4.6. Assumptions

4.6.1. Scenario I—base case scenario

The base case demand projections assume that energy consumption is basically determined by the growth rate of the population and level of development in the region. The dependency of energy demand was modelled, quite simply as a direct relationship, between demand and population. For this purpose, to project population growth rate, population data provided by directorate of census operation for last 30 years (1961–2001) has been used. The energy growth rate used in the base case and transformation case, was based on the information provided by The Planning Unit, District Planning Division, Uttara Kannada Zilla Parishad at Karwar. The energy growth estimate used in Scenario I (base case) and Scenario II is based on the assumption that policies of 1990s and 2000 will be maintained.

In the base case scenario, changes in demand are assumed to follow changes in key driving parameters. For the domestic sector, future demand was assumed to be proportional to population growth, that is, in the range of 2.07–2.34% per year. Agricultural and commercial changes in demand are linked to growth in overall economy. For the industrial sector, demand in each subsector/group was assumed to increase in proportion to growth in industrial production. Average industrial and overall energy growth levels were assumed to be around 2.8 and 2.45% per year between 2000 and 2015.

4.6.2. Scenario II—high-energy intensity

In Scenario II, for industrial sector, 20% increase in the intensity of useful energy consumption for thermal end use (such as, direct heat, steam generation, etc.) between 2000 and 2005 and 30% increase between 2005 and 2015 is assumed. For the end uses that require electricity (such as, motor, lighting, etc.) a 10% increase from 2000 and 2005 is assumed, with a further 10% increase over base year levels by 2015. The basis of the growth in intensity assumed for the thermal end uses is that Uttara Kannada’s regional economy is basically rural and sluggish that characterises this scenario result in inadequate utilisation of industrial capacity.

4.6.3. Scenario III—transformation case scenario

The transformation case scenario implies substantial changes in attitude about energy consumption within the region. In this aspect, this scenario is granted less apparent probability of occurring than Scenario II. This scenario assumes policies of savings and conservation in almost all sectors, as well as, improvement in the efficiencies of energy consumption and energy transformation equipment. In the industrial sector, the amount of useful energy consumed per unit industrial value added is assumed to decline by 2% between 2000 and 2005, with further 2% decrease by 2015. The result of this assumption is a reduction in the energy intensity for the majority of end uses, and a major proportion of the overall reduction are in end uses that require heat (such as rural industries-cashew processing, etc.). In the domestic sector, 3.5% growth in the electricity consumption per household for end uses, such as, illumination, domestic appliances, etc., is assumed for the period between 2000 and 2015. This increase is based on the growth on income and therefore on the growth in overall economic consumption per capita. For the cooking end use, it is assumed that at least 50% of households using fuel wood, LPG and electricity as fuel by 2010 will have energy efficient devices than those in place of 2000. These efficient devices are assumed to have efficiencies of 35% (wood stoves), 78% (electric) compared with 2000 efficiencies of 7–8% (wood devices) and 60% (electric), respectively. Also, it is assumed that at least 15% of total population would switch over to biogas devices for cooking purposes. (Calculations show [29,30] that biogas from dung resource is sufficient to meet demand of 30% of the population.)

4.6.4. Scenario IV—state growth rate

The intent here is to develop a scenario for Uttara Kannada district based on state energy consumption norms. The projection of industrial and total energy consumption norms (industrial, agriculture, etc.) was used. The average growth is significantly higher in this case than in the base case (5.74% per year for industrial and 4.0% for overall). The growth rate in coal consumption is about 2.35%, kerosene 3.26%, electricity 8.51%, LPG 19.46%, fuel wood 1.95% and agricultural residues about 3.85% (these growth rates are computed from time series data by regression analyses method). Directorate of Census operation projections were used for total population, persons per household and rural/urban fractions.

4.6.5. Scenario V; Scenario IV + efficiency improvements case

This scenario, in addition to policies of Scenario IV, assumes the efficiency gains that are quite achievable for a given technology. In the domestic sector, most households still use incandescent bulbs (about 92% of sampled households in five taluks of Uttara Kannada district). The efficiency of lighting devices is assumed to increase through the introduction of compact fluorescent lamps (CFL). These devices, which produce nearly five times the light per unit energy input compared to incandescent bulbs, and have nearly eight times the life, are assumed to provide 5% of lighting by 2005, and 10% by 2015. These CFL’s have relatively higher initial costs. But taking into consideration the energy saved (due to low wattage requirement), and longer life, calculations indicate saving of about 52% over a period of time. The fuel efficient cooking and water heating devices show saving of about 27%[28,29]. Solar water heaters in coastal taluks of Uttara Kannada district are found to be viable alternatives. For cooking devices, this scenario assumes that more efficient stoves replace traditional stoves, as in the Transformation scenario. In addition to this, 15% adoption of solar hot water devices by 2010 is assumed. The efficiency of fuel use in services and commercial sector is assumed to improve for all fuels by 10% (2005) and 20% (2015), relative to base year results.