Energy policy of India
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The
The
In 2020-21, the
Indian solar power PV tariff has fallen to ₹2.44 (3.1¢ US) per
The energy policy of
Oil and gas
India ranks third in oil consumption with 4.669 million barrels/day in 2020 after USA and China. During the calendar year 2019, India imported 221.7 million tons of crude oil and 44.4 million tons of refined petroleum products and exported 60.7 million tons of refined petroleum products. India is the second biggest net importer of crude oil and its products after China.[39] India has built surplus world-class refining capacity using imported crude oil for exporting refined petroleum products. The net imports of crude oil is lesser by one fourth after accounting exports and imports of refined petroleum products.[40] Natural gas production was 26.9 billion cubic meters and consumption 59.7 billion cubic meters during the calendar year 2019.
During the financial year 2012–13, the production of crude oil was 37.86 million tons and 40,679 million standard cubic meters (nearly 26.85 million tons)
The state-owned Oil and Natural Gas Corporation (ONGC) acquired shares in oil fields in countries like Sudan, Syria, Iran, and Nigeria – investments that have led to diplomatic tensions with the United States.
India has nearly 63
Coal
India has the world's 3rd largest proven
India is the second largest producer of coal in 2023.
India has recently approved the construction of new coal-fired power stations to address its increasing electricity needs, which are driven by the nation's rapid economic growth. Despite facing criticism for environmental pollution and contributing to global greenhouse emissions, these actions reflect India's practical approach to ensure a stable energy supply. Additionally, the government has extended the operational life of older coal plants, such as the Tuticorin facility, highlighting coal's continued importance in India's energy strategy, even as the country works toward incorporating more renewable energy sources.
India has pledged to decrease its dependence on coal, but the demands of its rapidly growing economy and increasing energy requirements tell a different story. The Tuticorin power plant in southern India, which was scheduled to be shut down because it could not meet pollution standards, continues to operate at high capacity. This scenario is indicative of a wider national trend where the need for consistent and reliable electricity often takes precedence over environmental concerns. Consequently, many older coal-fired power stations throughout India remain operational and are even undergoing expansions. Faced with the challenge of ensuring a steady power supply, the Indian government has often prioritized meeting its immediate energy needs over fulfilling its environmental promises, leading to a renewed reliance on coal. This situation has important ramifications for India's environmental targets and its contribution to global efforts aimed at reducing dependence on fossil fuels.[90]
Bio-fuels
A huge quantity of imported coal is being used in pulverized coal-fired power stations. Raw biomass can not be used in pulverized coal mills as they are difficult to grind into fine powder due to
In cement production, carbon-neutral biomass is being used to replace coal for reducing carbon footprint drastically.[100][101]
Reliance Industries is already producing hydrogen from Torrefied Biomass from its pet coke/coal gasifiers and planning to install a blue hydrogen pilot plant of 50 tonnes per day plant using a catalytic gasification process.[109] India's three Oil Marketing Companies (OMCs) are currently setting up 12 second-generation ethanol plants across the country which will collect agriculture waste from farmers and convert it into bio-ethanol.[110][111] In 2018, India has set a target to produce 15 million tons of biogas/bio-CNG by installing 5,000 large scale commercial type biogas plants which can produce daily 12.5 tons of bio-CNG by each plant.[112][113] As of May 2022, nearly 35 such plants are in operation.[114]
Biopropane is also produced from non-edible vegetable oils, used cooking oil, waste animal fats, etc.[115][116]
Nuclear power
India boasts a quickly advancing and active nuclear power program. It is expected to have 20 GW of nuclear capacity by 2020, though it currently stands as 9th in the world in terms of nuclear capacity.
An Achilles' heel of the Indian nuclear power program, is the fact that India is not a signatory of the
India has been using imported enriched uranium and is under International Atomic Energy Agency (IAEA) safeguards, but it has developed various aspects of the nuclear fuel cycle to support its reactors. The development of select technologies has been strongly affected by limited imports. The use of heavy-water reactors has been particularly attractive for the nation because it allows uranium to be burnt with little to no enrichment. India has also done a great amount of work in the development of a thorium-centered fuel cycle. While uranium deposits in the nation are extremely limited, there are much greater reserves of thorium, and it could provide hundreds of times the energy with the same mass of fuel. The fact that thorium can theoretically be utilized in heavy water reactors has tied the development of the two. A prototype reactor that would burn uranium-plutonium fuel while irradiating a thorium blanket is under construction at the Madras/Kalpakkam Atomic Power Station.
