costs Rs.3 in India and 30 yen in Japan, so PPP = 10 yen per rupee). Using actual market exchange rates would over-estimate the GDP of high-price countries like Japan relative to low-price countries like India. PPP ensures the GDP of all countries is valued at a uniform price level and reflects only the real volume of the economy. Hence energy intensity is expressed on a PPP basis as kgoe per US$ PPP GDP, giving a fairer cross-country comparison.
PPP neutralises currency distortion so comparisons reflect real volume.
📖 §1.15 Energy Conservation and its Importance (Book-1 Ch.1 EOC L-1)
4. Explain the difference between energy conservation and energy efficiency with a suitable example.
Model answer: Energy conservation and energy efficiency are separate but related concepts. Energy conservation is achieved when the growth of energy consumption is reduced in physical terms; it can result from several processes such as productivity increase or technological progress. Energy efficiency is achieved when the energy intensity of a specific product, process or area of consumption is reduced without affecting output, consumption or comfort levels. Energy efficiency simply means using less energy to perform the same function. Promotion of energy efficiency contributes to energy conservation and is therefore an integral part of conservation policy. Example: replacing a 60 W incandescent lamp with an 8 W LED giving the same 800 lumens uses about 1/8th of the energy (and cuts CO2 emissions proportionately) - an efficiency measure that leads to conservation.
Efficiency = same output with less energy; conservation = the broader reduction it produces.
📖 §1.14 Energy Security — strategies for the future (Book-1 Ch.1 EOC L-2)
5. List five strategic measures for meeting the energy security of a country.
Model answer: The book groups strategies under four heads; any five measures: (1) Reduce energy requirements - improve efficiency of fossil-fuel extraction, adopt supercritical pulverized-fuel boilers, energy efficiency and demand side management, promote public/mass transport, develop solar and wind. (2) Substitute imported oil/gas with domestic alternatives - ethanol/biodiesel for petrol/diesel, biomass gasification, coal-to-oil technology. (3) Diversify supply sources - balanced fuel mix of coal, gas, nuclear, hydro and renewables; source oil/LNG from different countries; import gas through pipelines. (4) Expand resources and develop alternatives - Improved/Enhanced Oil Recovery (IOR/EOR), Coal Bed Methane (CBM), in-situ coal gasification, Gas-to-Liquid (GTL), more exploration, equity oil/gas abroad, nuclear (fast breeder, thorium) and community biogas.
Four buckets: reduce demand, substitute imports, diversify supply, expand reserves.
Source: Chapter end-question L-2 / 24th Exam
📖 §1.13 Electricity Pricing in India — 'What is ABT?' (Book-1 Ch.1 EOC S-1)
6. Write a short description about Availability Based Tariff (ABT).
Model answer: Availability Based Tariff (ABT), introduced in 2003 for inter-state sale of power along with unscheduled-interchange charges, has reduced voltage and frequency fluctuations. As described in the book: (1) it is a performance-based tariff system for supply of electricity by generators owned and controlled by the central government; (2) it is also a new system of scheduling and dispatch which requires both generators and beneficiaries to commit to day-ahead schedules; (3) it is a system of rewards and penalties seeking to enforce day-ahead pre-committed schedules, though variations are permitted if notified one and a half hours in advance; (4) the order emphasises prompt payment of dues, and non-payment of prescribed charges is liable for appropriate action.
Performance/frequency-based tariff that enforces day-ahead schedule discipline.
Source: Chapter end-question S-1 / 25th Exam
📖 §1.13 Electricity Pricing in India (Book-1 Ch.1 EOC S-2; RPO itself is not defined in the 2014 Ch.1 text — see EC Act / renewable energy chapters)
7. Briefly explain Renewable Purchase Obligation (RPO) and the means by which this requirement can be met.
Model answer: RPO is a regulatory mandate (under the Electricity Act 2003 and State Electricity Regulatory Commission regulations) requiring obligated entities - distribution licensees, open-access consumers and captive power users - to procure a specified minimum percentage of their total electricity consumption from renewable energy sources, separately fixed as solar and non-solar RPO. The obligation can be met by: (1) generating renewable power on their own; (2) purchasing renewable power directly from RE generators; or (3) buying Renewable Energy Certificates (RECs) from the power exchange equivalent to the shortfall. Note: this is a chapter end-question but the answer is not spelt out in the 2014 Ch1 text.
RPO = mandated RE share; met by self-generation, direct purchase, or RECs.
Source: Chapter end-question S-2
📖 §1.3 Commercial and Non-Commercial Energy; §1.4 Renewable and Non-Renewable Energy
8. (a) Differentiate between commercial and non-commercial energy with an example each. (b) Differentiate between renewable and non-renewable energy with an example each.
Model answer: (a) Commercial energy is energy available in the market for a definite price; whatever the production method (fossil, nuclear or renewable), any form used for commercial purposes is commercial energy - the most important being electricity, coal, refined petroleum products and natural gas (e.g. electricity, lignite, coal, oil). Non-commercial energy is energy sourced within a community and its surrounding area and not normally traded in the market - the traditional fuels firewood, cattle dung and agricultural waste used mostly in rural households (also rural solar water heating, animal and wind power). (b) Renewable energy is obtained from natural sources that are essentially inexhaustible and can be harnessed without releasing harmful pollutants (solar, wind, geothermal, tidal, hydroelectric). Non-renewable energy is a natural resource that cannot be replenished on a scale matching its consumption rate and exists in a fixed amount (coal, oil, natural gas, nuclear).
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
9. (a) Define energy intensity and state what low and high energy intensity indicate about an economy. (b) Country A consumes 2000 toe with GDP US$100 million; Country B consumes 2500 toe with GDP US$140 million. Calculate the energy intensity of each and state which is more efficient.
Model answer: (a) Energy intensity is the ratio between the gross inland consumption of energy and the gross domestic product (GDP) for a given year; it measures an economy's energy consumption and overall energy efficiency. EI = Final Consumption (toe) / GDP (million US$), expressed in toe per million US$. A low energy intensity indicates the country has the right sectoral mix (often service-dominated, less energy per unit GDP); a high energy intensity indicates a heavy-industry-dominated economy using more energy per unit GDP. (b) Country A: 2000/100 = 20 toe/million US$; Country B: 2500/140 = 17.85 toe/million US$. Country B uses less energy per unit GDP, so Country B is more energy efficient.
EI = energy/GDP; lower value = less energy per dollar.
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
10. (a) Lower energy intensity of a country need not necessarily mean higher energy efficiency. Explain. (b) Why is energy intensity expressed taking into account purchasing power parity (PPP)?
Model answer: (a) An economy dominated by heavy industrial production is more likely to have higher energy intensity than one where the service sector is dominant, even if the technical energy efficiencies of the two countries are identical. Likewise, a country that relies on trade to import carbon-intensive goods will, other things equal, have lower energy intensity than countries that manufacture the same goods for export. Hence low energy intensity may reflect industry mix or import patterns rather than genuinely superior energy efficiency. (b) Applying actual exchange rates would over-estimate the GDP of high-price countries relative to low-price ones; using PPP ensures the GDP of all countries is valued at a uniform price level and thus reflects only differences in the real volume of the economy, allowing a meaningful comparison of energy intensity (expressed as kgoe per US$ PPP GDP).
