Electricity sector in India

The utility electricity sector in India has one National Grid with an installed capacity of 347.22 GW as on 31 December 2018.[3] Renewable
India: Electricity sector
power plants constituted 33.60% of total installed capacity. During the fiscal year 2017-18, the gross electricity generated by utilities in
India was 1,303.49 TWh and the total electricity generation (utilities and non utilities) in the country was 1,486.5 TWh.[5][6] The gross Data
electricity consumption was 1,149 kWh per capita in the year 2017-18.[5] India is the world's third largest producer and third largest Electricity 99.7% (9 January
consumer of electricity.[7][8] Electric energy consumption in agriculture was recorded highest (17.89%) in 2015-16 among all countries.[5] coverage 2019)[1][2]
The per capita electricity consumption is low compared to many countries despite cheaper electricity tariff in India.[9]
Installed 347.22 GW[3]
India has surplus power generation capacity but lacks adequate infrastructure for supplying electricity to all needy people. In order to capacity
address the lack of adequate electricity supply to all the people in the country by March 2019, the GoI launched a scheme called "Power Share of fossil 81.9%[4]
for All".[10] This scheme will ensure continuous and uninterrupted electricity supply to all households, industries and commercial energy
establishments by creating and improving necessary infrastructure. It is a joint collaboration of the GoI with states to share funding and Share of 15.3%[4]
create overall economic growth.[11][12] renewable
energy
India's electricity sector is dominated by fossil fuels, and in particular coal, which in 2017-18 produced about three fourths of all
electricity. However, the government is pushing for an increased investment in renewable energy. The National Electricity Plan of 2018 GHG emissions 2066.01
prepared by the Government of India states that the country does not need additional non-renewable power plants in the utility sector from electricity MtCO2[4]
until 2027, with the commissioning of 50,025 MW coal-based power plants under construction and achieving 275,000 MW total installed generation (2015)
renewable power capacity after retirement of nearly 48,000 MW old coal fired plants.[13][14] Average 1,149 kWh per
electricity capita
use (2017-18)

Contents Transmission & 21.42%[5]

Distribution
History
losses (2016-17)
Installed capacity
Utility power Residential 24.20%[5]
Captive power consumption
Installed capacity by state or territory (% of total, 2017-
Demand 18)
Rural and Urban electrification Industrial 41.48%[5]
Per-Capita consumption consumption
Electricity generation (% of total, 2017-
Thermal power 18)
Pollution from thermal power plants
Agriculture 18.08%[5]
Coal supply constraints
consumption
Natural gas supply constraints
Retirement of old thermal power plants
(% of total, 2017-
18)
Renewable energy
Hydro power Commercial 5.51%[5]
Solar power consumption
Wind power (% of total, 2017-
Biomass power 18)
Geothermal energy
Traction 1.27%[5]
Tidal power
consumption
Nuclear power
(% of total, 2017-
Electricity transmission and distribution
18)
Regulation and administration
Trading
Services
Government-owned power companies Share of private 44% (January
Funding of power infrastructure sector in 2018)
Borrowing by state owned discoms generation
Budgetary support
Institutions
Human resource development
Problems with India's power sector
Responsibility Ministry of
for policy-setting Power
Foreign electricity trade
Electricity as substitute to imported LPG and kerosene Responsibility Ministry of New
for renewable and Renewable
Electric vehicle
energy Energy
Energy reserves
See also
Responsibility Ministry of
for the Environment,
References
environment Forest and
External links
Climate Change
Electricity sector Electricity Act,
History law 2003

The first demonstration of an electric light in Calcutta (now Kolkata) was conducted on 24 July 1879 by P.W. Fleury & Co. On 7 January 1897, Kilburn & Co secured the Calcutta
electric lighting license as agents of the Indian Electric Co, which was registered in London on 15 January 1897. A month later, the company was renamed the Calcutta Electric
Supply Corporation. The control of the company was transferred from London to Calcutta only in 1970. Enthused by the success of electricity in Calcutta, power was thereafter
introduced in Bombay (now Mumbai).[15] Mumbai saw electric lighting demonstration for the first time in 1882 at Crawford Market and the Bombay Electric Supply & Tramways
Company (BEST) set up a generating station in 1905 to provide electricity for the tramway.[16]

Electricity generation (utility sector) by
source in India in FY 2017-18
Coal: 986,591 GWh (75.9%)
Large Hydro: 126,123 GWh (9.7%)
Small Hydro: 5,056 GWh (0.4%)
Wind Power: 52,666 GWh (4.0%)
Solar Power: 25,871 GWh (2.0%)
Biomass: 15,252 GWh (1.2%)
Nuclear: 38,346 GWh (2.9%)
Gas: 50,208 GWh (3.9%)
Diesel: 386 GWh (0.0%)
distribution companies would be facing severe competition to cut down the prices and improve their operating efficiency in a final consumer dictated market.[33] Due to tepid growth
in electricity consumption, coal stocks are continuously building up at power stations as well as coal mines.[34][35]
New installations of renewable energy in India surpassed installations of fossil fuel for the first time in 2016-17.[36]
On March 29, 2017 the Central Electricity Authority (CEA) stated that for the first time India has become net exporter of electricity. India exported 5,798 GWh to neighbouring
countries, against a total import of 5,585 GWh.
Installed capacity
The total installed power generation capacity is sum of utility capacity, captive power capacity and other non-utilities
Utility power
The first hydroelectric installation in India was installed near a tea estate at Sidrapong for the Darjeeling Municipality in 1897.[17]
The first electric street light in Asia was lit on 5 August 1905 in Bangalore.[18] The first electric train in the country ran on the
Harbour Line between Bombay's Victoria Terminus and Kurla on 3 February 1925.[19] On 18 August 2015, Cochin International
Airport became the world's first fully solar powered airport with the inauguration of a dedicated solar plant.[20][21]
India began using grid management on a regional basis in the 1960s. Individual State grids were interconnected to form 5 regional
grids covering mainland India. The grids were the Northern, Eastern, Western, North Eastern and Southern Grids. These regional
links were established to enable transmission of surplus electricity between States in each region. In the 1990s, the Indian
government began planning for a national grid. Regional grids were initially interconnected by asynchronous HVDC back-to-back
links facilitating limited exchange of regulated power. The links were subsequently upgraded to high capacity synchronous
links.[22]
The first interconnection of regional grids was established in October 1991 when the North Eastern and Eastern grids were
interconnected. The Western Grid was interconnected with the aforementioned grids in March 2003. The Northern grid was also
interconnected in August 2006, forming a Central Grid synchronously connected operating at one frequency.[22] The sole
remaining regional grid, the Southern Grid, was synchronously interconnected to the Central Grid on 31 December 2013 with the
commissioning of the 765 kV Raichur-Solapur transmission line, thereby establishing the National Grid.[22][23]
By the end of calendar year 2015, despite poor hydro electricity generation, India had become a power surplus nation with huge
electric power generation capacity idling for want of power demand.[24][25][26] The calendar year 2016 started with steep fall in the
international price of energy commodities such as coal, diesel oil, naphtha, bunker fuel and LNG which are used in electricity
generation in India.[27][28][29][30][31] Earlier many of the power stations which are using fuels other than coal were unable to
operate due to high cost of LNG and petro products. This situation has changed due to glut in petroleum products globally. The
prices are falling to such an extent that these fuels have become cheaper to give competition for pit head coal based power
generators. Many of the stranded gas and liquid fuel based power stations would be competing with indigenous coal based power
stations in an electricity market where demand growth is not encouraging.[32] All the segments of the electricity sector such as fuel
suppliers, fuel transporters (railways, harbours, pipelines, etc.), electricity generators, electricity transmission companies and
Installed capacity by source in India as
on 31 December 2018[37]
Coal: 197,452.5 MW (56.9%)
Large Hydro: 45,399.22 MW
(13.1%)
Small Hydro: 4,506.95 MW (1.3%)
Wind Power: 34,615.1 MW (10.0%
Solar Power: 24,021.66 MW (6.9%
Biomass: 8,869.1 MW (2.6%)
Nuclear: 6,780 MW (2.0%)
Gas: 24,937.22 MW (7.2%)
Diesel: 637.63 MW (0.2%)
 Growth of Installed Capacity in India[5]
Thermal (MW) Renewable (MW)
Installed Capacity Nuclear % Growth
Sub-Total Other Sub-Total Total (MW)
as on Coal Gas Diesel (MW) Hydro (on yearly basis)
Thermal Renewable Renewable
31-Dec-1947 756 - 98 854 - 508 - 508 1,362 -
31-Dec-1950 1,004 - 149 1,153 - 560 - 560 1,713 8.59%
31-Mar-1956 1,597 - 228 1,825 - 1,061 - 1,061 2,886 13.04%
31-Mar-1961 2,436 - 300 2,736 - 1,917 - 1,917 4,653 12.25%
31-Mar-1966 4,417 137 352 4,903 - 4,124 - 4,124 9,027 18.80%
31-Mar-1974 8,652 165 241 9,058 640 6,966 - 6,966 16,664 10.58%
31-Mar-1979 14,875 168 164 15,207 640 10,833 - 10,833 26,680 12.02%
31-Mar-1985 26,311 542 177 27,030 1,095 14,460 - 14,460 42,585 9.94%
31-Mar-1990 41,236 2,343 165 43,764 1,565 18,307 - 18,307 63,636 9.89%
31-Mar-1997 54,154 6,562 294 61,010 2,225 21,658 902 22,560 85,795 4.94%
31-Mar-2002 62,131 11,163 1,135 74,429 2,720 26,269 1,628 27,897 105,046 4.49%
31-Mar-2007 71,121 13,692 1,202 86,015 3,900 34,654 7,760 42,414 132,329 5.19%
31-Mar-2012 112,022 18,381 1,200 131,603 4,780 38,990 24,503 63,493 199,877 9.00%
31-Mar-2017 192,163 25,329 838 218,330 6,780 44,478 57,260 101,138 326,841 10.31%
31-Mar-2018 197,171 24,897 838 222,906 6,780 45,293 69,022 114,315 344,002 5.25%

The total installed capacity is after deducting the retired capacity (if any). As of 31 March 2017 (i.e. end of 12th five-year plan), the achieved thermal power generation capacity
addition excluding renewable power is 91,730 MW against the target of 161,403 MW during the 12th five-year plan.[38] Nearly 70,000 MW is in various stages of construction as on
31 March 2017.