Uranium used for the weapons program has been separate from the power program using uranium from scant indigenous reserves.
Hydro electricity
India is endowed with economically exploitable and viable hydro potential assessed to be about 125,570 MW at 60% capacity factor.[117] India ranked fourth globally by underutilized hydropower potential. In addition, 6,780 MW in terms of installed capacity from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes (PSS) with an aggregate installed capacity of 94,000 MW have been identified for catering to peak electricity demand and water pumping for irrigation needs.[118] It is the most widely used form of renewable energy but the economically exploitable hydropower potential keeps on varying due to technological developments and the comparable cost of electricity generation from other sources.[citation needed] The hydro-electric potential of India ranks 5th in terms of exploitable hydro-potential on the global scenario.
The installed capacity of hydropower is 45,315 MW as of 31 May 2018.
Wind power
India has the fourth largest installed wind power capacity in the world.
Solar energy
India's
Installation of solar power PV plants requires nearly 2.0 hectares (5 acres) of land per MW capacity which is similar to coal-fired power plants when life cycle coal mining, consumptive water storage & ash disposal areas are also accounted for, and hydropower plants when submergence area of the water reservoir is also accounted. 1.6 million MW capacity solar plants can be installed in India on its 1% land (32,000 square km). There are vast tracts of land suitable for solar power in all parts of India exceeding 8% of its total area which are unproductive barren and devoid of vegetation.[134] Part of wastelands (32,000 square km) when installed with solar power plants can produce 2400 billion kWh of electricity (two times the total generation in 2013-14) with land productivity/yield of 0.9 million Rs per acre (3 Rs/kWh price) which is at par with many industrial areas and many times more than the best productive irrigated agriculture lands.[135] Moreover, these solar power units are not dependent on the supply of any raw material and are self productive. There is unlimited scope for solar electricity to replace all fossil fuel energy requirements (natural gas, coal, lignite, and crude oil) if all the marginally productive lands are occupied by solar power plants in the future. The solar power potential of India can meet perennially to cater to per capita energy consumption at par with USA/Japan for the peak population in its demographic transition.[136]
Solar thermal power
The installed capacity of commercial
Synergy with irrigation water pumping and hydropower stations
The major disadvantage of solar power (PV type only) is that it can not produce electricity during the nighttime and cloudy daytime also. In India, this disadvantage can be overcome by installing
Electric vehicles
The retail prices of
The retail price of diesel is 101.00 Rs/liter in 2021–22, and the retail price of petrol was 110.00 ₹/liter. The affordable electricity retail price (860 kcal/kWh at 75% input electricity to shaft power conversion efficiency) to replace diesel (lower heating value 8572 kcal/liter at 40%
V2G is also feasible with electricity-driven vehicles for catering to the peak load in the electricity grid. Electricity-driven vehicles would become popular in the future when the energy storage / battery technology becomes more compact, lesser density, longer lasting, and maintenance-free.[146][147]
Hydrogen energy
The national hydrogen energy road map is constantly evolving in India by consolidating various capabilities at institutional and research centers.[148] The Hydrogen Energy program started in India after joining the IPHE (International Partnership for Hydrogen Economy) in the year 2003.
Hydrogen is a
The excess power generation capacity available in India is nearly 500 billion units/year presently and another 75,000 MW conventional power generating capacity is in pipeline excluding the targeted 175,000 MW renewable power by 2022.[167][168][11] The hydrogen fuel generated by 500 billion units of electricity can replace all diesel and petrol consumed by heavy and medium duty vehicles in India completely obviating the need of crude oil imports for internal consumption.[169] Use of hydrogen as fuel to replace jet fuel by aircraft is also a promising proposition.[170] Converting petrol/diesel driven road vehicles in to fuel cell electric vehicles on priority would save the huge import cost of crude oil and transform the stranded electricity infrastructure into productive assets with major boost to the overall economic growth.[171] Hydrogen spiked CNG is made available in Delhi to reduce pollution emissions from BS-IV compliant old buses.[172]
Electricity as a substitute for imported LPG and PNG
The net import of LPG was 16.607 million tons and the total consumption was 28.33 million tons and the domestic consumption was 25.502 million tons which is 90% of total consumption in 2021–22.[41][173] The LPG import content is nearly 57% of total consumption in India in 2021-22. The affordable electricity retail price (860 kcal/kWh at 74% heating efficiency) to replace LPG (lower heating value 11,000 kcal/kg at 40% heating efficiency) in domestic cooking is up to 10.2 Rs/kWh when the retail price of an LPG cylinder is Rs 1000 (without subsidy) with 14.2 kg LPG content.[174] Replacing LPG consumption with electricity reduces its imports substantially.[175]
India's
The domestic consumption of
During the year 2021-22, The
Since December 2018, IPPs have been offering to sell solar power below 2.90 Rs/kWh to feed into the high-voltage grid.
