Energy Scenario in India is characterized by a growing demand driven by its large population and expanding economy. The country relies on a mix of coal, renewable energy, and imported oil, with a strong push towards clean energy transitions. India aims to balance energy security, sustainability, and economic growth.
About Energy Scenario in India
- India’s energy scenario is a dynamic and evolving landscape shaped by rapid economic growth, urbanization, and increasing energy demands.
- As the world’s third-largest energy consumer, India relies heavily on coal, which dominates its energy mix, alongside oil, natural gas, and growing contributions from renewable energy sources like solar and wind.
- The country faces challenges of energy security, affordability, and environmental sustainability, given its heavy dependence on energy imports and rising greenhouse gas emissions.
- To address these issues, India has set ambitious renewable energy targets, including achieving 500 GW of non-fossil fuel capacity by 2030, aligning with its commitment to the Paris Agreement.
- Solar power, in particular, has seen significant growth due to supportive policies and declining costs.
- Despite progress, challenges such as energy access in rural areas, grid modernization, and balancing supply with demand persist.
- India’s energy transition holds critical implications for global sustainability and economic development.
India’s Energy Use
India is the 3rd largest producer of energy in the world during financial year 2022-23.
India’s domestic renewable power generation base is expanding rapidly on the back of various incentives such as concessional loans, Tax holidays, 100 % depreciation allowance etc., in the renewable energy sector. Government has also allowed 100% FDI in renewable energy and there is interaction of government in this field with about 22 countries.
Currently, solar energy is the dominant source as of now, followed by wind energy, biomass energy, etc.
| Installed Generation Capacity (Fuel Wise) as on 31.12.2021 | ||
| Category | Installed Generation Capacity (MW) | % of Share in Total |
| Fossil Fuel | ||
| Coal | 2,03,190 | 51.7% |
| Lignite | 6,620 | 1.7% |
| Gas | 24,900 | 6.3% |
| Diesel | 510 | 0.1% |
| Total Fossil Fuel | 2,35,219 | 59.8% |
| Non-Fossil Fuel | ||
| Renewable Sources of Energy (Incl. Hydro) | 1,51,391 | 38.5% |
| Hydro | 46,512 | 11.9 % |
| Wind, Solar & Other RE | 1,04,879 | 26.5 % |
| Wind | 40,083 | 10.2 % |
| Solar | 49,347 | 12.5 % |
| BM Power/Cogen | 10,176 | 2.6 % |
| Waste to Energy | 434 | 0.1 % |
| Small Hydro Power | 4,839 | 1.2 % |
| Nuclear | 6,780 | 1.7% |
| Total Non-Fossil Fuel | 1,58,171 | 40.2% |
| Total Installed Capacity (Fossil Fuel & Non-Fossil Fuel) | 3,93,389 | 100% |
Now, lets move towards the various energy resources i.e. both renewable and non-renewable, over which our nation’s energy demands depend.
Status of India’s Energy
Energy sector in India is in a transformative phase, marked by rising demand, diversification of energy sources, and ambitious sustainability goals. Here’s a brief overview of the current status:
- Energy Consumption: India is the third-largest energy consumer globally, with demand driven by economic growth, urbanization, and industrialization. Per capita energy consumption, however, remains below the global average.
- Energy Mix:
- Coal: Dominates India’s energy mix, accounting for around 50% of power generation, though its share is gradually decreasing.
- Oil and Gas: India heavily depends on imports for crude oil (85%) and natural gas (50%).
- Renewables: Renewable energy is rapidly growing, contributing approximately 30% to installed capacity, with solar and wind leading the way.
- Hydropower and Nuclear: Play a smaller yet significant role in the overall energy supply.
- Renewable Energy Goals: India aims to achieve 500 GW of renewable capacity by 2030, striving for net-zero carbon emissions by 2070.
- Challenges: Key issues include reliance on imports, energy access in remote areas, grid modernization, and managing the transition to cleaner energy.
India’s energy journey is pivotal in addressing climate change and ensuring global energy sustainability.
Challenges in India’s Energy Scenario
Energy Sector in India faces several significant challenges as it strives to meet rising demand, ensure sustainability, and achieve energy security. Key challenges include:
- Energy Demand and Supply Gap: Rapid urbanization and industrialization have led to a growing demand for energy, outpacing domestic supply capabilities.
- Dependence on Imports: India imports over 85% of its crude oil and 50% of its natural gas, exposing the economy to volatile global prices and supply disruptions.
- Coal Dependence: Despite efforts to diversify, coal remains the backbone of energy sector in India, contributing to high carbon emissions and environmental concerns.
- Renewable Energy Integration: Transitioning to renewable energy faces challenges in terms of grid infrastructure, storage technology, and managing intermittent power supply.
- Energy Access: Rural areas and remote regions still struggle with reliable and affordable electricity.
- Financial Constraints: Discoms (distribution companies) face financial instability due to inefficiencies, losses, and tariff-related issues.
- Environmental Impact: High reliance on fossil fuels contributes to air pollution, greenhouse gas emissions, and ecological degradation.
Addressing these challenges requires focused policies, investments, and technological innovations for a sustainable and resilient energy future.
Way Forward
- India’s energy future hinges on balancing growth, sustainability, and security. Expanding renewable energy capacity, particularly solar and wind, is critical to reducing dependence on fossil fuels. Modernizing the grid for efficiency and integrating distributed energy systems will enhance reliability.
- Investing in energy storage and green hydrogen technologies can address intermittency challenges.
- Diversifying energy sources and boosting domestic production of oil, gas, and biofuels will enhance energy security. Accelerating rural electrification and promoting energy efficiency can ensure inclusive and sustainable development.
Conclusion
Energy Scenario in India reflects a critical transition towards sustainability and energy security amid rising demand. Balancing fossil fuels with renewables, India is striving to achieve ambitious clean energy targets.
Overcoming challenges like import dependency and equitable energy access is vital for fostering economic growth while contributing to global environmental goals.
FAQs
Which source of energy has the highest reserve in India?
In India, coal has the highest energy reserves, accounting for over 300 billion tonnes, making it the primary source of energy. It supports thermal power generation and industrial use. Despite its abundance, India’s focus is shifting toward renewable sources to reduce dependence on coal and address environmental concerns.
Which state is the largest producer of energy in India?
Maharashtra is the largest producer of energy in India, with a diverse mix of thermal, hydro, nuclear, and renewable power plants. Its industrialization and population drive high energy demand. The state also leads in renewable energy production, especially wind and solar, contributing significantly to India’s energy capacity.
Which energy source contributes the most in India?
Coal contributes the most to India’s energy production, accounting for around 55-60% of the total electricity generation. It is the backbone of India’s thermal power plants, driving industrial and domestic energy needs. Despite growing renewable energy investments, coal remains dominant due to its abundant reserves and established infrastructure.
