Almost 70% of India’s power needs are met by fossil fuels.
Beginning in early May 2022, a significant power crisis affected almost the whole country of India. Some industries came to a near standstill. Unplanned power outages were occurring in homes at the same time that a harsh and early summer impacted huge portions of the nation.
- Government Action
- What programmes are influencing India’s energy transition?
The following are the main causes of this energy crisis
- After the pandemic, power consumption rose from 14% to 21% in many states, placing a strain on the production and supply network.
- The worldwide demand for and cost of petroleum have increased due to the power crisis in China.
- India imports coal, and the post-pandemic supply chain constraints have not been eliminated.
- The growing disparity between the high cost of imported coal and the cheap cost of electricity.
- Despite having the fourth-largest coal reserves in the world, the local supply is under pressure since fossil fuel investments have decreased to achieve climate goals.
- Because hoarding coal is expensive, power firms did not do so.
In order to combat the situation, the government is acting on a war-like scale by collaborating with state-run institutions to increase coal mining and production. Experts claim that the situation is improving as a result of a decline in energy demand, which has helped to stabilise things somewhat.
In addition to making families poorer, forcing some factories to reduce output or even close their doors, and slowing economic growth to the point that some nations are in the midst of a severe recession, higher energy prices have also led to uncomfortably high inflation.
Europe, whose gas supply is uniquely vulnerable because of its historic reliance on Russia, could face gas rationing this winter, while many emerging economies are seeing sharply higher energy import bills and fuel shortages.
It is obvious that the absence of diversity in the world’s energy system undermines the flexibility of livelihoods and contributes to food insecurity and humanitarian crises. Humanitarian crises have also been caused by a lack of diverse energy systems in many regions of the world.
The Government of India has consistently implemented a number of reformative measures to reduce and mitigate the volatility of global crude oil and gas prices; as a result, the rise in fuel prices in India has been more moderate than the exponential rise in other parts of the world. Nevertheless, India has demonstrated great resiliency in the face of this crisis.
What government programmes are influencing India’s energy transition?
- Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)
- Green Energy Corridor (GEC)
- National Solar Mission (NSM)
- National Biofuels Policy and SATAT
- Small Hydro Power (SHP)
- Pradhan Mantri Ujjwala Yojana (PMUY)
- International Solar Alliance (ISA)
India requires a lot more instances of renewable energy production than just a handful. If we’re going to change the energy scenario and achieve our objectives, we’re going to need a lot of private sector actors. If we are to develop a strong strategy for energy security, it is essential that any conflict between the government and business entities be replaced by cooperation.