Let’s start with the kid’s joke:
What would you call a power failure? ……………….. A current event!
And, on a serious note, to manage power failure, the term ‘MANAGEMENT’ immediately comes to our mind. The word management is prevalent in all aspects of our life starting from our home to our workplaces and no one can deny its relevance in any known field in the recent times.
Then, can we say that energy sector on this planet can be dealt without any managerial skills?? The answer to this question itself tells us about the relevance of this important concept of Energy management which we have been hearing a lot globally.
It’s all about the best utilization of energy, improvement in the energy efficiencies and an optimum management of our resources. From an organisational point of view, it is concerned more with the reduction of the cost of energy and at the same time minimizing the carbon emissions as well. In short, we can say that the focus is to plan and operate energy related production and consumption units for resource conservation, climate protection and cost reduction.
*Image source: http://puc.nv.gov/uploadedImages/pucnvgov/Content/About/Media_Outreach/ElectricalJokes(1).jpg?n=3357
The relevance of energy management in India can be understood through certain facts and figures. India is a rapidly growing economy which needs energy to meet its growth objectives in a sustainable manner. It has approx. 1% of world’s energy resources while having 16% of world population. Imagine this, 80% of the energy sources we use are non- renewable and may last for only for another 40 years or so. Is there a plan ahead?
Another joke coming to mind:
Why wind energy is most favourite across the globe??
Because, it has got lots of fans.!!
Indian energy sector is facing a lot of challenge as about 75% of our crude oil needs are met from imports. Another issue is that the use of energy sources by our ever-increasing population has accounted to a large proportion of air pollution and brought it amongst the top five Green-house-gas (GHG) emitters globally.
Power in India is generated mainly through non- renewable sources of energy like coal. Other than the basic fact that the coal being the conventional source of energy which can’t be replenished the other factors are that it creates environmental pollution and is also costly. It is high time that the energy generating means should be diverted towards renewable sources of energy like solar, water, wind, biogas etc. The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India added a record 11,788 MW of renewable energy capacity in 2017-18. *(Source: https://www.ibef.org/industry/renewable-energy.aspx)
Statistics and reports both suggest the energy consumption of the country has nearly doubled since the year 2000 *(Source: https://techstory.in/india-energy-management/). On the occasion of the 16th International Energy Forum (IEF), Indian Prime Minister shared how at 4.3 percent Compounded Annual Growth Rate (CAGR), India is the fastest growing energy consuming nation and, in turn, will become a key driver of global energy demand over 25 years. *(Source: https://nsbnoida.in/why-pgdm-in-energy-management/). We are also the largest producer of pharmaceuticals, chemical products, textiles, basic metals, electrical machinery and general machinery and equipment. This kind of progress and optimisation is powering greater efficiency which implies more energy consumption.
Given that coal will get exhausted in coming 150 years and is still the major power generating resource (62% energy comes from coal thermal power plants), we should be looking at more permanent and renewable sources of energy. Moreover, for every building operating, energy consumption can be correlated to occupancy, electrical appliances in use and environmental factors. This generates the need for proper energy management. Due to government’s proactiveness about the need for energy conservation and support from industry leaders, many energy saving systems and technological equipment are already in place. Besides this, if people are trained to become energy managers, they can devise or design efficient energy programs that fulfill the energy requirements and also contribute to building a healthy and sustainable tomorrow.
A major role is being played by the Govt policies in the energy management field. The focus of Government of India has also shifted to clean energy after it ratified the Paris Agreement in 2015 which bound the member countries to curb carbon emissions. With the increased support of government and improved economics, the energy sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, renewable energy is set to play an important role. The Government of India is committed to increased use of clean energy sources (water, wind, solar etc.) and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas. It is expected that by the year 2040, around 49 per cent of the total electricity will be generated by the renewable energy. *(Source: https://www.ibef.org/industry/renewable-energy.aspx)
Learning about the different aspects of the energy field and the role of Govt in this sector we can very well predict how human capital can play its part in the energy conservation. With so much work to be done in this field to make India energy efficient requires young leaders with managerial skills who can face challenges, take decisions and introduce their learned visions can very well explain the importance of the emerging future of Energy Management.
This was the high time that the need for developing such leaders in the energy management was felt which urged NSB to start its two-year PGDM program in energy management in the year 2018.It has taken this big initiative by making a collaboration with IIM Ahmedabad, India’s premiere management institute for nurturing young talents and creating benchmarks in energy policies advocacy. NSB is already running its PGDM (Executive) program since 2015. The new energy management course is designed with a view of transforming young energetic individuals to future leaders who can create an impact in the energy sector through their vision and knowledge and have the capability to meet the challenges This course will equip the students with the functional areas of management and at the same time an individual exposure to the best practices in the energy sector and build their calibre in execution of enactments related to energy.
(Writer is B. Tech. in mechanical engineering and MBA-HR, currently pursuing PhD in Management. She is a free-lance writer in the areas of energy management and climate related issues.)
Disclaimer: The views and opinions presented are purely of author and do not claim to be views of NSB.