Economies of future electiricty generation in India
India’s high real GDP growth in the past decade has led to large increases in consumption of energy resources. As of 2006 India is among one of the top 5 consumers of primary energy(1) and in their emergence as an economic power, demand for energy can only increase. There is room for growth, India’s electricity consumption per capita is one of the lowest at 542kwh(2). The challenge for India for further economic growth, will be to power rural areas – 40% of the population are without electricity(3)- and improve existing infrastructure, as to stop irregularities- such as blackouts. So how will India deal with the future expected demand increases for electricity and service the whole population?
The supply of electricity in India, has increased at a rate of around 10% between 1970-2005(4) The make-up of resources in the production of India’s electricity sector in 2008 is primarily conventional, constituting of; 53% coal, 24.8% hydro, 10% gas, 8% renewables and 3% nuclear(4). Whilst coal is the most used resource, reserves are declining and India is having to look elsewhere. Current supplies are predominately in the west and north-west of the country. This leads to high transport costs, over journeys that can exceed 1000km- which makes alternatives more attractive. The cost involved of importing coal can be significantly high and coal carries negative externalities- such as pollution due to dirty ash- with it. Despite large initial costs, hydro power is an efficient and clean resource of which India is increasingly utilising. It also has low maintenance costs. India currently uses little in the way of nuclear power(4), but use is growing, with numerous projects in construction or planned stages(5). Construction costs are large, but maintenance fuel costs are low. India have a lack of fossil fuels, possibly causing the low use in electricity generation.
