ENERGY CRISIS

With the rapid growth of population and increase in the per capita income, there is an increasing demand for energy, especially that of conventional sources of energy. The consumption of energy in the country is increasing at the rate of more than 12 per cent per annum. In the absence of energy, there are frequent power failures, load-shedding, closure of factories, etc., resulting in a decrease in industrial and agricultural production.

In comparison to the developed countries, the per head consumption of electricity in the country is very low. For example, the per capita consumption of electricity in India is 350 kWh as against the world average of 1000 kW h and 7000 kWh in U.S.A. According to one estimate, the country’s peak demand projected for 2010 is 175,500 MW against the actual installed capacity of 90,000 MW. This requires an additional installed capacity of 85,500 MW.

Since the coal resources are highly unequally distributed, the transportation cost of coal to the distant thermal power stations is quite expensive.

Mismanagement of power sector, low efficiency of power houses, power theft, labour problem, pilferage, and power wastage are also aggravating the power crisis in the country.