Energy security: Growing awareness raises hopes

A piece of good news indeed -- 2014 was a record year for renewables. The growth of renewable energy outpaced that of fossil fuels in the electricity sector last year, a study shows. 51GW wind power addition was the biggest among renewable sources. 135GW power capacity was added from wind, solar, hydropower and other natural sources, according to the study. It is also pertinent to mention that a hopping $270 billon global investment was made in renewables.
As the matter stands now - renewables' share in global power generation was at 28 per cent, while renewable energy's share in all forms of power consumption stood at 10 per cent. Latest assessments also placed renewables' share of global power capacity addition in 2014 at 60 per cent. Current share of solar energy in global electricity production had touched 1per cent. Renewables' usage in global road transport stood at around 3.0 per cent. It is also heartening to note that 164 countries have set targets for renewables energy and 145 countries have renewal energy policies in place.    
But the fact remains, world energy markets continue to be vulnerable to disruptions precipitated by events ranging from geo-political strife to natural disasters.  Oil demand and imports continue to grow.  Energy security concerns go beyond oil.
The renewed awareness was long awaited
Energy security is defined as uninterrupted availability of energy sources at an affordable price. Energy security has many dimensions. Long term energy security refers to dealing with timely investments to supply energy in line with economic development and environmental needs, while short term measures focus on the ability of the energy system to respond instantly to sudden changes in the demand-supply balance.
A lot, side by side, depends on the implementation machinery in as much as  planning experience clearly reflects the fact that either the plans are too optimistic and/or the implementation machinery has been far from being optimal.
In so far as solar energy is concerned, the fact to be noted is that as initial cost will be high especially if it is for grid power generation, efforts should be there to minimise the same subsequently, otherwise commercial use will pose a big problem. No doubt the blending of more expensive solar energy with cheaper thermal power will smoothen the way for tariff reduction ultimately.
Essentially, energy efficiency is a strategic issue in the development process and countries have necessarily to strive for building an energy efficient society. If we look at the global picture we could definitely locate that no country is energy- independent. Even Saudi Arabia - the world's largest oil exporter -imports refined petroleum products like gasoline. Gasoline is imported by UAE, Norway and also Nigeria, whereas natural gas is still imported by Russia and UAE, and electricity and coal by Russia and Norway, Thus, the regions with abundant raw resources also rely on import of some form of energy.
Whatever the case, the fact remains that the vast majority of countries rely on a few energy-producing countries. Therefore, energy-independence remains an unrealistic goal. Balancing the needs of the producers and consumers is thus as crucial as increasing the supply and meeting the demand. We should keep in mind that oil demand is projected to grow up to 115 million barrels per day (MBPD) by 2030 against 82 MBPD in 2004!
Energy security essentially means uninterrupted availability of energy for the economy at all times at prices that are broadly in line with what the rest of the world pays. To counter adverse situations, some developed as well as developing economies resort to storing large quantities of fuels - oil and gas - in order to tide over any likely supply disruption. The question remains: is it the solution. Temporarily these practitioners may counter the problem, but in the long run?
Problems are two-fold: in some vibrant areas a realistic approach is missing, or the works are not systematically carried on - lack of exact coordination, to be specific. So far as the indicator, per capita consumption of energy, is concerned, India has been among the lowest in the world. Side by side, it is also a fact that India tops the list when it comes to the use of energy per unit of GDP. Power theft is silently tolerated!
Close technical cooperation with the neighbouring economies emerges to be the crucial thing, which, in turn, will benefit all of the parties concerned.
Full-fledged cooperation among the major energy-consuming nations in the matter of development and exploiting energy resources, especially in energy conservation, improvement of energy efficiency, development of alternative energy resources as well as environmental protection concerning energy utilisation and finally contribution towards maintaining the stability and security of international energy supply, is the real way out.
For that matter, efforts must be made to promote the use of solar, wind and tidal energy, biomass and other renewable energy sources,  keeping in mind the fact that the demand for petroleum products in a number of countries has been growing. There are obviously multiple elements to address the issue of securing energies. Minimising the size of strategic reserves -- diversifying the geography of supply sources and the modes of fuel transport-- are the other alternatives.
In fact we have to take a comprehensive view. Global energy security depends on so many factors - flow of investment and expertise, innovation, prosperity and high per capita energy availability, among others. One has to diversify energy supplies, find more traditional fuels, and at the same time develop alternatives.
That is why a comprehensive policy duly covering all the vital areas such as nuclear energy tapping, minimisation of transmission loss, and emphasis on renewable energy sources, can help us inch forward towards self-reliance in energy.

Dr B K Mukhopadhyay, a Management Economist, is attached to West Bengal State University.
bibhas@gmail.com