Low EI can be structural; PPP removes currency/price-level distortion.
Source: 24th Exam Sep 2024
📖 §1.5 Global Primary Energy Reserves — R/P ratio; §1.7 Indian Energy Scenario (India R/P)
11. Define the Reserves-to-Production (R/P) ratio. Why does it change every year? Give the world and India R/P values for coal, oil and gas.
Model answer: R/P ratio: if the reserves remaining at the end of the year are divided by the production in that year, the result is the length of time (in years) that the remaining reserves would last if production were to continue at that level. It changes every year because it depends on BOTH the reserves (new discoveries, revisions, depletion) and the production in that year, both of which vary. World R/P: coal ~113 years, oil ~53 years (53.3), natural gas ~55 years (55.1). India R/P: coal ~100 years, oil ~17.5 years, gas ~40 years (40.2).
R/P = year-end reserves / that year's production; varies with both.
Source: Coverage (book numbers)
📖 §1.14 Energy Security
12. Define energy security and explain why it is a serious concern for India.
Model answer: Energy security is defined (World Energy Assessment, UNDP 1999) as 'the continuous availability of energy in varied forms, in sufficient quantities, at reasonable prices.' Its basic aim for a nation is to reduce dependency on imported energy sources for economic growth. It is a serious concern for India because energy needs are growing with rising incomes and population while import dependence rises rapidly - oil imports are about 75% of total oil consumption, ageing domestic wells (over 30 years old) are yielding less, and oil demand grows ~5% a year, so imports are projected to exceed 90% by 2020. Dependence on the disturbance-prone Middle East, plus rising coal and LNG imports, makes the economy vulnerable to external price shocks and supply fluctuations, threatening energy security.
UNDP definition + India's heavy import dependence on oil.
Source: Coverage (book definition)
📖 §1.5 Global Primary Energy Consumption (Table 1.6); §1.7 Indian Energy Scenario (Table 1.8)
13. Describe the global primary energy consumption mix and India's primary commercial energy consumption mix (with shares).
Model answer: Global primary energy consumption at end-2014 was about 12,730 Mtoe. Share by source: oil largest at 33%, coal 30%, natural gas 24%, hydropower 7%, nuclear 4% and renewables 2%. India's annual primary energy consumption is about 595 Mtoe (~4.7% of the world, 26% of USA's and 21% of China's). India's mix: coal dominates at 54.5% (about 55% of primary energy production), oil 29.5%, natural gas 7.8%, hydro power 5.0%, nuclear 1.3% and renewable energy 2.0%. Of India's total primary energy, about 74% is commercial and 26% non-commercial.
World: oil>coal>gas; India: coal dominant.
Source: Coverage (book numbers)
📖 §1.6 Final Energy Consumption
14. What is final energy consumption? In what unit is it measured and how is global final consumption split across end-use sectors?
Model answer: Final energy is the form of energy available to the end user following conversion from primary energy. Final energy consumption, measured in Million tonnes of oil equivalent (Mtoe), is the sum of energy consumption in the end-use sectors; energy used for transformation and for own use by the energy-producing industries is excluded. Thus final consumption reflects energy actually delivered to consumers. Globally, industry consumes almost 50% of final consumption, followed by transportation (20%), residential (18%) and commercial (12%) (U.S. EIA).
Final = delivered-to-user energy in Mtoe; industry ~50% globally.
Source: Coverage (book definition + units)
📖 §1.8 Sector wise Energy Consumption in India (Figure 1.4)
15. Describe the sector-wise commercial energy consumption pattern in India.
Model answer: The major commercial energy consuming sectors in India (Figure 1.4, source TERI) are: Industry, the largest, consuming almost 44% of total commercial energy; Transport ~17%; Residential and commercial ~14%; Agriculture ~7%; other energy uses ~10%; and non-energy uses ~8%. The industrial sector therefore dominates, followed by transport. The transport sector's energy use is growing rapidly (~16% per annum, next only to China) and consumes around 40% of petroleum products; agricultural electricity use has grown faster than other sectors over the last four decades.
Industry 44% leads; transport next at 17%.
Source: Coverage (book numbers)
📖 §1.9 Energy Needs of Growing Economy
16. Explain the relationship between energy and economic growth, and India's energy requirements to sustain 8% GDP growth.
Model answer: Economic growth is desirable for developing countries and energy is essential for it, but the relationship between economic growth and energy demand is not always a straight linear one - continuing improvement in energy efficiency and a shift to less energy-intensive activities can keep energy-consumption growth below GDP growth. To deliver a sustained GDP growth of 8.0% up to 2031-32, massive investment is needed: primary energy supply must grow 3-4 times over current consumption, electricity installed capacity 6-7 times, and annual coal requirement nearly 3 times (to over 2 billion tonnes/annum). India's per-capita electricity consumption (~917 kWh in 2012-13) is far below the world average of 2430 kWh (e.g. USA 13,246; Japan 7,848; China 3,298).
Energy drives growth, but efficiency can decouple the two.
Source: Coverage (book definition)
📖 §1.7 Indian Energy Scenario — Electrical Energy Supply (Table 1.12)
17. Describe India's electrical energy supply position - installed capacity, its source-wise breakup and the energy/peak shortages.
Model answer: The installed capacity of electric power stations in India was 2,38,743 MW as on February 2014. Source-wise breakup: Total Thermal 1,63,305 MW (68.4%) - of which coal 1,40,723 MW (58.9%), gas 21,382 MW (9.0%), oil 1,200 MW (0.5%); Hydro 40,195 MW (16.84%); Nuclear 5,780 MW (2.42%); and Renewable energy sources (small hydro, wind, biomass, others) 29,463 MW (12.34%). Gross power generation in 2013-14 was 8,81,786 million kWh. India faced an energy shortage of 3.8% and a peak shortage of 3.3% (Ministry of Power).
Thermal ~68% dominates; coal ~59% of capacity.
Source: Coverage (book numbers)
📖 §1.7 Indian Energy Scenario — Coal Sector
18. Write a short note on India's coal sector - reserves, quality, R/P, consumption and imports.
Model answer: India has huge coal reserves of about 60.6 billion tonnes - hard coal (anthracite and bituminous) 56.10 billion tonnes and soft coal (sub-bituminous and lignite) 4.5 billion tonnes - about 6.8% of world reserves, lasting about 100 years at the current R/P ratio. Reserves are concentrated in the eastern and south-central parts; Jharkhand and Odisha hold about 51% of reserves. Most coal (over 80%) is mined by open-cast up to 150-300 m depth. Indian coal is high-ash (30-45%) with calorific value 3000-4500 kcal/kg; the power sector consumes about 75% of coal produced. As domestic production is insufficient, about 145.785 million tonnes (~20% of annual requirement) was imported in 2012-13, mainly from Indonesia, Australia and South Africa. A Clean Energy Cess of Rs.100/tonne is levied on all coal, peat and lignite since 1 July 2010.
60.6 bt reserves, ~100 yr R/P, power sector eats ~75%.
