MED 003: Unit 08 – Energy - The Indian Scenario

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 UNIT 8: ENERGY – THE INDIAN SCENARIO

8.0 Introduction

India, with its vast population and rapidly growing economy, faces a unique and complex energy challenge. As the country strives for inclusive growth and industrial development, its energy demands continue to rise sharply. Balancing this demand with concerns over energy security, affordability, and environmental sustainability remains a significant policy imperative.

India is the third-largest energy consumer in the world, after China and the United States. The nation’s energy mix is dominated by coal, oil, and traditional biomass, although efforts are underway to integrate more renewable sources such as solar and wind. With substantial energy poverty in rural areas and increasing urban demands, India's energy scenario reflects both immense potential and considerable challenges.

8.1 Objectives

After studying this unit, learners will be able to:

  • Understand the current status of energy production and consumption in India.
  • Analyze the key components of India’s energy mix, including renewable energy sources.
  • Identify the major elements of India’s national energy policy.
  • Examine the unique challenges of rural energy access in India.
  • Evaluate the steps taken by India to promote sustainable and inclusive energy development.

8.2 The Energy Fact File of India

India’s energy sector is one of the most diverse in the world. It includes conventional sources such as coal, petroleum, natural gas, hydro, and nuclear energy, as well as non-conventional sources like wind, solar, and biomass.

Domestic Energy Demand and Supply

India's primary energy consumption is increasing at a rapid pace due to:

  • High population growth.
  • Rapid industrialization.
  • Expanding infrastructure and urbanization.
  • Higher living standards and energy-intensive lifestyles.

As of recent estimates:

  • Coal contributes about 45–50% of total energy consumption.
  • Oil and petroleum make up around 25–30%.
  • Natural gas contributes about 6–7%.
  • Hydropower and nuclear together form less than 10%.
  • Renewables (solar, wind, biomass) contribute approximately 10–12%, but their share is rising fast.

India also imports a significant portion of its crude oil, making energy security a concern. However, domestic coal remains the dominant fuel, although environmental concerns have led to a growing focus on cleaner energy alternatives.

Non-hydro Renewable Energy Resources

India is well-positioned geographically to harness a variety of renewable energy sources:

  • Solar Energy: With over 300 sunny days annually, India has massive solar potential. The government’s National Solar Mission aims to achieve 280 GW of solar capacity by 2030.
  • Wind Energy: Wind farms, mainly in Tamil Nadu, Gujarat, and Maharashtra, form the second-largest source of renewable energy in the country.
  • Biomass and Bagasse: Traditional biomass still serves rural areas, while modern bioenergy from bagasse (sugarcane waste) and agricultural residues is being promoted.
  • Small Hydro: India promotes small hydro projects (up to 25 MW) for remote and mountainous areas.

The Ministry of New and Renewable Energy (MNRE) plays a central role in the development of non-hydro renewables in India.

8.3 Energy Policy of India

India’s energy policy seeks to ensure affordable, accessible, and clean energy for all. Key government initiatives include:

  • Integrated Energy Policy (Planning Commission, 2006): Encourages multiple energy sources, energy efficiency, and renewable expansion.
  • National Electricity Policy (2005) and Tariff Policy: Promote universal electricity access and grid development.
  • National Action Plan on Climate Change (NAPCC): Includes missions on energy efficiency and solar energy.
  • UDAY Scheme: Aims to improve the financial health of state-owned power distribution companies (DISCOMs).
  • PM-KUSUM: Promotes solar-powered irrigation pumps for farmers.
  • Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME): Supports transition to cleaner transport.

Key Concerns for a Sustainable Energy Policy in India

  1. Energy Access and Equity: Many rural and tribal regions still lack reliable energy access. Ensuring affordable energy to all sections of society remains a priority.
  2. Import Dependency: Over 80% of India’s crude oil is imported. Diversifying sources and promoting indigenous energy production is vital for national security.
  3. Environmental Sustainability: India must balance its development goals with global commitments to reduce carbon emissions.
  4. Energy Efficiency: There is significant potential for improving energy use across sectors—residential, commercial, and industrial.
  5. Private Sector Participation: Policy clarity and regulatory reform are needed to attract investments in renewables and infrastructure.

8.4 Rural Energy Planning in India

Issues and Challenges

A significant portion of India’s rural population still relies on traditional biomass for cooking and heating. This dependence leads to:

  • Indoor air pollution and associated health issues.
  • Environmental degradation due to deforestation.
  • Time and labor burdens on women and children.

Additionally, unreliable grid connectivity and low purchasing power hinder rural electrification and clean energy adoption.

Meeting the Challenges

Several national programs aim to improve rural energy access:

  • DeenDayalUpadhyaya Gram JyotiYojana (DDUGJY): Focuses on village electrification and feeder separation for agriculture.
  • Saubhagya Scheme: Provides free electricity connections to below-poverty-line households.
  • LPG Expansion (PMUY): The Pradhan MantriUjjwalaYojana aims to reduce reliance on biomass by subsidizing LPG connections.
  • Decentralized Renewable Energy (DRE): Mini-grids, solar lanterns, and clean cookstoves are being promoted through public-private partnerships.

Rural energy planning must be community-centric, technologically adaptive, and financially inclusive. Participatory models that involve local stakeholders ensure better implementation and ownership.

8.5 Summary

India's energy scenario is a complex interplay of rising demand, limited resources, and ambitious sustainability goals. The country has made significant progress in expanding energy access and boosting renewable energy capacity. However, critical challenges remain, particularly in rural areas, energy equity, and environmental management.

A comprehensive and inclusive energy policy that promotes innovation, efficiency, and decentralized renewable systems is key to achieving India's sustainable development goals. With the right mix of planning, technology, and governance, India can chart a clean and secure energy future.

8.6 Keywords

  • Energy Mix – The combination of various sources of energy used to meet demand.
  • Energy Security – Reliable and uninterrupted energy supply at affordable prices.
  • Renewable Energy – Energy from natural sources like sunlight, wind, and biomass that are replenishable.
  • Energy Access – Availability of modern energy services (electricity, clean cooking) to all.
  • Rural Electrification – Expansion of energy infrastructure to rural and remote areas.
  • Energy Efficiency – Using less energy to perform the same task or function.

 

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