Understanding India's Energy Sector: Consumption, Environmental Impact, and the Shift to Renewable Energy

In my previous blogs, I’ve delved into the significance of carbon credits, a topic that's incredibly relevant given our current climate challenges. However, I've realized it's equally important to shed light on another critical area: the energy sector.

Understanding the energy market is crucial not only for governments but also for every citizen who relies on a stable and efficient energy supply.

Why does the energy market matter to us? How does it impact our daily lives, and what role does the government play in ensuring its efficiency? These are the questions I aim to answer in my upcoming three-part blog series.

In this blog, I will cover

1. Break Down the Basics: Explain how the energy market operates, from production to consumption.

2. Explore the Government’s Role: Discuss how policies and regulations shape the energy landscape and ensure a reliable supply.

By the end of this blog, you’ll have a clear understanding of the energy sector’s complexities and its significance. Whether you’re an industry professional, a policymaker, or simply a curious reader, this blog will provide valuable insights into how our energy systems function and evolve.

So lets proceed with the blog.

Break Down the Basics

The energy industry encompasses all sectors involved in the production and sale of energy, including fuel extraction, manufacturing, refining, and distribution. Modern society consumes large amounts of fuel, making the energy industry a crucial part of infrastructure and maintenance worldwide. This vast and interconnected network of companies powers the economy and supports essential activities such as production and transportation.

Components:

Energy Sources: These are the raw materials we use to generate energy. Think of the oil that fuels your car, the natural gas that heats your home, or the sunlight that powers your solar panels. Other sources include coal, wind, hydro, and nuclear power.

Energy Production: This is the process of converting these raw materials into usable energy, like electricity. Imagine a solar farm harnessing the sun's rays, a power plant turning coal into electricity, or an oil refinery producing gasoline.

Energy Transmission & Distribution: After production, energy must be delivered to where it's needed. Picture electricity traveling through power grids to light up your home, or natural gas flowing through pipelines to your stove.

Energy Consumption: This is how we use energy in our daily lives—turning on lights, heating our homes, cooking dinner, or driving to work. Businesses and industries also rely heavily on energy for their operations.

Energy Markets: This is where energy commodities are bought and sold. Just like any market, prices here can rise and fall depending on supply, demand, and global events.

Regulation & Policy: Governments help ensure that the energy sector operates fairly and sustainably. They might set environmental regulations, promote renewable energy projects, and ensure that energy prices are fair.

Sustainability: This is about ensuring a greener future by reducing our dependence on fossil fuels and increasing our use of renewable energy sources. It's a vital step in combating climate change and protecting our planet for future generations.

Understanding these basics helps connect the dots on how energy affects us all

India Energy Consumption and Supply

India is the third-largest producer of electricity in the world. During the fiscal year (FY) 2022–23, the total electricity generation in the country was 1,844 TWh, of which 1,618 TWh was generated by utilities. The gross electricity consumption per capita in FY2023 was 1,327 kWh.

The Indian national electric grid had an installed capacity of 442.0 GW as of 31 March 2024. Renewable energy plants, including large hydroelectric power plants, constitute 43% of the total installed capacity.

India’s electricity generation is more carbon-intensive (713 grams CO2 per kWh) than the global average (480 gCO2/kWh), with coal accounting for three-quarters of generation in 2023.

The image below is from India Energy by NITI Aayog, showing source of energy supply and this Coal as the 57.66 % of stake.

The image below is from India Energy by NITI Aayog, showing sector-wise energy consumption.

Power statistic in India

The above statistics highlight the importance of the energy sector in India and the need for the government to take steps towards green energy. Utilizing technology will help in optimizing the process.

Impact In environment

Energy and environmental problems are closely related because it is nearly impossible to produce, transport, or consume energy without significant environmental impact. Key environmental problems linked to energy production and consumption include air pollution, climate change, water pollution, thermal pollution, and solid waste disposal.

