Energy policy of India
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The energy policy of India is to increase the locally produced energy in India and reduce energy poverty,<ref>"India Energy Outlook 2021 – Analysis". IEA. Retrieved 15 January 2022.</ref> with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.<ref>"India 2nd biggest driver of global energy consumption in 2019: BP Statistical Review". Retrieved 18 June 2020.</ref><ref>"India energy dashboard". Retrieved 17 February 2022.</ref> Net energy import dependency was 40.9% in 2021-22.<ref name=cso23>"Energy statistics 2023" (PDF). CSO, GoI. Retrieved 23 March 2023.</ref>
The primary energy consumption in India grew by 10.4% in CY2021 and is the third biggest with 6% global share after China and USA .<ref name=bp22>"BP Statistical Review of World Energy, 2022" (PDF). Retrieved 30 July 2022.</ref><ref>"World energy consumption clock". US debt clock org. Retrieved 6 August 2014.</ref> The total primary energy consumption from coal (452.2 Mtoe; 45.88%), crude oil (239.1 Mtoe; 29.55%), natural gas (49.9 Mtoe; 6.17%), nuclear energy (8.8 Mtoe; 1.09%), hydroelectricity (31.6 Mtoe; 3.91%) and renewable power (27.5 Mtoe; 3.40%) is 809.2 Mtoe (excluding traditional biomass use) in the calendar year 2018.<ref name="bp17">"BP Statistical Review 2019" (PDF). Retrieved 15 June 2019.</ref> In 2018, India's net imports are nearly 205.3 million tons of crude oil and its products, 26.3 Mtoe of LNG and 141.7 Mtoe coal totaling to 373.3 Mtoe of primary energy which is equal to 46.13% of total primary energy consumption. India is largely dependent on fossil fuel imports to meet its energy demands – by 2030, India's dependence on energy imports is expected to exceed 53% of the country's total energy consumption.<ref>Yep, Eric (9 March 2011). "India's Widening Energy Deficit". Archived from the original on 28 December 2011.</ref> About 80% of India's electricity generation is from fossil fuels. India is surplus in electricity generation and also a marginal exporter of electricity in 2017.<ref>"India becomes Net Exporter of Electricity for the first Time". Retrieved 15 June 2018.</ref> Since the end of the calendar year 2015, huge power generation capacity has been idling for want of electricity demand.<ref name="nocap">"India won't need extra power plants for next three years – Says government report". The Economic Times. Retrieved 13 January 2016.</ref> India ranks second after China in renewables production with 208.7 Mtoe in 2016.<ref name="profile">"India – country energy profile, IEA". Retrieved 13 January 2017.</ref> The carbon intensity in India was 0.29 kg of CO2 per kWhe in 2016 which is more than that of USA, China and EU.<ref>Ritchie, Hannah; Roser, Max (11 May 2020). "India: CO2 Country Profile". Our World in Data. Retrieved 27 April 2021.</ref> The total manmade CO2 emissions from energy, process emissions, methane, and flaring is 2797.2 million tons of CO2 in CY2021 which is 7.2% of global emissions.<ref name=bp22/>
In 2020-21, the per-capita energy consumption is 0.6557 Mtoe excluding traditional biomass use and the energy intensity of the Indian economy is 0.2233 Mega Joules per INR (53.4 kcal/INR).<ref>"Energy statistics, 2022 of India (Table 8.4)". CSO, GoI. Retrieved 27 January 2022.</ref><ref>"India Economic Indicators". Retrieved 10 March 2018.</ref> India attained 63% overall energy self-sufficiency in 2017.<ref name=profile/><ref>"India- Energy balance, IEA". Retrieved 6 April 2017.</ref><ref>"Interactive GIS Energy Map of India, NITI Aayog". Retrieved 19 October 2021.</ref> Due to rapid economic expansion, India has one of the world's fastest growing energy markets and is expected to be the second-largest contributor to the increase in global energy demand by 2035, accounting for 18% of the rise in global energy consumption.<ref name="renewable">"::Welcome to INDIAN RENEWABLE ENERGY AND". Archived from the original on 18 December 2019. Retrieved 9 November 2015.</ref> Given India's growing energy demands and limited domestic oil and gas reserves, the country has ambitious plans to expand its renewable and most worked out nuclear power programme.<ref>"India energy security scenarios up to 2047 (IESS 2047)". NITI Aayog, GoI. Archived from the original on 11 September 2015. Retrieved 29 August 2014.</ref> India has the world's fourth largest wind power market and also plans to add about 100,000 MW of solar power capacity by 2022.<ref name= gwec>"Global Wind Statistics 2017" (PDF). Retrieved 25 July 2018.</ref><ref>"Will try to achieve pledged renewable energy targets in less than four and half years: Piyush Goyal". The Economic Times. Retrieved 9 November 2015.</ref> India also envisages to increase the contribution of nuclear power to overall electricity generation capacity from 4.2% to 9% within 25 years.<ref>"Slowdown not to affect India's nuclear plans". Business Standard India. Business-standard.com. 21 January 2009. Retrieved 22 August 2010.</ref> The country has five nuclear reactors under construction (third highest in the world) and plans to construct 18 additional nuclear reactors (second highest in the world) by 2025.<ref>Going nuclear, The Economist</ref> During the year 2018, the total investment in energy sector by India was 4.1% (US$75 billion) of US$1.85 trillion global investment.<ref>"World Energy Investment 2019" (PDF). IEA. Retrieved 15 May 2019.</ref>
Indian solar power PV tariff has fallen to Template:INRConvert per kWh in May 2017 which is lower than any other type of power generation in India.<ref name=tariff>Chandrasekaran, Kaavya. "Solar power tariffs drops historic low at Rs 2.44 per unit". The Economic Times. Retrieved 21 May 2017.</ref> In the year 2020, the levelized tariff in US dollars for solar PV electricity has fallen to 1.35 cents/kWh.<ref>"Abu Dhabi's 2 GW Al Dhafra Solar Project Records World's Lowest Tariff of $0.0135/kWh". 30 April 2020. Retrieved 28 June 2020.</ref><ref name="forbes.com">"Race Heats Up For Title Of Cheapest Solar Energy In The World". Forbes. Retrieved 28 October 2019.</ref> Also the international tariff of solar thermal storage power plants has fallen to US$0.063/kWh, which is cheaper than fossil fuel plants.<ref name=chile>"SolarReserve Bids 24-Hour Solar At 6.3 Cents In Chile". 13 March 2017. Retrieved 29 August 2017.</ref><ref name=aus>"Solar Reserve awarded AU$78/MWh Concentrated Solar Power contract". Retrieved 23 August 2017.</ref><ref>"UAE's push on concentrated solar power should open eyes across world". Retrieved 26 September 2017.</ref> The cheaper hybrid solar power (mix of solar PV and solar thermal storage power) need not depend on costly and polluting coal/gas fired power generation for ensuring stable grid operation.<ref>"Dispatchable Concentrated Solar Power Broke Price Records in 2017". Retrieved 22 September 2017.</ref> Solar electricity price is going to become the benchmark price for deciding the other fuel prices (petroleum products, natural gas/biogas/LNG, CNG, LPG, coal, lignite, biomass, etc.) based on their ultimate use and advantages.<ref>"Storing The Sun's Energy Just Got A Whole Lot Cheaper". ThinkProgress. Retrieved 23 May 2016.</ref><ref name=food1/><ref>"India wins deal for 24X7 supply of green power". Retrieved 9 May 2020.</ref>
The energy policy of India is characterized by trade-offs between four major drivers: A rapidly growing economy, with a need for dependable and reliable supply of electricity, gas, and petroleum products;<ref>Lathia, Rutvik Vasudev; Dadhaniya, Sujal (February 2017). "Policy formation for Renewable Energy sources". Journal of Cleaner Production. 144: 334–336. doi:10.1016/j.jclepro.2017.01.023.</ref> Increasing household incomes, with a need for an affordable and adequate supply of electricity, and clean cooking fuels; limited domestic reserves of fossil fuels, and the need to import a vast fraction of the natural gas, and crude oil, and recently the need to import coal as well; and indoor, urban and regional environmental impacts, necessitating the need for the adoption of cleaner fuels and cleaner technologies. In recent years, these challenges have led to a major set of continuing reforms, restructuring, and a focus on energy conservation.