Energy trading with neighboring countries
The per capita electricity consumption is low compared to many countries despite cheaper electricity tariff in India.[192] Despite low electricity per capita consumption in India, the country is going to achieve surplus electricity generation during the 12th plan (2012 to 2017) period provided its coal production and transport infrastructure is developed adequately.[193][194][195] India has been exporting electricity to Bangladesh and Nepal and importing excess electricity in Bhutan.[196][197] Surplus electricity can be exported to the neighbouring countries in return for natural gas supplies from Pakistan, Bangladesh and Myanmar.[198]
Bangladesh, Myanmar, and Pakistan are producing substantial natural gas and using for electricity generation purposes.[199] Bangladesh, Myanmar and Pakistan produce 55 million cubic metres per day (mcmd), 9 mcmd and 118 mcmd out of which 20 mcmd, 1.4 mcmd and 34 mcmd are consumed for electricity generation respectively.[200][201] Whereas the natural gas production in India is not even adequate to meet its non-electricity requirements.[202]
Bangladesh, Myanmar, and Pakistan have proven reserves of 200 billion cubic meters (bcm), 1200 bcm, and 500 bcm respectively.
India's
In 2015, Nepal imported 224.21 MW of electric power from India, and Bangladesh imported 500 MW.[210][211] In 2018, Bangladesh proposed importing 10,000 MW power from India.[212] To encourage the carbon neutral solar power generation, plans are made to transform the Indian national grid into a transnational grid expanding up to Vietnam towards east and Saudi Arabia towards west spanning nearly 7,000 km wide.[213][214] Being at the central location of the widened grid, India will be able to import the excess solar power available outside its territory at cheaper prices to meet the morning and evening peak load power demands without much costly energy storage.[215]
Policy framework
In general, India's strategy is to encourage the development of
The following trends are manifested in the energy policy to achieve energy self-sufficiency, least pollution, climate change mitigation, and long-term sustainability.[217][145]
Purpose | Preferred fuel | Next preferred fuel | Least preferred fuel |
---|---|---|---|
Mobile military hardware | Indigenous diesel, Indigenous petrol | Ethanol, Biodiesel | Nil |
Air transport | Bioethanol,[220]
|
LNG, Ammonia[221] | ATF, HSK |
Marine transport | Bioethanol , Nuclear fuel, battery power.
|
Pyrolysis oil, LNG, CNG, FCEV. | LDO, HFO, Bunker fuel, Diesel[222] |
Heavy-duty road vehicles | FCEV, Battery power | Bio methanol, Bioethanol, Biodiesel,[223] LNG, CNG, LPG | Diesel, Animal draught power |
Passenger four-wheel vehicles | Battery power, FCEV | Biodiesel, Bio methanol, Bioethanol, LPG, CNG | Diesel, Petrol |
Passenger two/three-wheel vehicles | Battery power | Biodiesel, Bio methanol, Bioethanol, LPG, CNG | Petrol, Animal draught power |
Railways | Electricity, FCEV | Biodiesel, Bio methanol, Bioethanol, LNG, LPG | Diesel |
Illumination/ Lighting | Electricity, Bio CNG | CNG, LPG | Kerosene |
Cooking | Electricity, Bio methanol, Bio CNG | CNG, Biochar | Kerosene, LPG, Firewood |
Space & water heating | Electricity, Pyrolysis oil, Biochar, Solar energy, Bio methanol, Bio CNG | CNG | Kerosene, LPG, Firewood |
Commercial / Domestic - appliances | Electricity | Battery power, Biomethanol, Bioethanol | Diesel, Petrol, LPG, CNG |
