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MODERN ENERGY REVIEW - Volume 1 - Copenhagen Edition -


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ARTICLES

Decentralised Renewable Energy in the Indian Context
Bimlesh Kumar

Originally printed in:
MODERN ENERGY REVIEW - Volume 1 - Copenhagen Edition

The energy sector in India is a high priority in the planning process, and also in the allocation of public funds for its growth and research and development (R&D). Its share of funds has risen from 15% in the Third Five-year Plan to 27% in the Tenth Five-year Plan (2002–2007).1 However, in spite of continued efforts, the growth of this sector has not been fast enough to keep pace with the growing demand for energy services by the individual consuming sectors.

There is a strong relationship between economic development and energy consumption. The two key socioeconomic indicators that drive the pace of growth in energy demand are population and gross domestic product (GDP). The population of India is growing at around 2% annually and GDP is growing at about 8–9% annually; both are driving demand for energy. India’s energy scenario is complex, with various sources of energy meeting differing requirements from various sectors. With nearly 70% of the over 1 billion population living in rural areas, the challenge is to provide access to modern energy services for the rural population.

During the majority of the 20th century, primary energy supply has been cheap and abundant. Thus, the energy system as a whole has evolved with limited regard for optimisation in terms of cost or efficiency. The energy system is made up of the energy supply sector and energy end-use technologies with the objective of providing energy services to the consumers.

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