Source: Coverage (book numbers)
📖 §1.7 Indian Energy Scenario — Oil Sector
19. Write a short note on India's oil sector - reserves, R/P ratio, production vs consumption and import dependence.
Model answer: India's oil reserves are estimated at 5.7 billion barrels (800 million tonnes), only about 0.3% of total world reserves, with main fields in Bombay High, upper Assam, Cambay and the Krishna-Godavari basin. Oil accounts for about 29% of India's primary energy consumption (end-2013). Crude oil production was about 42 million tonnes against consumption of about 175.2 million tonnes, giving an R/P ratio of only about 17.5 years. India is the fourth largest oil-consuming country and imports over 75% of its crude needs, mainly from Gulf nations. The transport sector is the largest consumer of petroleum products, followed by domestic and industry. The New Exploration Licensing Policy (NELP) opened the sector to private and foreign investment.
0.3% of world reserves; R/P only ~17.5 yrs; >75% imported.
Source: Coverage (book numbers)
📖 §1.7 Indian Energy Scenario — Natural Gas Sector
20. Write a short note on India's natural gas sector, including LNG and CNG.
Model answer: Natural gas is mainly methane (with small amounts of ethane, propane, butane, pentane) and is called the 'fuel of the 21st century' for being environmentally benign, efficient and cost-effective. India's gas reserves are about 1.4 trillion cubic metres (end-2013), ~0.7% of world reserves, with an R/P ratio of about 40 years; about 66% of production is offshore and 34% onshore. Gas is only ~7.8% of India's fuel consumption versus the world average ~24%; consumption is 51.4 BCM against production 33.7 BCM, the gap met by imported LNG. Power generation and fertiliser dominate gas use (~62%). LNG: natural gas cooled to -161C becomes liquid, reducing volume 600 times for shipping in cryogenic tanks. CNG: gas compressed to less than 1% of its volume at 200-248 kg/cm2, used in bi-fuel (petrol/CNG) vehicles. Disadvantages: price unpredictability and uncertain availability.
~0.7% of world reserves; LNG = -161C liquid, CNG = compressed.
Source: Coverage (book numbers)
📖 §1.7 Indian Energy Scenario — Nuclear Power Supply and Hydro Power Supply
21. Write a short note on India's nuclear and hydro power supply position.
Model answer: Nuclear: India operates 21 nuclear power units at seven locations with an installed capacity of 5,780 MW (Boiling Water Reactors and Pressurized Heavy Water Reactors), about 2% of total installed capacity; another 6,100 MW is under construction and the Department of Atomic Energy plans 63,000 MW by 2032. Development is constrained by inadequate Uranium supply (giving poor load factor) and by Indian ores containing only ~0.1% Uranium versus 12-13% abroad, making local uranium 2-3 times costlier; domestic uranium can support only ~10,000 MW. Hydro: India has an economically viable hydro potential of over 84,000 MW at 60% load factor (80% in the Brahmaputra, Indus and Ganges basins) plus ~15,000 MW in small hydro; hydro share of generated units has fallen to about 17% by 2013. Projects up to 25 MW are under MNRE; beyond 25 MW under the Ministry of Power.
📖 §1.5 Global Primary Energy Reserves (Tables 1.1, 1.3, 1.5)
22. State the global proven reserves of coal, oil and natural gas (end-2013) and which countries hold the largest shares.
Model answer: Coal: about 892 (891,531 million tonnes) billion tonnes of proven reserves worldwide, enough for ~113 years; largest reserves in the USA (26.6%), followed by Russia, China, Australia and India (6.8%). Oil (crude): about 1687.9 billion barrels, with ~48% in the Middle East; Venezuela has the largest share (17.7%) followed by Saudi Arabia (15.8%); India only 0.3%; world R/P ~53.3 years. Natural gas: about 186 (185.7) trillion cubic metres, ~55 years of production; Iran has the largest share (18.2%) followed by Russia and Qatar; India ~0.7%. Coal is the most abundant and geographically dispersed fossil fuel (recoverable in ~75 countries).
Coal-USA, oil-Venezuela/Middle East, gas-Iran lead reserves.
Source: Coverage (book numbers)
📖 §1.5 Global Primary Energy Reserves and Commercial Energy Production (Tables 1.2, 1.4)
23. Which countries are the top producers/consumers of coal, oil and natural gas as per the book?
Model answer: Coal: top producer is China (3680 Mt, 47.4% of world) followed by the US (892.6 Mt), India (605.1 Mt), Indonesia (421.0 Mt), Russia (374.1 Mt) and South Africa (256.7 Mt) as per Table 1.2; China alone uses as much coal as the rest of the world; most coal demand comes from the power sector. Oil: largest producer (end-2013) was Saudi Arabia (13.1%) closely followed by Russia and the US (the US ranks third in production but only tenth in reserves); India's share is ~1% (42 Mt). Natural gas: the US is the world's largest gas consumer (~22%) followed by Russia (~12%), with Iran, China and Saudi Arabia among top consumers.
Coal-China produces, US-largest gas consumer, Saudi-largest oil producer.
Source: Coverage (book numbers)
📖 §1.1 Introduction; §1.2–§1.4 Classification of energy
24. On what three bases is energy classified? Give the full classification with examples.
Model answer: Energy is classified on three bases: (1) Primary and Secondary energy - primary is captured directly from natural resources (coal, crude oil, gas, uranium, solar, wind, hydro), secondary is the converted form (electricity, steam, petrol, diesel, LPG). (2) Commercial and Non-commercial energy - commercial is available in the market for a price (electricity, coal, oil, gas), non-commercial is gathered locally and not traded (firewood, cattle dung, agro-waste). (3) Renewable and Non-renewable energy - renewable is essentially inexhaustible and pollution-free (solar, wind, geothermal, tidal, hydro, biomass), non-renewable exists in fixed amounts and depletes (coal, oil, gas, nuclear). Globally over 85% of primary energy comes from fossil fuels and global energy need grows ~2.4% per year.
Three axes: primary/secondary, commercial/non-commercial, renewable/non-renewable.
Source: Coverage (book classification)
📖 §1.10 Integrated Energy Policy
25. Why is an Integrated Energy Policy needed for India?
Model answer: The power supply position in the country is characterized by persistent power shortages, unreliability and high prices for industrial consumers. India depends on imported oil to the extent of about 75%, raising serious energy-security concerns. There is also a lack of consistency in the policies governing each energy sector and in the pricing of different types of energy. There is a need for clarity in direction on aspects like energy security, addressing environmental concerns, energy conservation and Research and Development. To achieve these objectives, an Expert Committee made a comprehensive review to recommend an integrated energy policy (covered further in Chapter 2 of the book).
Needed for consistency in policy, pricing, security and environment.
Source: Coverage (book definition)
📖 §1.13 Electricity Pricing in India
26. Describe electricity pricing and the cross-subsidy structure in India.
Model answer: On a purchasing power parity basis, power tariffs in India for industry and commercial establishments are among the highest in the world - the average PPP tariff is 30.8 cents/kWh, against 7.7 in the US, 15.3 in Japan and 20.6 in China. Consumer prices are set by State Electricity Regulatory Commissions on a cost-plus basis. Tariffs are structured so that industrial and commercial users cross-subsidize agricultural and domestic consumption. High-tension consumers are charged on both demand (kVA) and energy (kWh); low-tension consumers pay only for energy (kWh). Agriculture is largely supplied un-metered power at a subsidized lump-sum based on declared pump horsepower, giving a near-zero marginal cost that encourages inefficient use and over-exploitation of groundwater. Rising supply costs make these cross-subsidies disproportionately heavy on paying industrial, commercial and large household consumers.
