Close Yet So Far to Achieve Bioethanol Blending Target

Abstract

Indian economy is growing at an average rate of 7%, so is its primary energy demand. From 2011–2035, India's primary energy demand will be doubled. At the same time, transport sector's share in total primary energy consumption will increase from 8.1% to 11.3%. Crude oil has always been a concern for India. India's annual crude oil consumption is around 183.4 million tonnes that is more than many developed economies like Japan, Germany and others. Around 80% of India crude oil demand is met by import, and the demand is growing at a Compound annual growth rate (CAGR) of 4.2%. By 2030, India will be the most populous country with 1.5 billion populations and 430 million vehicles on road. To meet this futuristic oil demand, India has to either meet all the demand through import or look for alternative options to reduce the dependence on imported oil. Speculating the looming energy challenges in 2008, Indian policymakers had laid a roadmap to incorporate 20% of bioethanol into the energy systems by 2017. The objective of this research work is to assess India preparedness to meet 20% bioethanol blending fuel by 2017. The preparedness is analysed on three fundamental indictors: (a) ethanol market dynamics, (b) infrastructural facilities and (c) biomass available for bioethanol production. Result shows that as on 2017, India can achieve a maximum of 8.5% of fuel blending. In the study, the concerns and weak linkages across the value chain were identified. Recommendations for future action are highlighted, if realised India can achieve the blend target in coming years.