Overview of energy sector in

India
•India ranks 6th in the world in total energy consumption
•The energy sector holds the key in accelerating the
economic growth of India.
•Industry is the largest consumer of primary commercial
energy after the power sector.
• At the expected 8% growth rate, energy consumption is
bound to increase.
•Growing infrastructure demands more power.
•Sophistication of technology demands power.
• Lowest per capita energy consumption
• Energy consumption per unit of GDP is highest
• At the expected 8% growth rate, energy
consumption is bound to increase.
• Growing infrastructure demands more power.
• Sophistication of technology demands power.
 SOURCES OF ENERGY

Sources of energy

Non Renewable Renewable

Bio
Coal Oil Natural gas Nuclear power Solar Wind Hydro mass
 Defects of Regulation
• Availability
• Irregularity in supply
• Lack of easy accessibility
• Inefficiency
• Discrimination
• Lower quality
 Deregulation
• Less of government interference
• Aspects of deregulation
1. Entry barriers
2. Control on prices
3. Distribution
4. Fixation of priorities
 Wind energy
• 5th in the world
• Installed capacity in India – 11807 MW
• Potential – 65000 MW
• Generates 1.6% of the total power
consumption.
 Suzlon energy
• 7.7% market share in global wind turbine sales
• 3rd largest wind turbine manufacturing
company in the world
• Presence in 25 countries across Asia, America,
Europe and Australia
• 52% market share in India
• Made India leader in wind turbine technology
 Solar energy
• Reliance industries has highest volume of
investment in Solar PV project in West Bengal
• Moser Baer Photovoltaic Ltd has also ventured
into this industry.
• Sharp Business Systems India Ltd. Made its
foray recently
 Biomass energy
– Potential – 19500 MW
– Installed capacity 290 MW
– Biomass energy is majorly used for self
consumption
– Commercialization on a large scale is still to be
introduced.
– Orient green acquired an 8 MW plant in
Rajasthan in 2008
Hydro
 Fiscal incentives for renewable energy
• 100 percent accelerated depreciation for tax
purposes in the first year.
• No excise duty on the manufacturing.
• Low import tariffs for capital equipment and most
of the materials and components.
• Five-year tax holiday for power generation projects.
• Remunerative pricing for the power generated
through renewable energy systems, fed to the grid
by private sector.
• Facility for the third party sale of renewable energy power.

• Financial Incentives/Subsidies for devices with high initial cost.

• Encouragement to non-governmental organizations (NGOs) and

small entrepreneurs.

• Allotment of land on a long-term basis at token lease rent and

supply of garbage free of cost at project site by state governments,
with respect to projects on energy recovery from municipal waste.
• FDI of 74% in joint venture – automatic
approval
• 100% FDI permissible with approval from
Foreign Investment Promotion Board.
• Build own operate basis projects encouraged.