The total installed utility power generation capacity as on 30 April 2018 with sector wise & type wise break up is as given below.[39]

Total installed utility power capacity with sector wise & type wise break up
Thermal (MW) Renewable (MW)
Nuclear
Sector Sub-Total Other Total (MW) %
Coal Gas Diesel (MW) Hydro
Thermal Renewable
State 64,456.50 7,078.95 363.93 71,899.38 0.00 29,858.00 2,003.37 103,760.75 30
Central 56,955.00 7,237.91 0.00 64,192.91 6,780.00 12,041.42 1,502.30 84,516.63 25
Private 75,546.00 10,580.60 473.70 86,600.30 0.00 3,394.00 65,516.72 155,511.02 45
All India 196,957.50 24,897.46 837.63 222,692.59 6,780.00 45,293.42 69,022.39 343,788.39 100

Captive power
The installed captive power generation capacity (above 1 MW capacity) in the industries is 54,997 MW as on 31 March 2018 and generated 183,000 GWh during the fiscal year 2017-
18.[5] Another 75,000 MW capacity diesel power generation sets (excluding sets of size above 1 MW and below 100 kVA) are also installed in the country.[40][41] In addition, there are
innumerable DG sets of capacity less than 100 kVA to cater to emergency power needs during the power outages in all sectors such as industrial, commercial, domestic and
agriculture.[42]

Captive Power Sector

Source Captive Power Capacity (MW) Share Electricity generated (GWh) Share
Coal 32,843 59.72% 147,036 80.35%
Hydroelectricity 70 0.13% 148 0.09%
Renewable energy source 1540 2.80% 2,461 1.34%
Natural Gas 6,225 11.32% 23,316 12.74%
Oil 14,318 26.03% 10,038 5.49%
Total 54,997 100.00% 183,000 100.00%

Installed capacity by state or territory

The latest break up of state wise installed capacity is given in the table below.[43]

State-wise All India installed capacity as of July 2015

 State-wise All India installed capacity as of July 2015[44]
(including allocated shares in joint and central sector utilities)

Thermal (in MW) Renewable (in MW)

State/Union Nuclear Total % of
Territory Sub-Total (in MW) Other Sub-Total (in MW) Total
Coal Gas Diesel Hydro
Thermal Renewable Renewable
Maharashtra 24,669.27 3,475.93 - align="right"|28,145.20 690.14 3,331.84 6,205.65 align="right"|9,537.49 38,372.83 13.91%
Gujarat 16,010.27 6,806.09 - align="right"|22,816.36 559.32 772.00 4,802.40 align="right"|5,574.4 28,950.08 10.49%
Madhya
11,126.39 257.18 - align="right"|11,383.57 273.24 3,223.66 1,670.34 align="right"|4,894.00 16,550.81 6.00%
Pradesh
Chhattisgarh 13,193.49 - - align="right"|13,193.49 47.52 120.00 327.18 align="right"|447.18 13,688.19 4.96%
Goa 326.17 48.00 - align="right"|374.17 25.80 - 0.05 align="right"|0.05 400.02 0.14%
Dadra &
44.37 27.10 - align="right"|71.47 8.46 - - align="center"|- 79.93 0.03%
Nagar Haveli
Daman & Diu 36.71 4.20 - align="right"|40.91 7.38 - - align="center"|- 48.29 0.02%
Central -
1,622.35 196.91 - align="right"|1,819.26 228.14 - - align="center"|- 2,047.40 0.74%
Unallocated
Western
67,029.01 10,815.41 - 77,844.42 1,840.00 7,447.50 13,005.62 20,453.12 100,137.54 36.29%
Region
Rajasthan 9,400.72 825.03 - align="right"|10,225.75 573.00 1,719.30 4,710.50 align="right"|6,429.8 17,228.55 6.24%
Uttar Pradesh 11,677.95 549.97 - align="right"|12,227.92 335.72 2,168.30 989.86 align="right"|3,158.16 15,721.80 5.70%
Punjab 6,444.88 288.92 - align="right"|6,733.80 208.04 3,145.13 503.42 align="right"|3,648.55 10,590.38 3.84%
Haryana 6,527.53 560.29 - align="right"|7,087.82 109.16 1,456.83 138.60 align="right"|1,595.43 8,792.41 3.19%
Delhi 5,001.87 2,366.01 - align="right"|7,367.88 122.08 822.05 34.71 align="right"|856.76 8,346.72 3.03%
Himachal
152.02 61.88 - align="right"|213.90 34.08 3,421.51 728.91 align="right"|4,150.42 4,398.40 1.59%
Pradesh
Uttarakhand 399.50 69.35 - align="right"|468.85 22.28 2,441.82 244.32 align="right"|2,686.14 3,177.27 1.15%
Jammu &
329.32 304.14 - align="right"|633.46 77.00 1,805.21 156.53 align="right"|1,961.74 2,672.20 0.97%
Kashmir
Chandigarh 32.54 15.32 - align="right"|47.86 8.84 62.32 5.04 align="right"|67.36 124.06 0.04%
Central -
977.19 290.35 - align="right"|1,267.54 129.80 754.30 - align="right"|754.30 2,151.64 0.78%
Unallocated
Northern
40.943.50 5,331.26 12.99 46,274.76 1,620.00 17,796.77 7,511.89 25,308.66 73,203.42 26.53%
Region
Tamil Nadu 10,075.10 1026.30 411.66 align="right"|11,513.06 986.50 2,182.20 8,423.15 align="right"|10,605.35 23,104.91 8.37%
Karnataka 6,408.46 - 234.42 align="right"|6,642.88 475.86 3,599.80 4552.48 align="right"|8,152.28 15,271.02 5.53%
Andhra
5,849.21 1,672.65 16.97 align="right"|7,538.83 127.16 1,721.99 2,002.65 align="right"|3,724.64 11,390.64 4.13%
Pradesh
Telangana 5,598.47 1,697.75 19.83 align="right"|7,316.05 148.62 2012.54 62.75 align="right"|2,075.29 9,539.96 3.46%
Kerala 1,038.69 533.58 234.60 align="right"|1,806.87 228.60 1881.50 204.05 align="right"|2,085.55 4,121.02 1.49%
Puducherry 249.32 32.50 - align="right"|281.82 52.78 - 0.03 align="right"|0.03 334.63 0.12%
Central - NLC 100.17 - - align="right"|100.17 - - - align="center"|- 100.17 0.04%
Central -
1,523.08 - - align="right"|1,523.08 300.48 - - align="center"|- 1,823.56 0.66%
Unallocated
Southern
30,842.50 4,962.78 917.48 36,722.76 2,320.00 11,398.03 15,245.11 26,643.14 65,685.90 23.81%
Region
West Bengal 8,083.83 100.00 - align="right"|8,183.83 - 1,248.30 131.45 align="right"|1,379.75 9,563.84 3.47%
Odisha 6,753.04 - - align="right"|6,753.04 - 2,166.93 116.55 align="right"|2,283.48 9,036.52 3.28%
DVC 7,160.66 90.00 - align="right"|7,250.66 - 193.26 - align="right"|193.26 7,443.92 2.70%
Bihar 2,516.24 - - align="right"|2,516.24 - 129.43 114.12 align="right"|243.55 2,759.79 1.00%
Jharkhand 2,404.93 - - align="right"|2,404.93 - 200.93 20.05 align="right"|220.98 2,625.91 0.95%
Sikkim 92.10 - - align="right"|92.10 - 174.27 52.11 align="right"|226.38 318.48 0.12%
Central -
1,572.07 - - align="right"|1,572.07 - - - align="center"|- 1,572.07 0.57%
Unallocated
Eastern
28,582.87 190.00 - 28,772.87 - 4,113.12 434.54 4,547.66 33,320.53 12.08%
Region
Assam 187.00 718.62 - align="right"|905.62 - 429.72 34.11 align="right"|463.83 1,369.45 0.50%
Tripura 18.70 538.82 - align="right"|557.52 - 62.37 21.01 align="right"|83.38 640.90 0.23%
Meghalaya 17.70 105.14 - align="right"|122.84 - 356.58 31.03 align="right"|387.61 510.45 0.19%
Arunachal
12.35 43.06 - align="right"|55.41 - 97.57 104.64 align="right"|202.21 257.62 0.09%
Pradesh
Manipur 15.70 67.98 36.00 align="right"|119.68 - 80.98 5.45 align="right"|86.43 206.11 0.07%
Nagaland 10.70 46.35 - align="right"|57.05 - 53.32 29.67 align="right"|82.99 140.04 0.05%
Mizoram 10.35 38.29 - align="right"|48.64 - 34.31 36.47 align="right"|70.78 119.42 0.04%
Central -
37.50 104.44 - align="right"|141.94 - 127.15 - align="right"|127.15 269.09 0.10%
Unallocated

Islands - - 40.05 40.05 - - 11.10 11.10 51.15 0.02%

Total 167,707.88 22,962.15 993.53 191,663.56 5,780 41,997.42 36,470.64 78,468.06 275,911.62 100.00%
 Thermal (in MW) Renewable (in MW)
State/Union Nuclear Total % of
Territory Sub-Total (in MW) Other Sub-Total (in MW) Total
Coal Gas Diesel Hydro
Thermal Renewable Renewable
North-
Eastern 310.00 1,662.70 36.00 2,008.70 - 1,242.00 262.38 1,504.38 3,513.08 1.27%
Region
Andaman &
- - 40.05 align="right"|40.05 - - 10.35 align="right"|10.35 50.40 0.02%
Nicobar
Lakshadweep - - - align="center"|- - - 0.75 align="right"|0.75 0.75 0.00%
Islands - - 40.05 40.05 - - 11.10 11.10 51.15 0.02%
Total 167,707.88 22,962.15 993.53 191,663.56 5,780 41,997.42 36,470.64 78,468.06 275,911.62 100.00%