📖 §1.8 Sector wise Energy Consumption in India — Specific Energy Consumption (Table 1.13)
27. What is Specific Energy Consumption (SEC) and how does Indian industry compare with global benchmarks?
Model answer: Specific Energy Consumption (SEC) is the energy consumed per unit of product, expressed in GJ/tonne. SEC of major Indian industries is generally much higher than global benchmarks: Iron & Steel 25.5-34.2 (India) vs 16.5-18.5 (world); Cement 3.0-3.4 vs 2.9-3.0; Fertilizer (urea) 27.2-28.5 vs 24.0-25.8; Pulp & Paper 31.0-51.0 vs 25.0-30.0; Chlor-Alkali 7.8-8.6 vs 7.1-7.5; Aluminium 75.6-83.2 vs 70.5-73.0; Sugar 0.7-0.9 vs 0.6-0.7 GJ/tonne. Efficiencies in cement, steel and aluminium have improved over 15 years (the most efficient cement plants now match the best in the world), but much output comes from small/medium units with inefficient equipment, so the scope for improvement remains large.
SEC = energy per tonne of product; Indian SEC above world benchmarks.
Source: Coverage (book numbers)
📖 §1.12 Long Term Energy Scenario for India
28. Summarise the long-term energy scenario for India for coal, oil, gas and electricity.
Model answer: Coal will remain the dominant fuel, accounting for about 60% of installed capacity; production was ~551.71 Mt by end-2013, but as domestic production cannot cope with demand, coal imports will rise sharply (Indian coal is poor quality and needs beneficiation). Oil: demand rose from 97.7 Mt (2001-02) to ~175.2 Mt by 2013; India's self-sufficiency fell from 60% in the 1950s to 25% now, expected to drop to 8% by 2020, when ~90% of oil demand would be imported. Natural Gas: demand is rising in line with world trends; production is ~35.4 BCM and trans-national pipelines and LNG terminals are planned, with import of LNG under Open General Licence (OGL) and 100% FDI permitted. Electricity: with peak and energy shortages, sustaining growth requires capacity to be doubled every 10 years; the Accelerated Power Development & Reforms Programme (APDRP, later R-APDRP) targets cutting AT&C losses to 15%.
Coal stays dominant; oil self-sufficiency falls to 8% by 2020.
Source: Coverage (book numbers)
📖 §1.12 Long Term Energy Scenario for India — APDRP / R-APDRP
29. What is the APDRP / R-APDRP and what are its objectives?
Model answer: The Accelerated Power Development & Reforms Programme (APDRP) was introduced by the Ministry of Power in 2002-03 to improve power reliability at the distribution level and achieve commercial viability of State Electricity Boards. Its strategies include technical, commercial, financial and IT interventions, with objectives: (1) reduce Aggregate Technical & Commercial (AT&C) losses to 15% to make utilities commercially viable; (2) improve quality and reliability of supply; and (3) improve revenue collection and customer satisfaction. It was later restructured as R-APDRP, focusing on actual, demonstrable performance in terms of loss reduction.
Distribution reform; key target = AT&C losses down to 15%.
Source: Coverage (book term)
📖 §1.7 Indian Energy Scenario — Coal Sector (Clean Energy Cess)
30. What is the Clean Energy Cess (coal tax) and what is its purpose?
Model answer: The Government levies a Clean Energy Cess (coal tax) on all coal, peat and lignite mined within the country or imported, since 1 July 2010. A tax of Rs.100 is levied on every tonne of coal mined in the country as well as imported from abroad. Its purpose is to generate funding for the research, development and deployment of cleaner and renewable energy technologies. (Note: India has a domestic commitment to reduce its carbon intensity by 20-25% from 2005 levels by 2020.)
Rs.100/tonne on coal/peat/lignite since 2010 to fund clean-energy R&D.
Source: Coverage (book term)
📖 §1.2 Primary and Secondary Energy — toe conversion factor
31. State the energy unit conversions used in the BEE guidebook for 1 tonne of oil equivalent (toe), and convert 1 kWh to kcal.
Model answer: One tonne of oil equivalent (toe) = 1 x 10^7 kcal = 11,630 kWh = 41,868 MJ. From this, 1 kWh = 10^7 / 11,630 = 860 kcal (the standard heat equivalent of electrical energy). The primary energy content of all fuels is generally expressed in terms of toe using this conversion factor; larger quantities are expressed in MTOE / Mtoe (Million Tonnes of Oil Equivalent) and smaller in kgoe (kilogram of oil equivalent). For oil volumes, 1 barrel is approximately 160 litres.
32. Expand and briefly define the key acronyms used in the Energy Scenario chapter: DSM, PPP, MTOE/toe, kgoe, CAGR, GDP, R/P.
Model answer: DSM - Demand Side Management: utility-side measures to manage/reduce consumer demand (especially peak) so that 1 MW of demand saved is equivalent to 1 MW of new supply-side capacity. PPP - Purchasing Power Parity: an exchange rate that equalizes the purchasing power of currencies for a common basket of goods. MTOE/Mtoe - Million Tonnes of Oil Equivalent (toe = tonne of oil equivalent = 10^7 kcal). kgoe - kilogram of oil equivalent, used for energy intensity on PPP basis (kgoe per US$ PPP GDP). CAGR - Compound Annual Growth Rate, the smoothed annual growth rate over a period. GDP - Gross Domestic Product, total value of goods and services produced. R/P - Reserves-to-Production ratio (years), reserves at year-end divided by that year's production.
One-shot acronym reference for the chapter.
Source: Coverage (acronyms - exam aid)
📖 §1.14 Energy Security (strategies) with §2.3.3 Demand Side Management
33. What is Demand Side Management (DSM) and why is a MW saved through DSM said to be equivalent to a MW added on the supply side?
Model answer: Demand Side Management (DSM) refers to actions taken on the consumer (demand) side of the meter by a utility to influence the amount and timing of electricity use - through energy efficiency, load shifting and reducing peak demand - rather than building new generation. In Chapter 1 it is listed as an energy-security strategy ('adopting energy efficiency and demand side management') to reduce energy requirements. A unit of demand avoided through DSM relieves the same generation, transmission and distribution capacity that would otherwise have to be built, so 1 MW saved through DSM is effectively equivalent to 1 MW of new supply-side capacity, but is usually cheaper, faster and cleaner to achieve. (DSM is not formally defined in the 2014 Ch1 text.)
DSM = managing demand; a negawatt equals a megawatt of new supply.
Source: Coverage (DSM concept)
📖 §1.15 Energy Conservation and its Importance (Figure 1.7)
34. Why is energy conservation important, and what are the benefits of energy efficiency for industry, the nation and the globe?
Model answer: Fossil fuels took hundreds of millions of years to form and are likely to deplete soon - in the last two hundred years we have consumed 60% of all resources, and today about 85% of India's primary energy comes from non-renewable/fossil sources, so conservation is essential for sustainable development. Energy efficiency is the most cost-effective and reliable means of mitigating global climate change. Benefits: for Industry - reduced energy bills, increased competitiveness, increased productivity and profits; for the Nation - reduced energy imports, avoided costs usable for poverty reduction, conservation of limited resources, improved energy security; for the Globe - reduced greenhouse-gas and other emissions and a maintained, sustainable environment.
