The Gap Between Generation and Energy Consumption

India has the best supply to meet the country’s current energy demand. Still, it lacks quality infrastructure like conductors, transformers, and many other pieces of equipment required for the transmission and distribution of power. Although numerous initiatives have been taken into consideration to develop efficient technologies and promote renewable energies, India is undergoing a great process of addressing the power supply chain. Additionally, the share of clean energy, such as hydropower, nuclear, and renewable energy, has surged over time. Thus, India is slowly shifting from fuel-based energy sources to non-fuel-based sources to meet the country's peak demand for energy. Since the demand for energy is rising like wildfire, India will continually depend on coal and oil for energy and hydropower.?

The primary energy demand has increased with the country's rapid population growth and GDP of 7.5%. Energy consumption in India jumped by 50.8% from 2013-14 to 2022-23, as per The Hindu report. Energy consumption demand comes from all economic sectors, including industrial, commercial, agricultural, and residential users. Energy consumption in India has doubled since 2000, and the growing population, rapid industrialization, and economic growth majorly propel it. The escalating demand for energy in India due to ongoing industrialisation and urbanisation poses significant challenges for both the energy sector and policymakers.?

Considerably, more and more economic development plans are being implemented in the country, such as the recently built 'Smart Roads' in Ujjain, MP, and many more, leading to increased energy demand in India. Energy consumption is rapidly rising in many countries, not only India but also in many other countries, and countries are trying to achieve energy efficiency while energy consumption is actually falling.?

India, the fastest-growing global economy, records a per capita electricity consumption of 1,297 units per year, compared with 53,924 in Iceland and 12,702 in the USA. Over 80% of India's energy demands are met by three fuels: coal, oil, and solid biomass. On a per capita basis, India's energy use and CO2 (carbon emissions) are less than half of the world average. Coal is a primary energy source in India, offering more than 60% of energy requirements. It is a major pollutant, producing greenhouse gas (GHG) emissions. Considering India's current energy requirements, coal may provide a large part of those requirements in the future, too, but it leads to air pollution and badly impacts the environment. In an effort to find an alternative source to produce energy and fulfil people's demands, the country has already turned to renewable energy technologies to achieve sustainable growth. Renewable energy plays a great role in producing sustainable energy with lower carbon emissions.?

According to a report from the Centre for Monitoring the Indian Economy, the country has developed a sustainable path for its energy supply in recent years, including solar power, wind, hydropower, and biomass to produce energy. It has also been revealed that clean and sustainable energy is less harmful and cheaper than any other energy source, like coal.?

Speaking of the rising power demand, Union Power Minister R.K. Singh said, "By 2030, the peak electricity demand is likely to cross 400 GW, indicating the fast growth of the economy. The demand grew by 9 percent last year and is growing by 10 percent this year. On a daily basis, the demand is 8 GW to 10 GW more than the same day of the previous year. There is no other market as big and growing as fast as us."

As the third-largest energy producer in the world, India plans to increase its non-fossil fuel-based energy capacity to 500 GW and reduce carbon emissions by 1 billion tonnes by 2030, as per the India Energy Outlook report. India has committed significantly to increasing clean and renewable energy investments despite lacking infrastructure and limited financial intermediaries. To ensure the proper demand and supply of energy in the country, the government needs to promote investment in cleaner energy sources and focus on making institutional changes to transition India's energy mix towards renewable, ensuring less carbon emissions and meeting the energy demands of people.?