Analysis of challenges and prospects of power industry in India

The population of India is increasing at very fast rate, the present surge in electricity demand, and the projected increase of the Indian population, the importance of available energy cannot be underestimated. In India, the coal accounts for approximately one half of all electricity generation, nuclear energy approximately one fourth of all electricity generation, and hydro, and gas roughly ten percent of the total electricity generation. Globally, India is presently positioned as the eleventh largest manufacturer of energy, representing roughly 2.4% of the overall energy output per annum. Usually energy, especially electricity, has a major contribution in speeding up the economic development of the country. The existing production of per capita electricity in India is around 600 kWh per annum. Ever since 1990s, India's gross domestic product (GDP) has been increasing very rapidly and it is estimated that it will maintain the pace in the next couple of decades. Expanding access to energy means including 2.4 billion people: 1.4 billion that still has no access to electricity (87% of whom live in the rural areas) and 1 billion that only has access to unreliable electricity networks. We need smart and practical approaches because energy, as a driver of development, plays a central role in both fighting poverty and addressing climate change. The paper discusses the key trends that are expected to drive the power generation and transmission in India and associated opportunities and challenges.