Chanakya IAS Academy Blog


Relevance and use of the article in UPSC prelims and mains examination: Dear aspirants, energy security is always a concern for an developing economy. But in a country where the demand and supply on consumers are mismatched then there is always a different approach is to be followed. This article is focused on the issue that Although the production of power is sufficient in india to fulfill the needs but there is not enough infra so that we can deliver it to everyone. That's why government have to follow proactive measure to sell the extra energy to other countries until we make ourself able to consume it within. Let's go through the article.

India's power consumption scenario:

  • India consumes less power comparatively, which has resulted in low plant load factor and surplus of coal at the pithead and at the power plants, although t is thought worthy now.
  • One of the major reasons is good monsoon that has lowered agricultural consumption of electricity and cheaper hydropower has replaced thermal power in the grid as bountiful rains ensured ample waters in the reservoirs.
  • Quest of additional capacity of power that we are adding to the grid is on the rise because We are adding capacity not only in the traditional thermal and hydro but also in the renewable sector, in which we have a target of 175 GW of capacity by 2022.

Why indians consume low power:

  • India’s per capita consumption is lowest in the developing world.
  • We can one time say that power consumption is going to grow and this current situation is only due to low purchasing power of the consumers.
  • Connectivity, transmission issues are also the major factors.
  • A major concern is that distribution companies (discoms), are not buying power because of their debts and inability to recover costs from consumers,however these issues are being sorted out Ujwal Discom Assurance Yojana (UDAY).

What is Ujwal DISCOM Assurance Yojana (UDAY)?

  • Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in
  • The scheme comprises four initiatives - improving operational efficiencies of discoms, reduction of cost of power, reduction in interest cost of discoms and enforcing financial discipline on discoms through alignment with state finances. It allows state governments, which own the discoms, to take over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds. Discoms are expected to issue bonds for the remaining 25 percent of their debt.

solutions to deal with the current situation.

  • This situation could be dealed by having competing facilities in two-three fuels, with the grid switching over from one fuel to another depending on the price of the fuel and the market demand. Coal competes with fuels such as natural gas and nuclear and the consumer is offered different options.
  • In a country like India, where capital has other competing demands, investment in the power sector could be made more profitable with the adoption of a slew of measures that increase the consumption of electricity.
  • Electricity offers elasticity of use and could be utilized to replace fuels in other sectors.

Some measures adopted by other countries:

  • Increased demand as well as supply
  • Ecuador, has invested in hydropower in the last few years, has also become power surplus. Ecuador is overcoming this situation by embarking on a programme of replacing gas stoves with electric stoves for cooking in households, thus bringing down the consumption of natural gas, which it imports.
  • From this we have to encourage the use of electricity for cooking during the surplus season—for this, a special tariff may be offered, which could be lower than the comparative LPG price and for this we don't need any extra infrastructure.
  • Electricity could also replace imported kerosene. This will also have an impact on our overall LPG and kerosene imports, free LPG for consumption in rural areas and help faster implementation of the Pradhan Mantri Ujjwala Yojana.

The other measure

  • fast switchover to electric vehicles.
  • restricts the use of traditional two-wheelers in several cities in order to reduce pollution.
  • Electric charging facilities for vehicles can be provided in major cities and on highways.
  • Lower tariff could be offered for ‘off-peak’ recharge of vehicles.
  • The use of electric buses in public transport should also be encouraged.
  • Smart cities and cities planned under the proposed industrial corridors should incorporate infrastructure for electric vehicles in their plans.
  • Indian Railways could fast-track its electrification programme so that it lowers its diesel consumption.


  • Adoption of electricity for cooking instead of LPG, LNG or kerosene would lower our imports of these fuels.
  • Rise in the use of electric vehicles will lower the rise in demand of petroleum imports.
  • This will have a salutary effect on the market price of crude oil and will contribute to enhancing the energy security of the country.
  • Adoption of electric vehicles will lower the pollution level in cities, apart from helping to meet our commitments in the 2015 Paris climate change agreement.


  • We have already made good progress in this area. In 2013, we started exporting 500 MW of power to Bangladesh and by constructing a good infra, in future this could be scaled up by constructing a better transmission infrastructure. A pan-Asia-Pacific grid in the long run will help balance the surplus and shortages in the region.
  • Hence power surplus situation can be converted into a boon. It could lower the demand for imported petroleum products and increase the consumption of domestically produced coal—a 175 GW renewable energy target by 2022 will be a welcome addition to our energy mix and help replace fossil fuel further.


“Investment in the power sector could be made more profitable by a slew of measures that increase the consumption of electricity”. How would you analyse this thought if india strengthen its GTDC( generation. Transmission,distribution and conservation)efforts. Discuss.

Suggested pints:

  • Discuss about india's power consumption scenario
  • Hindrances in GTDC( Generation. Transmission,Distribution and Conservation efforts).
  • Demand supply ratio of power sector in india.
  • Surplus supply less demand in current situation discuss.
  • How this situation can be dealt.
  • Increase the use of energy; some measures.
  • suggestions ; environmentally friendly measures.
  • conclusion.


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Read 510 times Last modified on Tuesday, 25 October 2016 11:02

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