India: Industry-wise total primary energy use of 87599 petajoules in 2019-20<ref>"EnviStats India 2022" (PDF). Ministry of Statistics and Programme Implementation, Government of India. 2022. p. 32. Retrieved 3 October 2022.</ref>
India: Total primary energy supply of 882 Mtoe in 2017<ref>"Energy Policy Review India 2020". Retrieved 9 January 2020.</ref><ref>"India energy outlook 2021". Retrieved 9 February 2021.</ref>
Oil and gas
India ranks third in oil consumption with 4.669 million barrels/day in 2020 after USA and China. During the calendar year 2019, India imported 221.7 million tons of crude oil and 44.4 million tons of refined petroleum products and exported 60.7 million tons of refined petroleum products. India is the second biggest net importer of crude oil and its products after China.<ref>"BP Statistical Review of World Energy 2021 (page 33)" (PDF). Retrieved 13 July 2021.</ref> India has built surplus world-class refining capacity using imported crude oil for exporting refined petroleum products. The net imports of crude oil is lesser by one fourth after accounting exports and imports of refined petroleum products.<ref>"BP Statistical Review of world energy 2016 (page 19)" (PDF). Retrieved 21 April 2016.</ref> Natural gas production was 26.9 billion cubic meters and consumption 59.7 billion cubic meters during the calendar year 2019.
During the financial year 2012–13, the production of crude oil was 37.86 million tons and 40,679 million standard cubic meters (nearly 26.85 million tons) natural gas. The net import of crude oil & petroleum products is 146.70 million tons worth of Rs 5611.40 billion. This includes 9.534 million tons of LNG imports worth of Rs. 282.15 billion.<ref name=png2013>"Indian PNG statistics". Retrieved 25 April 2022.</ref> Internationally, LNG price (One million Btu of LNG = 0.1724 barrels of crude oil (boe) = 29.52 cubic meters of natural gas = 21 kg of natural gas = 29.2 liters diesel = 21.3 kg LPG = 0.293 MWh) is fixed below crude oil price in terms of heating value.<ref name="srwew">"Statistical Review of world energy 2016" (PDF). Retrieved 17 February 2017.</ref><ref>"LNG Landed Prices in Asia". Retrieved 30 October 2020.</ref> LNG is slowly gaining its role as direct use fuel in the road and marine transport without regasification.<ref>"LNG-buses to debut in Kerala, import capacity to be doubled: Dharmendra Pradhan". Retrieved 13 October 2016.</ref><ref>Petronet pitches for LNG as auto fuel</ref><ref>"Assessment of the fuel cycle impact of liquefied natural gas as used in international shipping" (PDF). Retrieved 6 June 2014.</ref> By the end of June 2016, LNG price has fallen by nearly 50% below its oil parity price making it more economical fuel than diesel/gas oil in transport sector.<ref>"The US Drives Forward To Become A Player On The World LNG Market". Retrieved 1 July 2016.</ref><ref>"Bunker fuel spot price". Retrieved 6 June 2016.</ref> In 2012-13, India consumed 15.744 million tons petrol and 69.179 million tons diesel which are mainly produced from imported crude oil at huge foreign exchange out go. Using natural gas for heating, cooking and electricity generation is not economical as more and more locally produced natural gas will be converted into LNG for use in the transport sector to reduce crude oil imports.<ref>"The On-Road LNG Transportation Market in the US" (PDF). Archived from the original (PDF) on 29 April 2014. Retrieved 6 June 2014.</ref><ref>"Gas at the gates of oil's transport fuel citadel". Reuters. 24 January 2013. Retrieved 6 June 2014.</ref> In addition to the conventional natural gas production, coal gasification, coal bed methane, coal mine methane and Biogas digesters / Renewable natural gas will also become a source of LNG forming decentralised base for the production of LNG to cater to the widely distributed demand.<ref>"Rise in petrol prices agitating people: Nitin Gadkari". Retrieved 12 July 2021.</ref><ref>"India to end central control of gas prices, lift LNG transport use". The Times of India. 26 June 2020. Retrieved 30 June 2020.</ref><ref>"India trucking into gas age as govt clears norms for LNG stations". Retrieved 27 August 2017.</ref><ref>"Chapter 7 of World LNG Report – 2014 Edition" (PDF). Archived from the original (PDF) on 12 April 2019. Retrieved 17 April 2015.</ref> There is possibility to convert most of the heavy duty vehicles (including diesel driven rail engines) into LNG fuelled vehicles to reduce diesel consumption drastically with operational cost and least pollution benefits.<ref name=energy>"Sections 10.1.3 to 10.2.8, Auto Fuel Vision and policy, 2025, GoI" (PDF). Retrieved 16 June 2014.</ref><ref>"LNG vehicles". Archived from the original on 18 December 2016. Retrieved 25 June 2014.</ref><ref>"Why LNG for heavy vehicles?". Retrieved 25 June 2014.</ref> Also, the break even price at user end for switching from imported coal to LNG in electricity generation is estimated near US$6 per million British thermal units ($20/MWh).<ref name=WR2015>"Page 71 of World LNG Report – 2015 Edition" (PDF). Retrieved 17 June 2015.</ref> The advent of cheaper marine CNG transport will restrict LNG use in high end transport sector to replace costly liquid fuels leaving imported CNG use for other needs.<ref>"Launch of Jayanti Baruna: World's First CNG Carrier". Archived from the original on 10 September 2017. Retrieved 17 August 2017.</ref><ref>"Marine CNG Transportation" (PDF). Retrieved 17 March 2017.</ref><ref>"Compressed Natural Gas (CNG) Shipping in Indonesia" (PDF). Retrieved 17 March 2017.</ref> As the marine CNG transport is economical for medium distance transport and has fast unloading flexibility at many ports without costly unloading facilities, they have become alternate solution to submarine gas pipelines.<ref>"GEV secures site for CNG export terminal at the port of Chabahar, Iran for gas supply to India". Retrieved 27 April 2018.</ref><ref>"Gas carriers they have come a long way". Archived from the original on 8 September 2018. Retrieved 17 August 2017.</ref> Natural gas/methane can also be converted cheaply into hydrogen gas and carbon black without emitting any greenhouse gas for use in the transport sector with fuel cell vehicle technology.<ref name=split/>
The state-owned Oil and Natural Gas Corporation (ONGC) acquired shares in oil fields in countries like Sudan, Syria, Iran, and Nigeria – investments that have led to diplomatic tensions with the United States.<ref>"Energy Security India, Allianz Knowledge". 27 May 2008. Retrieved 3 July 2008.</ref> Because of political instability in the Middle East and increasing domestic demand for energy, India is keen on decreasing its dependency on OPEC to meet its oil demand, and increasing its energy security. Several Indian oil companies, primarily led by ONGC and Reliance Industries, have started a massive hunt for oil in several regions in India, including Rajasthan, Krishna Godavari Basin and north-eastern Himalayas.<ref>"BP India says India can produce 10-15 tcf of gas by 2022". Retrieved 17 August 2016.</ref>
India has nearly 63 tcf technically recoverable resources of shale gas which can meet all its needs for twenty years if exploited.<ref>"GEECL plans to exploit shale worth $2.78 billion at its Raniganj (South) block". Retrieved 15 November 2018.</ref><ref>"Private Entities To Explore Shale Oil And Gas In India". Retrieved 17 July 2018.</ref><ref>"Essar Oil & Gas to spend $ 1 bn in Raniganj for shale gas". 13 April 2018. Retrieved 13 July 2018.</ref> India is developing an offshore gas field in Mozambique.<ref>"Mozambique gas project of OVL, OIL ties up USD 14.9 bn debt". Retrieved 18 July 2020.</ref> The proposed Iran-Pakistan-India pipeline is a part of India's plan to meet its increasing energy demand.
