India’s Resource Nexus
Overview of the research landscape
Karthik Ganesan
Senior Research Associate
Council on Energy, Environment and Water
New Delhi, India
4th Asian Think Tank Summit
Seoul, Korea
June 10, 2016
© Council on Energy, Environment and Water, 2013
CEEW: addressing global challenges through an integrated approach
                                                                    | 1
Status Quo
             | 2
Key themes
 •   Irrigation - energy nexus
 •   Electricity - water nexus
                                 | 3
Little irrigation potential remains
           Ultimate Irrigation Potential vs. Potential Created vs. Potential Utilised
SOURCE: CEEW (2011)                                                              | 4
 Investment in irrigation yielded few gains in net irrigated area
                                                Trends of public expenditure in major and medium irrigation
                                                   and net irrigated area under different sources in India
                                        60                                                                        42
                                        50                                                                        36
        (billion US$, in 2000 prices)
                                                                                                                  30
                                                                                                                       Net irrigated area
                                        40
                                                                                                                          (million ha)
                 Expenditure
                                                                                                                  24
                                        30
                                                                                                                  18
                                        20
                                                                                                                  12
                                        10
                                                                                                                  6
                                         0                                                                        0
                                         1960           1970         1980          1990           2000
                                                 Expenditure          Tanks           Canals             Groundwater
SOURCE: CEEW (2011); Shah (2009)                                                                                                            | 5
Groundwater stress and overdraft in many states
                                                  All figures in BCM (200
SOURCE: CEEW (2011)                                             | 6
Key themes
 •   Irrigation - energy nexus
 •   Electricity - water nexus
                                 | 7
Irrigation water nexus
       Research focus has not been in terms of technology, but in terms of
       management of groundwater resources.
SOURCE: IWMI (2003)                                                          |
The issue of subsidy: distorting markets, wasting
energy and water!
SOURCE: IWMI (2003)                                 |
Vicious cycle of energy-groundwater management
                Power Utilities                     On farm
                •     Financial losses due to low   •   Water overuse to hedge
                      agricultural flat tariff          against poor voltage and
                •     Poor voltage and frequency        infrequent power supply
                      power supply
                •     Huge T&D losses due to
                      power theft & unauthorised
                      pump sets
SOURCE: CEEW (2011)                                                                | 10
Increase in shallow and deep tube-wells
                                                    Number of MI Structures (in million)
                       9.62
                                                     9.10
           10                    9.20
            9                                8.36
            8
            7
            6
            5
            4
            3
                                                                                                 0.64      0.64
            2                                                             1.45
                                                                                          0.61                    0.60
                                                                   0.53
            1
            0
                     Dugewells          Shallow Tubewells     Deep Tubewells           Surface Lift     Surface Flow
                              3rd Minor Irrigation Census                        4th Minor Irrigation Census
 SOURCE: Sugam and Choudhuri
 (In preparation)                                                                                                        | 11
Future of irrigation water demand
•Significant increase in irrigation requirement, even after assuming irrigation water delivery
efficiency increase.
•Important implications for groundwater withdrawals and energy use for pumping water.
SOURCE: Chaturvedi et al. (2013)                                                                 | 12
Key themes
 •   Irrigation - energy nexus
 •   Electricity - water nexus
                                 | 13
Significant growth in electricity consumption across sectors, however
still a long way to go!
