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When it comes to energy consumption, India’s per capita primary energy consumption is nothing to write home about. In fact, at this point of time, it is the lowest among all major developing economies in the world. This, according to many analysts, can mostly be attributed to the nature of the economy, which is service-oriented. Countries like Brazil, 

Argentina and Mexico have a GDP mix similar to that of India. Put India side by side with these countries, and the same holds true. Another reason why India has a low per capita energy consumption is that India has a large rural population and this rural population depends on non-commercial sources to meet its energy requirements. There is no denying the fact that the more the country moves towards urbanization, the higher would be the energy demand and consumption.
 
A recent study by PricewaterhouseCoopers (PwC), one of the Big4 firms, says that India is poised to make a significant mark on the world energy map as its primary energy requirement at the very least more than doubles to 1,464 Mtoe by 2035 from 559 Mtoe in 2011. India is  also expected to double its share in global primary energy consumption by 2035. PwC study also quoted International Energy Agency, BP Statistical Review 2012
in support of this.
 
With this comes the much talked about dream of attaining energy security. After all, who doesn’t want to achieve that? But for a country like India which so heavily depends on I imports and at the same time is emerging as a matured economy, the importance of being energy secured can hardly be over emphasized. The good news is India has achieved considerable successes in hydrocarbon explorations over the last one decade or so. That should give the country some confidence and encouragement to go whole hog for achieving energy security. Like many other countries, India also has its economic constraints, which in turn, prompt India to reduce dependency on oil and gas imports and develop capabilities in domestic hydrocarbon exploration and production. The oil and gas sector in India has also untapped potential and calls for more intense exploration.
 
Talking about the power sector, another important constituent of the energy sector, the electricity sector in India has an installed capacity of 214.630 GW as of February 2013, the world's fifth largest. Captive power plants generate an additional 31.5 GW. Non Renewable Power Plants constitute 87.55 per cent of the installed capacity and 12.45 per cent of Renewable Capacity. India generated 855 BU (855 000 MU i.e. 855 TWh) electricity during 2011–12 fiscal. In terms of fuel, coal-fired plants account for 57 per cent of India's installed electricity capacity, compared to South Africa's 92 per cent; China's 77 per cent; and Australia's 76 per cent. After coal, renewal hydropower accounts for 19 per cent, renewable energy for 12 per cent and natural gas for about 9 per cent.  And it is this heavy dependence on coal-fired plants that really sounds a warning bell. While the fuel situation in the rest of Asia is more or less stable, India faces acute fuel shortage particularly for private-sector utilities, says a recent report by Moody's Investors Service. The report titled "Asian Power Utilities (ex-Japan): Broad Stable Outlook; India an Outlier" says, "Moody's sees the Indian power sector as an outlier because of continued inefficiencies across the value chain, spanning feedstock supply and power generation to transmission, distribution and retail."
 
It is in these contexts, we thought of bringing out ‘Energy Ensemble” to offer a 360 degree coverage of not only India’s but the global energy sector. Because we sincerely believe information is knowledge and knowledge is power. At our end, there is a turbocharged team of energy journos and we are confident that our readers will also get relentlessly re-charged with the power of knowledge.
 
Keep reading “Energy Ensemble” and we can assure you there will be no power cut from our side!

Team Energy Ensemble
 

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