ELECTRICITY DEMAND DYNAMICS IN INDIA & POLICY RECOMMENDATIONS FOR SUSTAINABLE ELECTRICITY AVAILABILITY BASED ON SOLAR ENERGY

Abstract

India is the third-largest electricity producer globally but has a significantly lower per capita electricity consumption compared to the world average. High transmission and distribution losses at 19.27% further reduce electricity availability. This gap highlights immense potential for growth in electricity consumption, driven by India’s rapidly growing economy and rising consumer aspirations. The Government, through its  rural electrification policy initiatives viz. Deendayal Upadhyaya Gram Jyoti Yojana and Saubhagya, could achieve ‘electricity access for all villages’ by April 2018. However, the definition of ‘village electrification’ leaves room for improvement, as only basic infrastructure and 10% household coverage are required for a village to be considered electrified. Over the years, climate-related challenges & net zero objectives worldwide have helped to push the share of renewables’ installed capacity in the energy mix, but challenges like lower efficiency of renewables, higher upfront cost of most renewables and over-reliance on fossil fuels remain. Solar energy, with its scalability and long-term sustainability, emerges as a promising solution to achieve energy & sustainability goals, especially through focused policy support and innovative financing models.