SIMPERION IAS

ENERGY

Energy is a critical aspect of the nation's growth, focusing on efficient and sustainable energy
production and consumption. Achieving energy independence by 2047 is a primary goal, ensuring a
stable and reliable energy supply.

The two major sources of energy:

• Renewable Energy
• Non-Renewable Energy

Developing a robust energy infrastructure is essential for economic growth, environmental protection,
and national security. Emphasizing technological advancements, policy frameworks, and global
partnerships can accelerate the transition to a sustainable energy future.

Energy Sector and Related Constitutional Articles:

1. Article 246: Legislative powers distribution

✓ Union List: Oil, petroleum regulation
✓ State List: Gasworks regulation
✓ Concurrent List: Electricity regulation
2. Article 262: Inter- State River water disputes
3. Article 48A: Environment protection
4. Article 51A(g): Citizen duty for environment

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Key Facts About India's Energy Sector

1. Coal Dominance: 55% of energy needs; 3rd largest importer/consumer.

2. Renewables: 152.90 GW (2024); 50% target by 2030.
3. Natural Gas: Increase to 15% by 2030 (currently 6.7%).
4. Energy Storage: 5th largest market by 2030.
5. Solar Growth: 59% CAGR since 2011; 300 GW target by 2030.
6. Non-Fossil Fuel: 500 GW target by 2030; 450 GW renewable target.
7. Oil Supply: Russia is top supplier.
8. Emission Reduction: 33-35% reduction by 2030; net-zero by 2070 under Paris Agreement
commitment.

9. Installed Capacity:
✓ Renewable Energy: 150+ GW as of June 2024
✓ Wind: 46.7 GW
✓ Solar: 85.5 GW

10. Installed capacity Global Rankings:

✓ Renewable Energy: 4th globally
✓ Wind Power: 4th globally
✓ Solar Power: 5th globally

11. India has been ranked 63rd on the World Economic Forum's Energy Transition Index (ETI) for
2024. This index evaluates countries based on their progress in transitioning to cleaner energy
sources and sustainable practices

SDGs and Energy Sector

✓ SDG 7: Affordable and Clean Energy: Universal household electrification.

✓ SDG 13: Climate Action: Emission Reduction under Paris agreement: 33-35% by 2030.
✓ SDG 9: Industry, Innovation, Infrastructure: Smart Grids
✓ SDG 11: Sustainable Cities: Urban Solar rooftops.
✓ SDG 12: Responsible Consumption: Waste to Energy- Bio Energy
✓ SDG 8: Decent Work, Economic Growth- Job creation in renewable energy Industry

Supply Chain of Energy Sector:

3 Stages in Supply Chain

1. Generation
2. Transmission
3. Distribution

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Issues and Challenges with the Energy Sector of India

1. Coordination Challenges: Inefficient inter-agency coordination.

2. Fossil Fuel Dependency: 80% reliance on fossil fuels.
3. High technical and commercial Losses: 19% aggregate transmission losses.
4. State Discoms Financial Health: DISCOMs facing severe financial strain.
5. Policy Inconsistencies: Few provisions of the electricity act 2003 is inconsistence with national
electricity policy.
6. Subsidies and Taxes: Various subsidy and tax structure distort energy market.
7. Coal Supply Gap: Shortfall affecting energy production.
8. Tariff Issues: In some cases, Tariffs are less than cost of generation.

Government Initiatives for the Energy Sector in India

1. National Solar Mission: Achieve 300 GW solar capacity by 2030.

2. Ujjwala Yojana: Provide LPG to 80 million households.
3. Green Energy Corridors: Facilitate renewable energy transmission.
4. Saubhagya Scheme: Achieve universal household electrification.
5. National Wind-Solar Hybrid Policy: Promote wind-solar hybrid systems.
6. PM-KUSUM: Promote solar energy in agriculture.
7. Perform, Achieve, and Trade (PAT) Scheme: Improve energy efficiency in industries.
8. National Hydrogen Mission: Promote green hydrogen usage.
9. Deen Dayal Upadhyaya Gram Jyoti Yojana DDUGJY: Strengthen rural electricity
infrastructure.
10. SAMADHAN Scheme: Resolve stressed assets in the power sector.
11. UJALA: Distribute affordable LED bulbs to households.
12. BEE-Star Rating: Enhance energy efficiency in appliances and buildings
13. UDAY (Ujwal DISCOM Assurance Yojana): Enhance financial health and efficiency of
DISCOMs

