Ad Here  
July
August
September
October
November
December
 
 
A sound energy strategy... Where is Moily’s prophecy of energy independence? Paying for sins of the past... The rebirth of the Indo-US nuclear collaboration A sun-rise industry turning sun-set Gujarat has 2200km gas grid, TN shuns this! Maha merger – a beginning Riddle wrapped in a mystery CEA versus CEA Clean energy sector catches up with thermal power Game changer in unexpected way Allow market forces to shape destiny Dawn of a New Energy Era? Why has it not fallen enough? A small first step towards the state’s solar mission The time for it is now Awaiting a new(nu) year(clear)! Why ONGC should pay nothing to buy a stake into GSPC’s KG block path Clean energy sector catches up with thermal power A praiseworthy pricing policy Welcome improvements in coal production A golden age of gas? Anachronism of Asian premium Oil sector reform: missed opportunity Ending the mother of all corruption Current impasse short-lived… Piped gas a pipe dream Ambitious goals, uneasy path One of a kind project... Huge under-recoveries continue How prepared are we for the energy transition? Rural prosperity will propel development
 
Ambitious goals, uneasy path
British Petroleum (BP) has published its 65th edition of the Statistical Review of World Energy. This report is the Bible for the world energy industry “that will help inform discussion, debates and decision making.” It carries useful data on India’s energy sector.

In 2015, India’s total primary energy consumption increased by 5.1 per cent against the GDP growth of 7.3 per cent. Given India’s dependence on non-commercial bio-fuel energy sources like firewood, cow dung cakes, crop residues,... plus the government’s desire to make the poor utilise modern sources of energy, it is reasonable to expect the energy growth to GDP growth coefficient to be greater than one.

Alas, as a result of the slow progress in reducing poverty and the failure of successive governments in giving better access to power more than 25 per cent of the poor do not have electricity and the Energy/GDP coefficient has remained less than one.

While a lower energy to DP ratio reflects the success of government policy in managing the energy sector to reduce greenhouse gasses, the ratio of 0.7 for India is unsatisfactory.

Remember, the share of coal in India’s primary energy consumption has increased from 54 per cent to 58 per cent while oil, natural gas, and hydroelectricity have decreased by 3 per cent, 2 per cent and 2 per cent respectively. Despite all the hype and hoopla about modern renewables like solar and wind, their contribution is still only 2 per cent.

Prime Minister Modi has stated that India will strive to reduce oil import dependence by 10 per cent by 2022. He also wants India’s oil import dependence to fall to 50 per cent by 2030 from the current 77 per cent. There are serious doubts as to whether this is attainable.

Energy imports have been steadily increasing from 36 per cent in 2005 to 50 per cent now. While oil production has stagnated in recent years at around 42 million tonnes, gas production has declined. The only bright spot is renewables and with the NDA government’s plan to have 100,000 MW of solar energy by 2022, renewables are likely to contribute significantly to India’s energy requirement.

But this remains an ambitious goal and achieving it will not be simple.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com