The majority of the problems and opportunities that modern civilization faces
are defined by the availability of energy. Since reliable and inexpensive energy
services are necessary for daily living and are seen as a necessary first step
toward a better quality of life and equitable development, universal access to
energy is crucial.
Modern energy services are universally acknowledged to be critical for human
well-being, essential for the economic success of any nation, and essential for
the supply of clean water, sanitation, healthcare, and other valuable energy
services. It is possible to transform lives and economies by achieving universal
access to renewable energy.
Understanding the precise targets listed below may be helpful in placing the
conversation in context:
- Boost international cooperation to make it easier to access clean energy
research and technology, including renewable energy, energy efficiency, and
advanced and cleaner fossil fuel technology.
- Ensure that everyone has access to affordable, dependable, and modern
- Substantially raise the proportion of renewable energy in the world's
- The rate of increase in energy efficiency will double.
The entire framework places a strong emphasis on a few key elements that are
essential to comprehending the feasibility of initiating energy transitions that
have the ability to drastically alter lives and economies.
These problems can be broadly grouped into the following categories:
difficulties in gaining access to modern energy services; increasing the
affordability and dependability of these services; increasing the proportion of
renewable energy in the primary energy mix; enhancing technology penetration and
exchange, particularly with regard to access to clean energy research; and,
finally, concentrating on increasing energy efficiency throughout the entire
energy value chain.
Problems and Difficulties
India's economy experienced tremendous growth during the 1990s and 2000s as it
moved from an agrarian to an industrial and service-based economy, changing the
nation's energy requirements in the process. Two notable patterns have emerged
as a result of this: an increase in the amount of energy consumed per unit of
economic production and an ongoing gap between supply and demand for energy.
The demands of economic growth, which are thought to be necessary to end
pervasive poverty and achieve real income growth, call for energy in a variety
of forms and at competitive rates. We continue to struggle as a nation to ensure
that everyone has access to many useful kinds of energy while also maintaining
affordable pricing free of massively distorting subsidies. A sizable portion of
the population still lacks access to energy despite the recent dramatic
decoupling of energy and economic growth, which points to increased efficiency
In addition, there may be nonetheless a sizable dependence on imported
electricity (oil, in particular). Such an outside dependence increases questions
round India's long-time period electricity security. Further, the charge of
diffusion and deployment of rising new renewable electricity technology has been
Poor public fitness results persist attributable to the extraction and use of
fossil electricity and the ensuing human publicity to nearby air pollution and
accelerated human publicity to indoor air pollution because of a higher use of
biomass for residential electricity use. Poor fitness results also are found
because of the buildup of black carbon within side the atmosphere, frequently
because of inefficient electricity conversion procedures at the end-use side.
It is fairly known that assembly the fundamental wishes of get admission to
sustainable electricity to the hundreds of thousands of Indians at the same time
as on the equal time addressing and responding to worldwide and country wide
weather dreams goes to be a key electricity coverage assignment within side the
current future. There is a huge convergence at the foremost steps earlier than
the Indian electricity sector, in step with accomplishing the wider time table
These consist of improving electricity deliver and enhancing electricity
security, focussing on guidelines and programmes that assist lessen economic
system-huge electricity intensity, pricing moderately to assist transition from
a fossil-primarily based totally economic system to a purifier country wide
electricity profile, and making sure most profits are performed thru electricity
performance upgrades through a mixture of responses, technology, conduct and
According to the India Energy Outlook report, India's energy demand has almost
quadrupled since 2000, increasing the country's share of world demand to 5.7% in
2013 from 4.4% at the turn of the century. Although the increase in energy
demand that fuels economic growth has been significant, this percentage is still
much below India's near 18% current share of the world's population, a sign of
possible future growth.
We can see that the energy consumption will likely rise significantly in line
with the economic growth projections by looking at some of the most popular
energy indicators. Reaching even the lower limits of the worldwide average
values results in significant energy demand and a major difficulty for India's
public policy is the supply imperative.
Energy demand in India, expressed on a per capita basis, has increased by 46%
since 2000 but is still only about one third of the global average. We detect a
faster rate of energy-economy decoupling despite the fact that the demand for
energy has nearly doubled since 2000. The residential sector's increasing
adoption of modern energy, the rising service sector's high energy consumption
standards, and public policies like that are specifically focused on enhancing
enduse energy efficiency all contribute to this. India's energy intensity2 has
decreased over time, and more fall is anticipated.
Especially in the last 20–30 years, the government has been increasingly
involved in the energy sector. The majority of these remedies have focused on
regulating the energy market through "hard" and "soft" policy changes. The
provision of a cost-effective energy supply is the key goal that guides the
landscape of energy sector programmes and policies.
It must be acknowledged that the demand sector has primarily reaped the benefits
of economic growth (or cost effectiveness). Poor quality energy infrastructure
is a major problem for the energy supply business. It is nice to see so many
Innovations that have become established in the Indian energy policy field, both
market and non-market-based. It's also crucial to realise that the majority of
these developments were made possible by legislative frameworks that allowed for
the modification of transaction regulations, as well as by the Government of
India's open-minded approach to the technology market.
