Energy Management
- Energy Management refers to efficient use, conservation, and sustainability of energy resources to reduce waste and improve productivity.
- Energy sector plays a big role in the progress of the country and contributes to both ease of living and ease of doing business.
- India’s energy demand is driven by industrial growth, urbanization, and increasing electrification.
- By leveraging technological advancements and strategic investments, India is on a path toward a cleaner, more resilient energy future.
India’s power demand
- Central Electricity Authority (CEA) conducts Electric Power Survey (EPS) of the country every five years for estimating the electricity demand of the country on medium-term and long-term basis as obligated under Electricity Act-2003.
- 20th Electric Power Survey (EPS) report published in November 2022, covers electricity demand projection for the year 2021-22 to 2031-32 as well as perspective electricity demand projection for the year 2036-37 and 2041-42 for the country.
- The 20th Electric Power Survey (EPS) projects that India’s peak power demand will reach 277.2 GW in 2026-27 and 366.4 GW in 2031-32.
- Govt. of India has finalised National Electricity Plan from 2023 to 2032 for Central and State transmission systems to meet a peak demand of 458 GW by 2032.
- The percentage increase in electrical energy requirement is less than the increase in electricity consumption. It is because of reduction in T&D losses expected in future.
- In May 2024, India’s power demand reached an all-time high of 250 gigawatts (GW).
- In December 2023, India’s power consumption increased by nearly 6% compared to the previous year
- In January 2024, India’s power generation increased by 6.80% compared to the previous year.
Electricity Act 2003
- It reformed the power sector by introducing competition, encouraging private participation, and ensuring the efficient supply of electricity.
- It replaced earlier laws like the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, and the Electricity Regulatory Commissions Act, 1998.
- Introduced competition in the generation, transmission, and distribution of electricity.
- No license required for thermal power generation (except hydro projects above a certain capacity).
- Allowed for industries and businesses to generate their own power.
- Renewable Energy: Promoted through preferential tariffs and renewable purchase obligations (RPOs).
- Mandated renewable purchase obligations (RPOs) for distribution companies.
- Central Electricity Regulatory Commission (CERC): Regulates interstate transmission and tariffs.
- State Electricity Regulatory Commissions (SERCs): Regulate intrastate transmission, distribution, and tariffs.
- Transmission utilities require a license from the Central or State Regulatory Commission.
Draft National Energy Policy (NEP) 2017 released by the NITI Aayog
- Four key objectives of the new energy policy are access at affordable prices, improved energy security and independence, greater sustainability and economic growth.
- Target of 175 GW of renewable energy capacity by 2022 (later increased to 450 GW by 2030).
- Increase the share of natural gas in the energy mix to 15% by 2030.
- Expand nuclear power capacity to 63 GW by 2032.
- Provide 24×7 reliable power to all households by 2022.
Important Points:
- As of January 2025, the country’s non-fossil fuel energy capacity has reached 217.62 GW.
- The CCDC Wind Initiative has significantly enhanced wind energy development, leading to 48.16 GW of installed capacity.
- National Green Hydrogen Mission, launched in 2023, is positioning India as a global leader in hydrogen energy with investments exceeding ₹8 lakh crore.
- National Solar Mission has propelled solar energy growth, with installed capacity rising from 9.01 GW in 2016 to 97.86 GW in 2025.
- Additionally, PM-KUSUM and PM Surya Ghar Muft Bijli Yojana are accelerating solar adoption among farmers and households.
- Coal is the largest source of energy supply.
Bharat Stage Norms
- Bharat Stage (BS) Norms are emission standards instituted by the Government of India to regulate the output of air pollutants from internal combustion engines and spark-ignition engines in motor vehicles. These norms are based on European Euro Norms and are aimed at reducing vehicular pollution and improving air quality.
- The first emission norms were introduced in India in 1991 for petrol vehicles and in 1992 for diesel vehicles.
- These norms were followed by the Bharat Stage (BS) norms, which were implemented in a phased manner.
- Bharat Stage norms mandate the use of cleaner fuels with lower sulfur content.
- For example, BS-VI fuels have a sulfur content of 10 ppm (parts per million), compared to 50 ppm in BS-IV fuels.
- Vehicles must be equipped with advanced emission control technologies like Catalytic Converters, Diesel Particulate Filters (DPF), and Selective Catalytic Reduction (SCR) to meet the norms.
- Key Milestones:
- 2000: Introduction of Bharat Stage II (BS-II) norms in major cities.
- 2005: Nationwide implementation of BS-II norms.
- 2010: Introduction of BS-III norms across India.
- 2017: Introduction of BS-IV norms nationwide.
- 2020: Introduction of BS-VI norms, skipping BS-V entirely.