Coal
India has the world's 3rd largest proven coal reserves with nearly 177 billion metric tons as on 1 April 2021.<ref>"Koyala Darpan / Coal Dashboard". Retrieved 17 February 2022.</ref><ref>"Coal Statistics 2020-21 of India" (PDF). Retrieved 14 January 2022.</ref> In India, coal is the bulk primary energy contributor with 56.90% share equivalent to 452.2 Mtoe in 2018.<ref name= bp17/>
India is also the second-largest importer of coal 141.7 Mtoe in 2018 and the second-largest consumer of coal with 452.2 Mtoe in 2018.<ref name= bp17/> India is also home to the world’s largest coal company, Coal India Ltd, which controls 85% of the country’s coal production with 7.8% production share of coal (including lignite) in the world.<ref>"Who are the top five coal-producing countries in the world?". Power Technology | Energy News and Market Analysis. 19 August 2019. Retrieved 16 January 2020.</ref> Top five hard and brown coal producing countries in 2013 (2012) are (million tons): China 3,680 (3,645), United States 893 (922), India 605 (607), Australia 478 (453) and Indonesia 421 (386). However, India ranks fifth in global coal production at 228 Mtoe (5.9%) in 2013 when its inferior quality coal tonnage is converted into tons of oil equivalent.<ref name="srwew" /> Coal-fired power plants account for 59% of India's installed electricity capacity.<ref>"Power sector at a glance: All India data". Ministry of Power, Government of India. September 2013. Archived from the original on 2 January 2013. Retrieved 20 July 2012.</ref><ref name="World Coal Institute – India">"The coal resource, a comprehensive overview of coal". World Coal Institute. March 2009.</ref> After electricity production, coal is also used for cement production in substantial quantity.<ref>"Coalnomics" (PDF). September 2014.</ref> Pet coke availability, at a cheaper price than local coal, is replacing coal in cement plants.<ref>"Why imported pet coke dampened Coal India's cement linkage auction". Retrieved 9 April 2017.</ref> In financial year 2021-22, India imported nearly 209 million tons of steam coal and coking coal which is 20% of total consumption to meet the demand in electricity, cement, and steel production. In the FY2021-22, India imported nearly 57.16 million tons (90%) of coking coal against the consumption of 63.74 MT.<ref>"Import of coal - Trends and issue of self reliance" (PDF). Retrieved 26 December 2022.</ref>
Gasification of coal or lignite or pet coke produces syngas or coal gas or coke oven gas which is a mixture of hydrogen, carbon monoxide and carbon dioxide gases.<ref>"Coal gas can help lower import bill by $10 billion in 5 years: Coal Secy". Business Standard India. Press Trust of India. 5 March 2017. Retrieved 5 March 2017.</ref> Coal gas can be converted into synthetic natural gas (SNG) by using Fischer–Tropsch process at low pressure and high temperature.<ref>"Test Year for Chinese Coal-Based SNG" (PDF). Retrieved 25 August 2014.</ref> 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.<ref>"Chinese firm plans Thar coal mining in Pakistan". Retrieved 25 August 2014.</ref> CNG and LNG are emerging as economical alternatives to diesel oil with the escalation in international crude oil prices.<ref>"LNG use in High horse power off road vehicles". Retrieved 25 August 2014.</ref> Synthetic natural gas production technologies have tremendous scope to meet the transport sector requirements fully using the locally available coal in India.<ref>"Next energy revolution will be on roads and railroads". Archived from the original on 12 August 2014. Retrieved 25 August 2014.</ref> Dankuni coal complex is producing syngas which is piped to the industrial users in Calcutta.<ref>"GAIL, Coal India in pact to expand Dankuni gas project". Retrieved 25 August 2014.</ref><ref>"Reliance Jamnagar coal gasification project" (PDF). Retrieved 15 January 2017.</ref> Many coal based fertiliser plants which are shut down can also be retrofitted economically to produce SNG as LNG and CNG fetch good price by substituting imports.<ref>"Coal India, Gail to invest 9000 crores in Talcher Plant". The Economic Times. Retrieved 25 December 2014.</ref> Recently, Indian government fixed the natural gas price at producer end as US$5.61 per million British thermal units ($19.1/MWh) on net calorific value (NCV) basis, which is at par with the estimated SNG price from coal.<ref>"Govt raises natural gas price to $5.61 per unit". The Hindu. 18 October 2014. Retrieved 25 October 2014.</ref><ref>"Conversion of Coal to Substitute Natural Gas (SNG)" (PDF). Retrieved 6 August 2014.</ref>
Bio-fuels
Gasification of biomass yields wood gas or syngas which can be converted into carbon neutral methanol.<ref>"Renewable Methanol" (PDF). Retrieved 19 May 2021.</ref> Nearly 750 million tons of nonedible (by cattle) biomass is available annually in India which can be put to higher value addition use and substitute imported crude oil, coal, LNG, urea fertilizer, nuclear fuels, etc. It is estimated that the renewable and carbon-neutral biomass resources of India can replace the present consumption of all fossil fuels when used productively.<ref>Yee, Amy (8 October 2013). "India Increases Effort to Harness Biomass Energy (Published 2013)". The New York Times. ISSN 0362-4331. Retrieved 26 November 2020.</ref> Biomass is going to play a crucial role to make India self-sufficient in the energy sector and carbon neutral.<ref>"Carbon Neutral Fuels and Chemicals from Standalone Biomass Refineries" (PDF). Retrieved 3 December 2023.</ref>
A huge quantity of imported coal is being used in pulverized coal-fired power stations. Raw biomass can not be used in pulverized coal mills as they are difficult to grind into fine powder due to caking property of raw biomass. However, biomass can be used after torrefaction in the pulverized coal mills to replace imported coal.<ref>"Torrefied Biomass: Available, Efficient, CO2 Neutral and Economic – likely the best solid biomass on the market". Retrieved 6 April 2017.</ref> North west and southern regions can replace imported coal use with torrefied biomass where surplus agriculture/crop residual biomass is available.<ref>"CEA has written to all States to use 5-10% of biomass pellets with coal for power generation in thermal power plants". Business Standard India. 8 February 2018. Retrieved 22 February 2018.</ref><ref>"NTPC invites bids for procurement of agro Residue for its Dadri power plant". Retrieved 8 February 2018.</ref> Biomass power plants can also get extra income by selling the Renewable Purchase Certificates (RPC).<ref>"Renewable purchase obligations enforcement is not our remit: Power regulator". Retrieved 6 April 2017.</ref> Central Government has made cofiring (minimum 5%) of biomass mandatary from October 2022 in all coal fired plants.<ref>"Can biomass co-firing offer a viable solution to coal shortage and stubble burning?". Retrieved 9 March 2022.</ref><ref>"Revised Biomass Policy dtd 8 October 2022" (PDF). Retrieved 9 March 2022.</ref>
In cement production, carbon-neutral biomass is being used to replace coal for reducing carbon footprint drastically.<ref name="zkg.de">"Lafargeholcim - Geocycle secures biomass needs from local farmers in India". Retrieved 21 June 2018.</ref><ref>"New IEA Report: Renewable Energy for Industry". Retrieved 21 June 2018.</ref>
Biogas or natural gas or methane produced from farm/agro/crop/domestic waste can also be used for producing protein rich feed for cattle/fish/poultry/pet animals economically by cultivating Methylococcus capsulatus bacteria culture in a decentralised manner near to the rural / consumption areas with tiny land and water foot print.<ref>"Indrapratha Gas, Mahindra & Mahindra join hands to stop stubble burning". Retrieved 20 February 2018.</ref><ref>"360-degree plan to convert cattle dung into energy". Retrieved 22 February 2018.</ref><ref name=food>"BioProtein Production" (PDF). Archived from the original (PDF) on 10 May 2017. Retrieved 31 January 2018.</ref><ref name=food1>"Food made from natural gas will soon feed farm animals – and us". Retrieved 31 January 2018.</ref><ref>"New venture selects Cargill's Tennessee site to produce Calysta FeedKind® Protein". Retrieved 31 January 2018.</ref> With the availability of CO2 gas as by product from these units, cheaper production cost of algae oil from algae or spirulina particularly in tropical countries like India would displace the prime position of crude oil in near future.<ref>"Instead of treating CO2 as liability, we can make it raw material: Mukesh Ambani". Retrieved 27 June 2020.</ref><ref>"Algenol and Reliance launch algae fuels demonstration project in India". Retrieved 29 May 2015.</ref><ref>"ExxonMobil Announces Breakthrough In Renewable Energy". Retrieved 20 June 2017.</ref>
Reliance Industries is already producing hydrogen from Torrefied Biomass from its pet coke/coal gasifiers and planning to install a blue hydrogen pilot plant of 50 tonnes per day plant using a catalytic gasification process.<ref name=ril>"Indias reliance eyes green hydrogen production from biomass". Retrieved 9 August 2023.</ref> India's three Oil Marketing Companies (OMCs) are currently setting up 12 second-generation ethanol plants across the country which will collect agriculture waste from farmers and convert it into bio-ethanol.<ref>"India can replace Rs 1 lakh crore worth of hydrocarbon imports by bio-fuels: Pradhan". Retrieved 8 July 2017.</ref><ref>"Bio-fuel business to pick up in India: Atul Mulay, Praj Industries". Retrieved 30 March 2018.</ref> In 2018, India has set a 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.<ref>"Compressed biogas to beat petrol and diesel with 30% higher mileage". Retrieved 18 November 2018.</ref><ref>"Clean push: Why compressed biogas has an edge over CNG". Retrieved 11 February 2021.</ref> As of May 2022, nearly 35 such plants are in operation.<ref>"Review of Implementation of CBG (SATAT)" (PDF). Retrieved 8 January 2022.</ref>
Biopropane is also produced from non-edible vegetable oils, used cooking oil, waste animal fats, etc.<ref>"47 lakh kg used cooking oil collected since Aug; 70% converted into bio-diesel". Retrieved 29 December 2019.</ref><ref>"Neste delivers first batch of 100% renewable propane to European market". Retrieved 3 December 2018.</ref>
Nuclear power
India boasts a quickly advancing and active nuclear power program. It is expected to have 20 GW of nuclear capacity by 2020, though it currently stands as 9th in the world in terms of nuclear capacity.
An Achilles' heel of the Indian nuclear power program, is the fact that India is not a signatory of the Nuclear Non-Proliferation Treaty. This has many times in its history prevented it from obtaining nuclear technology vital to expanding its nuclear industry. Another consequence of this is that much of its program has been domestically developed much like its nuclear weapons program. The United States-India Peaceful Atomic Energy Cooperation Act seems to be a way to get access to advanced nuclear technologies for India.