According to the Integrated Energy Policy (GOI, 2006), it has also become more
and more clear that, when it comes to problems with energy supply and demand,
emerging market-based initiatives offer the greatest solution. Promoting
competitive energy markets, setting reasonable prices, allocating resources
effectively (through regulation), enhancing efficiency, and enacting management
reforms that establish a mechanism to carry out efficiency improvements and
encourage accountability are some interventions that have won the approval of
Whatever the case, the ideal course of action requires further in depth research
and thought. Recognizing that the energy sector is characterised by numerous
stakeholders and a debatable relationship between the state and the centre is
Over the past few decades, a large number of policy proposals, laws, and acts
have been passed or introduced. While some have a direct impact on the energy
sector, others have had a more indirect impact. These laws, regulations, and
other laws have focused either narrowly on the full value chain of the energy
sector, or more broadly on a specific environmental sector, such as water or
air. For instance, the Integrated Energy Policy Plan is the most recent policy
statement adopted by the Government of India. The Government of India approved
this policy plan in
2009, and it broadly connects the energy sector to the objectives of sustainable
development. The IEP established the framework for securing the nation's fuel
demand with respect to various substitute to take advantage of any
production-consumption synergy, fuels are used in both production and
It must be emphasised once more that in the Indian context, technology and its
accessibility have always played a significant role in determining energy
policy. In order to maximise energy supply options, facilitate demand side
management/transition3, and accomplish goals of tolerable energy conservation,
the public policy emphasis has been biased toward acquiring, installing, and
disseminating energy technologies.
Functioning of the Energy Sector
The relationship between economic growth, energy use, and carbon emissions is
reasonably decoupled. We notice that the rate of carbon decoupling has been
substantially higher in comparison to energy decoupling while investigating the
characteristics of energy and carbon decoupling. The low base of carbon
emissions and the substantial use of non-commercial biomass by the population of
the nation may help to explain this.
On the other hand, we are not certain at this time that the energy and carbon
decoupling are occurring simultaneously. It is clear that there are enormous
benefits to creating, implementing, and controlling combined emission-energy
pathways, necessitating a major reevaluation of the joint market's operational
performance. However, the focus of the national policy response is mainly on
increasing energy efficiency without using the potential for attaining climate
gains as well. This has come to light as a critical issue that could prevent the
energy sector agenda from being reframed.
Interesting conclusions are drawn from the nation's energy and carbon
decomposition analyses. Overall, income growth, which is closely tied to
urbanisation and rates of economic growth, is what is essentially driving
India's emissions trajectory. The GDP's energy intensity has a greater impact on
this trajectory than its carbon intensity does.
In the recent past, the high rate of carbon intensity of the energy system has
been a crucial component driving India's trajectory increase in GHG emissions.
Present and future policies should be heavily focused on low-carbon growth, as
the national policy framework has correctly noted, and within this context,
experimenting with joint energy and carbon markets could show to be a game
The current share of renewable energy is a tiny portion of the total primary
energy supply of the country, despite the urgent need to concentrate on its
development. Given that the full noncommercial biomass is sustainably fed to the
energy system, the situation slightly improves. Although the recent national
policy focus has been positive, there are still significant gaps in the
renewable energy sector that may need to be remedied.
The energy use in the commercial, transportation, and industrial sectors has
increased significantly. This is a symptom of the Indian economy's structural
transformation and the country's rising urbanisation, a trend that is likely to
persist. Residential energy use may also increase, in part due to greater access
to energy and the purchase of energy-intensive assets like air conditioners.
To develop a new policy framework that assists in decoupling energy and service
demand, particularly in the transportation sector, it is essential to pinpoint
the elements responsible for such energy demand shifts within a sophisticated
understanding of the underlying policy and regulatory landscape. The industry
sector is making considerable progress, in part because of a focused effort to
enhance energy efficiency and in part because of a decrease in demand brought on
by improved processes.
Energy Access and Development
Development and wealth depend heavily on energy. Access to affordable and
dependable energy services is essential in emerging nations for eradicating
poverty, boosting productivity, boosting competitiveness, and fostering economic
progress. Since it enables access to clean water, sanitization, and healthcare
as well as a host of other advantages like dependable and efficient lighting,
heating, transportation, and other necessary services, having access to reliable
and clean energy sources is crucial for people and the development of societies
as a whole.
We failed to create a framework for synergistic co-benefits that is
well-articulated and supported by data when developing national energy
strategies. Such synergistic frameworks assist in prioritising resource
allocation and ensure the feasibility of aligning numerous markets in the
context of restricted financial resources.
Regulations for Energy Efficiency
Since independence, the power sector has experienced notable expansion. However,
due to shortcomings in generation, transmission, and distribution, the country
is currently experiencing significant energy peaking and shortages. This is
because demand for power has been outpacing growth in supply. Unsustainable
financial and performance results have been produced as a result of extremely
high levels of technical and commercial losses and a lack of a commercial
approach to managing utilities.