Air Pollution: The emission of pollutants from fossil fuel combustion is the major cause of urban air pollution. Burning fossil fuels also contributes significantly to greenhouse gas emissions.

Water Pollution: Energy usage is associated with various water pollution problems. Oil spills from petroleum-handling operations and coal mining can pollute water. Changes in groundwater flow from mining operations can lead to acid mine drainage by bringing unpolluted waters into contact with mineral materials.

Thermal Pollution: Energy production processes often release heat into the environment, affecting local ecosystems.

Solid Waste Disposal: Coal mining generates large quantities of waste earth and coal, contributing to solid waste issues.

Global Impact

In today’s interconnected world, the intersection of energy production and environmental conservation is increasingly critical. Energy production, primarily from fossil fuels, significantly contributes to greenhouse gas emissions, especially CO2. According to the International Energy Agency (IEA), the energy sector accounts for a staggering three-quarters of total global greenhouse gas (GHG) emissions. This is unsurprising, as 80% of the world’s energy supply comes from fossil fuels, with oil comprising 30%, coal 27%, and natural gas 24%.

Impact in India

The Source of Energy and how it is float to different sectors.

Below statistic shows that how environment is getting impacted due to increase in buildings and that is impacting the Agriculture, Greenland and Water land.

These environmental impacts underscore the need for cleaner and more sustainable energy solutions.

What is Renewal Energy

Renewable energy, also known as green energy, comes from natural sources that replenish quickly, like sunlight, wind, and water. Popular types include solar power, wind power, and hydropower, with bioenergy and geothermal also important in some places. These energy sources can be used in both cities and rural areas and are becoming more common as they get cheaper and more efficient. Solar and wind energy have seen big price drops, making them competitive with fossil fuels. By 2022, renewable energy made up 30% of global electricity, with expectations to reach 42% by 2028. The main goal of using renewable energy is to reduce climate change by lowering greenhouse gas emissions. While there are challenges, such as fossil fuel subsidies and local opposition, renewable energy causes less pollution and improves public health.

India's Movement Towards Renewable Energy

Progress in Renewal energy till 31st May 2024 where total 193.58 GW installed

The Power sector Overview from Generation to Transmissions to Distribution and Consumptions.

India Forecast for Green Energy

The Ministry of New and Renewable Energy (MNRE) is a ministry of the Government of India responsible for research and development, intellectual property protection, international cooperation, promotion, and coordination in renewable energy sources such as wind power, small hydro, biogas, and solar power.

The broad aim of the ministry is to develop and deploy new and renewable energy to supplement the energy requirements of India.

According to the Ministry's 2016-17 annual report, India has made significant advances in several renewable energy sectors, including solar energy, wind power, and hydroelectricity.

Mission of the Ministry

Energy Security: Reduce dependence on oil imports by developing and deploying alternative fuels (hydrogen, bio-fuels, synthetic fuels). Contribute to bridging the gap between domestic oil supply and demand.

Increase in the Share of Clean Power: Promote renewable energy sources (bio, wind, hydro, solar, geothermal, tidal) to supplement fossil fuel-based electricity generation.

Energy Availability and Access: Supplement energy needs for cooking, heating, motive power, and captive generation in rural, urban, industrial, and commercial sectors.

Energy Affordability: Provide cost-competitive, convenient, safe, and reliable new and renewable energy supply options.

Energy Equity: Achieve per-capita energy consumption at par with the global average level by 2050 through a sustainable and diverse fuel mix.

Reduce Emission Intensity by 2030

Electricity Power from non-fossil fuel

Green Initiatives by 2070

Conclusion

India is shifting from traditional fossil fuels to renewable energy sources like solar and wind power to meet growing energy needs and reduce environmental impact. This change supports long-term energy security and sustainability, making India a key player in the global move towards green energy.

In my next blog, I will cover how technology will help achieve renewable energy.

Reference: https://iced.niti.gov.in/