India has been using imported enriched uranium and is under International Atomic Energy Agency (IAEA) safeguards, but it has developed various aspects of the nuclear fuel cycle to support its reactors. The development of select technologies has been strongly affected by limited imports. The use of heavy-water reactors has been particularly attractive for the nation because it allows uranium to be burnt with little to no enrichment. India has also done a great amount of work in the development of a thorium-centered fuel cycle. While uranium deposits in the nation are extremely limited, there are much greater reserves of thorium, and it could provide hundreds of times the energy with the same mass of fuel. The fact that thorium can theoretically be utilized in heavy water reactors has tied the development of the two. A prototype reactor that would burn uranium-plutonium fuel while irradiating a thorium blanket is under construction at the Madras/Kalpakkam Atomic Power Station.
Uranium used for the weapons program has been separate from the power program using uranium from scant indigenous reserves.
Hydro electricity
India is endowed with economically exploitable and viable hydro potential assessed to be about 125,570 MW at 60% capacity factor.<ref>"World Energy Resources Hydro Power, 2016" (PDF). World Energy Council. Retrieved 30 November 2017.</ref> India ranked fourth globally by underutilized hydropower potential. In addition, 6,780 MW in terms of installed capacity from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes (PSS) with an aggregate installed capacity of 94,000 MW have been identified for catering to peak electricity demand and water pumping for irrigation needs.<ref>"Interactive map showing the feasible locations of PSS projects in India". Archived from the original on 3 June 2020. Retrieved 19 November 2019.</ref> It is the most widely used form of renewable energy but the economically exploitable hydropower potential keeps on varying due to technological developments and the comparable cost of electricity generation from other sources.[citation needed] The hydro-electric potential of India ranks 5th in terms of exploitable hydro-potential on the global scenario.
The installed capacity of hydropower is 45,315 MW as of 31 May 2018.<ref>"List of Hydro Electric Stations in the Country". Central Electricity Authority, GoI. Retrieved 30 August 2018.</ref> India ranks sixth in hydro electricity generation globally after China, Canada, Brazil, USA, and Russia. During the year 2017-18, the total hydroelectricity generation in India is 126.123 billion kWh which works out to 24,000 MW at a 60% capacity factor. Till now, the hydroelectricity sector is dominated by the state and central government-owned companies but this sector is going to grow faster with the participation of the private sector in developing the hydro potential located in the Himalaya mountain ranges including northeast of India.<ref>"List of Hydro projects under execution" (PDF). Central Electricity Authority, Ministry of Power, Government of India. April 2014. Archived from the original (PDF) on 18 July 2014. Retrieved 21 August 2014.</ref> However the hydropower potential in central India forming part of Godavari, Mahanadi and Narmada river basins has not yet been developed on a major scale due to potential opposition from the tribal population.
Pumped storage including off-the-river pumped storage power schemes are perfect centralized peaking power stations for load management in the electricity grid dominated by variable renewable energy generation such as solar and wind power.<ref name=crg>"Multipurpose Freshwater Coastal Reservoirs and Their Role in Mitigating Climate Change" (PDF). Retrieved 23 May 2023.</ref> PSS would be in high demand for meeting peak load demand and storing the surplus electricity as India graduates from an electricity deficit to an electricity surplus. 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 costlier than electricity production by standby generator.<ref name=watbat>"India's renewables revolution needs what other countries are fast adopting: water battery". Retrieved 11 October 2019.</ref> India has already established nearly 4785 MW pumped storage capacity which is part of its installed hydro power plants.<ref>"Pump Storage Development in India, CEA". Retrieved 23 June 2017.</ref>
Wind power
India has the fourth largest installed wind power capacity in the world.<ref name= gwec/><ref>"Wind atlas of India". Retrieved 28 August 2014.</ref> As of 31 December 2017, the installed capacity of wind power was 32,848 MW an increase of 4148 MW over the previous year<ref>"Indian Wind Energy and Economy". Indianwindpower.com. Archived from the original on 17 August 2013. Retrieved 6 August 2013.</ref><ref>Ministry of New and Renewable Energy – Achievements Archived 1 March 2012 at the Wayback Machine. Mnre.gov.in (31 October 2013). Retrieved on 6 December 2013.</ref> Wind power accounts for nearly 10% of India's total installed power generation capacity and generated 52.666 billion kWh in the fiscal year 2017-18 which is nearly 3% of total electricity generation.<ref>"Monthly Renewable Energy Generation Reports, CEA" (PDF). Retrieved 6 May 2018.</ref> The capacity utilisation factor is nearly 16% in the fiscal year 2017-18. The Ministry of New and Renewable Energy (MNRE) of India has announced a revised estimation of the potential wind power resource (excluding offshore wind power potential) from 49,130 MW assessed at 50m Hub heights to 102,788 MW assessed at 80m Hub height at 15% capacity factor.
Solar energy
India's solar energy insolation is about 5,000 T kWh per year (i.e. ~ 600 TW), far more than its current total primary energy consumption.<ref>Muneer, Tariq; Asif, Muhammad; Munawwar, Saima (2005). "Sustainable production of solar electricity] with particular reference to the Indian economy". Renewable and Sustainable Energy Reviews. 9 (5): 444–473. doi:10.1016/j.rser.2004.03.004.</ref><ref>"Renewing India – Under Heading:Solar Photovoltaics". Archived from the original on 11 September 2007. Retrieved 5 September 2007.</ref> India's long-term solar potential could be unparalleled in the world because it has the ideal combination of both high solar insolation and a big potential consumer base density.<ref>Solar LEDs Brighten Rural India's Future</ref><ref>Solar plan for Indian computers</ref> Also a major factor influencing a region's energy intensity is the cost of energy consumed for temperature control. Since cooling load requirements are roughly in phase with the sun's intensity, cooling from intense solar radiation could make perfect energy-economic sense in the subcontinent located mostly in the tropics.
Installation of solar power PV plants requires nearly 2.0 hectares (5 acres) of 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 for, and hydropower plants when submergence area of the water reservoir is also accounted. 1.6 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.<ref>"Waste lands atlas of India, 2011". Retrieved 30 May 2014.</ref> Part of wastelands (32,000 square km) when installed with solar power plants can produce 2400 billion kWh of electricity (two times the total generation in 2013-14) with land productivity/yield of 0.9 million Rs per acre (3 Rs/kWh price) which is at par with many industrial areas and many times more than the best productive irrigated agriculture lands.<ref>"This Gujarat village is harvesting a sunny crop". Retrieved 30 July 2016.</ref> Moreover, these solar power units are not dependent on the 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, and crude oil) if all the marginally productive lands are occupied by solar power plants in the future. The solar power potential of India can meet perennially to cater to per capita energy consumption at par with USA/Japan for the peak population in its demographic transition.<ref>Population pyramids of India from 1950 to 2100</ref>
Solar thermal power
The installed capacity of commercial solar thermal power plants in India is 227.5 MW with 50 MW in Andhra Pradesh and 177.5 MW in Rajasthan.<ref>"DOE Energy storage database". Retrieved 21 August 2017.</ref> Solar thermal plants are emerging as cheaper (6 Euro ¢/kWh) and clean load following power plants compared to fossil fuel power plants.<ref>"Controllable solar power – competitively priced for the first time in North Africa". Retrieved 7 June 2019.</ref> They can cater the load/ demand perfectly and work as base load power plants when the extracted solar energy is found excess in a day.<ref>"Aurora: What you should know about Port Augusta's solar power-tower". Retrieved 22 August 2017.</ref><ref>"Concentrated Solar Power Dropped 50% in Six Months". Retrieved 30 October 2017.</ref> Proper mix of solar thermal and solar PV can fully match the load fluctuations without the need of costly battery storage.<ref>"SolarReserve receives environmental approval 390 MW solar thermal facility storage in Chile". Archived from the original on 29 August 2017. Retrieved 29 August 2017.</ref><ref name=chile/>
Synergy with irrigation water pumping and hydropower stations
The major disadvantage of solar power (PV type only) is that it can not produce electricity during the nighttime and cloudy daytime also. In India, this disadvantage can be overcome by installing pumped-storage hydroelectricity stations to store the surplus electricity generated during the daytime for meeting the demand during the night hours.<ref name=crg/> In addition to harnessing most of the water resources, the embankment canals originating from the coastal reservoirs would also be envisaged with pumped-storage hydroelectricity features to store the surplus electricity available during the daytime and reconvert to electricity during the nighttime. This is achieved by utilizing all the usable river waters by interlinking Indian rivers and envisaging coastal reservoirs.<ref name=crg/> Also, all existing and future hydropower stations can be expanded with additional pumped-storage hydroelectricity units to cater nighttime electricity consumption. Most of the groundwater pumping power can be met directly by solar power during the daytime. To achieve food security, India needs to achieve water security which is possible only by energy security for harnessing its water resources.<ref>"Composite water management index (page 187)" (PDF). Retrieved 14 July 2020.</ref><ref>Brown, Lester R. (29 November 2013). "India's dangerous 'food bubble'". Los Angeles Times. Archived from the original on 18 December 2013. Retrieved 10 December 2013. Alt URL</ref>
