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The Energy Market in India and How Green Energy Will Liberate Crores of Indians

India is the fourth largest economy in the world and will likely become the third largest by 2050. It’s home to an astonishing number of successful start-ups and enterprises and will continue to be the preferred destination of businesses in the years to come. Despite their rich economic potential, millions of Indians live in poverty without access to reliable electricity or modern amenities.

Article by Voltreum / July 26, 2022

The Energy Market in India Today

India is the world’s fourth largest energy consumer, according to the US Energy Information Administration (EIA). In 2016, India consumed about 3.4% of global primary energy consumption — more than one-third of China’s share and over twice that of Japan. However, India’s energy consumption per capita is significantly low compared to countries like the United States and Russia.

The private sector mainly controls 

India’s energy generation. While the state and central governments contribute around 50% of the overall power generation, private players control the other half of India’s power generation capacity. 

The Current State of Power in India

The state of power in India is far from ideal. Power outages are not uncommon, and many parts of the country still suffer from a lack of access to electricity. While the situation is improving, there’s still a long way to go before all Indians can access reliable electricity.

The government has set ambitious targets for improving energy supply in the country: it aims to achieve 100% rural electrification by the end of 2022, with an improvement in accessibility and quality of service standards. Additionally, India plans to generate 175 GW of renewable energy by 2022 through initiatives such as rooftop solar power. However, current estimates show that India may not meet the self-declared deadlines. 

The Current Rates for Power Generation and Consumption in India

When it comes to power generation and consumption, India is unique in many ways. 

Over 60% of all electricity generated in India comes from coal-fired power plants, but the outlook on renewable energy sources is not all bad. 

India produces energy from three primary sources: fossil fuels (which account for nearly 60%), renewable energy such as solar, wind, etc. (which account for 28%), and hydropower (which accounts for the remaining 12%). 

All the energy generated from these sources is significantly low compared to what India’s neighbors in the Asia-Pacific region generate. However, regarding consumption, India ranks among the highest in energy tariffs. 

Why is rural India still not electrified?

This surging energy price has made power inaccessible to many. While India is trying to reach its goal of 100% electrification, there are areas where many people do not have access to electricity. According to data from the Ministry of Power, about 13 million people in rural India (out of a total population of 1.4 billion) remain unelectrified.

The energy storage challenge

There are currently three central challenges to energy storage in India:

  • No access to electricity, and even those with access have an inconsistent power supply.
  • Many people cannot afford batteries and other storage devices to store energy.
  • Lack of investment in infrastructure for storage prevents innovations like microgrids from being fully tapped.

How microgrids will liberate millions of Indians from poverty and give them economic freedom

Microgrids are a decentralized power system that can power rural communities not connected to the main grid. They can also power water pumps and other water systems and provide electricity for homes and businesses. 

Microgrids can work with renewable energy sources such as solar panels to power small communities and give them self-sufficiency and economic freedom.

India’s energy market is on the verge of a green revolution that will change the lives of millions

The Indian government is investing in renewable energy at a rapid pace and is also changing how we consume energy. 

The country has taken bold steps to improve its sustainability by emphasizing renewables. This strategy is already paying off. According to Bloomberg New Energy Finance (BNEF), India’s clean power capacity rose 42% last year, driven primarily by solar power growth (which increased 68%).

Next Article / Oct. 25, 2022 The growth of blockchain technology and how it will benefit the energy market
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