Demand
Demand trends

During the fiscal year 2017-18, the utility energy availability was 1,205 billion KWh with a short fall of requirement by 8 billion KWh (-0.7%) against 1230 billion KWh anticipated.
The peak load met was 160,752 MW with a short fall of requirement by 3,314 MW (-2%) against 169,130 MW anticipated. In LGBR 2018 report, India's Central Electricity Authority
anticipated for the 2018–19 fiscal year, energy surplus and peaking surplus to be 4.6% and 2.5% respectively.[45] Though few states are expected to face energy shortage, power
would be made available adequately from the surplus regions with the available excess capacity inter regional transmission links.[46] By the end of calendar year 2015, India has
become power surplus country despite lower power tariffs.[25][26][47][48]

Demand drivers

Nearly 0.28% of households (0.6 million) have no access to electricity in India.[1] The International Energy Agency estimates India will add between 600 GW to 1,200 GW of
additional new power generation capacity before 2050.[49] This added new capacity is equivalent to the 740 GW of total power generation capacity of European Union (EU-27) in
2005. The technologies and fuel sources India adopts, as it adds this electricity generation capacity, may make significant impact to global resource usage and environmental
issues.[50] The electricity demand for cooling (HVAC) purpose is projected to grow exponentially.[51]

About 136 million Indians (11%) use traditional fuels – fuelwood, agricultural waste and biomass cakes – for cooking and general heating needs.[52] These traditional fuels are burnt
in cook stoves, known as chulah or chulha in some parts of India.[53] Traditional fuel is inefficient source of energy, its burning releases high levels of smoke, PM10 particulate
matter, NOX, SOX, PAHs, polyaromatics, formaldehyde, carbon monoxide and other air pollutants.[54][55][56] Some reports, including one by the World Health Organisation, claim
300,000 to 400,000 people in India die of indoor air pollution and carbon monoxide poisoning every year because of biomass burning and use of chullahs.[57] Traditional fuel
burning in conventional cook stoves releases unnecessarily large amounts of pollutants, between 5 and 15 times higher than industrial combustion of coal, thereby affecting outdoor
air quality, haze and smog, chronic health problems, damage to forests, ecosystems and global climate. Burning of biomass and firewood will not stop, these reports claim, unless
electricity or clean burning fuel and combustion technologies become reliably available and widely adopted in rural and urban India. The growth of electricity sector in India may
help find a sustainable alternative to traditional fuel burning.

In addition to air pollution problems, a 2007 study finds that discharge of untreated sewage is single most important cause for pollution of surface and ground water in India. There
is a large gap between generation and treatment of domestic wastewater in India. The problem is not only that India lacks sufficient treatment capacity but also that the sewage
treatment plants that exist do not operate and are not maintained. Majority of the government-owned sewage treatment plants remain closed most of the time in part because of the
lack of reliable electricity supply to operate the plants. The wastewater generated in these areas normally percolates in the soil or evaporates. The uncollected wastes accumulate in
the urban areas cause unhygienic conditions, release heavy metals and pollutants that leaches to surface and groundwater.[58][59] Almost all rivers, lakes and water bodies are
severely polluted in India. Water pollution also adversely impacts river, wetland and ocean life. Reliable generation and supply of electricity is essential for addressing India's water
pollution and associated environmental issues.

Other drivers for India's electricity sector are its rapidly growing economy, rising exports, improving infrastructure and increasing household incomes.

Growth of Electricity Consumption in India[5]

Fiscal year Population Consumption % of Total Per-Capita Consumption

ending on (millions) (GWh) Domestic Commercial Industrial Traction Agriculture Misc (in kWh)

31-Dec-1947 - 4,182 10.11% 4.26% 70.78% 6.62% 2.99% 5.24% 16.3

31-Dec-1950 376 5,610 9.36% 5.51% 72.32% 5.49% 2.89% 4.44% 18.2
31-Mar-1956 - 10,150 9.20% 5.38% 74.03% 3.99% 3.11% 4.29% 30.9
31-Mar-1961 - 16,804 8.88% 5.05% 74.67% 2.70% 4.96% 3.75% 45.9
31-Mar-1966 - 30,455 7.73% 5.42% 74.19% 3.47% 6.21% 2.97% 73.9
31-Mar-1974 - 55,557 8.36% 5.38% 68.02% 2.76% 11.36% 4.13% 126.2
31-Mar-1979 - 84,005 9.02% 5.15% 64.81% 2.60% 14.32% 4.10% 171.6
31-Mar-1985 7,820 124,569 12.45% 5.57% 59.02% 2.31% 16.83% 3.83% 228.7
31-Mar-1990 8,706 195,098 15.16% 4.89% 51.45% 2.09% 22.58% 3.83% 329.2
31-Mar-1997 - 315,294 17.53% 5.56% 44.17% 2.09% 26.65% 4.01% 464.6
31-Mar-2002 - 374,670 21.27% 6.44% 42.57% 2.16% 21.80% 5.75% 671.9
31-Mar-2007 - 525,672 21.12% 7.65% 45.89% 2.05% 18.84% 4.45% 559.2
31-March-2012 1,220 785,194 22.00% 8.00% 45.00% 2.00% 18.00% 5.00% 883.6
31-March-2013 1,235 824,301 22.29% 8.83% 44.40% 1.71% 17.89% 4.88% 914.4
31-March-2014 1,251 881,562 22.95% 8.80% 43.17% 1.75% 18.19% 5.14% 957
31-March-2015 1,267 938,823 23.53% 8.77% 42.10% 1.79% 18.45% 5.37% 1010.0
31-March-2016 1,283 1,001,191 23.86% 8.59% 42.30% 1.66% 17.30% 6.29% 1075
31-March-2017 1,299 1,066,268 24.32% 9.22% 40.01% 1.61% 18.33% 6.50% 1122
31-March-2018 1,353 1,130,244 24.20% 8.51% 41.48% 1.27% 18.08% 6.47% 1149
Note: Per Capita Consumption=(Gross Electricity Generation by all sources + Net Import) / Mid Year Population. 'Consumption' is 'Gross Electricity Generation by all sources plus
Net Import' after deducting transmission loses and auxiliary consumption in electricity generation.

The per capita annual domestic electricity consumption in India during the year 2009 was 96 kWh in rural areas and 288 kWh in urban areas for those with access to electricity in
contrast to the worldwide per capita annual average of 2,600 kWh and 6,200 kWh in the European Union.[60]

Rural and Urban electrification

As on 28 April 2018, 12 days ahead of the set target, all Indian villages were electrified.[61] India's Ministry of Power launched Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
as one of its flagship programme in July 2015 with the objective of providing round the clock power to the rural areas . It focuses on reforms in rural power sector by separation of
feeder lines (rural households & agricultural) and strengthening of transmission and distribution infrastructure. The earlier scheme for rural electrification viz. Rajiv Gandhi
Grameen Vidyutikaran Yojana (RGGVY) has been subsumed in the new scheme as its rural electrification component.[62]

India has achieved 100% electrification of all rural and urban households. As of 4 January 2019, 211.88 million rural households are provided with electricity, which is nearly 100%
of the 212.65 million total rural households.[1] Up to 4 January 2019, 42.937 million urban households are provided with electricity, which is almost 100% of the 42.941 million total
urban households.

Per-Capita consumption

Per-Capita Electricity consumption (kWh)[63] (in 2014–15 provisional)

Per-Capita Consumption
State/Union Territory Region
(kWh)
Dadra & Nagar Haveli Western 13,769
Daman & Diu Western 6,960
Goa Western 1,803
Gujarat Western 2,105
Chhattisgarh Western 1,719
Maharashtra Western 1,257
Madhya Pradesh Western 813 Satellite pictures of India show thick
haze and black carbon smoke
Puducherry Southern 1,655 above India and other Asian
Tamil Nadu Southern 1,616 countries. This problem is
particularly severe along the
Andhra Pradesh[64] Southern 1,040 Ganges Basin in northern India.
Telangana Southern 1,356 Major sources of particulate matter
and aerosols are believed to be
Karnataka Southern 1,211 smoke from biomass burning in rural
Kerala Southern 672 parts of India, and air pollution from
large cities in northern India.
Lakshadweep Southern 657
Punjab Northern 1,858
Haryana Northern 1,909
Delhi Northern 1,561
Himachal Pradesh Northern 1,336
Uttarakhand Northern 1,358
Chandigarh Northern 1,052
Jammu & Kashmir Northern 1,169
India lit up at night. This media,
Rajasthan Northern 1,123
courtesy of NASA, was taken by the
Uttar Pradesh Northern 502 crew of Expedition 29 on 21 October
2011. It starts over Turkmenistan,
Odisha Eastern 1,419
moving east. India begins past the
Sikkim Eastern 685 long wavy solid orange line, marking
Jharkhand Eastern 835 the lights at the India-Pakistan
borderline. New Delhi, India's capital
West Bengal Eastern 647 and the Kathiawar Peninsula are lit.
Andaman & Nicobar Islands Eastern 361 So are Mumbai, Hyderabad,
Chennai, Bangalore and many
Bihar Eastern 203
smaller cities in central and
Arunachal Pradesh North Eastern 525 southern India, as this International
Space Station's video shifts south-
Meghalaya North Eastern 704
eastward through southern India,
Mizoram North Eastern 449 into the Bay of Bengal. Lightning
storms are also present,
Nagaland North Eastern 311
represented by the flashing lights
Tripura North Eastern 303 throughout the video. The pass
Assam North Eastern 314 ends over western Indonesia.

Manipur North Eastern 295

National 1,010

Note: Per Capita Consumption=(Gross Electricity Generation + Net Import) / Mid Year Population.