Electric vehicles
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. During the year 2018, many IPPs offered to sell solar power below 3.00 Rs/kWh to feed into the high voltage grid.<ref>"Solar Tariffs in India Remain Steady at ₹2.44/kWh in SECI's 3 GW Auction". 13 July 2018. Retrieved 14 July 2018.</ref> This price is far below the affordable retail electricity tariff for the solar power to replace petrol and diesel use in transport sector.<ref name=bnp>"WELLS, WIRES AND WHEELS…". BNP PARIBAS ASSET MANAGEMENT. August 2019. Retrieved 5 August 2019.</ref>
The retail price of diesel is 101.00 Rs/liter in 2021–22, and the retail price of petrol was 110.00 ₹/liter. The affordable electricity retail price (860 kcal/kWh at 75% input electricity to shaft power conversion efficiency) to replace diesel (lower heating value 8572 kcal/liter at 40% fuel energy to crankshaft conversion efficiency) is up to 19 ₹/Kwh. The affordable electricity retail price (860 kcal/kWh at 75% input electricity to shaft power conversion efficiency) to replace petrol (lower heating value 7693 kcal/liter at 33% fuel energy to crankshaft conversion efficiency) is up to 28 ₹/Kwh. In 2021-22, India consumed 30.849 million tons of petrol and 76.687 million tons of diesel which are mainly produced from imported crude oil at huge foreign exchange outgo.<ref name=bnp/><ref name=png2013/>
V2G is also feasible with electricity-driven vehicles for catering to the peak load in the electricity grid. Electricity-driven vehicles would become popular in the future when the energy storage / battery technology becomes more compact, lesser density, longer lasting, and maintenance-free.<ref>"Plans afoot to make India 100% e-vehicle nation by 2030. Piyush Goyal". Retrieved 26 March 2016.</ref><ref>"Explaining the Surging Demand for Lithium-Ion Batteries". Retrieved 5 May 2016.</ref>
Hydrogen energy
The national hydrogen energy road map is constantly evolving in India by consolidating various capabilities at institutional and research centers.<ref>"R&D roadmap for hydrogen ecosystem in India" (PDF). Ministry of New and renewable energy, India. July 2023. Retrieved 6 July 2023.</ref> The Hydrogen Energy program started in India after joining the IPHE (International Partnership for Hydrogen Economy) in the year 2003.<ref>"India Country Status Report on Hydrogen and Fuel Cells" (PDF). Retrieved 22 November 2021.</ref> There are nineteen other countries including Australia, United States, UK, Japan, etc.<ref name=hydrogen>"Path to hydrogen competitiveness - A cost perspective" (PDF). 2020. Retrieved 28 August 2020.</ref> This global partnership helps India to set up commercial use of Hydrogen gas as an energy source.<ref>"Hydrogen Mobility Europe". Retrieved 22 October 2020.</ref><ref>"Japan H2 Mobility". Retrieved 22 October 2020.</ref> India is already producing blue hydrogen from biomass using the petcoke gasifiers.<ref name=ril/> Nearly 412,000 metric tons/year capacity green hydrogen projects are awarded to produce green hydrogen by the end of 2026.<ref>"Greenko, Acme, Reliance among winners of SECI's green hydrogen manufacturing auction". 2 January 2024. Retrieved 6 January 2024.</ref>
Hydrogen is a carbon neutral fuel.<ref>"Hydrogen Council". Retrieved 22 October 2019.</ref><ref name="forbes.com"/> Solar electricity prices in India have already fallen below the affordable price (≈ INR 5.00 per kWh to generate 0.041 lb/kWh hydrogen which is equivalent to 0.071 litres of petrol in terms of lower heating value) to make hydrogen economical fuel by sourcing from electrolysis of water to replace petrol/gasoline as transport fuel.<ref>"Hydrogen continues to be a fuel of the future". Retrieved 28 August 2016.</ref><ref>"8 Things You Need To Know About Hydrogen Fuel-Cell Cars". Retrieved 28 August 2016.</ref><ref name=hydrogen/> Vehicles with fuel cell technology based on hydrogen gas are nearly twice more efficient compared to diesel/petrol-fueled engines.<ref>"Competitive Pricing of Hydrogen as an Economic Alternative to Gasoline and Diesel for the Houston Transportation Sector" (PDF). Retrieved 24 November 2023.</ref><ref>"Fuel Cell and Battery Electric Vehicles Compared" (PDF). Retrieved 28 May 2018.</ref><ref>"Hydrogen fuel reaches lift-off". Retrieved 28 June 2017.</ref> Hydrogen can be generated cheaply by splitting methane using electricity without emitting any greenhouse gas and also extracted from wood gas produced from carbon-neutral biomass.<ref name=split>"The Future of Hydrogen (page 41)" (PDF). Retrieved 28 May 2019.</ref><ref name=wood>"Is This The Best Way To Produce Cheap Hydrogen?". Retrieved 17 July 2020.</ref> A luxury FCEV car generates one liter of bottled quality drinking water for every 10 km ride which is a significant byproduct.<ref>"2016 Toyota Mirai Fuel-Cell Sedan". Retrieved 28 August 2016.</ref> Also FCEV does not emit any particulate matter but removes particulate matter up to PM2.5 from the ambient air.<ref>"Innovative Byproduct- Hydrogen Fuel Cell Power Plant Completed". Retrieved 28 August 2020.</ref> Any medium or heavy duty vehicle can be retrofitted in to fuel cell vehicle as its system power density (watts/litre) and system specific power (watts/kg) are comparable with that of internal combustion engine.<ref>"automotive fuel cell metrics" (PDF). Retrieved 28 August 2016.</ref><ref>"Mahindra electric car specifications". Retrieved 28 August 2016.</ref> The cost and durability of fuel cell engines with economies of scale production line are comparable with the petrol/diesel engines.<ref>"The breakdown: hydrogen on the horizon". Retrieved 28 May 2017.</ref><ref>"One Fuel Cell Bus in the U.S. Has Exceeded the DOE/DOT Target of 25,000 Hours and More Are Getting Close". Retrieved 28 March 2019.</ref>
The excess power generation capacity available in India is nearly 500 billion units/year presently and another 75,000 MW conventional power generating capacity is in pipeline excluding the targeted 175,000 MW renewable power by 2022.<ref>"India can achieve 1,650 billion units of electricity next year, Piyush Goyal". Retrieved 9 July 2016.</ref><ref>"Review of progress of thermal power projects under execution. October 2016 (see page 27)" (PDF). Retrieved 23 November 2016.</ref><ref name=nocap/> The hydrogen fuel generated by 500 billion units of electricity can replace all diesel and petrol consumed by heavy and medium duty vehicles in India completely obviating the need of crude oil imports for internal consumption.<ref>"Tata Motors reveals India's first hydrogen fuel cell bus". Retrieved 25 January 2017.</ref> Use of hydrogen as fuel to replace jet fuel by aircraft is also a promising proposition.<ref>"Is Hydrogen The Jet Fuel Of The Future?". Retrieved 17 May 2020.</ref> Converting petrol/diesel driven road vehicles in to fuel cell electric vehicles on priority would save the huge import cost of crude oil and transform the stranded electricity infrastructure into productive assets with major boost to the overall economic growth.<ref>"India's National Hydrogen Mission with the potential of transforming transportation".</ref> Hydrogen spiked CNG is made available in Delhi to reduce pollution emissions from BS-IV compliant old buses.<ref>"Hydrogen-Spiked CNG Debuts In National Capital". Retrieved 25 October 2020.</ref>
Electricity as a substitute for imported LPG and PNG
The net import of LPG was 16.607 million tons and the total consumption was 28.33 million tons and the domestic consumption was 25.502 million tons which is 90% of total consumption in 2021–22.<ref name=png2013/><ref>"India challenges China as world's biggest LPG importer". Archived from the original on 27 December 2017. Retrieved 27 December 2017.</ref> The LPG import content is nearly 57% of total consumption in India in 2021-22. The affordable electricity retail price (860 kcal/kWh at 74% heating efficiency) to replace LPG (lower heating value 11,000 kcal/kg at 40% heating efficiency) in domestic cooking is up to 10.2 Rs/kWh when the retail price of an LPG cylinder is Rs 1000 (without subsidy) with 14.2 kg LPG content.<ref>"Which is the More Energy Efficient Stovetop – Gas, Electric, or Induction?". Retrieved 29 September 2022.</ref> Replacing LPG consumption with electricity reduces its imports substantially.<ref>"EESL to deploy 20,000 induction cookstoves in India with MECS". Retrieved 29 September 2022.</ref>
India's piped natural gas (PNG) for domestic cooking needs was 12,175 million standard cubic meters (mmscm) which is nearly 19% of total natural gas consumption in 2021–22.<ref name=png2013a>"Indian Petroleum & Natural Gas statistics". Retrieved 25 April 2022.</ref> Natural gas/ LNG import content is nearly 56% of total consumption in 2021-22.<ref name=png2013a/> The affordable electricity retail tariff (860 Kcal/kWh at 74% heating efficiency) to replace PNG (net calorific value 8,500 Kcal/scm at 40% heating efficiency) in domestic cooking is up to 9 ₹/kWh when the retail price of PNG is ₹47.59 per scm.<ref>"Govt revises pricing formula, CNG, PNG to cost 10% less from tomorrow". Retrieved 6 April 2023.</ref><ref>"New gas pricing norms can reduce CNG, PNG prices by 9-11 percent". Retrieved 6 April 2023.</ref> Replacing PNG consumption with electricity would reduce costly LNG imports substantially.