Key Features of BS-VI Norms
- Lower Emission Limits
- Reduces Sulfur Content in Fuel from 50 ppm (BS-IV) to 10 ppm (BS-VI).
80% reduction in PM (Particulate Matter) emissions for diesel vehicles.
NOx (Nitrogen Oxide) emissions reduced by 68% in diesel & 25% in petrol cars.
- Reduces Sulfur Content in Fuel from 50 ppm (BS-IV) to 10 ppm (BS-VI).
- Advanced Vehicle Technologies
- On-Board Diagnostics (OBD) Mandatory: Real-time emission monitoring.
- Diesel Particulate Filters (DPF) and Selective Catalytic Reduction (SCR) required in diesel cars.
- Real Driving Emission (RDE) testing introduced.
- Fuel & Engine Compatibility
- BS-VI fuel is ultra-low sulfur (necessary for BS-VI engines).
- BS-VI fuel can be used in BS-IV engines, but BS-IV fuel cannot be used in BS-VI vehicles.
- Reduction in Air Pollution
- Lower CO2, NOx, SOx, and PM levels in urban air.
- Helps in reducing smog & respiratory diseases.
Differences Between BS-IV & BS-VI
Feature | BS-IV | BS-VI |
---|---|---|
Sulfur Content | 50 ppm | 10 ppm |
NOx Emissions (Diesel) | 250 mg/km | 80 mg/km (68% reduction) |
NOx Emissions (Petrol) | 80 mg/km | 60 mg/km (25% reduction) |
PM Emissions (Diesel) | 25 mg/km | 5 mg/km (80% reduction) |
Fuel Injection | Older technology | Advanced injectors & filters |
On-Board Diagnostics (OBD) | Not mandatory | Mandatory |
Comparison of Bharat Stage Norms
Norm | Year Introduced | Key Features |
---|---|---|
BS-I | 2000 | Equivalent to Euro 1 standards. |
BS-II | 2005 | Stricter than BS-I, equivalent to Euro 2 standards. |
BS-III | 2010 | Further reduction in CO, HC, and NOx emissions. Equivalent to Euro 3 standards. |
BS-IV | 2017 | Significant reduction in emissions. Equivalent to Euro 4 standards. |
BS-VI | 2020 | Skipped BS-V. Equivalent to Euro 6 standards. |
NonRenewable Energy
- India successfully met an all-time maximum power demand of 250 GW during FY 2024-25.
- The total installed capacity of coal and lignite-based thermal plants now stands at 217.5 GW.
- As of December, 2024, Domestic Coal-Based (DCB) power plants hold 41.4 MT of coal which is targeted to increase to 50 MT by March 2025.
Renewable Energy (500 GW of renewable energy by 2030)
- As of October 2024, renewable energy-based electricity generation capacity stands at 201.45 GW, accounting for 46.3 percent of the country’s total installed capacity.
- As of December 2024, India’s total renewable energy installed capacity has reached 209.44 GW, marking an impressive 15.84% increase compared to 180.80 GW in December 2023.
- The total capacity added during 2024 amounted to 28.64 GW, representing a significant year-on-year increase of 119.46% compared to the 13.05 GW added in 2023.
- In 2024, solar power spearheaded this growth with the addition of 24.54 GW, reflecting a 33.47% rise in its cumulative installed capacity from 73.32 GW in 2023 to 97.86 GW in 2024.
- Wind energy also contributed to this expansion, with an additional 3.42 GW installed in 2024, increasing the total wind capacity to 48.16 GW, a growth of 7.64% from 2023.
- Bioenergy has shown remarkable growth, with its installed capacity rising from 10.84 GW in December 2023 to 11.35 GW in December 2024, reflecting a 4.70% increase.
- Small hydro power projects saw incremental growth, with installed capacity increasing from 4.99 GW in 2023 to 5.10 GW in 2024, representing a 2.20% rise.
India has committed to reducing its emissions intensity by 45% by 2030 (compared to 2005 levels), achieving 50% of cumulative electric power capacity from non-fossil fuel sources by 2030, and promoting a sustainable way of living through the ‘LIFE’ (Lifestyle for Environment) movement. These targets also contribute to India’s long-term goal of reaching net-zero emissions by 2070, supported by the ‘Long-term Low Carbon Development Strategy’ submitted to the UNFCCC in November 2022.
Rights of Consumers Rules:
- Electricity Rules were notified in February 2024 to empower electricity consumers. Key features are
- Allowing separate connections for EV charging stations to promote clean mobility.
- Reducing timelines for new connections: 3 days in metros, 7 days in municipal areas, and 15 days in rural regions (30 days for hilly terrain).
- Mandating consumer rights for separate metering and billing in residential colonies, enhancing transparency and fairness.