Three-tier benefits: industry, nation, globe.
Source: Coverage (book - energy efficiency benefits)
📖 §1.5 Global Primary Energy Reserves — unconventional oil definitions
35. Define oil shale, oil (tar) sands, natural bitumen and extra heavy oil as given in the chapter.
Model answer: Oil shale: any sedimentary rock containing solid bituminous material (called kerogen) that is released as petroleum-like liquids when the rock is heated in the chemical process of pyrolysis. Oil sands (tar sands): a combination of clay, sand, water and bitumen (a heavy black viscous oil); they can be mined and processed to extract the oil-rich bitumen which is then refined into oil. Natural bitumen: the portion of petroleum that exists in the semi-solid or solid phase in natural deposits, usually containing sulphur, metals and other non-hydrocarbons in its natural state. Extra heavy oil: the portion of heavy oil having an API gravity of less than 10 degrees. If these unconventional resources are counted as oil, global oil reserves would be about four times the conventional reserves.
📖 §1.13 Electricity Pricing in India — Time of Day (ToD) tariff (ToD itself is not detailed in the 2014 Ch.1 text)
36. Explain Time of Day (TOD) tariff and how it is beneficial for the power system and consumers.
Model answer: In a Time of Day (TOD) tariff structure, incentives are built in for power drawal during off-peak hours and disincentives for drawal during peak hours. Many utilities prefer a flat demand curve to achieve high plant efficiency, so TOD encourages users to draw more power during off-peak hours (e.g. 11 pm to 5 am) and less during peak hours. The energy meter records peak, off-peak and normal-period consumption separately. TOD gives the consumer an opportunity to reduce their billing, since off-peak tariff is much lower than peak tariff. It also helps the power system by minimising line congestion (and the resulting higher line losses) and peak-load incidence, thereby reducing the utility's power-procurement charges through reduced peak demand. (TOD is not part of the 2014 Chapter 1 text.)
TOD shifts load off-peak, flattening the demand curve.
Source: Compiled - exam tariff topic
📖 §1.9 Energy Needs of Growing Economy (Table 1.14)
37. Compare India's per-capita electricity consumption with other countries and the world average.
Model answer: India's per-capita electricity consumption reached about 917 kWh per person per year in 2012-13 (819 in 2010-11, 884 in 2011-12). The comparable figures are: Japan 7,848; China 3,298; USA 13,246; UK 6,206; Canada 16,473; and the world average 2,430 kWh (World Bank). Thus India's per-capita electricity consumption is much less than that of many countries and much less than the world average, reflecting the large scope for growth in energy demand as the economy develops.
India ~917 kWh vs world average ~2430 kWh.
Source: Coverage (book numbers - per-capita)
📖 §1.9 Energy Needs of Growing Economy
38. State the projected changes in India's natural gas share and nuclear power capacity targets in the long term.
Model answer: The share of natural gas in India's energy mix is expected to rise to 20-25% by the year 2030-32. Nuclear power plant capacity targets envisaged by the Department of Atomic Energy (DAE) are: 20,000 MWe by 2020, 50,000 MWe by 2030 and 250,000 MWe by 2050 (with a planned total installed nuclear capacity of 63,000 MW by 2032). India's coal requirement will need to expand to over 2 billion tonnes per annum and oil imports are likely to exceed 90% of consumption in the near future as existing fields decline.
Gas 20-25% by 2030-32; nuclear 250,000 MWe by 2050.
Source: Coverage (book numbers - DAE targets)
📖 §1.8 Sector wise Energy Consumption in India — Transport / Residential
39. Describe the energy consumption pattern of India's transport and residential sectors.
Model answer: Transport: this sector's energy consumption grows at a rapid ~16% per annum (next only to China) and consumes around 40% of petroleum products; by 2030, of total transport energy demand, road vehicles would account for 86%, aviation 9%, and railways/marine/others 5%. Residential: there is a wide rural-urban difference - rural households depend on biomass for 85% of cooking needs while urban households meet 56% of cooking needs through LPG. About 70% of India's population is rural but accounts for only 42% of demand for oil, gas and electricity. Of domestic electricity demand, 70% is for lighting and 30% for refrigeration, air-conditioning and other gadgets.
Transport grows ~16%/yr; rural cooking 85% biomass, urban 56% LPG.
1. Explain the difference between energy conservation and energy efficiency with a suitable example. (10 marks)
Model answer: Energy conservation and energy efficiency are separate but closely related concepts.
1. Energy Conservation: It is achieved when the growth of energy consumption is reduced in physical (absolute) terms. It is the broader result of several processes or developments - such as a productivity increase, technological progress, avoiding wasteful use, or curtailing/switching off a service. It reduces the total quantum of energy consumed and may involve a change in behaviour or some reduction in use of a service (e.g. switching off lights, fans and machines when not required, or running a process for fewer hours).
2. Energy Efficiency: It is achieved when the energy intensity in a specific product, process, or area of production/consumption is reduced WITHOUT affecting output, consumption or comfort levels. Very simply, energy efficiency means using less energy to perform the same function. It is viewed as a 'resource option' like coal, oil or gas, and it adds economic value by preserving the resource base and reducing pollution (CO2).
3. Relationship: Promotion of energy efficiency contributes to energy conservation and is therefore an integral part of energy conservation promotional policies. In short - efficiency = doing the same job with less energy; conservation = the broader reduction in total energy use (which includes efficiency).
4. Example (from the guidebook): Replacing a 60 W incandescent lamp with an 8 W LED lamp gives the same light output of 800 lumens but uses only about 1/8th of the energy, with life rising from 1200 hrs to 25000 hrs and CO2 emissions falling from 48.4 g/hr to 6.4 g/hr. Using less energy for the same illumination is energy EFFICIENCY; the resulting drop in total electricity consumed represents energy CONSERVATION.
5. Importance: Fossil fuels took hundreds of millions of years to form and are depleting fast (~60% of all resources consumed in the last 200 years; 85% of India's primary energy is fossil-based). Hence efficiency/conservation are the most cost-effective and reliable means of ensuring sustainable development and mitigating climate change.
Guidebook L-1 - a near-guaranteed differentiation question; anchor it on the LED-vs-incandescent example.
Source: Guidebook
📖 §1.14 Energy Security — strategies for the future
2. List and explain the strategic measures for meeting the energy security of a country. (10 marks)
Model answer: The basic aim of energy security is to reduce a nation's dependency on imported energy sources for its economic growth. The guidebook groups the strategies for meeting future energy requirements under four heads:
1. Reducing energy requirements:
- Improving the efficiency of extraction of fossil fuels.
- Improving fuel efficiency of new coal-fired power plants using new technology (e.g. super-critical pulverised-fuel-fired boilers).
- Adopting energy efficiency and Demand Side Management (DSM).
- Promotion of public/mass transport (metro rail, light rail, monorail etc.) in urban areas.
- Developing renewable energy sources, especially solar and wind.
2. Substituting imported oil/gas with domestic alternatives:
- Ethanol / bio-diesel as substitutes for petrol / diesel.
- Biomass gasification for heat or power as an alternative to gas / coal.