The domestic consumption of kerosene was 1.291 million tons out of 1.493 million tons total consumption in 2021–22. The subsidized retail price of kerosene is 15 ₹/liter whereas the export/import price is 79 ₹/liter. The affordable electricity retail tariff (860 Kcal/Kwh at 74% heating efficiency) to replace kerosene (net calorific value 8240 Kcal/liter at 40% heating efficiency) in domestic cooking is up to 15.22 ₹/kWh when the kerosene retail price is 79 ₹/liter.
During the year 2021-22, The plant load factor (PLF) of coal-fired thermal power stations (nearly 210 GW) was 58.86% only whereas these stations can run above 85% PLF comfortably provided there is adequate electricity demand in the country.<ref>"Power generation report, 2021–22" (PDF). report. CEA, Govt. of India. 1 April 2022. Retrieved 1 April 2022.</ref> The possible additional net electricity generation at 85% PLF is nearly 450 billion kWh, enough to replace all the LPG, PNG and kerosene consumption in domestic sector<ref>Seth, Yogima. s-clean-cooking-option-to-lpg/articleshow/51786931.cms "Niti Aayog pitches for electricity as a clean cooking option to LPG". The Economic Times. Retrieved 13 April 2016. {{cite news}}: Check |url= value (help)</ref> The incremental cost of generating additional electricity is only their coal fuel cost which is less than 4 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 the idle capacity of thermal power stations can be put to use economically. Domestic consumers who are willing to surrender the subsidized LPG / Kerosene permits or are eligible for subsidized LPG / Kerosene permits may be given free electricity connection and a subsidized electricity tariff.<ref>"How rural India can be made to switch to eco-friendly electric stoves". Business Standard India. Press Trust of India. 21 May 2019. Retrieved 22 May 2019.</ref> To avoid the possibility of fatal electric shocks, power is supplied to the electric cook stove through a residual-current circuit breaker.
Since December 2018, IPPs have been offering to sell solar power below 2.90 Rs/kWh to feed into the high-voltage grid.<ref>"Foreign players sweep Gujarat solar auction". Retrieved 22 December 2018.</ref> This price is below the affordable electricity tariff for the solar power to replace LPG, PNG, and Kerosene use at a subsidized price of LPG or Kerosene in the domestic sector.<ref>"Petroleum Prices and Under-Recoveries" (PDF). Retrieved 17 March 2019.</ref> Two wheelers and three wheelers consume 62% and 6% of petrol respectively in India. The saved LPG/Autogas replaced by electricity in the domestic sector can be used by two and three wheelers with operational cost and least pollution benefits.<ref>"Propane role in low-carbon future". Retrieved 20 September 2020.</ref><ref name=energy/><ref>"Auto LPG prices in India". Retrieved 20 March 2019.</ref> LPG is also used in heavy-duty vehicles/boats / trains / off-road construction or mining or farming or other equipment to replace diesel or petrol with economy and environmental advantages.<ref name=lpg>"LPG for Heavy Duty Engines" (PDF). The World LPG Association. Retrieved 2 February 2019.</ref> It is also possible to convert the existing heavy-duty diesel engines to dual fuel with LPG for reducing the PM10 particulate emissions.<ref name=lpg/> Existing petrol engines can be converted at low cost into 100% LPG or dual fuel with LPG for achieving enhanced fuel efficiency and economy with drastically reduced emissions.<ref>"BS-VI norms in but India needs auto-LPG to curb vehicular emissions: Autogas suppliers' body". Retrieved 27 March 2020.</ref><ref name=lpg/> Non-subsidy LPG prices are below the diesel or petrol prices in India in terms of heat content (heat content-wise one kg of LPG is equal to 1.85 liters of LPG or 1.37 liters of diesel oil or 1.48 liters of petrol).<ref>"Saudi Aramco LPG Prices". Retrieved 31 August 2017.</ref> Cheaper butane, a constituent of LPG (propane and butane mixture), can be directly mixed with petrol/gasoline for better use in vehicles.<ref>"A Primer on Gasoline Blending". 30 June 2009. Retrieved 10 April 2019.</ref> Instead of using LPG as a heating fuel in the domestic sector, for higher-end usage, propane can also be converted into alkylate which is a premium gasoline blending stock because it has exceptional antiknock properties and gives clean burning.<ref>"BPN Butane – Propane news". 7 April 2016. Retrieved 10 April 2017.</ref> Propane can be used in hydrogen/Ammonia production with advantages compared to natural gas and also can be transported much cheaper than LNG or natural gas.<ref>"The Secret To A Low-Carbon Future". Retrieved 11 June 2020.</ref>
Energy trading with neighboring countries
The per capita electricity consumption is low compared to many countries despite cheaper electricity tariff in India.<ref>"Tariff & duty of electricity supply in India" (PDF). CEA, Govt. of India. March 2014. Archived from the original (PDF) on 13 August 2014. Retrieved 12 August 2014.</ref> Despite low electricity per capita consumption in India, the country is going to achieve surplus electricity generation during the 12th plan (2012 to 2017) period provided its coal production and transport infrastructure is developed adequately.<ref>"Power Minister Piyush Goyal says power available for free". May 2015. Retrieved 1 May 2015.</ref><ref>"Daily report of power situation, Ministry of Power, GoI". Archived from the original on 24 June 2013. Retrieved 17 February 2013.</ref><ref>"See Reports section, National load dispatch centre, Ministry of Power, GoI". Retrieved 17 February 2013.</ref> India has been exporting electricity to Bangladesh and Nepal and importing excess electricity in Bhutan.<ref>Market, Capital (14 July 2015). "India To Export Another 500 MW Power To Bangladesh In Next 12 Months: NLDC". Business Standard India. Retrieved 15 July 2015.</ref><ref>"Table 13, Monthly operation report, March 2015" (PDF). POSOCO, Govt. of India. March 2015. Archived from the original (PDF) on 24 May 2015. Retrieved 24 April 2015.</ref> Surplus electricity can be exported to the neighbouring countries in return for natural gas supplies from Pakistan, Bangladesh and Myanmar.<ref>"India discussing natural gas swap with Russia, involving China". 8 December 2016. Retrieved 15 March 2017.</ref>
Bangladesh, Myanmar, and Pakistan are producing substantial natural gas and using for electricity generation purposes.<ref>"IEA Statistics Interactive Search". Retrieved 29 March 2017.</ref> 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.<ref>"Select 'Energy' sections of Pakistan, Burma, Bangladesh, Nepal, Bhutan & Sri Lanka. The world Factbook". Archived from the original on 12 September 2009. Retrieved 17 February 2013.</ref><ref>"LNG: The whole truth in Pakistan". May 2015. Retrieved 3 May 2015.</ref> Whereas the natural gas production in India is not even adequate to meet its non-electricity requirements.<ref>"How Much Do Power Sector Distortions Cost South Asia?" (PDF). World Bank Group. Retrieved 27 December 2018.</ref>
Bangladesh, Myanmar, and Pakistan have proven reserves of 200 billion cubic meters (bcm), 1200 bcm, and 500 bcm respectively.<ref name= bp17/> There is ample opportunity for mutually beneficial trading in energy resources with these countries.<ref>"Saarc Chamber Pushes for Seamless Regional Energy Trade". Archived from the original on 5 September 2015. Retrieved 31 July 2015.</ref> India can supply its surplus electricity to Pakistan and Bangladesh in return for the natural gas imports by gas pipelines.<ref>"On PM Modi's visit, Myanmar to receive first lot of diesel from India". Retrieved 2 September 2017.</ref> Similarly India can develop on BOOT basis hydro power projects in Bhutan, Nepal and Myanmar. India might also be able to enter into long-term power purchase agreements with China for developing the hydropower potential of the Yarlung Tsangpo Grand Canyon in the Brahmaputra River basin of Tibet.<ref>"China's plans for gigantic Brahmaputra dam strains relations with India further". 4 December 2020. Retrieved 6 December 2020.</ref> There is ample trading synergy for India with its neighboring countries in securing its energy requirements.<ref>"Turning India's power surplus into a boon". 23 October 2016. Retrieved 26 October 2016.</ref>
