The energy scenario of India: An assessment

Abstract

Energy as one of the most remarkable invention has come to be known as a strategic commodity and any uncertainty about its demand and supply can threaten the smooth functioning of the entire economy that too in developing economies. In case of the Indian power sector which is characterized by large demand-supply gap, is facing challenge despite significant growth in generation over the years, it has been suffering from shortages and supply constraints. Energy consumption rose by half between 2001 and 2010, and the trajectory remains one of steep ascent. India imports a substantial portion of its energy 80% of its oil, 18% of its gas, and now even 23% of its coal. As GDP growth accelerates to an ambitious 8–10% in recent years the shortage of power will become more severe for future scenario. As India’s substantial and sustained economic growth is placing enormous demand on its energy resources there is a need for giving emphasis on alternate energy supplies. Energy requirement is increasing at a rapid rate as current urbanization pattern is transforming cities into smart cities thereby increasing their energy demand. This paper provides a comprehensive overview of India’s energy sector and identifies challenges towards achieving the country’s energy objectives for meeting future goals.