- Introducing mandatory check meters to verify consumption in case of complaints.
Key Government Schemes for the Power Sector
- Saubhagya Scheme (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) – 2017
- Aim: 100% household electrification.
- Provides free electricity connections to poor households.
- Focus on rural & urban poor.
- Implemented by Rural Electrification Corporation (REC).
- Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) – 2015
- Aim: Strengthening rural electricity supply.
- Separation of agricultural & non-agricultural feeders for better power supply.
- Infrastructure upgrades (substations, transformers, etc.).
- Integrated Power Development Scheme (IPDS) – 2014
- Aim: Strengthening urban power distribution.
- Reducing power losses & improving quality of power supply.
- Includes underground cabling, smart meters, and IT-based solutions.
- Ujwal DISCOM Assurance Yojana (UDAY) – 2015
- Aim: Financial revival of debt-ridden power distribution companies (DISCOMs).
- States take over DISCOMs’ debt and implement efficiency measures.
- Focus on reducing AT&C (Aggregate Technical & Commercial) losses.
- Revamped Distribution Sector Scheme (RDSS) – 2021
- Aim: Reduce DISCOM losses & improve reliability.
- Smart metering & loss reduction initiatives.
- National Smart Grid Mission (NSGM) – 2015
- Aim: Modernizing India’s power grid.
- Focus on digitalization, automation & real-time monitoring.
- Implementation of smart meters & demand-side management.
- Unnat Jyoti by Affordable LEDs for All (UJALA) – 2015
- Aim: Energy efficiency through widespread LED adoption.
- Affordable LED bulbs, tube lights & fans.
- Reduced electricity consumption & carbon footprint.
- Street Light National program (SLNP) – January 2015
- To replace conventional street lights with smart and energy efficient LED street lights in the municipal sector across the country.
- Atal Jyoti Yojana (AJAY) – December, 2018.
- Provides for installation of solar street lights in remote, rural and semi-urban areas.
- Kisan Urja Suraksha Evam Utthan Mahabhiyan (KUSUM) – 2019
- Aim: Promote solar power for irrigation.
- Installation of solar pumps & solarized grid connections for farmers.
- Targets 30.8 GW of solar capacity.
- Green Energy Corridor (GEC) – 2013
- Aim: Integrate renewable energy into the power grid.
- Strengthens transmission infrastructure for solar & wind power.
- Key for achieving India’s 500 GW renewable energy target.
- Faster Adoption and Manufacturing of Electric Vehicles (FAME) – 2015
- Aim: Promote Electric Vehicles (EVs) for reducing fossil fuel dependence.
- FAME-II (2019-2024) – Subsidies for EV buyers & charging infrastructure.
- Perform, Achieve, and Trade (PAT):
- A market-based mechanism to improve energy efficiency in industries.
Centralized Data Collection and Coordination (CCDC) Wind Initiative (June 2020) aims to advance India’s wind energy development by improving wind resource assessment through accurate data collection and research. The initiative provides valuable insights for project developers, helping them identify the most promising locations for wind energy projects.
National Green Hydrogen Mission: Launched in January 2023, the National Green Hydrogen Mission is an ambitious initiative aimed at transitioning India towards a hydrogen-based economy. The scheme focuses on the development of indigenous technology for green hydrogen production, infrastructure for storage, transportation, and utilization. Green hydrogen capacity is expected to reach 5 million metric tons by 2030.
National Solar Mission (NSM): Launched in January 2010, NSM is a major initiative to promote ecological sustainable growth while addressing India’s energy security challenges. It is also a major contribution by India to the global effort to meet the challenges of climate change. In order to achieve the above target, Government of India have launched various schemes to encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc.
Off-grid Solar PV Applications Programme is one of the oldest programmes of the Ministry aimed at providing solar PV-based applications in areas where grid power is either not available or is unreliable. Applications such as solar home lighting systems, solar street lighting systems, solar power plants, solar pumps, solar lanterns and solar study lamps are covered under the programme.
Solar Grid Connected Programme: Government of India have launched various schemes to encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc. Various policy measures are also undertaken to promote the grid connected solar power plants. By 2023, India achieved 5th rank in the world in solar power deployment.
PM Surya Ghar Muft Bijli Yojana: Launched in February 2024, the PM Surya Ghar Muft Bijli Yojana, the world’s largest domestic rooftop solar initiative, is designed to promote rooftop solar energy adoption in residential areas. By providing financial incentives and subsidies for solar panel installation, the scheme enables households to generate their electricity, reducing their dependence on the national grid and lowering electricity bills. The initiative has a bold vision to supply solar power to one crore households by March 2027.
Source: GOI Websites, PIB, Internet