India's National Grid is synchronously interconnected to Bhutan, and asynchronously linked with Bangladesh, Myanmar and Nepal.<ref name="CERC">"Grid Security – Need For Tightening of Frequency Band & Other Measures" (PDF). Central Electricity Regulatory Commission. Retrieved 2 December 2016.</ref> An undersea interconnection to Sri Lanka (India–Sri Lanka HVDC Interconnection) have been proposed.<ref>Bhaskar, Utpal (1 January 2014). "India is now one nation, one grid". Livemint. Retrieved 2 December 2016.</ref> Sri Lanka can also export its surplus renewable energy (solar, onshore wind, offshore wind, etc) to india in future.<ref>"Offshore Wind Technical Potential in Sri Lanka" (PDF). May 2020. Retrieved 28 August 2022.</ref>
In 2015, Nepal imported 224.21 MW of electric power from India, and Bangladesh imported 500 MW.<ref>"Archived copy" (PDF). Archived from the original (PDF) on 2 December 2016. Retrieved 2 December 2016.{{cite web}}: CS1 maint: archived copy as title (link)</ref><ref>"Prospect of a SAARC Power Grid – South Asia Journal". Archived from the original on 18 September 2016. Retrieved 2 December 2016.</ref> In 2018, Bangladesh proposed importing 10,000 MW power from India.<ref>"Bangladesh looks to increase power import from India". Retrieved 17 August 2018.</ref> To encourage the carbon neutral solar power generation, plans are made to transform the Indian national grid into a transnational grid expanding up to Vietnam towards east and Saudi Arabia towards west spanning nearly 7,000 km wide.<ref>"Explainer: All about the One Sun One World One Grid initiative". Retrieved 24 December 2022.</ref><ref>"Saudi Arabia, India to lay 1,600 km long underwater cable". Retrieved 23 March 2023.</ref> Being at the central location of the widened grid, India will be able to import the excess solar power available outside its territory at cheaper prices to meet the morning and evening peak load power demands without much costly energy storage.<ref>"US backs India-UK led solar Green Grids Initiative launched by PM at COP26". May 2020. Retrieved 24 December 2022.</ref>
Policy framework
In general, India's strategy is to encourage the development of renewable sources of energy by offering financial incentives from the federal and state governments.<ref>"Why We Should Worry About Low Oil Prices". Retrieved 5 December 2018.</ref> With the abundant solar energy resource combined with adequate high head pumped hydroelectric energy storage potential, India is capable to meet the ultimate energy requirements of its peak population from its renewable energy sources alone.<ref name=watbat/><ref name=renw/> In 2021, the government has upped India’s target to 500GW of renewable energy by 2030.<ref>Watts, Jonathan (3 November 2021). "India's huge solar uptake has boosted climate goals, says minister". The Guardian. Retrieved 3 November 2021.</ref> Increasing energy consumption associated primarily with activities in transport, mining, and manufacturing in India needs rethinking on India's energy production.<ref>"Continuously Rising Energy Costs Will Cripple The Economy". Retrieved 13 September 2018.</ref>
The following trends are manifested in the energy policy to achieve energy self-sufficiency, least pollution, climate change mitigation, and long-term sustainability.<ref name=renw>"An entirely renewable energy future is possible". Retrieved 13 September 2017.</ref><ref name=bnp/>
| Purpose | Preferred fuel | Next preferred fuel | Least preferred fuel |
|---|---|---|---|
| Mobile military hardware | Indigenous diesel, Indigenous petrol | Ethanol, Biodiesel | Nil |
| Air transport | Biodiesel, Biomethanol, Bioethanol,<ref>"China 2050: A Fully Developed Rich Zero-Carbon Economy" (PDF). Retrieved 6 January 2020.</ref> | LNG, Ammonia<ref>"Ammonia: A Jet Fuel For The Future". Retrieved 6 September 2020.</ref> | ATF, HSK |
| Marine transport | Biomethanol, Biodiesel, Bioethanol, Nuclear fuel, battery power. | Pyrolysis oil, LNG, CNG, FCEV. | LDO, HFO, Bunker fuel, Diesel<ref>"IMO 2020: The Big Shipping Shake-Up". 12 June 2019. Retrieved 30 June 2019.</ref> |
| Heavy-duty road vehicles | FCEV, Battery power | Bio methanol, Bioethanol, Biodiesel,<ref>Use of Bio methanol, Bioethanol, Biodiesel, biogas, etc fuels emit air pollutants such as NOx, SOx, CO, VOC, particulate matter, etc at ground level in populated areas.</ref> LNG, CNG, LPG | Diesel, Animal draught power |
| Passenger four-wheel vehicles | Battery power, FCEV | Biodiesel, Bio methanol, Bioethanol, LPG, LNG | Diesel, Petrol |
| Passenger two/three-wheel vehicles | Battery power | Biodiesel, Bio methanol, Bioethanol, LPG, CNG | Petrol, Animal draught power |
| Railways | Electricity, FCEV | Biodiesel, Bio methanol, Bioethanol, LNG, LPG | Diesel |
| Illumination/ Lighting | Electricity, Bio CNG | CNG, LPG | Kerosene |
| Cooking | Electricity, Bio methanol, Bio CNG | CNG, Biochar | Kerosene, LPG, Firewood |
| Space & water heating | Electricity, Pyrolysis oil, Biochar, Solar energy, Bio methanol, Bio CNG | CNG | Kerosene, LPG, Firewood |
| Commercial / Domestic - appliances | Electricity | Battery power, Biomethanol, Bioethanol | Diesel, Petrol, LPG, CNG |
| Industrial-motive power | Electricity, Bio methanol, Bioethanol, Bio CNG | Biodiesel, Pyrolysis oil | CNG, LPG, Diesel, Petrol |
| Industrial- heating | Electricity, Solar thermal energy, Biomass, Pyrolysis oil, Biochar | Biogas, PNG | Kerosene, LPG, Firewood |
| Urea fertilizer | Biogas / syngas, Biochar, Electricity, Biomass | Natural gas, Indigenous petcock | Naphtha, Coal |
| Pipeline transport | Electricity | Biodiesel, Hydrogen fuel cell generator | Natural gas, Diesel |
| Water pumping | Electricity, Biodiesel | LPG | Kerosene, Diesel, Petrol |
| Agriculture- heating & drying | Biomass, Pyrolysis oil, Solar energy | LPG, Electricity | Diesel, Petrol |
| Agriculture- appliances | Electricity, LPG | Biodiesel, Pyrolysis oil | CNG, Diesel, Petrol |
| Bitcoin mining | Carbon neutral electricity | Cheaper electricity generated from fossil fuels.<ref>"Bitcoin Miners Look To Coal Ash As Power Demand Surges". Retrieved 28 August 2023.</ref> | Costly electricity sourced from fossil fuels. |
| Electricity Generation | Solar Power, Wind, Hydropower, biomass, Torrifacted biomass, Biochar, Biogas plant residue, pumped-storage hydroelectricity | CNG, Animal draught power (peaking power only), Battery energy storage system | Petrol, Diesel, NGL, LPG, LDO, HFO, Naptha, Nuclear, Coal, Petcoke |
| Steel production | Renewable electricity, Charcoal, Biochar | Renewable hydrogen, LPG, CNG<ref>"Steel making today and tomorrow". Retrieved 30 June 2019.</ref> | Coke, Coal |
| Cement production | Indigenous petcock, Biomass,<ref name="zkg.de"/> Waste organic matter,<ref>"Co-processing waste in cement plants" (PDF). Retrieved 21 June 2019.</ref> Renewable electricity | LPG, CNG | Coal |
| Roads construction | Bioasphalt, carbon neutral cement | Cement | Asphalt |
| Feed stock for Petrochemicals | Acetylene and hydrogen generated by renewable electricity, Biogas, Hydrogen from wood gas<ref name=wood/> | Substitute natural gas, Bioethanol, Biodiesel, Bio methanol | Ethane, Naptha |
| Protein rich cattle/fish feed | CNG, PNG, Biogas, LNG | SNG from coal, Coalbed methane, Coal mine methane, SNG from renewable electricity, SNG from the indigenous petcock | Nil |
| Industrial- raw materials | As economically required | Nil | Nil |
Electricity generation
The installed capacity of utility power plants is 314.64 GW as on 31 January 2017 and the gross electricity generated by utilities during the year 2015-16 is 1168.359 billion kWh which includes auxiliary power consumption of power generating stations. The installed capacity of captive power plants in industries (1 MW and above) is 50,289 MW as on 31 March 2017 and generated 197 billion kWh in the financial year 2016-17.<ref name="GES"/> In addition, there are nearly 75,000 MW aggregate capacity diesel generator sets with units sizes between 100 KVA and 1000 KVA.<ref>"Gensets add up to under half of installed power capacity; August, 2014". 18 August 2014. Retrieved 13 May 2015.</ref> All India per capita consumption of Electricity is nearly 1,122 kWh during the financial year 2016-17.<ref name=GES>"Growth of Electricity Sector in India from 1947-2017" (PDF). CEA. Archived from the original (PDF) on 5 August 2017. Retrieved 17 February 2017.</ref>