Recent Achievements in India's Energy Sector

1. Renewable Energy Capacity Expansion: 150+ GW installed

2. Electrification Initiatives: Saubhagya Scheme: 26 million households electrified
3. Energy Efficiency Programs: UJALA: Over 360 million LED bulbs distributed
4. Policy and Regulatory Reforms
o National Hydrogen Mission: Launched to promote green hydrogen
o Green Energy Corridors: Infrastructure developed for renewable integration
5. Ethanol Blending: Achieved 10% ethanol blending in petrol by 2022
6. Solar Tariff Reduction: Solar tariffs reduced to ₹2.44 per unit, among the lowest globally
7. Reduced Transmission Loss: Reduction to approximately 18.5% in 2023 from higher rates in
previous years
8. Reduced Carbon Footprint: Because of adoption of renewable energy
9. International collaboration: International solar alliance

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Recent achievements in Power sector

Achievements in Renewable Energy Targets

1. Installed Renewable Capacity:150+ GW total installed

2. Solar Energy Growth: 85.47 GW installed, 5th globally
3. Wind Energy Expansion: 46.92 GW installed, 4th globally
4. Ethanol Blending: 10% blending in petrol achieved
5. Solar Tariff Reduction: Tariffs reduced to ₹2.44 per unit, one of the lowest globally.
6. PM-KUSUM Scheme: 2.46 lakh farmers benefitted
7. Green Energy Corridors: Integration of renewable energy source to national grid
8. International Solar Alliance: India is a founding member

DISCOMs (Distribution Companies) are responsible for the distribution and supply of
electricity to consumers and play a critical role in the power sector.

Problems with DISCOMs:

1. High aggregate technical and commercial Losses: 20-25% losses causing revenue loss
2. Financial Instability: Total ₹4.3 lakh crore debt
3. Operational Inefficiencies: Outdated infrastructure, frequent outages
4. Tariff Issues: Tariffs are lower than power generation cost. Tariffs are not rationalised.

Government initiatives:

1. Ujwal DISCOM Assurance Yojana (UDAY): Financial turnaround and revival of DISCOMs.
2. Revamped Distribution Sector Scheme (RDSS): Improve operational efficiencies and financial
sustainability of DISCOMs.
3. Integrated Power Development Scheme (IPDS): Strengthen sub-transmission and distribution
networks in urban areas.

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Resume of Non-Conventional Energy Sources in India:

1. Solar Energy: 85.47 GW installed, 5th largest globally

2. Wind Energy: 46.92 GW installed, 4th largest globally
3. Biomass Energy: Approximately 10 GW installed
4. Small Hydropower: 4.83 GW from small hydropower projects (up to 25 MW)
5. Geothermal Energy: 10 GW identified, primarily in regions like Gujarat and Himachal Pradesh
6. Tidal Energy: Estimated at 12,455 MW, primarily in Gujarat and West Bengal
7. Hydrogen Fuel Energy: Significant potential for green hydrogen production, with several pilot
projects underway.

Alternative fuels are non-conventional energy sources used in place of traditional fossil fuels, such as
biofuels, hydrogen, and electricity. These fuels offer significant environmental and economic benefits,
aligning with India's energy security and sustainability goals

Challenges in Adopting Alternative Fuels

1. Infrastructure Development: Limited
refuelling and charging stations.
2. High Initial Costs: Expensive vehicles
and infrastructure.
3. Technological Barriers: Need for better
batteries and hydrogen production.
4. Public Awareness: Low consumer
knowledge and acceptance.

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Opportunities of Alternative Fuels

1. Environmental Benefits: Reduced emissions and cleaner air.

2. Energy Security: Less reliance on imported fossil fuels.
3. Economic Growth: New industries and job creation.
4. Technological Innovation: Advances in EVs and hydrogen fuel cells.

Schemes:

✓ Ethanol Blending Program: Blend ethanol with petrol 20% by 2025.

✓ FAME India Scheme: Promote electric and hybrid vehicles.
✓ National Hydrogen Mission: Develop and scale hydrogen use.

Potential of Solar Energy: Solar energy is energy harnessed from sun.

