Keywords: economic reforms, foreign direct investment, FDI, energy efficiency, availability based tariff, ABT, operational efficiency, power transmission, power distribution, cleaner technologies, India, energy management, developing countries
Energy efficiency management in India: a supply side perspective
The rapid pace of India's industrial development has altered the demand-supply situation for power generation and also set the process of opening up of markets by state regulators. In the backdrop of the expected growth rate of 9% envisaged for the Indian economy, power sector requires a capacity addition of 78,000 MW in the 11th Plan with the objective of 'power for all by 2012'. During fiscal year 2007, India's total energy shortage was 9.9% of its total requirements, and peak shortage was 16.6% of peak demand requirements, indicating the need for effective energy management. Most of the studies related to energy efficiency focus on demand side management (DSM), however, in this paper we propose that an integrated approach incorporating economic reforms, FDI, operational-efficiency improvement of existing power plants, introduction of new energy-efficient technologies and reduction of losses in T&D as practiced in India can be emulated by developing countries.