It has been universally agreed upon that energy is one of the most important factors for economic growth and human development in any nation. Economic development and energy consumption share a strong two-way relationship. Maturity of an economy, with its global competitiveness, depends on the availability of inordinate, cost-effective and environment-friendly energy sources. The level of economic growth has also been observed to be reliant on the energy demand. In recent years, industrialization and globalization are taking place at a rapid pace in India and that leads to a huge demand on the national infrastructure. Thus, the massive demand for constant power takes place, but India is incapable of generating the amount of electricity required to meet the demand. This is crippling to its economic growth.
Energy is quite competently utilized in the economy though it has started to decrease in recent years. Compared to mature economies, the energy intensity of India is almost double. India’s energy intensity is also a lot higher than the emerging economies such as the Asian countries, which also includes the ASEAN member countries as well as China. One of the key factors that has led to this unprecedented demand for uninterruptable power supply (UPS) is the surge in national population. India ranks fifth in the world in terms of primary energy consumption, responsible for about 3.5% of the world commercial energy demand in the year 2003. Surprisingly, despite the overall increase in energy demand, in India per capita energy consumption is still quite low compared to other developing countries.
Exhaustible and renewable energy resources are available in plenty in India. Coal, oil, and natural gas serve as the three primary commercial energy resources. By far the largest source of energy is coal and it will remain so in the foreseeable future. However, India’s primary energy mix has been changing periodically. Other forms of commercial energy of a much higher quality and efficiency are steadily replacing the traditional energy resources being consumed in the rural sector. But resource augmentation and growth in energy supply has not managed to keep up with increasing demand.
This has led to an increased reliance on imports to meet the uninterruptable energy demand. Increasing pressure of population and increasing use of energy in different sectors of the economy is a prime area of concern for India. It is advisable to conserve energy and reduce energy requirements by demand-side management and by adopting more efficient technologies in all sectors.
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