Indian Energy Outlook 2014

The recent supreme court order on coal block allocations has put the spotlight back on the power sector. India runs on coal power, 60% of the current power is produced through it. So are overly dependent on coal? Yes, we are. In fact coal power generation has increased from 59% last year.



The power generation capacity continues to increase year on year, according to the latest report from Ministry of power India now has a capacity of 253GW compared to 227GW last year. The major contribution to this increase is from coal and renewable energies (refer fig above).

Does this make India energy sufficient? NO!

India faces an energy deficit of 4.2% and a peak power shortage of 4.5% (2013-14). The authorities expected an energy deficit of 6.7% and peak shortage of 2.3% for the same period in an earlier report. The situation is likely to remain dim with the new load generation-balance report for 2014-15 predicting a 5.1% energy deficiency and a peak power shortage of over 2%.

Gujarat and Chhattisgarh continue to be energy surplus states and closely followed by Haryana, Rajasthan and Sikkim. Overall 15 states in India would continue to be energy deficit for 2014/15 with 3 states expected to reel with a deficient of over 20% and 4 states with less than 5% and the rest in the range between 5 and 20 %. Surprisingly industrial states like Tamil Nadu and Karnataka are expected to be energy deficit in the coming years.

In reality the situation is definitely improving year on year. Power generation capacities are on the rise but unfortunately fuel availability is a major concern. If fuel linkages are achieved as planned and renewable energy policies are implemented in full we might achieve energy sufficiency by 2020.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s