Economic Analysis on Energy Consumption in India

Abstract

Electricity is a crucial service in the modern days for enjoying the quality of life, and at the same time it is an important input in economic development. Electricity use is growing worldwide, providing a range of energy services. At this junction the present paper especially focus on the electricity consumption in Tamil Nadu. In India faces multiple problems over access to electricity. Such problem is epitomized by the low availability of electricity; Lack of reliable electricity transmission network, causing loss of electricity due to inadequate infrastructure and make electricity exchanges across regions less efficient; The power theft is also rampant which adds additional burdens on electricity supply. The electricity sector in India supplies the world's 5th largest energy consumer, about 65.34 percent of the electricity consumed in India is generated by various source. The country has also invested heavily in recent years in renewable energy utilization, especially wind energy. Electric power sector in India during the year of 2010-11, the energy requirement registered a growth of 3.7 percent during the year against the projected growth of 5.6 percent and Peak demand registered a growth of 2.6 percent. Over the previous year and the peak met increased by 6.0 percent, the shortage conditions prevailed in the Country both in terms of energy and peaking availability. Renewable energy sources are also being encouraged considering the growing environmental concerns. Hence, the future prospects of nuclear power, hydro power and power from renewable energy sources are also good.