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Alternative Energy Sector In India

Introduction
India's energy sector is currently confronted with multiple challenges, which stem not only from supply-side constraints but also from demand pressures imposed by a buoyant economy and a growing population. As per recent Planning Commission estimates, if economic growth is sustained in the 7-8 per cent range, the energy demand would rise by at least 5.2 per cent annually. In the face of relatively inflexible supply options, the gap between energy requirement and availability can only be expected to widen in the future. This gap raises serious concerns, not only about the country's energy security but also on the sustainability of its economic growth momentum. On a more micro-level, the shortage could lead to rising incidence of power outages and greater import dependency on fossil fuels such as crude oil and coal. Let us first take a look at where we stand in terms of overall investment achievement in the energy sector. The World Bank has estimated the minimal annual investment needed for energy and related infrastructure at about 5 per cent of the GDP. New electricity generating capacity of nearly 700,000 MW would need to be added—at the rate of 140,000 MW per Five Year Plan period. Compare this with the capacity addition of 21,000 mw during the 10th Plan that just ended in 2007. To be able to sustain this level of electricity generation, we would need to import nearly one billion tonne of coal from the current level of less than 100 MT, and we would need to add nuclear capacity of 3,000 MW per year (almost equal to our total current nuclear generating capacity) from 2017 onwards, assuming a ten year gestation period. Imagine the import bills, port capacities required, transport infrastructure needed and of course the international cooperation on the nuclear issue. India is well on the path to extreme vulnerability on the energy front.

On the other hand, India is fairly well endowed with renewable energy sources such as...