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Energy as a corporate security measure The Energy Sustainability Conclave 2013

The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

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Page 1: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy as a corporate security measure

The Energy Sustainability Conclave 2013

Page 2: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: Global Scenario

• Fossil fuel dominated energy supply

• International Energy Agency (IEA)

estimates that by 2030

� 69% of the primary energy mix - fossil

fuels

� Oil will remain the main fuel

� Demand for coal expected to

further rise

Energy Sustainability Conclave 2013

* Other includes geothermal , Solar, wind, heat, etc.

Source: IEA

Page 3: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: Global Scenario

• Energy demand in developing economies will

rise 65% by 2040, increasing overall world

energy demand by 35%

• Of this 50% will be for electricity generation

• Oil will remain global fuel no:1 and natural gas

will replace coal as no:2

Page 4: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Global population trends

projected to 2040

Source: Exxonmobil 2013 Energy Outlook

Page 5: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 6: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 7: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 8: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: Global Scenario

• The prime challenges in meeting the energy demand are

� Meeting its climate change objectives

� To provide access to energy to the economically weaker sections of

society

• Renewable sources of energy as a sustainable alternative

� Expected to account for almost a sixth of world’s primary

energy use by 2040

Energy Sustainability Conclave 2013

Page 9: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: Global Scenario

Energy Sustainability Conclave 2013

60.0%

25.0%

3.3%

4.0%

42.0%

19.0%

3.1%

2.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Solar PV

Wind Power

Hydro-Power

Geothermal Power

Average Annual Growth Rates of RE Capacity

2012 Alone

2007-2012 Period

Source: Renewables 2013 Global Status Report

Page 10: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: Global Scenario

Energy Sustainability Conclave 2013

Key trends in 2012

� About half the capacity addition in the US was from renewable energy, with wind power being the largest contributor

� The increase in wind power generation in China overtook the increase in coal power and nuclear power generation for the first time ever

� In Germany, renewable energy accounted for 22.9 % of energy consumption, which is an increase of 11.7 % from 2011

� In the European Union, renewable energy accounted for almost 70 per cent of additional capacity

Page 11: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: India

Total installed generation capacity, as on 31st March 2013

- 2,23,3435 MW

Energy Sustainability Conclave 2013

Coal

58%

Gas

9%

Diesel

1%

Nuclear

2%

Hydro

18%

Renewable Energy

Sources

12%

Total installed generation capacity

Source: CEA, MNRE

Page 12: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: India

Energy Sustainability Conclave 2013

Source: CEA, MNRE

Renewable energy installed and potential capacities ( As on March 31st 2012)

Page 13: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Renewable Energy

• Variability of wind and solar seriously restrict

usage.

• Need significant conventional energy back up

of quick start type such as Natural Gas

• Even though by 2040 wind and solar energy

installations will go up 7 and 20 times it will

meet only 7% and 2% of

demand, respectively.

Page 14: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 15: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 16: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

GHG Emissions

• Over time there will be a shift to a regime where

some sort of carbon tax will apply.

• OECD countries will move out of coal use and

increase natural gas / shale oil usage

• China already well invested in renewable energy

• India

– Insufficient investment in both generation as well as

transmission

– System efficiencies very low

Page 17: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Source: Exxonmobil 2013 Energy Outlook

Page 18: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy: India

All India per capita consumption has gone up from 631.4 kWh in

2005-06 to about 880 kWh in 2011-12

Energy Sustainability Conclave 2013

0

100

200

300

400

500

600

700

800

900

1000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Per Capita Consumption (kWh)

Source: CEA, MNRE

Page 19: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

ITC: Energy Performance

Energy Sustainability Conclave 2013

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

En

erg

y In

ten

sity

(T

J/ R

s. C

rore

)

Gro

ss In

com

e (

Rs.

Cro

re)

Gross Income (Rs. Crore) Energy Intensity (Tera Joule/Rs. Crore)

Page 20: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

ITC: Energy Performance

Energy Sustainability Conclave 2013

• ITC’s Paperboards and Speciality Papers Business (PSPD) accounts

for 90.1% of total energy consumption

– Rated as the most energy efficient in Paper and Paperboards

sector, according to Centre for Science and Environment, New Delhi

• Specific energy consumption of PSPD Bhadrachalam (GJ/Tonne of

Product) has come down from 38.4 in 2004-05 to 33.8 in 2012-13

– 11.9%

Page 21: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

ITC: Energy Performance

Energy Sustainability Conclave 2013

En

erg

y (

Tera

Jo

ule

)

11439 1208513305 13075

14820

19297

2145622554

21130 21347

2745 2965 3712 3437 3571

5909 66227957 8133 8802

0

5000

10000

15000

20000

25000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Total Energy Consumption (TJ) Renewable Energy (TJ)

Renewable energy share - 24% in 2003-04 to 41.2% in 2012-13

Source: CEA, MNRE

Page 22: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Integrated Sustainability Data Management System

(ISDMS)

Energy Sustainability Conclave 2013

• ITC Sustainability Report –

� Benchmarked in India

� Globally ranked 7th in carbon disclosure (CRRA 2011)

• Focus on Performance Management than just reporting

• Integrated data management

& Integrated Report

Page 23: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Integrated Sustainability Data Management System (ISDMS)

Energy Sustainability Conclave 2013

Page 24: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy Sustainability Conclave 2013

• Single platform for all public & sustainability

reporting– Data accuracy

– Auditability

• System for sustainability performance

management of individual businesses

� KPIs monitoring by Businesses

Why a Sustainability Performance Management System?

Page 25: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy Sustainability Conclave 2013

• Ensure absolute data quality, tracebility of data to the source and consistency in application of methodologies across ITC

• ITC: ‘ Carbon Positive Company’ 8th year in a row

– ITC’s GHG inventory assured as per ISO 14064:2006 to a ‘reasonable level’

by Llyod’s Register Quality Assurance Limited.

ISDMS – Standard Operating Procedure

Page 26: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy Sustainability Conclave 2013

• Adopting a low carbon growth path through:

� continued reduction in specific energy consumption

� enhanced use of renewable energy sources

� A study is being carried out at organizational level, with an objective to enhance the renewable energy portfolio to 50% of total energy consumption in next few years.

• Need however to work with industry and

government towards improving

infrastructure availability and efficiency

ITC Strategy: Way Ahead

Page 27: The Energy Sustainability Conclave 2013 · 2013. 9. 7. · ITC: Energy Performance Energy Sustainability Conclave 2013 Energy (Tera Joule) 11439 12085 13305 13075 14820 19297 21456

Energy Sustainability Conclave 2013

THANK YOU