Q11Power Generation Sources

World Energy Status and Current Energy Scenario in India

The world energy status is characterized by continuing heavy reliance on fossil fuels (coal, oil, and natural gas together still supplying the majority of global primary energy consumption) despite decades of climate policy attention, alongside rapidly accelerating deployment of renewable energy technologies (particularly solar photovoltaic and wind power, whose global installed capacity and annual capacity additions have grown dramatically over the past two decades as their costs have fallen substantially), significant regional disparities in per-capita energy consumption and access (with many developing regions still facing energy poverty and limited electricity access), and growing recognition of the need for a coordinated global energy transition to address climate change, driving international frameworks such as the Paris Agreement and national decarbonization commitments across most major economies.

India's current energy scenario reflects a rapidly growing economy with correspondingly fast-rising energy demand, historically met predominantly through domestic coal-fired generation (owing to India's substantial domestic coal reserves) supplemented by imported crude oil for the transport sector and imported natural gas, creating meaningful energy security concerns tied to fossil fuel import dependence. In recent years, India has pursued an ambitious renewable energy expansion program, with installed solar and wind capacity growing at a rapid pace as part of national climate commitments and the broader goal of achieving substantial non-fossil generation capacity share by the coming decades, supported by policy mechanisms including renewable purchase obligations, competitive solar/wind auctions, and large-scale solar park development.

India's energy scenario also features significant ongoing investment in grid infrastructure modernization (including the 'One Nation One Grid' unified national grid initiative and increasing inter-state transmission capacity) to better integrate variable renewable generation from resource-rich states into the national grid, alongside continued investment in nuclear power capacity expansion and hydroelectric development, reflecting a genuinely diversified, multi-technology strategy for meeting the country's rapidly growing energy demand while progressively reducing its carbon emissions intensity and fossil fuel import dependence over time.

Rural electrification and universal household electricity access, achieved substantially in recent years through both grid extension and decentralized renewable solutions in remote areas, along with growing energy efficiency initiatives (such as the UJALA LED bulb distribution program and energy efficiency standards for appliances and buildings), further illustrate that India's current energy strategy addresses demand-side efficiency alongside supply-side generation diversification, reflecting a comprehensive, multi-pronged national approach to sustainably meeting the country's continuing rapid economic and energy demand growth.