Electricity generation
India's electricity generation from 1950 to 1985 were very low when compared to developed nations. Since 1990, India has recorded faster growth in electricity generation. India's
electricity generation has increased from 179 TW-hr in 1985 to 1,057 TW-hr in 2012.[7] Power generation by coal fired plants and non conventional renewable energy sources (RES)
has mainly contributed to the growth in the total electricity generation, whereas the contribution from natural gas, oil and hydro plants has decreased in the last five years (2012-
2017). The gross utility electricity generation (excluding imports from Bhutan) is 1,236 billion kWh
during the year 2016-17 against the corresponding actual generation of 1,168 billion Kwh during the
year 2015-16 with 5.81% annual growth.[65]

Electricity generation in India till 2012

Yearly gross electricity generation by source (GWh)

Fossil Fuel RES[66] Utility and Captive Power

Sub
Year Nuclear Hydro* Mini Bio Sub
Coal Oil Gas total Solar Wind Other Utility Captive Misc Total
hydro mass total
2011-
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
12
2012-
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
13
2013-
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
14
2014-
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
15
2015-
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
16[67]
2016-
944,861 275 49,094 37,916 122,313 1,154,523 7,673 12,086 46,011 14,159 213 81,869 1,236,392 197,000 na 1,433,392
17[68]
2017-
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
18[5]

Notes: Coal includes lignite also; Misc includes emergency DG sets generation, etc.; * Hydro includes pumped storage generation; na → data not available

The total generation from all renewable energy sources is nearly 15% of the total electricity generation (utility and captive) in India.

Thermal power
India's electricity sector consumes about 72% of the coal produced in the country.[69] Coal consumption by utility power is 608 million
tons in 2017-18.[70]

Pollution from thermal power plants

The high ash content in India's coal affects the thermal power plant's potential emissions.[71] Therefore, India's Ministry of Environment
and Forests has mandated the use of beneficiated coals whose ash content has been reduced to 34% (or lower) in power plants in urban,
ecologically sensitive and other critically polluted areas, and ecologically sensitive areas. Coal benefaction industry has rapidly grown in
India, with current capacity topping 90 MT.

India has an extensive review process, one that includes environment impact assessment, prior to a thermal power plant being approved
for construction and commissioning. The Ministry of Environment and Forests has published a technical guidance manual to help project
proposers and to prevent environmental pollution in India from thermal power plants.[72] The operating coal fired power stations both in
utility and captive power sectors need to invest nearly INR 12.5 millions per MW capacity for installing pollution control equipment to
comply with the latest emission norms notified by the Ministry of Environment and Forests in the year 2016.[73][74][75][76] India has
banned import of pet coke for using as fuel.[77]

A thermal power plant in

Coal supply constraints Maharashtra
A large part of Indian coal reserve is similar to Gondwana coal. It is of low calorific value and high ash content. The carbon content is low
in India's coal, and toxic trace element concentrations are negligible. The natural fuel value of Indian coal is poor. On average, the Indian
power plants using India's coal supply consume about 0.7 kg of coal to generate a kWh, whereas United States thermal power plants
consume about 0.45 kg of coal per kWh. This is because of the difference in the quality of the coal, as measured by the Gross Calorific
Value (GCV). On average, Indian coal has a GCV of about 4500 Kcal/kg, whereas the quality elsewhere in the world is much better; for
example, in Australia, the GCV is 6500 Kcal/kg approximately.[79] In the year 2017, India imported nearly 130 Mtoe (nearly 200 million
tons) of steam coal and coking coal which is 29% of total consumption to meet the demand in electricity, cement and steel
production.[6][80] China has banned import of high ash coal, high sulphur coal and contaminated coal with trace metals which are causing
air pollution.[81]

The state and central power generation companies are permitted by Government of India with flexible coal linkage swaps from inefficient Demand, production and import of
plants to efficient plants and from plants situated away from coal mines to pit head to minimize cost of coal transportation thus leading to coal[78] (in million tonnes)
reduction in cost of power[82] Though the coal imports for consumption in utility sector are declining, the overall steam coal imports are
increasing as the local coal production is unable to meet the requirements of coal fired captive power plants.[83][84]

Natural gas supply constraints

The installed capacity of natural gas-based power plants (including the plants ready to be commissioned with the commencement of natural gas supply) is nearly 26,765 MW at the
end of financial year 2014-15. These base load power plants are operating at overall PLF of 22% only due to severe shortage of natural gas in the country.[85] Imported LNG was too
costly for the power generation. Many of these power stations are shut down throughout the year for lack of natural gas supply. Natural gas shortage for power sector alone is nearly
100 MMSCMD.[86] The break even price for switching from imported coal to LNG in electricity generation is estimated near 6 US$/mmBtu.[87] Indian government has taken steps to
enhance the generation from the stranded gas based power plants for meeting peak load demand by waiving applicable import duties and taxes due to drastic fall in the LNG and
crude oil international prices.[88][89]

Gasification of coal or lignite or pet coke or biomass, produces syngas or coal gas or wood gas which is a mixture of hydrogen, carbon monoxide and
carbon dioxide gases.[90] Coal gas can be converted into synthetic natural gas by using Fischer–Tropsch process at low pressure and high
temperature. Coal gas can also be produced by underground coal gasification where the coal deposits are located deep in the ground or
uneconomical to mine the coal.[91] Synthetic natural gas production technologies have tremendous scope to meet the SNG requirements of gas-
based power stations fully using the locally available coal (or imported coal in short run).[92] Dankuni coal complex is producing syngas which is Gasification of Char/Coal
piped to the industrial users in Calcutta.[93] Many coal based fertiliser plants which are shut down can also be retrofitted economically to produce
synthetic natural gas for bridging natural gas shortages. It is estimated that SNG production cost would be below 6 $ per mmBtu.[94][95] The
indigenously produced natural gas by the Exploration & Production (E&P) contractors sold at prevailing international gas prices do not guarantee the natural gas supply whereas the
SNG produced from coal/ biomass is reliable & dependable fuel supply to the gas based power stations and other natural gas consumers.

Retirement of old thermal power plants

India's coal-fired, oil-fired and natural gas-fired thermal power plants are inefficient and offer significant potential for greenhouse gas
(CO2) emission reduction through better technologies. India's thermal power plants emit 50% to 120% more CO2 per kWh produced
when compared to the average emissions from their European Union (EU-27) counterparts.[96] The central government has firmed up
plans to shut down 11,000 MW of coal based power generation capacity that are at least 25 years old and contributing more pollution.[97]
In captive power sector, there is no retirement policy yet for the thermal power plants which are contributing to excessive pollution due to
their vintage technology and aging.

Recently few old diesel generator plants and gas turbine plants (Vatwa 100 MW) were also decommissioned. However their residual life A super thermal power plant in
can be used effectively for ancillary services by keeping them in working condition and connected to grid.[98] Rajasthan

Renewable energy
India's renewable energy sector is amongst the world's most active players in renewable energy use,
especially solar and wind electricity generation.[100] As of 31 March 2018, India had grid connected
installed capacity of about 69.02 GW non-conventional renewable technologies-based electricity
capacity and conventional renewable power or major hydroelectric power capacity of 45.29 MW.[101]
The total renewable power generation capacity as of 31 March 2018 was 114.31 GW. Solar, wind and
run of the river hydro being must run power generation and environment friendly, base load coal
fired power is transforming in to load following power generation.[102]

Installed capacity of non-conventional renewable power[3]

Capacity
Type
(in MW)
Wind 34,046.00
Solar 21,651.48
Small Hydro Power Projects 4,485.81
Biomass Power & Gasification and Bagasse Cogeneration 8,700.80
Mean wind speed India.[99]
Waste to Power 138.30
Total non-conventional renewable Power - Grid Connected 69,022.39

Bidding process for further 115 GW will be completed by the end of FY 2019-20 to achieve a total of 175 GW total installed capacity of non-conventional renewable Power by 31
March 2022, and the central govt has set up US$350 million fund to finance the solar projects.[103]

Hydro power
The hydro-electric power plants at Darjeeling and Shivanasamudram were established in 1898 and
1902 respectively and were among the first in Asia.

India is endowed with economically exploitable and viable hydro potential assessed to be about
125,570 MW at 60% load factor.[104] India ranked fourth globally by underutilized hydro power
potential. Viable hydro potential keeps on varying depending on the technological improvements
Indira Sagar Dam partially completed in 2008
and the prevailing costs of electricity generation from other sources. In addition, 6740 MW from
Small, Mini, and Micro Hydro potential have been assessed. Also, 56 sites for pumped storage
schemes with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely used form of renewable energy.
India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential on global
scenario.[105]

The installed capacity as of 31 March 2018 is approximately 45,293.42 MW which is 13.17% of total installed utility capacity in India.[3] In
addition, 4486 MW capacity from Small, Mini, and Micro Hydro schemes have been installed.[3] The public sector has a predominant
share of 97% in this sector.[106] National Hydroelectric Power Corporation (NHPC), Northeast Electric Power Company (NEEPCO), Satluj
jal vidyut nigam (SJVNL), Tehri Hydro Development Corporation, NTPC-Hydro are a few public sector companies engaged in
development of hydroelectric power in India.
Nagarjuna Sagar Dam and the 810
Pumped storage schemes are perfect centralised peaking power stations for the load management in the electricity grid. Pumped storage MW hydroelectric power plant on
schemes would be in high demand for meeting peak load demand and storing the surplus electricity as India graduates from electricity the Krishna River.
deficit to electricity surplus.[107] They also produce secondary /seasonal power at no additional cost when rivers are flooding with excess
water. Storing electricity by other alternative systems such as batteries, compressed air storage systems, etc. is more costly than electricity production by standby generator. India
has already established nearly 4785 MW pumped storage capacity which is part of its installed hydro power plants.[108][109]