SOURCE: Ghosh (2012); Central Statistics Office, GOI (2012); Central Electricity Authority   | 14
Coal and gas account for two-thirds of installed electricity capacity,
deliver more than 82% of electricity
                                                    Electricity Installed Capacity, March 2013
                                              1%
                                                       2%
                                              9%
                                                                          19%
                                                                                                                      8%
                                                                           Renewable
                                                                                                                      2%
                                                                                                                      1%
                                        58%
                                                                                                                      0%
                         Coal     Gas     Diesel     Nuclear      Hydro         Wind   Small Hydropower   Biomass   Solar
SOURCE: http://www.cea.nic.in/reports/daily/dgr/2013/march/14/dgr17.pdf                                                     | 15
Water demand for the energy sector will rise in India
                        Global water use               Water for energy
                     100%                                              Biofuels
                                                                       Fossil fuels
                                                              Other
                     80%
                                                             Nuclear
                     60%
                     40%                           Power
                                                              Coal
                     20%
                               Energy
                               2010                           2010
                   In India, the power sector will account for 98% of additional
                withdrawals and 95% of additional consumption of water between
                                          2010 and 2035
SOURCE: IEA (2012)                                                                    | 16
Location of thermal and hydropower plants
 •Water required for thermal power plants (one example): 2500 m3/hr for 330 MW plant
 (FICCI-HSBC, 2013)
                                                                                       |
Power plants and water availability stress
SOURCE: CEEW and NRDC (2012)                 | 18
         India’s electricity generation mix: Future evolution has huge
         water implications
                                              Electricity mix- BAU                                                                        Electricity mix- Climate Policy sc
                               80                                                  Solar                                          80                                                  Solar
                                                                                   Wind                                                                                               Wind
                               70                                                                                                 70
                                                                                   Hydro                                                                                              Hydro
Electricity production in EJ
                                                                                                   Electricity production in EJ
                               60                                                                                                 60
                                                                                   Biomass w/CCS                                                                                      Biomass w/CCS
                               50                                                  Biomass                                        50                                                  Biomass
                               40                                                  Nuclear                                        40                                                  Nuclear
                               30                                                  Oil                                            30                                                  Oil
                                                                                   Gas w/CCS                                                                                          Gas w/CCS
                               20                                                                                                 20
                                                                                   Gas                                                                                                Gas
                               10                                                                                                 10
                                                                                   Coal w/CCS                                                                                         Coal w/CCS
                               0                                                   Coal                                           0                                                   Coal
                                2005   2020   2035   2050    2065    2080   2095                                                   2005   2020   2035    2050   2065    2080   2095
•Electricity consumption expected to increase by over 8 times between 2005 and 2050 and
further by two times till century end.
•Further increase in electricity consumption by 40% in 2095 under climate policy.
•Shift toward more water intensive technologies.
                    SOURCE: Shukla and Chaturvedi (2012)                                                                                                                                      |
Summary of these relations
                   Impacts         Energy                 Food                 Water              Climate
         Factors
        Energy                                      Oil 42% of            >16mn electrified Highest growth
                                                    agricultural energy   groundwater       in energy
                                                    use: price shocks     pumpsets          demand
                                                    affect food prices
                                                                          Energy also         Natural gas
                                                                          needed for          reduces impact
                                                                          pumping urban       but affected by
                                                                          water               pricing,
                                                                                              infrastructure &
                                                                                              international
                                                                                              agreements
                                                                                              Renewables have
                                                                                              role in mitigation
        Food                 Potential feedstock                          Cropping
                             for biofuels;                                patterns affect
                             biofuel subsidies in                         water use
                             U.S. affects global                          efficiency
                             corn prices
                                                                          Losses in food
                                                                          storage increase
                                                                          pressure for more
                                                                          water-intensive
                                                                          production
                                                                                                                   | 20
Summary
             Impacts         Energy                  Food               Water          Climate
   Factors
  Water                88% water in           >82% water use in    Ecological flows
                       industry used for      agriculture          necessary
                       thermal power
                       plants                 Groundwater
                                              >60% of irrigation
                       Water demand for
                       CSP projects in        Traded
                       arid areas             commodities
                                              contain virtual
                       Hydropower             water
                       depends on water
                       levels in reservoirs
  Climate              Constrains energy      Extreme weather      Affects
                       mix options            events &             precipitation
                                              agricultural
                                              productivity         Affecting glacier
                                                                   melt
                                              Longer dry
                                              seasons
                                                                                                 | 21
Integrating energy water climate nexus research
           •   Integrated Energy Water Plans at the local level.
           •   Macro level research for getting a bigger trends in energy
                                                                            | 22
Understanding tradeoffs and co-benefits
SOURCE: CEEW                              | 23
Conclusion
     •We do have some basic understanding of the irrigation energy nexus
     •However, our understanding of electricity water nexus issues in very
     preliminary stages
     •Bioenergy water demands will put additional pressure, need to develop
     knowledge on that front
     •The implications of climate mitigation policies will further complicate
     these nexuses
     •We haven’t even discussed climate impacts here! – Impacts on
     hydropower production, efficiency of power plants, impact of extreme
     events on energy infrastructure
     •Putting into practice a research agenda focusing on the nexus is
     crucial- both at the local level for planning and at the macro level for
     strategic information.
                                                                                | 24
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