Industrial-motive power | Electricity, Bio methanol, Bioethanol, Bio CNG | Biodiesel, Pyrolysis oil | CNG, LPG, Diesel, Petrol |
Industrial- heating | Electricity, Solar thermal energy, Biomass, Pyrolysis oil, Biochar | Biogas, PNG | Kerosene, LPG, Firewood |
Urea fertilizer | Biogas / syngas, Biochar, Electricity, Biomass | Natural gas, Indigenous petcock | Naphtha, Coal |
Pipeline transport | Electricity | Biodiesel, Hydrogen fuel cell generator | Natural gas, Diesel |
Water pumping | Electricity, Biodiesel | LPG | Kerosene, Diesel, Petrol |
Agriculture- heating & drying | Biomass, Pyrolysis oil, Solar energy | LPG, Electricity | Diesel, Petrol |
Agriculture- appliances | Electricity, LPG | Biodiesel, Pyrolysis oil | CNG, Diesel, Petrol |
Bitcoin mining
|
Carbon neutral electricity | Cheaper electricity generated from fossil fuels.[224] | Costly electricity sourced from fossil fuels. |
Electricity Generation | Solar Power, Wind, Hydropower, biomass, Torrifacted biomass, Biochar, Biogas plant residue, pumped-storage hydroelectricity | CNG, Animal draught power (peaking power only), Battery energy storage system | Petrol, Diesel, NGL, LPG, LDO, HFO, Naptha, Nuclear, Coal, Petcoke
|
Steel production | Renewable electricity, Charcoal, Biochar | Renewable hydrogen, LPG, CNG[225] | Coke, Coal |
Cement production | Indigenous petcock, Biomass,[100] Waste organic matter,[226] Renewable electricity | LPG, CNG | Coal |
Roads construction | Bioasphalt, carbon neutral cement | Cement | Asphalt |
Feed stock for Petrochemicals | Acetylene and hydrogen generated by renewable electricity, Biogas, Hydrogen from wood gas[160] | Bioethanol , Biodiesel, Bio methanol
|
Naptha
|
Protein rich cattle/fish feed | CNG, PNG, Biogas, LNG | SNG from coal, Coalbed methane, Coal mine methane, SNG from renewable electricity, SNG from the indigenous petcock | Nil |
Industrial- raw materials | As economically required | Nil | Nil |
Electricity generation
The installed capacity of utility power plants is 314.64
Total installed Power generation Capacity (end of April 2017)[229]
Source | Utilities Capacity ( MW ) |
% | Captive Power Capacity (MW) | % |
---|---|---|---|---|
Coal | 194,402.88 | 59.9 | 29,888.00 | 59.43 |
Hydroelectricity | 44,594.42 | 14.0 | 64.00 | 0.11 |
Renewable energy source | 50,018.00 | 15.9 | Included in Oil | - |
Natural Gas | 25,329.38 | 8.1 | 6,061.00 | 12.05 |
Nuclear | 6,780.00 | 1.8 | - | - |
Oil | 837.63 | 0.3 | 14,285.00 | 28.41 |
Total | 329,204.53 | 50,289.00 | 100 |
The total installed utility power generation capacity as on 30 April 2017 with sector wise & type wise break up is as given below.[229]
Sector | Thermal (MW) | Nuclear (MW) |
Renewable (MW) | Total (MW) | % | ||||
---|---|---|---|---|---|---|---|---|---|
Coal | Gas | Diesel | Sub-Total Thermal |
Hydro | Other Renewable | ||||
Central | 55,245.00 | 7,490.83 | 0.00 | 62,735.83 | 6,780.00 | 11,651.42 | 0.00 | 81,167.25 | 25 |
State | 65,145.50 | 7,257.95 | 363.93 | 72,767.38 | 0.00 | 29,703.00 | 1,963.80 | 104,447.28 | 32 |
Private | 74,012.38 | 10,580.60 | 473.70 | 85,066.68 | 0.00 | 3,240.00 | 55,283.33 | 143,590.01 | 43 |
All India | 194,402.88 | 25,329.38 | 837.63 | 220,569.88 | 6,780.00 | 44,594.42 | 57,260.23 | 329,204.53 | 100 |
Year | Fossil Fuel | Nuclear | Hydro | Sub total |
RES[231] | Utility and Captive Power | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Coal | Oil | Gas | Mini hydro |
Solar | Wind | Bio mass |
Other | Sub total |
Utility | Captive | Misc | Total | ||||