One of the main causes of the low quality of supply, which includes large
transit losses, has been insufficient distribution networks. It will be
necessary to provide appropriate and efficient service to the nation's widely
dispersed and quickly rising electrical demand network. We'll need to work
together to address the difficulties that the Especially in the spirit of
accomplishing the more general goals of the Electrical Act, the National Energy
Frameworks and Policies, the electricity sector imposes on us.
The majority of these issues are connected to enhancing the technical and
financial performance of power utilities, generally in the context of increasing
energy efficiencies through various procedures and value chain segments for
Institutional Arrangements And Governance
Five separate ministries as well as other government committees and agencies are
each responsible for different aspects of policy development and execution in
the energy sector. When state and federal governments share duties and
responsibilities, the landscape of policy and implementation becomes even more
convoluted. Synergistic reforms are necessary for broader sector gains because
different ministries and departments are responsible for developing and
implementing energy policy.
For instance, the lack of synergy in the energy and coal sector reforms has
partially been a problem with the jurisdiction of the center-state. In the power
sector's institutional and governance framework, there are also significant
contradictions. For instance, the Ministry of Power is responsible for long-term
planning for the power industry, policy creation, allocating investment
priorities, and overseeing the execution of laws pertaining to thermal and
hydroelectric generation, transmission, and distribution.
It communicates with the State Electricity Boards, the private sector, and the
federal government. The Energy Conservation Law of 2001 established the Bureau
of Energy Efficiency, a legislative entity within the Ministry of Power, to
coordinate energy efficiency and conservation policies and programmes. All
power-related central and interstate activities must be regulated by the Central
Electricity Regulatory Commission.
Its duties include controlling energy trading, governing interstate transmission
and pricing, producing central utility tariffs, and controlling transmission
lines. Each state's State Electricity Regulatory Commissions handle licencing,
pricing, and competitive problems. With cities being the primary locations for
the consumption of energy due to rising urbanisation, it may be possible to
revisit the 74th Constitutional Amendment and include power generation and
distribution under the purview of local governments. This could be crucial for
ensuring the desired synergistic transitions in energy and climate.
Pricing and Governance
The 74th Constitutional Amendment Act's definition of city level administration
in India does not specifically permit that body to make decisions on matters
relating to energy, such as the production and distribution of power, fuel
consumption regulations, and energy/electricity rates. Cities are only partially
able to manage the flow of energy because they lack the legal authority to
provide options for its form.
Additionally, it has no power over determining the scope, structure, and tools
of the policies that are finalised at the state level. In the context of
enhancing universal access and subsequently assuring quality and dependability
of the energy supply, pricing and governance issues may be crucial. Although
local governments have a dismal track record of adhering to marginal cost
principles when it comes to utility pricing, addressing the environment would be
most important in ensuring coverage for everyone.
The Transition to Sustainable Energy Framework
Certain significant difficulties that the Indian energy sector presents could
also present significant opportunity. Below is a summary of these.
Security of Energy
- Increased domestic coal, oil, gas, and other energy source production.
- a stable and alluring policy regime to ensure significant private
investment, including foreign investment in oil and natural gas blocks.
- Investments in energy assets abroad, particularly for coal, oil, and
gas, and uranium, should be increased.
- Sufficient storage facilities and fuel substitution plans must be
developed to handle any potential disruption in oil supplies.
Long-Term And Immediate Challenges:
Greater Development and Use of Renewable Energy
- To address the widening energy supply-demand gap and energy-related
environmental externalities, particularly in light of long-term
environmental concerns like climate change.
- It is necessary to establish integrated macroeconomic energy and
environmental paths that specifically address issues with investment needs
and their availability, energy supply, technology, R&D and transfer issues,
local and global environmental implications, and institutional requirements.
- A major worry is the influence different energy generating methods have
on the environment. Therefore, the task will be to apply increased recovery
techniques, assure optimal exploitation of the available fossil energy
resources, and move the emphasis to renewable sources.
- Creating transmission infrastructure to transport renewable energy power
from remote locations, making low-cost funds available (especially for
off-grid applications), developing sustainable business models for
decentralised renewable energy projects, and encouraging linked rural
entrepreneurship and distributed service companies/employment/skill markets
are some of the barriers that will need priority action.
- Rapidly expanding inclusive off-grid programmes with the option to make
changes to the policy frameworks that might result in improved outcomes.
- There is a need to reduce worries about the rate of technological
advancement, the availability of land, and the transmission of new
- Despite having a high potential to address the growing energy crisis and
emissions, clean energy options like wind, nuclear, and hydro face a number
of socio environmental challenges, including the building of dams, flooding
of certain areas, harm to the ecological system, and the resettling and
rehabilitation of impacted populations. We must try to build a balanced
development model that does not preclude us from using a potential renewable
source that might be economically viable and have substantial environmental