- Coal-to-oil technology (as practised in South Africa).
3. Diversifying energy supply sources:
- A mix of fuels (coal, gas, nuclear, hydro and renewables) so there is no dependence on any single fuel.
- Sourcing oil / LNG from different countries.
- Importing gas through pipelines passing through countries who also benefit.
4. Expanding energy resources and developing alternative sources:
- Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) to better exploit reserves.
- Recovery of oil and gas from abandoned or marginal fields; in-situ coal gasification.
- Capturing Coal Bed Methane (CBM); conversion of Coal-to-Oil; Gas-to-Liquid (GTL).
- Stepping up exploration (only one-third of the oil-bearing area explored so far).
- Acquiring equity oil, gas and coal abroad; setting up energy-intensive units (e.g. fertiliser plants) overseas.
- New domestic sources (fast-breeder / thorium reactors, gas hydrates); community biogas plants and energy plantations.
(For a 5-mark version, name any five - e.g. energy efficiency & DSM, renewables, fuel substitution by ethanol/biodiesel, diversification of supply sources/countries, and EOR/IOR to expand reserves.)
Guidebook L-2 - remember the FOUR buckets (reduce, substitute, diversify, expand) and you can generate any number of measures.
Source: Guidebook
📖 §1.14 Energy Security
3. What is energy security? Why is it a serious concern for India, and what strategies can be adopted to ensure it? (10 marks)
Model answer: 1. Definition: The basic aim of energy security for a nation is to reduce its dependency on imported energy sources for its economic growth. As per the World Energy Assessment (UNDP 1999), energy security is defined as 'the continuous availability of energy in varied forms, in sufficient quantities, at reasonable prices.'
2. Why it is a serious concern for India:
- India's energy needs are growing rapidly with rising income levels and a fast-growing population, and dependence on imported energy is increasing.
- Import of oil is about 75% of total oil consumption; domestic oil wells are all over 30 years old and their yield is declining. Oil demand rises ~5% per year, causing huge import bills; by 2020 oil imports were projected to exceed 90% of consumption.
- India depends on the Middle East - a region prone to disturbances and disruptions - for most oil imports, so it needs diversification of sources.
- Poor coal quality and high domestic coal prices will push up coal imports from the present ~25%; gas/LNG imports are also likely to rise.
- Import dependence implies vulnerability to external price shocks and supply fluctuations that threaten the country's energy security.
3. Impact of disruption: Any disruption in energy supply (or a sharp price rise) harms economic growth and well-being - e.g. an oil supply cut forces farmers to reduce use of pumps and tractors, lowering agricultural output and employment.
4. Strategies to ensure energy security (four groups):
- Reduce energy requirements: energy efficiency & DSM, efficient super-critical boilers, mass/public transport, renewables (solar, wind).
- Substitute imported oil/gas: ethanol/bio-diesel, biomass gasification, coal-to-oil.
- Diversify supply: a mix of coal/gas/nuclear/hydro/renewables; source oil & LNG from many countries; cross-border gas pipelines.
- Expand & develop resources: EOR/IOR, CBM, GTL, stepped-up exploration, equity energy assets abroad, and new domestic sources (fast-breeder/thorium reactors, gas hydrates).
Combine the UNDP definition + India's 75%+ oil-import risk + the four strategy buckets for a full 10-mark answer.
Source: Dec 2009 / Guidebook
📖 §1.2 Primary and Secondary Energy; §1.3 Commercial and Non-Commercial Energy; §1.4 Renewable and Non-Renewable Energy
4. Energy can be classified on different criteria. Explain (a) primary vs secondary energy, (b) commercial vs non-commercial energy, and (c) renewable vs non-renewable energy, with examples. (10 marks)
Model answer: Energy can be classified on three criteria:
(a) Primary vs Secondary Energy:
- Primary energy refers to all types of energy extracted or captured directly from natural resources. It is divided into renewable (solar, wind, geothermal, tidal, biomass, hydel) and non-renewable (crude oil and its products, coal, natural gas, nuclear). Its energy content is expressed in tonne of oil equivalent (1 toe = 1 x 10^7 kcal = 11,630 kWh = 41,868 MJ).
- Secondary energy is produced when primary sources are transformed in energy-conversion processes into more convenient forms - e.g. coal, oil or gas converted into steam and electricity; crude oil refined into LPG, petrol and diesel. Examples of secondary energy: electricity, steam, petrol, diesel, LPG.
(b) Commercial vs Non-Commercial Energy:
- Commercial energy is energy available in the market for a definite price. The most important forms are electricity, coal, refined petroleum products and natural gas (also lignite, oil). It forms the basis of industrial, agricultural, transport and commercial development.
- Non-commercial energy is any energy sourced within a community and its surroundings and not normally traded in the commercial market. Examples: firewood, cattle dung and agricultural wastes (traditional fuels used mostly in rural households); also solar energy for water heating/drying, animal power for transport/irrigation, wind for water lifting. It is often ignored in a country's energy statistics.
- In India, commercial energy is about 74% and non-commercial about 26% of total primary energy consumption.
(c) Renewable vs Non-Renewable Energy:
- Renewable energy is obtained from natural sources that are essentially inexhaustible and can be harnessed without releasing harmful pollutants - e.g. wind, solar, geothermal, tidal, hydroelectric, biomass.
- Non-renewable resources cannot be produced/replenished on a scale that sustains their consumption rate; they exist in fixed amounts and deplete with time - e.g. coal, oil, natural gas (take millions of years to form) and nuclear. (Note: nuclear is NON-renewable.)
Three clean pairs with one example set each; note the 74/26 commercial split and that nuclear is non-renewable.
Source: Guidebook
📖 §1.7 Indian Energy Scenario
5. Describe the Indian energy scenario, covering the primary energy consumption mix and the supply position of coal, oil, natural gas and electricity. (10 marks)
Model answer: 1. Overview: India's annual energy consumption is about 595 Mtoe against a world consumption of 12,730 Mtoe (2013) - only ~4.7% of the world. Commercial energy is ~74% and non-commercial ~26% of total primary energy.
2. Primary energy consumption mix (India, 2013): Coal 324.3 Mtoe (54.5%) > Oil 175.2 Mtoe (29.5%) > Natural gas 46.3 Mtoe (7.8%) > Hydro 29.8 Mtoe (5.0%) > Renewables 11.7 Mtoe (2.0%) > Nuclear 7.5 Mtoe (1.3%). Coal dominates, contributing ~55% of primary energy production.
3. Coal sector: India has ~60.6 billion tonnes of reserves (~6.8% of world), lasting ~100 years at current R/P. Coal is high-ash (30-45%) with CV 3000-4500 kcal/kg; power sector consumes ~75% of coal produced. Domestic coal is insufficient, so ~145.8 MT (~20% of requirement) was imported in 2012-13 (mainly from Indonesia, Australia, South Africa). A Clean Energy Cess of Rs 100/tonne is levied on coal.
4. Oil sector: Reserves ~5.7 billion barrels (800 MT), only ~0.3% of world; R/P ratio ~17.5 years. Production ~42 MT against consumption ~175.2 MT, so India imports over 75% of its crude (mainly from Gulf nations). Transport is the largest petroleum-consuming sector.
