India is the second most populous country with population of over 1.272 billion(17.6 % of world population) only next to China with population of 1.37 billion and as per reports, India will become the most populous country by 2028 – after 13 yrs from now. Now we have an index which is electric power per capita which shows that how much electric power(watts) a person has consumed in an year. For India the average power per capita is less than 100 watts per person which is very less as compared to China(458),US(I683) & EU(688) but at the same time if you multiply it with the total population, India is the fourth largest consumer after China, USA ,Russia. So with this relationship, the energy consumption of a country is directly proportional to its population and since I just mentioned that India is edging towards becoming the most populous country by 2028, hence its thirst for more electricity will also increase accordingly. Now I tried to analyze why do we have such low energy consumption in today’s age where we are so much dependent on energy for each and every activity, I came up to the fact that still 35.5% population in India is without electricity. Means that the figure I just mentioned for power consumption is for only 64.5% of Indian population. But I am confident that with the coming years it will increase and with more access to electricity to the people in rural areas the consumption will increase more.Now the factors that drive an economy or a country toward power production are
In India, the total primary energy consumption sector wise is
Crude Oil – 29.45%
Natural gas – 7.7%
Coal – 54.5%
Nuclear energy – 1.26%
Renewables (hydro electricity , wind power, biomass electricity and solar power) – 5.0 %
is 595 Mtoe in the year 2013. In the year 2013, India’s net imports are nearly 144.3 million tons of crude oil, 16 Mtoe of LNG and 95 Mtoe coal totalling to 255.3 Mtoe of primary energy which is equal to 42.9% of total primary energy consumption. Means India as of 2013 had a deficit of 43% of energy and it was importing these fuels so that it can produce energy for its consumption .This indicates that if we keep the production capacity of the fuels as constant(not considering any new projects or increase in capacity) and with the growing population and more access of electricity to the rural areas, India will surely need to Import more and more fuels to meet the increasing demand of electricity consumption and as per data, India’s dependence on energy imports is expected to exceed 53% of the country’s total energy consumption by 2030.
Hence 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.
I would like to end with the statement by the chief economist of International Energy Agency “India needs three things for its energy sector: investment, investment and investment,” and hence it is a call for all those entrepreneurs and investors out there who want to start investment in energy sector and have new and innovative ideas that this is the best time for you to enter into the Indian energy market.