2021–22[4] | 1,078,444 | 115 | 36,143 | 47,019 | 151,695 | 1,313,418 | 10,463 | 73,483 | 68,640 | 16,056 | 2,268 | 170,912 | 1,484,442 | 235,000 | na | 1,719,442 |
2020-21[232] | 981,239 | 129 | 51,027 | 42,949 | 150,305 | 1,225,649 | 10,258 | 60,402 | 60,150 | 14,816 | 1621 | 147,247[233] | 1,373,187 | 200,000 | na | 1,573,187 |
2019-20[234] | 995,840 | 108 | 48,497 | 46,381 | 155,970 | 1,246,796 | 9,366 | 50,103 | 64,639 | 13,843 | 366 | 138,318[235] | 1,385,114 | 239,567 | na | 1,622,983 |
2018-19[236] | 1,021,997 | 129 | 49,886 | 37,706 | 135,040 | 1,244,758 | 8,703 | 39,268 | 62,036 | 16,325 | 425 | 126,757 | 1,371,517 | 175,000 | na | 1,546,517 |
2017-18 | 986,591 | 386 | 50,208 | 38,346 | 126,123 | 1,201,653 | 5,056 | 25,871 | 52,666 | 15,252 | 358 | 101,839 | 1,303,493 | 183,000 | na | 1,486,493 |
2016-17 | 944,850 | 262 | 49,100 | 37,663 | 122,313 | 1,154,188 | 7,673 | 12,086 | 46,011 | 14,159 | 213 | 81,949 | 1,236,137 | 197,000 | na | 1,433,392 |
2015-16 | 896,260 | 406 | 47,122 | 37,413 | 121,377 | 1,102,578 | 8,355 | 7,450 | 28,604 | 16,681 | 269 | 65,781 | 1,168,359 | 183,611 | na | 1,351,970 |
2014-15 | 835,838 | 1,407 | 41,075 | 36,102 | 129,244 | 1,043,666 | 8,060 | 4,600 | 28,214 | 14,944 | 414 | 61,780 | 1,105,446 | 166,426 | na | 1,271,872 |
2013-14 | 746,087 | 1,868 | 44,522 | 34,228 | 134,847 | 961,552 | na | 3,350 | na | na | na | 59,615 | 1,021,167 | 156,643 | na | 1,177,810 |
2012-13 | 691,341 | 2,449 | 66,664 | 32,866 | 113,720 | 907,040 | na | na | na | na | na | 57,449 | 964,489 | 144,009 | na | 1,108,498 |
2011-12 | 612,497 | 2,649 | 93,281 | 32,286 | 130,511 | 871,224 | na | na | na | na | na | 51,226 | 922,451 | 134,387 | na | 1,056,838 |
Notes: Coal includes lignite; Misc: includes contributions from emergency diesel generator sets; *Hydro includes pumped storage generation; na = data not available.
In 2019-20, the total generation from all renewable energy sources is nearly 20% of the total electricity generation (utility and captive) in India.
Energy conservation and carbon trading
The greenest energy is the energy we do not use.
Energy saving certificates (PAT), various renewable purchase obligations (RPO), and renewable energy certificates (REC) are also traded on the power exchanges regularly.
Rural electrification
As on 28 April 2018, all Indian villages were electrified.
See also
- Climate change in India
- Electricity sector in India
- Energy in India
- Economics of new nuclear power plants
- Levelised energy cost
- Cost of electricity by source
- Energy returned on energy invested
- Reliance east to west India gas pipeline
- Coal slurry pipeline
- 40,000 MW Yarlung Tsangpo Hydroelectric Project
- Negawatt power
- Water Resources in India
- Indian Rivers Inter-link
- Bioeconomy
- Biomass to liquid
- Gas to liquid
- Coal to liquid
- Torrefaction
- Low-carbon economy
- Energy cannibalism
- Fossil fuel phase-out
- Renewable natural gas
- Algae fuel
- Solar power in India
- Wind power in India
- Renewable energy in India
- Index of energy articles
- Index of solar energy articles
- List of energy abbreviations
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External links
- Ready Reference Policy Handbook about India at one place
- The Carbon Brief Profile: India
- Latest news about Indian Power Sector at one place
- Highlights of Rajasthan Solar Policy 2011
- Solar to light up Rural India
- Map of oil and gas infrastructure (incomplete)
- India's River-Linking Scheme: A case of troubled waters