Solar power
India is endowed with vast solar energy. The solar radiation of about 5,000 trillion kWh per year is
incident over its land mass with average daily solar power potential of 0.25 kWh per m2 of used land
area with the available commercially proven technologies.[112] As of 31 March 2018, the installed
capacity was 21.65 GW meeting 2% of the utility electricity generation.[66]

Installation of solar power plants require nearly 2.4 hectares (0.024 km2) 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 and hydro power plants when submergence area of water
reservoir is also accounted. 1.33 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.[113] Part of
waste lands (32,000 square km) when installed with solar power plants can produce 2,000 billion
Kwh of electricity (two times the total generation in the year 2013-14) with land annual
productivity/yield of ₹1.0 million (US$14,000) per acre (at 4 Rs/kWh price) which is at par with
many industrial areas and many times more than the best productive irrigated agriculture lands.[114]
Moreover, these solar power plants are not dependent on 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, nuclear fuels and crude oil) if all the marginally productive
lands are occupied by solar power plants in future.[115] The solar power potential of India can meet
perennially to cater per capita energy consumption at par with USA/Japan for the peak population
in its demographic transition.[116]

Indian solar PV power tariff has fallen to ₹2.44 (3.4¢ US) per kWh in May 2017 which is lower than
any other type of power generation in India.[117][118] In the year 2017, the levelized tariff in US$ for
solar electricity has fallen to 1.79 cents/kWh which is far cheaper than the fuel cost incurred by coal
based power plants in India.[119]

Solar thermal power plants with thermal storage are emerging as cheaper (US 5 ¢/kWh) and clean
Global Horizontal Irradiation in India. [110]
load following power plants compared to fossil fuel power plants.[120][121][122] They can cater the
load/ demand round the clock perfectly and work as base load power plants also when the extracted
solar energy is found excess in a day.[123] Proper mix of solar thermal and solar PV can fully match the load fluctuations without the
support of costly battery storage or costly non solar power plants with dispatchability and reliability.[124][125]

Land acquisition is a challenge to solar farm projects in India. Some state governments are exploring means to address land availability
through innovation; for example, by exploring means to deploy solar capacity above their extensive irrigation canal projects, thereby
harvesting solar energy while reducing the loss of irrigation water by solar evaporation.[126] The state of Gujarat was first to implement
the Canal Solar Power Project, to use 19,000 km (12,000 mi) long network of Narmada canals across the state for setting up solar panels
to generate electricity. It was the first ever such project in India.

Synergy with irrigation water pumping and hydro power stations

The major disadvantage of solar power (PV type only) is that it can only produce electricity in daylight which is not available during night Price history of silicon PV cells (not
time and cloudy daytime. This disadvantage can be overcome by installing grid storage, such as pumped-storage hydroelectricity. modules) since 1977. The great
Ultimate electricity requirement for river water pumping (excluding ground water pumping) is 570 billion kWh to pump one cubic meter thing about solar power is that it is a
technology and not a fuel. It is
of water for each square meter area by 125 m height on average for irrigating 140 million hectares of net sown area (42% of total land) for
unlimited and the more it is
three crops in a year.[127] Interlinking Indian rivers is achieved by envisaging coastal reservoirs for productive use of the available river
deployed the cheaper it would
waters.[128] These river water pumping stations would also be envisaged with pumped-storage hydroelectricity features to generate be.[111] While the more limited fossil
electricity when necessary to stabilize the grid needs. Also, all existing and future hydro power stations can be expanded with additional fuels are used, the more expensive
pumped-storage hydroelectricity units to cater night time electricity consumption. Most of the ground water pumping power can be met they become.
directly by solar power during the day time.[129]

Wind power
India has the fourth largest installed wind power capacity in the world. The development of wind power in India began in the 1990s in
Tamil Nadu and has significantly increased in the last decade. As of 31 March 2018, the installed capacity of wind power was 34.05 GW,
spread across many states of India.[3][130] The largest wind power generating state is Tamil Nadu accounting for nearly 23% of installed
capacity, followed in decreasing order by Gujarat, Maharashtra, Rajasthan and Karnataka.[130][131]

In the year 2015-16, wind power accounted for 8.5% of India's total installed power capacity, and 2.5% of the country's power output. Solar thermal power plant with a
India targets to install total 60 GW of wind power capacity by 2022[132][133] The wind power tariff of around 2.5 INR/kWh is cheapest of field of heliostats and a central solar
all power generation sources in India.[134] power tower.

Biomass power
Biomass is organic matter derived from living, or recently living organisms. As an energy source, biomass can either be used directly via combustion to produce heat, or indirectly
after converting it to various forms of biofuel. Conversion of biomass to biofuel can be achieved by different methods which are broadly classified into: thermal, chemical, and
biochemical methods.[135] In this system biomass, bagasse, forestry, domestic organic wastes, industrial organic wastes, organic residue from biogas plants and agro residue &
agricultural wastes are used as fuel to produce electricity.[136][137] Nearly 750 million tons of non edible (by cattle) biomass is available annually in India which can be put to use for
higher value addition.[138][139] Biomass is a renewable energy source as it is generated by extracting the carbon dioxide gas from the atmosphere. Its use for electricity generation is
carbon-neutral fuel because it would also release global warming green house gasses like methane and carbon dioxide when it is left to decay / degenerate without using as an energy
source. The total biomass traditional use in India is nearly 177 Mtoe in the year 2013.[140]
20% of house holds in India use biomass and charcoal for cooking purpose. As traditional use of biomass is being replaced by LPG in
rural areas at faster pace, biomass burning in agriculture fields has become major source for causing higher level air pollution in nearby
towns and cities.[141][138]

Torrefied biomass

Huge quantity of imported coal is being used in pulverised coal-fired power stations. Raw biomass is not suitable for use in the pulverised
coal mills as they are difficult to grind into fine powder due to its caking problem. However 100% biomass can be fired after Torrefaction
in the pulverised coal mills for replacing imported coal.[142] Torrefied biomass plants can be integrated with existing pulverised coal-fired
Canal Solar Power Project in Kadi,
power stations using the available hot flue gas as heat source. Cofiring dry biomass up to 20% heat input with coal is possible directly in
Gujarat
pulverised coal-fired power stations without facing caking problem.[143][144] North west and southern regions can replace imported coal
use with biomass where surplus agriculture/crop residue biomass is burnt in the fields causing pollution problems.[145] Many old and
smaller capacity coal fired power plants are being shut down permanently due to pollution problems.[146][147] These units can be
retrofitted economically to produce electricity from biomass without appreciable pollution.[148] Biomass power plants can also get extra
income by selling the Renewable Energy Certificates (REC).[149][150]

Biomass gasifier

India has been promoting biomass gasifier technologies in its rural areas, to use surplus biomass resources such as rice husk, crop stalks,
small wood chips, other agro-residues. The goal was to produce electricity for villages with power plants of up to 2 MW capacities. During
2011, India installed 25 rice husk based gasifier systems for distributed power generation in 70 remote villages of Bihar. The largest Wind farm in Rajasthan.
biomass-based power plant in India is at Sirohi, Rajasthan, having the capacity of 20 MW, i.e., Sambhav Energy Limited. In addition,
gasifier systems are being installed at 60 rice mills in India. During the year, biomass gasifier projects of 1.20 MW in Gujarat and 0.5 MW
in Tamil Nadu were successfully installed.[151]

Biogas

This pilot programme aims to install small-scale biogas plants for meeting the cooking energy needs in rural areas of India. During 2011,
some 45000 small-scale biogas plants were installed. Cumulatively, India has installed 4.44 million small-scale biogas plants.

In 2011, India started a new initiative with the aim to demonstrate medium size mixed feed biogas-fertiliser pilot plants. This technology
aims for generation, purification/enrichment, bottling and piped distribution of biogas. India approved 21 of these projects with Wind turbines midst India's
aggregate capacity of 37016 cubic metre per day, of which 2 projects have been successfully commissioned by December 2011.[151] India agricultural farms.
has additionally commissioned 158 projects under its Biogas based Distributed/Grid Power Generation programme, with a total installed
capacity of about 2 MW. In 2018, India has set 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.[152] The rejected organic solids from biogas
plants can be used after Torrefaction in the existing coal fired plants to reduce coal consumption.

Biogas which is mainly methane/natural gas can also be used for generating protein rich feed for cattle, poultry and fish in villages
economically by cultivating Methylococcus capsulatus bacteria culture with tiny land and water foot print.[153][154][155] The carbon
dioxide gas produced as by product from these units can be put to use in cheaper production of algae oil or spirulina from algae
cultivation particularly in tropical countries like India which can displace the prime position of crude oil in near future.[156][157] Union
government is implementing many schemes to use productively the agro waste or biomass in rural areas to uplift rural economy and job
potential.[158][159] Using biogas for high protein rich feed production is also eligible for carbon credits as they also perform carbon
sequestration from the atmosphere.[160]

As of 2010, India burnt over 200 million tonnes of coal replacement worth of traditional biomass fuel every year to meet its energy need
for cooking and other domestic use. This traditional biomass fuel – fuel wood, crop waste and animal dung – is a potential raw material
for the application of biomass technologies for the recovery of cleaner fuel, fertilisers and electricity with significantly lower pollution.

Biomass available in India has been playing an important role as fuel for sugar mills, textiles, paper mills, and small and medium
enterprises (SME). In particular there is a significant potential in breweries, textile mills, fertiliser plants, the paper and pulp industry,
Wind farms midst paddy fields in
solvent extraction units, rice mills, petrochemical plants and other industries to harness biomass power.[161]
India.

Geothermal energy
Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. India's geothermal energy installed
capacity is experimental. Commercial use is insignificant.

