MEMO/06/156
Brussels, 5 April 2006
Frequently asked questions on Energy Commissioner Piebalgs’ visit to India Q: What is the purpose of the Commissioner’s first visit to India?
A: Main objectives of the visit are:
to open the 1st EU-India Business Conference on energy (6 April 2006); to address opening words to the 2nd meeting of the India-EU energy panel, to present the green paper and to sign an Memorandum of Understanding (MoU) on studies to be carried out in the context of renewable energies and energy efficiency as well as in the context of clean coal technologies; to have bi-lateral meetings with several Ministers on the energy sector.
Q: Why it is crucial for the EU and India to cooperate?
A: The EU and India share common challenges - increasing global demand for oil and gas, increasing dependency on external suppliers, massive investment needs, climate change, etc. There is no other alternative as cooperation not only between consumers and producers and consumers – consumers (in line with our Green paper and March European Council conclusions). We need to make progress on energy efficiency, on development of renewable energies and low carbon energy in general. There is an enormous potential for business interactions and business cooperation: that’s why during the first Energy panel meeting it was decided to organise the EU – India Business conference.
Q: What is the main purpose of the EU-India conference on energy?
A: Idea for the conference came from the first EU – India Energy panel. The conference will address following main issues: promoting investment climate, adoption of advanced technologies in thermal power generation, promoting renewable energy, energy efficiency, transport sector and clean fuels. The conference will allow a valuable exchange of information and bring a new impetus to industry cooperation, to identify new cooperation areas.
Q: What is on the agenda of the India-EU Energy Panel?
A: The India-EU Energy Panel is the formal instrument of EU-India cooperation in the energy sector. The political decision to create this panel was taken at the EU-India Summit in 2004, its constitutive meeting was held in June 2005. 3 working groups were created: 1) renewable energy/energy efficiency, 2) coal/clean coal technology and 3) fusion/India’s participation in the ITER project. The agenda foresees mainly:
the opening and a presentation by the Commissioner (mainly on the green paper) and the Minister of Power; the signing of a Memorandum of Understanding on concrete studies to be carried out; the preliminary review of the results of the working group meetings.
Q: What are the main issues covered by the Memorandum of Understanding between the EU and India?
A: The MoU is covering the launch of different studies of mutual interest in the domain of energy. Both sides have agreed that the following studies should be carried out:
Coal quality management system in India. This study could, on the basis of the existing information on the Indian thermal power sector and its fuel supply, investigate the technical, logistic and commercial options for beneficiation of Indian hard coals. The potential of geological CO2 storage in India. This study would investigate the opportunities for the development and use of carbon capture and storage (CCS) technology. The application of ecodesign requirements/methodology for energy using products in India. The study should identify products where a common interest of India and the EU exists in enhancing energy efficiency such as electric motors, airco’s, office equipment and consumer electronics. The potential of development of renewable energy sources in India and the possibilities for dissemination to developing countries: Increasing the efficiency of heating and cooling equipment on the basis of renewable energy sources. Biofuel development and application in vehicles.
Q: Should India have signed up for the Kyoto Protocol?
A: India has signed up to the Kyoto Protocol. As a developing country with very low emissions per head of its population, it does however not have a reduction target. This is in line with fundamental principle of "common but differentiated responsibilities and respective capabilities" that underlies the Protocol. India is however actively involved in seeking out domestic emission reduction opportunities through the Kyoto Protocol's clean development mechanism (CDM). This mechanism allows credits to be generated for emission reduction projects in India that can then be used by the EU for compliance with its targets under the Kyoto Protocol and by EU industry in the EU emissions trading scheme. India actively encourages Clean Development Mechanism projects and is one of the largest suppliers of CDM credits.
India is also actively involved in the discussions on the future multilateral climate change regime that were formally kicked off at the Montreal Climate Change Conference in December 2005. The EU is exploring with India and other key developing countries ways in which those countries can participate in such future regime.
Q: What is the landscape on energy in India?
A: India’s total primary energy demand amounts to some 538mtoe (including 184mtoe traditional, non-commercial biomass), compared to EU-25’s 1677, China’s 1245 and the world’s 10,231mtoe (2002)[1]. Biomass and waste, now the main fuels in India’s primary energy mix, will become relatively less important. Commercial fuels will grow in importance and diversity. Coal will still dominate the commercial fuel market in 2030, but the importance of oil and gas will grow. Oil will still be the dominant fuel in industry. Natural gas is projected to increase to 9% of primary energy in 2030 (EU-25 32%). Electricity is expected to still be dominated by coal-fired generation. CO2 emissions are projected to more than double by 2030, reflecting the increasing carbon-intensity of the energy system. India is attempting to limit its oil import dependence somewhat by expanding domestic exploration and production. However, today’s 69% import dependence is projected to grow to 91% by 2030.
India’s energy policy is driven by the need for high-quality energy services to sustain economic growth and societal developments. Starting points are not encouraging. For example, some 20% of the population still does not have access to electricity. To achieve the energy services necessary to sustain growth, major investments are needed. And to attract these, much reform is needed in markets.
As energy is also in India becoming a priority issue on the overall political agenda, there is a tendency that the Ministry of External Affairs tries to coordinate energy related cooperation with the outside world without giving the energy ministries too much power in this context. In India, energy related issues are dealt with in a number of different ministries: Ministry of Power, Ministry of Coal, Ministry of Petroleum and Natural Gas, Ministry of Non-Conventional Energy Sources, Department of Atomic Energy and in a lower scale the Ministries of Mining and of Environment and Forests, the latter one being quite interested in the renewable energy issues.
[1] Eurostat 2004, EU Energy and Transport in figures
