Power in India

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Topic 5: Power in India
Introduction
For any country to achieve sustained economic growth, the most important is the growth of infrastructure sector and hence the development of power sector. Energy in general and electrical energy in particular is the basic need for any kind of socio-economic developmental activities. There is direct causal relationship between energy consumption and G.D.P. growth in India as shown in the figure - 1.

Figure [ 1 ] Per Capita Electricity consumption vs. GDP (Source: Sajal Ghosh, 2000. Electricity consumption and economic growth in India.)

Various studies have shown that reducing electricity consumption lowers the income also. Therefore, for a country to become superpower, first and the most important thing is to become energy sufficient like USA and other developed countries.

Electricity: Demand and Supply in India
India has achieved an increment of 5.6% in energy availability and 6% in peak demand met as per FY 2010-11 data but at the same time our country faced an energy deficit of 8.5% and a peak deficit of 9.8% in the same year. The expected values of these deficits are 10% and 13% respectively in FY 2011-12.

Figure 2 Energy Requirement vs. Availability (Source: CEA Load Balance Report 2011-12)

Figure [ 3 ] Peak Demand vs. Met Demand (Source: CEA Load Balance Report 2011-12)

India is among the countries having very low average per capita consumption of electricity. Though it has grown steadily at 1.3% CAGR yearly over the last 10 years but it is still a mere 478 kWh according to 2010 statistics. The noticeable thing is that not only the world average per capita consumption is a way higher at 2,300 kWh but also we are far behind the other comparable countries, like the other BRIC nations.

Figure [ 4 ] Per Capita Electricity, year 2010 (Source: CIA fact book)

Source-wise generating capacity in India
The total installed power generation capacity as on 30.08.2011 was 1,81,558 MW. This was...
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