According to some ambitious estimates, India has 10,600 MW of potential in the geothermal provinces but it still needs to be exploited.[162] India has potential resources to harvest
geothermal energy. The resource map for India has been grouped into six geothermal provinces:[163]

Himalayan Province – Tertiary Orogenic belt with Tertiary magmatism

Areas of Faulted blocks – Aravalli belt, Naga-Lushi, West coast regions and Son-Narmada lineament.
Volcanic arc – Andaman and Nicobar arc.
Deep sedimentary basin of Tertiary age such as Cambay basin in Gujarat.
Radioactive Province – Surajkund, Hazaribagh, Jharkhand.
Cratonic province – Peninsular India
India has about 340 hot springs spread over the country. Of this, 62 are distributed along the northwest Himalaya, in the States of Jammu and Kashmir, Himachal Pradesh and
Uttarakhand. They are found concentrated along a 30-50-km wide thermal band mostly along the river valleys. Naga-Lusai and West Coast Provinces manifest a series of thermal
springs. Andaman and Nicobar arc is the only place in India where volcanic activity, a continuation of the Indonesian geothermal fields, and can be good potential sites for
geothermal energy. Cambay graben geothermal belt is 200 km long and 50 km wide with Tertiary sediments. Thermal springs have been reported from the belt although they are not
of very high temperature and discharge. During oil and gas drilling in this area, in recent times, high subsurface temperature and thermal fluid have been reported in deep drill wells
in depth ranges of 1.7 to 1.9 km. Steam blowout have also been reported in the drill holes in depth range of 1.5 to 3.4 km. The thermal springs in India's peninsular region are more
related to the faults, which allow down circulation of meteoric water to considerable depths. The circulating water acquires heat from the normal thermal gradient in the area, and
depending upon local condition, emerges out at suitable localities. The area includes Aravalli range, Son-Narmada-Tapti lineament, Godavari and Mahanadi valleys and South
Cratonic Belts.[163]

In a December 2011 report, India identified six most promising geothermal sites for the development of geothermal energy. These are, in decreasing order of potential:
 Tattapani in Chhattisgarh
Puga in Jammu & Kashmir
Cambay Graben in Gujarat
Manikaran in Himachal Pradesh
Surajkund in Jharkhand
Chhumathang in Jammu & Kashmir
India plans to set up its first geothermal power plant, with 2–5 MW capacity at Puga in Jammu and Kashmir.[164]

Tidal power
Tidal power, also called tidal energy, is a form of hydropower that converts the energy obtained from tides into useful forms of power, mainly electricity. The potential of tidal wave
energy becomes higher in certain regions by local effects such as shelving, funnelling, reflection and resonance.

India is surrounded by sea on three sides, its potential to harness tidal energy is significant. Energy can be extracted from tides in several ways. In one method, a reservoir is created
behind a barrage and then tidal waters pass through turbines in the barrage to generate electricity. This method requires mean tidal differences greater than 4 metres and also
favourable topographical conditions to keep installation costs low. One report claims the most attractive locations in India, for the barrage technology, are the Gulf of Khambhat and
the Gulf of Kutch on India's west coast where the maximum tidal range is 11 m and 8 m with average tidal range of 6.77 m and 5.23 m respectively. The Ganges Delta in the
Sunderbans, West Bengal is another possibility, although with significantly less recoverable energy; the maximum tidal range in Sunderbans is approximately 5 m with an average
tidal range of 2.97 m. The report claims, barrage technology could harvest about 8 GW from tidal energy in India, mostly in Gujarat. The barrage approach has several
disadvantages, one being the effect of any badly engineered barrage on the migratory fishes, marine ecosystem and aquatic life. Integrated barrage technology plants can be
expensive to build.

In December 2011, the Ministry of New & Renewable Energy, Government of India and the Renewable Energy Development Agency of Govt. of West Bengal jointly approved and
agreed to implement India's first 3.75 MW Durgaduani mini tidal power project. Indian government believes that tidal energy may be an attractive solution to meet the local energy
demands of this remote delta region.[164]

Another tidal wave technology harvests energy from surface waves or from pressure fluctuations below the sea surface. A report from the Ocean Engineering Centre, Indian Institute
of Technology, Madras estimates the annual wave energy potential along the Indian coast is between 5 MW to 15 MW per metre, suggesting a theoretical maximum potential for
electricity harvesting from India's 7500 kilometre coast line may be about 40 GW. However, the realistic economical potential, the report claims, is likely to be considerably less.[165]
A significant barrier to surface energy harvesting is the interference of its equipment to fishing and other sea bound vessels, particularly in unsettled weather. India built its first seas
surface energy harvesting technology demonstration plant in Vizhinjam, near Thiruruvananthpuram.

The third approach to harvesting tidal energy consists of ocean thermal energy technology. This approach tries to harvest the solar energy trapped in ocean waters into usable
energy. Oceans have a thermal gradient, the surface being much warmer than deeper levels of ocean. This thermal gradient may be harvested using modified Rankine cycle. India's
National Institute of Ocean Technology (NIOT) attempted this approach over the last 20 years, but without success. In 2003, with Saga University of Japan, NIOT attempted to
build and deploy a 1 MW demonstration plant.[166] However, mechanical problems prevented success. After initial tests near Kerala, the unit was scheduled for redeployment and
further development in the Lakshadweep Islands in 2005. The demonstration project's experience have limited follow-on efforts with ocean thermal energy technology in India.

Nuclear power
As of 31 March 2018, India had 6.78 GW of installed nuclear power generation capacity or nearly 2% of total installed utility power
generation capacity. Nuclear plants generated 38,247 million kWh at 64.40% PLF in the year 2017-18.[167]

India's nuclear power plant development began in 1964. India signed an agreement with General Electric of the United States for the
construction and commissioning of two boiling water reactors at Tarapur. In 1967, this effort was placed under India's Department of
Atomic Energy. In 1971, India set up its first pressurized heavy water reactors with Canadian collaboration in Rajasthan. In 1987, India
created Nuclear Power Corporation of India Limited to commercialize nuclear power.
Kudankulam Nuclear Power Plant (2
Nuclear Power Corporation of India Limited is a public sector enterprise, wholly owned by the Government of India, under the x 1000 MW) under construction in
administrative control of its Department of Atomic Energy. Its objective is to implement and operate nuclear power stations for India's 2009.
electricity sector. The state-owned company has ambitious plans to establish 63 GW generation capacity by 2032, as a safe,
environmentally benign and economically viable source of electrical energy to meet the increasing electricity needs of India.[168]

India's nuclear power generation effort satisfies many safeguards and oversights, such as getting ISO-14001 accreditation for environment management system and peer review by
World Association of Nuclear Operators including a pre-start up peer review. Nuclear Power Corporation of India Limited admits, in its annual report for 2011, that its biggest
challenge is to address the public and policy maker perceptions about the safety of nuclear power, particularly after the Fukushima incident in Japan.[169]

In 2011, India had 18 pressurized heavy water reactors in operation, with another four projects of 2.8 GW capacity launched. The country plans to implement fast breeder reactors,
using plutonium based fuel. Plutonium is obtained by reprocessing spent fuel of first stage reactors. India is in the process of launching its first prototype fast breeder reactor of 500
MW capacity in Tamil Nadu.

India has nuclear power plants operating in the following states: Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Tamil Nadu and Karnataka. These reactors have an installed
electricity generation capacity between 100 MW and 540 MW each. KKNPP Unit-1 with a capacity of 1,000 MWe was commissioned in July, 2013 while KKNPP Unit-2, also with a
capacity of 1,000 MWe is nearing first approach to criticality in 2016.

In 2011, The Wall Street Journal reported the discovery of uranium in a new mine in India, the country's largest ever. The estimated reserves of 64,000 tonnes, could be as large as
150,000 tonnes (making the mine one of the world's largest). The new mine is expected to provide India with a fuel that it now imports. Nuclear fuel supply constraints had limited
India's ability to grow its nuclear power generation capacity. The newly discovered ore, unlike those in Australia, is of slightly lower grade. This mine is expected to be in operation in
2012.[170]

India's share of nuclear power plant generation capacity is just 1.2% of worldwide nuclear power production capacity, making it the 15th largest nuclear power producer. India aims
to supply 9% of it electricity needs with nuclear power by 2032.[169] India's largest nuclear power plant project is planned to be implementedat Jaitapur, Maharashtra in partnership
with Areva, France.

India's government is also developing up to 62, mostly thorium reactors, which it expects to be operational by 2025. It is the "only country in the world with a detailed, funded,
government-approved plan" to focus on thorium-based nuclear power. The country currently gets under 2% of its electricity from nuclear power, with the rest coming from coal
(60%), hydroelectricity (16%), other renewable sources (12%) and natural gas (9%). It expects to produce around 25% of its electricity from nuclear power.[171]

Electricity transmission and distribution

As of 2013, India has a single wide area synchronous grid that covers the entire country except distant islands.[172][173]

Installed transmission lines and distribution capacity (MVA) as on 31 July 2018[174]

Substations Transmission lines
Capacity c.km / MVA ratio[175]
(MVA) (circuit km)
HVDC ± 220 kV & above 22,500 15,556 0.691
765 kV 197,500 36,673 0.185
Electricity transmission grid in
400 kV 292,292 173,172 0.707 eastern India.

220 kV 335,696 170,748 0.592

220 kV & above 847,988 396,149 0.467

The spread of high voltage transmission lines is such that it can form a square matrix of area 266 km2 (i.e. on average, at least one HV line
within 8.15 km distance/vicinity) in entire area of the country. The length of high-voltage transmission lines is nearly 20% more than that
of the United States (322,000 km (200,000 mi) of 230 kV and above) but transmits far less electricity.[176] The HV transmission lines (66
kV and above) installed in the country is 649,833 km (403,788 mi) (i.e. on average, at least one ≥66 kV transmission line within 4.95 km
distance).[5] The length of transmission lines (400 V and above and excluding 220 V lines) is 10,381,226 km (6,450,595 mi) as on 31
March 2018 in the country.[5] The spread of total transmission lines (≥400 V) is such that it can form a square matrix of area 0.36 km2
(i.e. on average, at least one transmission line within 0.31 km distance) in entire area of the country.