5. Natural gas sector: Reserves ~1.4 trillion cubic metres (~0.7% of world); R/P ~40 years. Gas is ~7.8% of India's fuel consumption vs world average ~24%. Power generation and fertiliser industry dominate gas use (~62%). India also imports LNG.
6. Electrical energy supply: Installed capacity ~2,38,743 MW (Feb 2014): Thermal 1,63,305 MW (68.4%, coal ~58.9%), Hydro 40,195 MW (16.84%), Renewables 29,463 MW (12.34%), Nuclear 5,780 MW (2.42%). Gross generation 2013-14 was 8,81,786 million kWh; India faced an energy shortage of 3.8% and peak shortage of 3.3%.
7. Summary: India's oil/gas/coal reserves are estimated to last ~17.5 / 40 / 100 years at current R/P - underlining high import dependence and the need for energy efficiency and diversification.
Lead with the mix (coal 54.5% ... nuclear 1.3%), then one crisp block each for coal/oil/gas/power with the key R/P numbers.
Source: Guidebook
📖 §1.8 Sector wise Energy Consumption in India
6. Discuss the sector-wise commercial energy consumption in India and the consumption pattern of the major sectors. (10 marks)
Model answer: The major commercial energy-consuming sectors in India and their approximate shares (Source: TERI) are:
- Industry 44% (largest)
- Transport 17%
- Residential & Commercial 14%
- Other energy uses 10%
- Non-energy uses 8%
- Agriculture 7%
1. Industrial sector (~44%): The single largest consumer. Specific Energy Consumption (SEC) of major Indian industries (iron & steel, cement, fertiliser, pulp & paper, chlor-alkali, aluminium, sugar) is generally higher than global benchmarks, though cement, steel and aluminium efficiencies have improved over 15 years. Much output comes from small/medium units with inefficient equipment where efficiency gains are hard to implement, so improving energy efficiency is critical as energy costs rise.
2. Transport sector (~17%): Energy use is growing rapidly at ~16% per annum (next only to China) and consumes ~40% of petroleum products. By 2030, road vehicles will account for ~86% of transport energy, aviation ~9%, and railways/marine/others ~5%.
3. Residential, Commercial & Services (~14%): There is a wide rural-urban gap - rural households meet ~85% of cooking needs from biomass, while urban households meet ~56% from LPG. About 70% of the population is rural but accounts for only ~42% of oil/gas/electricity demand. Of domestic electricity demand, ~70% is for lighting and ~30% for refrigeration, air-conditioning and other gadgets. Commercial/services demand (hotels, malls, IT parks, hospitality) is growing fast.
4. Agriculture (~7%): A gradual shift to mechanised farming has caused a steep rise in agricultural energy use (both electricity and diesel); agricultural electricity consumption has grown much faster than other sectors over the last four decades.
Conclusion: Industry and transport dominate commercial energy use, so efficiency improvement in these sectors offers the largest savings potential.
Order the six shares (Industry 44% first) then add the sector-specific facts - transport 16%/yr growth, rural 85% biomass cooking, lighting 70% of domestic power.
Source: Guidebook
📖 §1.11 Energy Intensity on Purchasing Power Parity (PPP)
7. Define energy intensity. What do high and low energy intensity indicate, and why is Purchasing Power Parity (PPP) used while comparing energy intensity? Illustrate with a calculation. (10 marks)
Model answer: 1. Definition: Energy intensity is the ratio between the gross inland (final) consumption of energy and the Gross Domestic Product (GDP) for a given calendar year. It measures the energy consumption of an economy and its overall energy efficiency.
Formula: EI = FC / GDP, where FC = total final energy consumption (toe) and GDP is in million US$. Thus EI is expressed in toe per million US$. (GDP is taken at constant prices relative to a base year to remove inflation.)
2. Meaning of high vs low EI:
- A LOW energy intensity indicates the country has the right sectoral mix of industries - e.g. a service-sector-dominated economy tends to have low EI. A country that imports carbon-intensive goods (rather than manufacturing them) also has lower EI.
- A HIGH energy intensity indicates an economy dominated by heavy industrial production, which uses more energy per unit of GDP - even if the two countries have identical energy efficiencies.
- Important caveat: low EI does NOT automatically mean higher energy efficiency; it may simply reflect a lighter (service) industry mix or the import of energy-intensive goods.
3. Why PPP is used: Applying actual (market) exchange rates overestimates the GDP of a high-price country (e.g. Japan) relative to a low-price country (e.g. India). A PPP exchange rate equalises the purchasing power of different currencies for a given basket of goods, valuing all countries' GDP at a uniform price level. This ensures the ratio reflects only real differences in economic volume, giving a more correct picture. Book example: an egg costs Rs 3 in India vs 30 yen in Japan, so PPP = 10 yen per rupee. On a PPP basis, energy intensity is expressed as kgoe per US$ PPP GDP.
4. Illustration: Country A consumes 2000 toe for a GDP of 100 million US$ -> EI = 2000/100 = 20 toe/M$. Country B consumes 2500 toe for a GDP of 140 million US$ -> EI = 2500/140 = 17.86 toe/M$. Country B has the LOWER energy intensity, i.e. it uses less energy per unit of GDP (more energy-efficient, other factors being equal).
5. Trend: Although energy use rises as an economy grows, continuing efficiency improvement and a shift to less energy-intensive activities keep energy-consumption growth below GDP growth.
The most-asked Ch-1 short can scale to 10 marks: define -> high/low meaning + the 'low EI is not high efficiency' trap -> PPP with egg example -> a 2-country calc.
Source: Guidebook
📖 §1.5 Global Primary Energy Reserves and Commercial Energy Production
8. Define the Reserves-to-Production (R/P) ratio and discuss the global reserves and R/P position of coal, oil and natural gas. (10 marks)
Model answer: 1. R/P ratio - definition: If the reserves remaining at the end of the year are divided by the production in that year, the result is the length of time (in years) that the remaining reserves would last if production were to continue at that level. R/P = (Reserves at year-end) / (Production in that year). It varies every year with changes in BOTH reserves and production (Source: BP Statistical Review of World Energy, 2014).
2. Coal: The most abundant and geographically dispersed fossil fuel (exists as peat, lignite, sub-bituminous, bituminous, anthracite). Proven reserves are ~892 billion tonnes worldwide, recoverable in ~75 countries. Largest reserves: USA (26.6%), then Russia, China, Australia and India (6.8%). At current production, coal lasts ~113 years (World R/P). China alone uses about as much coal as the rest of the world; most demand is from the power sector.
3. Oil (crude): Global proven reserves ~1687.9 billion barrels (end 2013); almost 48% are in the Middle East, with Saudi Arabia holding ~15.8%. World R/P is ~53.3 years. Many major producers (US, Russia, China) could see fields largely depleted within a decade, leaving the world dependent on the Middle East (its conventional-oil R/P averages ~78 years). Counting unconventional oil (oil shale, oil sands, extra-heavy oil, natural bitumen) would make global reserves about four times larger. Oil remains the premier energy resource, shifting towards transport and petrochemicals. (India: ~5.7 billion barrels, 0.3%, R/P ~17.5 years.)