Total installed Power generation Capacity (end of April 2017)<ref name="June14"/>
| Source | Utilities Capacity (MW) | % | Captive Power Capacity (MW) | % |
|---|---|---|---|---|
| Coal | 194,402.88 | 59.9 | 29,888.00 | 59.43 |
| Hydroelectricity | 44,594.42 | 14.0 | 64.00 | 0.11 |
| Renewable energy source | 50,018.00 | 15.9 | Included in Oil | - |
| Natural Gas | 25,329.38 | 8.1 | 6,061.00 | 12.05 |
| Nuclear | 6,780.00 | 1.8 | - | - |
| Oil | 837.63 | 0.3 | 14,285.00 | 28.41 |
| Total | 329,204.53 | 50,289.00 | 100 |
The total installed utility power generation capacity as on 30 April 2017 with sector wise & type wise break up is as given below.<ref name="June14">"Executive summary of Power sector, April 2017" (PDF). Archived from the original (PDF) on 28 March 2018. Retrieved 25 May 2017.</ref>
| Sector | Thermal (MW) | Nuclear (MW) |
Renewable (MW) | Total (MW) | % | ||||
|---|---|---|---|---|---|---|---|---|---|
| Coal | Gas | Diesel | Sub-Total Thermal |
Hydro | Other Renewable | ||||
| Central | 55,245.00 | 7,490.83 | 0.00 | 62,735.83 | 6,780.00 | 11,651.42 | 0.00 | 81,167.25 | 25 |
| State | 65,145.50 | 7,257.95 | 363.93 | 72,767.38 | 0.00 | 29,703.00 | 1,963.80 | 104,447.28 | 32 |
| Private | 74,012.38 | 10,580.60 | 473.70 | 85,066.68 | 0.00 | 3,240.00 | 55,283.33 | 143,590.01 | 43 |
| All India | 194,402.88 | 25,329.38 | 837.63 | 220,569.88 | 6,780.00 | 44,594.42 | 57,260.23 | 329,204.53 | 100 |
| Year | Fossil Fuel | Nuclear | Hydro | Sub total |
RES<ref name=resm>"Overview of renewable power generation, CEA" (PDF). Retrieved 3 August 2017.</ref> | Utility and Captive Power | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Coal | Oil | Gas | Mini hydro |
Solar | Wind | Bio mass |
Other | Sub total |
Utility | Captive | Misc | Total | ||||
| 2021–22<ref name=cso23/> | 1,078,444 | 115 | 36,143 | 47,019 | 151,695 | 1,313,418 | 10,463 | 73,483 | 68,640 | 16,056 | 2,268 | 170,912 | 1,484,442 | 235,000 | na | 1,719,442 |
| 2020-21<ref name=cso>"Energy statistics 2022" (PDF). CSO, GoI. Retrieved 26 January 2022.</ref> | 981,239 | 129 | 51,027 | 42,949 | 150,305 | 1,225,649 | 10,258 | 60,402 | 60,150 | 14,816 | 1621 | 147,247<ref>"Monthly renewable energy generation report, March 2021" (PDF). CEA. Retrieved 30 April 2021.</ref> | 1,373,187 | 200,000 | na | 1,573,187 |
| 2019-20<ref>"Summary electricity generation report, March 2020" (PDF). CEA. Retrieved 15 April 2020.</ref> | 995,840 | 108 | 48,497 | 46,381 | 155,970 | 1,246,796 | 9,366 | 50,103 | 64,639 | 13,843 | 366 | 138,318<ref>"Renewable energy generation data, March 2020" (PDF). CEA. Retrieved 30 April 2020.</ref> | 1,385,114 | 239,567 | na | 1,622,983 |
| 2018-19<ref>"Growth of Electricity Sector in India from 1947-2019" (PDF). Central Electricity Authority. May 2018. Retrieved 28 August 2019.</ref> | 1,021,997 | 129 | 49,886 | 37,706 | 135,040 | 1,244,758 | 8,703 | 39,268 | 62,036 | 16,325 | 425 | 126,757 | 1,371,517 | 175,000 | na | 1,546,517 |
| 2017-18 | 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 |
| 2016-17 | 944,850 | 262 | 49,100 | 37,663 | 122,313 | 1,154,188 | 7,673 | 12,086 | 46,011 | 14,159 | 213 | 81,949 | 1,236,137 | 197,000 | na | 1,433,392 |
| 2015-16 | 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 |
| 2014-15 | 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 |
| 2013-14 | 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 |
| 2012-13 | 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 |
| 2011-12 | 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 |
Notes: Coal includes lignite; Misc: includes contributions from emergency diesel generator sets; *Hydro includes pumped storage generation; na = data not available.
In 2019-20, the total generation from all renewable energy sources is nearly 20% of the total electricity generation (utility and captive) in India.
Energy conservation and carbon trading
The greenest energy is the energy we do not use. Energy conservation has emerged as a major policy objective, and the Energy Conservation Act 2001, was passed by the Indian Parliament in September 2001.<ref>"India saves Rs 89,122 crore in 2018-19 through energy efficiency steps". Retrieved 7 May 2020.</ref> This Act requires large energy consumers to adhere to energy consumption norms; new buildings to follow the Energy Conservation Building Code, and appliances to meet energy performance standards and to display energy consumption labels. The Act also created the Bureau of Energy Efficiency to implement the provisions of the Act. In 2015, Prime Minister Mr. Modi launched a scheme called Prakash Path urging people to use LED lamps in place of other lamps to drastically cut down lighting power requirements and the evening peak electricity load. Energy efficient brushless DC fans at subsidized prices are offered to the electricity consumers by the electricity distribution companies (DisComs) to decrease peak electricity load.<ref>"Andhra Pradesh to replace 1 Lakh ceiling fans with energy-efficient ones". Retrieved 10 March 2016.</ref><ref>"Low-carbon Technology Packages for Mini Steel Plants: A Compendium (page 231)" (PDF). Retrieved 1 August 2023.</ref>
Energy saving certificates (PAT), various renewable purchase obligations (RPO), and renewable energy certificates (REC) are also traded on the power exchanges regularly.<ref>"Renewable energy: The undoing of RECs and ESCerts". Retrieved 2 October 2022.</ref><ref>"To price or not to price? making a case for a carbon pricing mechanism for India" (PDF). Retrieved 2 October 2022.</ref> Recent amendment to Energy Conservation Act in December 2022 included carbon trading provisions, green fuels mandatory use, etc.<ref>"Energy Conservation Act Paves Way for Carbon Credit Market in India". 13 December 2022. Retrieved 16 December 2022.</ref> As of May 2023, carbon emission trading system or carbon trading market is not started in India.<ref>"State and Trends of Carbon Pricing 2023" (PDF). Retrieved 2 June 2023.</ref> Enhancing soil carbon or sequestration of carbon in topsoil is feasible by converting desert and semi-desert lands into a lush green farm or forest lands using the available water resources fully.<ref name=crg/>
Rural electrification
As on 28 April 2018, all Indian villages were electrified.<ref>"India says electrified all villages ahead of prime minister's deadline". Retrieved 29 April 2018.</ref> 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.<ref name="hhe">"Households electrification in India". Retrieved 21 August 2018.</ref> 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. In urban areas, 89% of the households use LPG drastically reducing the use of traditional fuels – fuelwood, agricultural waste and biomass cakes – for cooking and general heating needs.<ref name=cook>"LPG cylinder now used by 89% households". Retrieved 5 December 2018.</ref>
See also
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- Climate change in India
- Electricity sector in India
- Energy in India
- Economics of new nuclear power plants
- Levelised energy cost
- Cost of electricity by source
- Energy returned on energy invested
- Reliance east to west India gas pipeline
- Coal slurry pipeline
- 40,000 MW Yarlung Tsangpo Hydroelectric Project
- Negawatt power
- Water Resources in India
- Indian Rivers Inter-link
- Bioeconomy
- Biomass to liquid
- Gas to liquid
- Coal to liquid
- Torrefaction
- Low-carbon economy
- Energy cannibalism
- Fossil fuel phase-out
- Renewable natural gas
- Algae fuel
- Solar power in India
- Wind power in India
- Renewable energy in India
- Index of energy articles
- Index of solar energy articles
- List of energy abbreviations
References
External links
- Ready Reference Policy Handbook about India at one place
- The Carbon Brief Profile: India
- Latest news about Indian Power Sector at one place
- Highlights of Rajasthan Solar Policy 2011
- Solar to light up Rural India
- Map of oil and gas infrastructure (incomplete)
- India's River-Linking Scheme: A case of troubled waters
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