The all-time maximum peak load is not exceeding 179,571 MW in the unified grid whereas the all-time peak load met is 170,895 MW on
30 May 2018.[177] The maximum achieved demand factor of substations is nearly 60% at 220 kV level. The operational performance of
the huge capacity substations and the vast network of high voltage transmission lines with low demand factor is not satisfactory in
meeting the peak electricity load.[178][179] Detailed forensic engineering studies are to be undertaken and system inadequacies rectified to
evolve into smart grid for maximising utility of the existing transmission infrastructure with optimum future capital investments.[41]

A tower supporting 220 kV line near

The July 2012 blackout, affecting the north of the country, was the largest power grid failure in history by number of people affected. The
Ennore, Chennai
introduction of Availability Based Tariff (ABT) has brought about stability to a great extent in the Indian transmission grids. However,
presently it is becoming outdated in a power surplus grid.

India's Aggregate Transmission and Commercial (ATC) losses is nearly 21.35% in 2017-18.[180][5][181] Whereas the total ATC loss was only 9.43% out of the 4,113 billion kWh
electricity supplied in USA during the year 2013. The Government has pegged the national ATC losses at around 24% for the year 2011 & has set a target of reducing them to 17.1% by
2017 and to 14.1% by 2022. A high proportion of non-technical losses are caused by illegal tapping of lines, faulty electric meters and fictitious power generation that underestimate
actual consumption and also contribute to reduced payment collection. A case study in Kerala estimated that replacing faulty meters could reduce distribution losses from 34% to
29%.[49]

Regulation and administration

The Ministry of Power is India's apex central government body regulating the electrical energy sector in India. This ministry was created on 2 July 1992. It is responsible for
planning, policy formulation, processing of projects for investment decisions, monitoring project implementation, training and manpower development, and the administration and
enactment of legislation in regard to thermal, hydro power generation, transmission and distribution.[182] It is also responsible for the administration of India's Electricity Act
(2003), the Energy Conservation Act (2001) and to undertake such amendments to these Acts, as and when necessary, in conformity with the Indian government's policy objectives.

Electricity is a concurrent list subject at Entry 38 in List III of the seventh Schedule of the Constitution of India. In India's federal governance structure, this means that both the
central government and India's state governments are involved in establishing policy and laws for its electricity sector. This principle motivates central government of India and
individual state governments to enter into memorandum of understanding to help expedite projects and reform electricity sector in respective state.[183] To bring transferency and
dissemination of information to the public in power purchases by the DisComs, Government of India recently started posting data on daily basis in its website.[184]

Trading
Bulk power purchasers can buy electricity on daily basis for short, medium and long term duration from reverse e-auction facility.[185] The electricity prices transacted under reverse
e-auction facility are far less than the prices agreed under bilateral agreements.[186] Multi Commodity Exchange has sought permission to offer electricity future markets in
India.[187]

Government-owned power companies

India's Ministry of Power administers central government owned companies involved in the generation of electricity in India. These include National Thermal Power Corporation,
Damodar Valley Corporation, National Hydroelectric Power Corporation and Nuclear Power Corporation of India. The Power Grid Corporation of India is also administered by the
Ministry; it is responsible for the inter-state transmission of electricity and the development of national grid.

The Ministry works with various state governments in matters related to state government owned corporations in India's electricity sector. Examples of state corporations include
Telangana Power Generation Corporation, Andhra Pradesh Power Generation Corporation Limited, Assam Power Generation Corporation Limited, Tamil Nadu Electricity Board,
Maharashtra State Electricity Board, Kerala State Electricity Board, and Gujarat Urja Vikas Nigam Limited. The state owned DISCOMs invariably maintain large amount of overdues
to the electricity suppliers effecting their finances.[188]

Funding of power infrastructure

India's Ministry of Power administers Rural Electrification Corporation Limited and Power Finance Corporation Limited. These central government owned public sector enterprises
provide loans and guarantees for public and private electricity sector infrastructure projects in India. Without the realistic assessment of required capacity addition, every major
bank, whether in public or private sector, has encouraged the businessmen to install thermal power plants by offering substantial loans at 75% of over estimated costs on overrated
plant capacities (literally loan more than 100% of actual project cost) which has led to stranded assets of US$40 to 60 billion.[189] However, central and state owned power
generators have escaped the crisis as they had entered PPAs with the state owned monopolistic Discoms on cost plus basis at higher than prevailing market power tariffs without
undergoing competitive bidding process. There are many direct and indirect subsidies given to various sectors.[190]

Borrowing by state owned discoms

The accumulated losses of state-owned discoms (without subsidies) rose from Rs 11,699 crore (117 billion) in 2004-05 to Rs 71,271 crore (713 billion) in 2013-14.
These losses have resulted in state discoms relying more on short-term loans to fund their operations. Borrowings by state discoms rose
from Rs 1,58,003 crore (1.58 trillion) in 2007-08 to Rs 5,45,922 crore (5.46 trillion) in 2013-14 (CAGR 23%).

Consequently, the interest cost on these loans worsens the poor finances of state discoms. Poor finances of the discoms affect their
ability to buy power, thus leading to power deficits. Borrowings by state owned discoms
& Commercial losses of discoms

Budgetary support
After the enactment of Electricity Act 2003 budgetary support to power sector is negligible.[191] State Electricity Boards get initial financial help from Central Government in the
event of their un-bundling and transparency.

Human resource development

Rapid growth of electricity sector in India demands that talent and trained personnel become available as India's new installed capacity adds new jobs. India has initiated the process
to rapidly expand energy education in the country, to enable the existing educational institutions to introduce courses related to energy capacity addition, production, operations and
maintenance, in their regular curriculum. This initiative includes conventional and renewable energy.

A Ministry of Renewable and New Energy announcement claims State Renewable Energy Agencies are being supported to organise short-term training programmes for installation,
operation and maintenance and repair of renewable energy systems in such places where intensive RE programme are being implemented. Renewable Energy Chairs have been
established in IIT Roorkee and IIT Kharagpur.[151] Central Training Institute Jabalpur is a primer Power Distribution Engineering and Management training Institute.

Education and availability of skilled workers is expected to be a key challenge in India's effort to rapidly expand its electricity sector.

Problems with India's power sector

India's electricity sector faces many issues. Some are:

Inadequate last mile connectivity is the main problem to supply electricity for all users. The country already has adequate generation and transmission capacity to meet the
full demand temporally and spatially.[5] However, due to lack of last-mile link-up with all electricity consumers and reliable power supply (to exceed 99%), many consumers
depend on DG sets using costly diesel oil for meeting unavoidable power requirements.[41] Also more than 10 million households are using battery storage UPS as back-up in
case of load shedding.[192] India imports nearly US$2 billion worth of battery storage UPS every year.[193] Nearly 80 billion KWh electricity is generated annually in India by DG
sets which are consuming nearly 15 million tons of diesel oil. As the overhead lines availability is low during rains and wind storms, separate buried cables are to be laid from
the distribution low voltage substations to supply cheaper emergency power to the needy consumers in cities and towns to drastically reduce diesel oil consumption by DG sets
and installation of UPS systems.
Demand build up measures can be initiated to consume the cheaper electricity (average price Rs 2.5 per kWhr) available from the grid instead of running the coal/gas/oil fired
captive power plants in various electricity intensive industries.[194][195] The captive power generation capacity by coal/gas/oil fired plants is nearly 53,000 MW mainly established
in steel, fertilizer, aluminium, cement, etc. industries.[196][5] These bulk captive electricity producers can draw cheaper electricity from the grid on short term open access (STOA)
basis and avoid the costly imported coal/RLNG/natural gas or use these fuels for process purposes instead of electricity generation.[197][198] Some of these idling captive power
plants can be used for ancillary services or grid reserve service for earning extra revenue.[199][200] At present substantial diesel oil is consumed by railways for rail traffic on its
non electrified rail lines. To eliminate the substantial cost of imported diesel fuel, power ministry is envisaging to fund the electrification of these lines and achieve additional
power demand of 7 billion units.[201][202]
No access to electricity: Over 200 million people in India or 39 million households have no access to electricity.[1][12] Of those who do, almost all find electricity supply
intermittent and unreliable.[203] However, many of the power stations are idling for lack of electricity demand. The idling generation capacity can supply three times the domestic
electricity needs (nearly 80 billion KWh) of the people who do not have access to electricity.
A system of cross-subsidization is practiced based on the principle of 'the consumer's ability to pay'. In general, the industrial and commercial consumers subsidize the
domestic and agricultural consumers.[204][205] Further, Government giveaways such as free electricity for farmers, partly to curry political favor, have depleted the cash reserves
of state-run electricity-distribution system and led them to amassing a debt of ₹2.5 trillion (US$35 billion).[206] This has financially crippled the distribution network, and its ability
to pay for purchasing power to meet the demand in the absence of subsidy reimbursement from state governments.[207] This situation has been worsened by state government
departments that do not pay their electricity bills.
Name plate/declared capacity of the many coal fired plants owned by IPPs are overrated above the actual maximum continuous rating (MCR) capacity.[208] The reason for
overrating the capacity is to over-invoice the plant cost.[209] These plants operate 15 to 10% below their declared capacity on daily basis and operate rarely at declared capacity.
Thus these units are not effectively contributing to the on line spinning reserves to maintain power system / grid stabilization. This is also due to reason that point of connection
charges are levied in India based on energy exported instead of MCR capacity as applicable for national grid in UK.
Intra day load and demand graphs are not made in India at every 15 minutes or less intervals to understand power grid nature and its short comings with respect to grid
frequency. These graphs should be plotted with comprehensive data collected from SCADA / on line for all grid connected generating stations (≥ 100 KW) and load data from all
substations to impart authenticity to the data presented.[210] Comprehensive list of grid connected power stations along with declared capacity shall be prepared by
CEA/POSOCO for all types of power plants (including wind, solar, biomass, co-generation, etc.) and update the data on weekly basis.
Coal supply: Despite abundant reserves of coal, the country isn't producing enough to feed its power plants. India's monopoly coal producer, state-controlled Coal India, is
constrained by primitive mining techniques and is rife with theft and corruption. Poor coal transport infrastructure has worsened these problems. To expand its coal production
capacity, Coal India needs to mine new deposits. However, most of India's coal lies under protected forests or designated tribal lands. Any mining activity or land acquisition for
infrastructure in these coal-rich areas of India, has been rife with political demonstrations, social activism and public interest litigations. Being massive consumer of local and
imported coal, India should end the Coal India's coal pricing monopoly and implement coal trading in commodities stock exchange to arrive at market determined coal price on
daily basis.[211] This is possible by devising standard coal grades / trading instruments and identifying coal supply hubs in central India, eastern India, west coast and east coast
to facilitate trading in imported and local coal.[34]
Poor pipeline connectivity and infrastructure to harness India's abundant coal bed methane and natural gas potential. The giant new offshore natural gas field has delivered
far less gas than claimed causing shortage of natural gas.
Average transmission, distribution and consumer-level losses exceeding 30% which includes auxiliary power consumption of thermal power stations, fictitious electricity
generation by wind generators, solar power plants & independent power producers (IPPs), etc.
The residential building sector is one of the largest consumers of electricity in India. Continuous urbanization and the growth of population result in increasing power
consumption in buildings. Thus, while experts express the huge potential for energy conservation in this sector, the belief still predominates among stakeholders that energy-
efficient buildings are more expensive than conventional buildings, which adversely affects the "greening" of the building sector.[212]
Key implementation challenges for India's electricity sector include new project management and execution, ensuring availability of fuel quantities and qualities, lack of
initiative to develop large coal and natural gas resources available in India, land acquisition, environmental clearances at state and central government level, and training of
skilled manpower to prevent talent shortages for operating latest technology plants.[213]
Hydroelectric power projects in India's mountainous north and north east regions have been slowed down by ecological, environmental and rehabilitation controversies,
coupled with public interest litigations.
Theft of power: In India, financial loss due to theft of electricity may be around $16 billion yearly. Populist pro-free power measures also bleed the power companies. Some
power companies continue to bleed and lead to bankruptcy due to one of these factors. This also lead to pay more by legal users. This creates a scenario where villages have
huge cut of power and simultaneously availability of power in the grid with no purchase by DISCOMs.
Losses in the connector systems/service connections leading to premature failure of capital equipments like transformers
India's nuclear power generation potential has been stymied by political activism since the Fukushima disaster. The track record of executing nuclear power plants is also
very poor in India[214]
Lack of clean and reliable energy sources such as electricity is, in part, causing about 260 million (20%) people in India to continue depending on traditional biomass energy
sources – namely fuel wood, agricultural waste and livestock dung – for cooking and other domestic needs.[52][215] Traditional fuel combustion is the primary source of indoor air
pollution in India, causes between 300,000 and 400,000 deaths per year and other chronic health issues.