4. Natural gas: A gaseous fossil fuel, primarily methane; ranks third after oil and coal but is gaining fast. Global proven reserves ~186 trillion cubic metres (end 2013), ~55 years of current production (World R/P ~55.1). Iran has the largest share, followed by Russia and Qatar. US is the largest consumer (~22%). India has only ~0.7% of world gas reserves.
5. Summary of world R/P: Oil ~53 years, Gas ~55 years, Coal ~113 years - coal offers the most secure long-term supply.
State the R/P formula (varies with BOTH reserves and production), then the world figures: coal 113, oil 53, gas 55 years.
Source: Guidebook
📖 §1.13 Electricity Pricing in India
9. Explain the structure of electricity pricing in India, including the role of subsidies/cross-subsidies and the concept of Availability Based Tariff (ABT). (10 marks)
Model answer: 1. High tariffs on PPP basis: In terms of purchasing power parity, power tariffs for industries and commercial establishments in India are among the highest in the world - average ~30.8 cents/kWh on PPP basis, against 7.7 in the US, 15.3 in Japan and 20.6 in China.
2. How tariffs are set: Consumer prices for electricity are set by State Electricity Regulatory Commissions on a 'cost-plus' basis. Tariffs are structured so that industrial and commercial users cross-subsidise agricultural and domestic consumers.
3. HT vs LT structure: High-tension (HT) consumers are charged on both demand (kVA) and energy (kWh), whereas low-tension (LT) consumers pay only for the energy consumed (kWh). The price per kWh varies significantly across states and across customer segments within a state.
4. Agricultural and domestic subsidies: The agricultural sector is supplied un-metered power in almost all states; farmers pay a highly subsidised lump-sum based on declared pump horsepower. This gives a zero marginal cost of power, promoting inefficient use and over-exploitation of ground water. The domestic sector also has subsidies graded by consumption level, including heavily subsidised power for the poorest. With rising cost of supply, the burden of these cross-subsidies increasingly falls on paying industrial, commercial and large household consumers.
5. Availability Based Tariff (ABT): Introduced in 2003 for inter-state sale of power (along with unscheduled interchange charges), ABT reduced voltage and frequency fluctuations. Its features:
- A performance-based tariff system for supply by generators owned/controlled by the central government.
- A new system of scheduling and dispatch requiring both generators and beneficiaries to commit to day-ahead schedules.
- A system of rewards and penalties to enforce day-ahead pre-committed schedules (variations allowed if notified 1.5 hours in advance).
- It emphasises prompt payment of dues; non-payment invites appropriate action.
Conclusion: ABT improves grid discipline and frequency control, while reform of the cross-subsidy structure is needed to make tariffs cost-reflective.
Cost-plus + cross-subsidy (industry subsidises agri/domestic) + HT-vs-LT + ABT's four features covers the full 10 marks.
Source: Guidebook
📖 §1.9 Energy Needs of Growing Economy; §1.12 Long Term Energy Scenario for India
10. Discuss the energy needs of India's growing economy and the long-term energy scenario for coal, oil, gas and electricity. (10 marks)
Model answer: 1. Energy-growth linkage: Economic growth is desirable for developing countries and energy is essential for it, but the relationship between economic growth and energy demand is not always a straight-line one. To sustain an 8.0% GDP growth till 2031-32, massive investment is needed, requiring: growth in primary energy supply by 3-4 times, increase in electricity installed capacity by 6-7 times, and increase in annual coal requirement by nearly 3 times over current demand.
2. Per-capita electricity: India reached ~917 kWh per person per year (2012-13), far below Japan (7848), China (3298), USA (13,246), UK (6206), Canada (16,473) and the world average (2430) - showing large latent demand.
3. Coal (long-term): Coal is the predominant power fuel (~60% of installed capacity) and will remain dominant. Indian coal is of poor quality, needing beneficiation; as domestic production cannot cope with demand, coal imports are expected to rise drastically. Requirement will need to expand to over 2 billion tonnes/annum.
4. Oil (long-term): Demand rose from 97.7 MT (2001-02) to ~175.2 MT (2013). India's self-sufficiency in oil fell from 60% (1950s) to ~25%, expected to drop to ~8% by 2020, with ~90% of demand met by imports. India's oil imports (already ~75%) are likely to exceed 90%.
5. Natural gas (long-term): Demand is rising in line with the world trend; production reached ~35.4 BCM. Trans-national gas pipelines are planned, but immediate relief will come from LNG (needing special import terminals). Government kept LNG import under Open General License (OGL) and allowed 100% FDI. Gas share in the energy mix is expected to rise to 20-25% by 2030-32.
6. Electricity (long-term): With peak and energy shortages, sustaining growth needs generation capacity to be doubled every 10 years. The Accelerated Power Development & Reforms Programme (APDRP, 2002-03), later restructured as R-APDRP, aims to cut Aggregate Technical & Commercial (AT&C) losses to 15%, improve supply quality/reliability, and improve revenue collection.
7. Integrated Energy Policy: Persistent power shortages, ~75% oil-import dependence, and inconsistent pricing/policy across sectors prompted an Expert Committee to recommend an integrated energy policy addressing energy security, environment, conservation and R&D.
Frame it as the 8% GDP target -> 3-4x energy / 6-7x power / 3x coal, then fuel-wise projections and APDRP/R-APDRP (AT&C 15%).
Source: Guidebook
📖 §1.14 Energy Security (strategies) with §2.3.3 Demand Side Management
11. What is Demand Side Management (DSM)? Explain its objectives and how it helps a country meet its energy needs and improve energy security. (10 marks)
Model answer: 1. Concept: Demand Side Management (DSM) refers to actions taken by a utility (or on the demand side) to manage, reduce or reshape consumers' electricity demand - especially peak demand - rather than continually adding new generation capacity on the supply side. In the guidebook, 'adopting energy efficiency and demand side management' is listed among the strategies for reducing energy requirements and thereby strengthening energy security.
2. Core idea: Energy saved through DSM is equivalent to energy generated. Reducing 1 MW of peak demand through DSM is effectively equal to adding 1 MW of new supply capacity - but at far lower cost, with no fuel use and no additional emissions.
3. Objectives of DSM:
- Peak clipping: reducing peak-hour demand to relieve stress on the grid.
- Valley filling / load shifting: moving loads from peak to off-peak hours to flatten the load curve and improve plant load factor.
- Energy efficiency / strategic conservation: reducing overall consumption through efficient equipment and practices.
- Improving load factor and deferring costly investment in new generation, transmission and distribution.
4. How it helps meet energy needs and improve energy security:
- Reduces the growth in peak and total demand, so less new generating capacity (and less fuel import) is needed - directly cutting import dependence.
- Lowers the energy shortage and peak shortage a country faces and improves grid reliability.
- Complements energy efficiency and conservation, which are the most cost-effective, quickest means of bridging the demand-supply gap.
- Reduces emissions and conserves finite fossil resources, aiding sustainable development.
5. Typical measures: efficient lighting (LEDs), high-efficiency motors and pumps, energy-efficient appliances (BEE star labelling), time-of-use tariffs to shift load, agricultural pump-set efficiency programmes, and public awareness. Together these make DSM a key demand-side pillar of national energy security alongside supply diversification and renewables.
DSM is only named in Ch-1 as a demand-reduction strategy; this fuller answer stitches in the standard peak-clipping/valley-filling framework - flag it as supporting coverage.