1. Abundant Resource: India receives about 5,000 trillion kWh of solar radiation annually. Tropical
country.
2. Environmental Benefits: Reduces CO2 emissions; cuts 39 million tons annually in India.
3. Energy Security: Decreases fossil fuel reliance; aims for 100 GW solar capacity.
4. Economic Growth: Creates jobs; 136,000 employed in India’s solar sector (2020).
5. Cost-Effectiveness: Solar PV costs dropped 82% globally (2010-2019).
6. Scalability: Ranges from small rooftops to large farms like Bhadla Solar Park.
7. Technological Advancements: Innovations in PV cells and storage enhance efficiency.
8. Rural Electrification: Supports remote electrification; Saubhagya scheme benefits.

Regional variation in Adoption of Solar Energy:

1. Geographic Disparities: Solar potential varies with geography. Rajasthan and Gujarat have
higher solar irradiance compared to northeastern states.
2. Infrastructure Development: Regions with better infrastructure see faster solar adoption. States
like Karnataka and Tamil Nadu have advanced grid infrastructure supporting solar power.
3. Government Policies: State policies and incentives impact solar development. Gujarat’s Solar
Power Policy offers various subsidies and incentives, promoting rapid growth.
4. Economic Factors: Wealthier regions invest more in solar energy. Maharashtra, being
economically advanced, has substantial solar installations.
5. Land Availability: Availability of land influences solar farm development. Rajasthan’s vast
desert lands provide ample space for large solar projects.
6. Investment and Funding: Access to finance varies regionally, affecting solar projects. States
with better financial mechanisms, like Andhra Pradesh, attract more investments.
7. Local Climate: Climatic conditions affect solar energy generation. Regions with high solar
insolation and fewer cloudy days, like Telangana, are more suitable for solar power.
8. Community Awareness: Public awareness and acceptance drive adoption. States with robust
awareness programs, like Kerala, see higher rooftop solar installations.

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Potential of Wind Energy in India:

1. Abundant Wind Resources: High wind speed regions in states like Gujarat, Tamil Nadu,
Maharashtra, Karnataka, and Rajasthan. Example: Tamil Nadu’s installed capacity exceeds 9,000
MW.
2. Government Policies and Incentives: Supportive policies like the National Wind-Solar Hybrid
Policy attracts significant investment.
3. Technological Advancements: Improved turbine technology and grid integration enhance
efficiency. Example: Larger turbines in Gujarat and Maharashtra increase capacity.
4. Offshore Wind Potential: High potential along Gujarat and Tamil Nadu coasts. Example: The
1,000 MW offshore project in Gujarat.
5. Environmental Benefits: Reduces greenhouse gas emissions, supporting India’s Paris Agreement
commitments. Wind farms mitigate millions of tons of CO2 annually.

Reason for Variation in availability of wind energy

Geographic Factors

1. Wind Speed Variability: Coastal Gujarat has higher wind speeds than inland regions.
2. Topography: The Western Ghats limit wind farm expansion due to obstructed wind flow.
3. Proximity to Grid: Offshore wind farms near Tamil Nadu benefit from grid connectivity.
4. Land Availability: Rajasthan’s Thar Desert offers suitable land, unlike densely populated urban
areas.

Technical Factors

1. Turbine Technology: Advanced turbines in Gujarat are more efficient than outdated models.
2. Grid Integration: Smart grids in Tamil Nadu accommodate and distribute wind energy
effectively.

Economic Factors

1. High Initial Investment: High upfront costs in Maharashtra deter smaller investors.
2. Land Acquisition Costs: Expensive land in Kerala makes wind energy projects less viable

Way Forward for India's Energy Sector

• Diversification of Energy Sources: Increase renewable energy utilization.
• Grid Modernization and Integration: Improve grid efficiency and reliability.
• Energy Efficiency and Conservation: Enhance energy efficiency and conservation.
• Promoting Energy Storage Solutions: Develop large-scale energy storage systems.
• Unified Energy Ministry: Streamline policy and implementation.
• Smart Grids and Meters: Enhance energy management and accuracy.
• Renewable Energy Adoption: Promote incentives and public awareness.
• Solving DISCOM Issues: Reform and financial support distribution companies.

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"Energy is the cornerstone of India's development. A robust and sustainable energy sector is crucial for
achieving economic growth, improving quality of life, and ensuring environmental sustainability."

"Energy access is a critical enabler for development and a pathway to lift millions out of poverty." -
Narendra Modi

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