Foreign electricity trade

India's National Grid is synchronously interconnected to Bhutan, and asynchronously linked with Bangladesh and Nepal.[216] An interconnection with Myanmar,[217] and an
undersea interconnection to Sri Lanka (India–Sri Lanka HVDC Interconnection) has also been proposed.

India has been exporting electricity to Bangladesh and Nepal and importing excess electricity from Bhutan.[218][219] In 2015, Nepal imported 224.21 MW of electric power from
India, and Bangladesh imported 500 MW.[220][221] Bangladesh wants to import 10,000 MW power from India where substantial power capacity is unable to generate electricity for
lack of power demand.[222]

Bangladesh, Myanmar and Pakistan are producing substantial natural gas and using for electricity generation purpose. 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.[223][224] Whereas the natural
gas production in India is not even adequate to meet its non-electricity requirements.[225]

Bangladesh, Myanmar and Pakistan have proven reserves of 184 billion cubic metres (bcm), 283 bcm and 754 bcm respectively. There is ample opportunity for mutually beneficial
trading in energy resources with these countries.[226] India can supply its surplus electricity to Pakistan and Bangladesh in return for the natural gas imports by gas pipe lines.
Similarly India can develop on BOOT basis hydro power projects in Bhutan, Nepal and Myanmar. India can also enter into long term power purchase agreements with China for
developing the hydro power potential in Brahmaputra river basin of Tibet region. India can also supply its surplus electricity to Sri Lanka by undersea cable link. There is ample
trading synergy for India with its neighbouring countries in securing its energy requirements.[227]

Electricity as substitute to imported LPG and kerosene

The net import of liquefied petroleum gas (LPG) is 6.093 million tons and the domestic consumption is 13.568 million tons with Rs. 41,546 crores subsidy to the domestic consumers
in the year 2012-13.[228] The LPG import content is nearly 40% of total consumption in India.[229] The affordable electricity retail tariff (860 Kcal/Kwh at 90% heating efficiency) to
replace LPG (lower heating value 11,000 Kcal/Kg at 75% heating efficiency) in domestic cooking is 6.47 Rs/Kwh when the retail price of LPG cylinder is Rs 1000 (without subsidy)
with 14.2 kg LPG content. Replacing LPG consumption with electricity reduces its imports substantially.

The domestic consumption of kerosene is 7.349 million tons with Rs. 30,151 crores subsidy to the domestic consumers in the year 2012-13. The subsidised retail price of kerosene is
13.69 Rs/litre whereas the export/import price is 48.00 Rs/litre. The affordable electricity retail tariff (860 Kcal/Kwh at 90% heating efficiency) to replace kerosene (lower heating
value 8240 Kcal/litre at 75% heating efficiency) in domestic cooking is 6.00 Rs/Kwh when Kerosene retail price is 48 Rs/litre (without subsidy).

In the year 2014-15, the plant load factor (PLF) of coal-fired thermal power stations is only 64.46% whereas these stations can run above 85% PLF comfortably provided there is
adequate electricity demand in the country.[230] The additional electricity generation at 85% PLF is nearly 240 billion units which is adequate to replace all the LPG and kerosene
consumption in domestic sector.[231] The incremental cost of generating additional electricity is only their coal fuel cost which is less than 3 Rs/Kwh. Enhancing the PLF of coal-fired
stations and encouraging domestic electricity consumers to substitute electricity in place of LPG and kerosene in household cooking, would reduce the government subsidies and idle
capacity of thermal power stations can be put to use economically. The domestic consumers who are willing to surrender the subsidised LPG/kerosene permits or eligible for
subsidized LPG/kerosene permits, may be given free electricity connection and subsidised electricity tariff.[203]

Since 2017, IPPs are offering to sell solar and wind power below 3.00 Rs/Kwh to feed into the high voltage grid. After considering distribution costs and losses, this electricity price is
quite profitable for the solar power to replace LPG and Kerosene use in domestic sector.

Electric vehicle
The retail prices of petrol and diesel are high in India to make electricity driven vehicles more economical as more and more electricity is generated from solar energy in near future
without appreciable environmental effects.[232] The retail price of diesel is 65.00 Rs/litre in the year 2017-18. The affordable electricity retail price (860 Kcal/Kwh at 75% input
electricity to shaft power efficiency) to replace diesel (lower heating value 8572 Kcal/litre at 40% fuel energy to crank shaft power efficiency) is 12.21 Rs/Kwh. The retail price of
petrol is 70.00 Rs/litre in the year 2017-18. The affordable electricity retail price (860 Kcal/Kwh at 75% input electricity to shaft power efficiency) to replace petrol (lower heating
value 7693 Kcal/litre at 33% fuel energy to crank shaft power efficiency) is 17.79 Rs/Kwh. In the year 2012-13, India consumed 15.744 million tons petrol and 69.179 millon tons
diesel which are mainly produced from imported crude oil at huge foreign exchange out go.[228]

Electricity driven vehicles would become popular in future when its energy storage/battery technology becomes more long lasting and maintenance free.[233][234] V2G is also feasible
with electricity driven vehicles to contribute for catering the peak load in the electricity grid. Electricity driven vehicles can also be continuously charged with Wireless Electricity
Transmission (WET) technology which transmits electricity over 5 km distance without wires to charge devices (mobile and stationary) between the range of 3-12 volts under any
weather conditions.[235][236]

Energy reserves
India being located mostly in Tropics, its abundant solar power potential along with its wind, hydro and biomass power potential can meet all its energy needs perennially without
depending on fossil fuels.[237] The renewable solar and wind power potential of India is also capable to achieve food security in addition to energy security as high protein rich feed
for fish / poultry / cattle can be produced from water with electricity which is known as power to food[154][155][160]

According to Oil and Gas Journal, India had approximately 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2011, world's 26th largest. United States Energy
Information Administration estimates that India produced approximately 1.8 Tcf of natural gas in 2010, while consuming roughly 2.3 Tcf of natural gas. The electrical power and
fertiliser sectors account for nearly three-quarters of natural gas consumption in India. Natural gas is expected to be an increasingly important component of energy consumption as
the country pursues energy resource diversification and overall energy security.[238][239]

The country already produces some coalbed methane and has major potential to expand this source of cleaner fuel. According to a 2011 Oil and Gas Journal report, India is
estimated to have between 600 and 2000 Tcf of shale gas resources (one of the world's largest). Despite its natural resource potential, and an opportunity to create energy industry
jobs, India has yet to hold a licensing round for its shale gas blocks.[240] The traditional natural gas reserves too have been very slow to develop in India because regulatory burdens
and bureaucratic red tape severely limit the country's ability to harness its natural gas resources.[96][241]

See also
Energy in India List of electricity organisations in India
Energy policy of India Central Electricity Authority (India)
Oil and gas industry in India List of power stations in India
East West Gas Pipeline (India) Indian Rivers Inter-link

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External links
National electricity Plan - 2012, CEA, Government of India (http://www.cea.nic.in/reports/powersystems/nep2012/nep13.pdf)
Electricity grid maps of southern region (http://www.srpc.kar.nic.in/html/grid_map.html)
India's Energy Policy and Electricity Production (http://www.nbr.org/research/activity.aspx?id=181)

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