31-03-2014, 04:55 PM
India’s Energy Scenario in 2013 - Challenges & Prospects
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The energy scene in India is
a chapter in ‘India story’
and the story is well
documented, discussed;
though not yet fully compre-
hended. The complexity and
dynamics of India’s economy,
coupled with its democratic pol-
ity and mounting aspiration of
1.2 billion people have made the
energy segment a vastly diverse
one. Problems stare us as chal-
lenges and get unfolded as op-
portunities. All the stakeholders
in India’s energy industry, few
of them are global, are striving to
ensure energy availability and
accessibility to all, at affordable
price, within the framework of
inclusive growth.
Drivers for Energy Demand
India’s per capita energy con-
sumption has grown at CAGR of
3.44% during 1970-71 to 2010-11.
At the current level of 4816 KWH
(2010-11), this is lowest amongst
all major developing economies
in the world. Though this can
be partly attributed to the serv-
ice oriented nature of Indian
economy, the per capita energy
consumption is low even when
compared to countries such as Bra-
zil, Argentina and Mexico that
have a GDP composition similar
to that of India. The fact that India
is dominated by a rural popula-
tion at 69%, which largely depends
on non commercial sources to meet
its energy needs also contributes
to the low recorded per capita en-
ergy consumption. As per 2011
Census data, percentage of rural
households using firewood, crop
residue and cow dung as primary
cooking fuel are 62.5%, 12.3% and
10.9%, respectively.
Prospects for Renewable
Energy
India is committed towards
increasing the share of renew-
able power in the electricity
mix to 15 per cent by the year
2020. Indian energy sector is
expected to be at par with the
global stipulations on carbon
emissions and sustainability
through various changes in
the current set-up. The launch
of Jawaharlal Nehru National
Solar Mission, a joint initia-
tive of the Ministry of New
and Renewable Energy and
Ministry of Power, is one of
the most important environ-
ment friendly energy solutions
available in India.
Conclusion
The energy sector in India can
face challenges and gain pros-
pects by fostering technological
innovations in collaboration
with global partners. Conditions
required are: a) regulatory en-
vironment in energy sectors,
including coordination and
synergy amongst ministries of
the federal government and b)
investment climate including
capital market regulation. The
third requirement is people as-
pect of innovation. Innovation
fosters best in a diverse work
environment where people with
different background and view-
points mix, but Indian energy
industries have been slow to rec-
ognize this need for diversity.