Energy demand in India, one of the world’s fasting growing major economies is increasing at a staggering rate. Since 2000, India has been responsible for almost 10% of the increase in global energy demand and its energy demand since then has almost doubled from about 441 Mtoe to about 775 Mtoe. This increase means that India's total power requirement is 5.7% of global energy demand.
According to estimates, this energy demand is further expected to increase to about 1250 (estimated by International Energy Agency) to 1500 (estimated in the Integrated Energy Policy Report) Mtoe in 2030. The potential for further growth is enormous with India eying to become a major manufacturing hub for the world.
To meet its enormous demand, India depends on its domestic production as well as imports. This shortage in domestic production led to imports of around 32% of its annual energy demand in year 2013. Looking at the rate of increase in domestic power generation, which is far below the consumption needs, India is looking at an import figure of 40% of its energy supply by year 2040.
Indian government while trying to fill this gap is focusing on efficient use of energy in the demand side through various innovative policy measures under Energy Conservation Act 2001. Bureau of Energy Efficiency (BEE), under Ministry of Power is responsible for improvement of energy efficiency in the economy. Some of the key mandates are: Standards & labeling of equipment and appliances, energy conservation building codes for commercial buildings and energy consumption norms for energy intensive industries.
There is a focus on shifting to renewable sources of energy to ensuring minimum growth in CO2 emissions, so that the global emissions do not lead to an irreversible damage to the earth system.
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