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9th March 2023 (8 Topics)

India’s increasing power demands


In 2022, India’s power demand grew about 8%, at nearly double the pace of the Asia Pacific region something to more than 149.7 terawatt-hours (TWh) from 2021.

Power consumption data:

  • Over 80% of India’s energy needs are met by three fuels: coal, oil and solid biomass.
  • Coal has underpinned the expansion of electricity generation and industry, and remains the largest single fuel in the energy mix.
  • Oil consumption and imports have grown rapidly on account of rising vehicle ownership and road transport use.
  • Biomass, primarily fuel wood, makes up a declining share of the energy mix, but is still widely used as a cooking fuel.

Despite recent success in expanding coverage of LPG in rural areas, 660 million Indians have not fully switched to modern, clean cooking fuels or technologies.

Impacts of more consumption:

  • India is the third-largest global emitter of CO2, despite low per capita CO2 emissions.
  • The carbon intensity of its power sector in particular is well above the global average.
  • Additionally, particulate matter emissions are a major factor in air pollution, which has emerged as one of India’s most sensitive social and environmental issues: in 2019, there were well over one million premature deaths related to ambient and household air pollution.

Sources of power generation in India:

  • The Overall generation in the country has been increased from 1048.673 during 2014-15 to 1107.386 BU* during the year 2015-16.
  • The Category wise generation performance as follows: Thermal Increased by 7.45 %, Hydro Reduced by 6.09 %, and Nuclear Increased by 3.63 %.
  • Overall leader of electricity generation in India is thermal power (68%) of total power generation in India.

Why power demand is increasing?

  • Household consumption increasing: Homes account for a fourth, while agriculture has accounted for over a sixth in the recent years.
  • Consumption patterns vary wildly by state and season:
    • A heatwaves and easing of COVID-19 curbs drove power demand higher in the first half of 2022.
    • Erratic weather and a jump in agricultural activity were among the most prominent reasons behind the high growth in the second half of last year, according to a federal power ministry presentation reviewed by Reuters.
    • Uneven dry spells in few Northern states.
  • Higher Industrial demand: Industrial and commercial activity account for more than half of India’s annual power use.
  • Less sustainability of renewable energy sources: The powers sources like solar are less obtained for high energy consumption like for AC or a washing machine in households and large machines in Industries’.
    • Even they are liable to more installation cost.

Government interventions:

  • Under the Union Budget 2022-23, the government announced the issuance of sovereign green bonds, as well as conferring infrastructure status to energy storage systems, including grid-scale battery systems.
  • In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost the manufacturing of high-efficiency solar modules.
  • Electrification in the country is increasing with support from schemes like Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY), and Integrated Power Development Scheme (IPDS).
  • India has launched the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme to provide energy and water security, de-dieselise the farm sector and generate additional income for farmers by producing solar power

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