Abstract:

India is both a major energy producer and a consumer in the globe. India currently, as the world’s seventh largest energy producer, accounting for about 2.49 per cent of the world’s total annual energy production. It is also the world’s fifth largest energy consumer, accounting for about 3.45 per cent of the world’s total annual energy consumption in 2004. Since independence, the country has been significant expansion in the total energy use in the country with a shift from non-commercial to commercial sources. The share of commercial energy in total primary energy consumption rose from 59.7 per cent in 1980-81 to 72.6 per cent in 2006-07. It must be noted, however, that India’s per capita energy consumption is one of the lowest in the world. India consumed 455 kgoe per person of primary energy in 2004, which is around 26 per cent of world average of 1750 kgoe in that year. As compared to this, per capita energy consumption in China and Brazil was 1147 kgoe and 1232kgoe, respectively (GOI-2007-2012). Universal energy access to modern energy services is essential for socio-economic development including poverty alleviation. However, globally over 1200 million people lack access to affordable basic energy services, such as effective lighting and clean cooking. India alone is home to over 300 million people deprived of electricity and more than 800 million people who depend on solid biomass as fuel for cooking. Hence, there is a growing focus on energy poverty which implies lack of access to modern energy services. These services are defined as household’s access to electricity and clean cooking solutions, such as fuels and improved cook stoves that are not detrimental to health and the environment (IEA 2013). The amount of energy needed to satisfy the basic needs of rural populations around the world is relatively small, and appropriate technologies are available however, widening access to modern energy services is limited by the extreme poverty found particularly in the least developed countries. Living standards in rural areas can be significantly improved by promoting a shift from direct combustion of biomass fuels (dung, crop residues, and fuel wood) or coal in inefficient and polluting stoves to clean, efficient liquid or gaseous fuels and electricity. Although consumers trend to shift to these modern, higher-quality energy carriers as their incomes rise and the carriers become more affordable, the process is slow. Shift to such carriers can reduce the damage to human health and the drudgery associated with continued reliance on inefficient, polluting solid fuels. Technological developments alone, however, will not improve access or promote greater equity. New institutional measures are also needed, including financing to cover the initial capital costs of devices and equipment. Energy initiatives will be most successful when integrated with other policies that promote development. And because local populations will ultimately use, maintain, and pay for energy services, they should be involved in making decisions about energy systems. The lack of adequate energy services in rural areas of developing countries has social dimensions as well as serious environmental and health effects. Many of these problems are exacerbated by the almost exclusive reliance of rural populations in most areas on traditional fuels coupled with simple technologies characterized by low energy efficiency and harmful emissions. This paper attempted to focuses on technological opportunities, as well as other strategies, for delivering adequate, affordable, rural energy problems. Besides, several policies and fiscal measures along with implementing wide range of programmes on renewables, have contributed a significant progress and achievement made on the renewable energy. Further, in this background of the paper attempt to list the programmes on renewables and examine their impact on energy economy of India. At the end, this paper highlights the need for sustainable strategies and policies for renewables in order to meet the needs of the present as well as the future generation.