Goals and Policies

Now friends, I would now like to discuss with you some goals, strategies and policies for a major national mission to attain Energy Independence. Energy Consumption Pattern in India in 2005: We have to critically look at the need for Energy Independence in different ways in its two major sectors: Electric power generation and Transportation. At present, we have an installed capacity of about 121,000 MW of electricity, which is 3% of world capacity. We also depend on oil to the extent of 114 million tonnes every year, 75% of which is imported, and used almost entirely in the Transportation Sector. Forecasts of our Energy requirements by 2030, when our population may touch 1.4 billion people, indicate that demand from power sector will increase from the existing 120,000 MW to about 400,000 MW. This assumes an energy growth rate of 5% per annum. Electric Power Generation Sector: Electric power generation in India now accesses four basic energy sources: Fossil fuels such as oil, natural gas and coal; Hydroelectricity; Nuclear power; and Renewable energy sources such as bio-fuels, solar, biomass, wind and ocean. Fortunately for us, 89% of energy used for power generation today is indigeneous, from coal (56%), hydroelectricity (25%), nuclear power (3%) and Renewable (5%). Solar energy segment contributes just 0.2% of our energy production.