The classical definition of energy is a system's ability to perform labor, however, because energy takes various forms, it is difficult to identify a single comprehensive definition. It is an object's property that allows it to be transported from one object to another or converted into new forms but not generated or destroyed.
Energy Sector in India
The energy sector in India includes the production and distribution of petroleum products, natural gas, and coal. India relies significantly on imports to meet its energy requirements, with crude oil accounting for more than 80% of total energy imports. Recent years have seen efforts to improve natural gas infrastructure.Â
India is one of the world's fastest-growing economies and has an increasing demand for electricity and energy. With a population of over 1.3 billion and a rapidly rising economy, India's power and energy sectors are critical to the nation's growth and development.
India's power sector includes electricity generation, transmission, and distribution, with a broad mix of energy sources. Coal, natural gas, hydroelectric, nuclear, wind, and solar energy are among the available options.Â
India is the world's fifth largest electricity generator, with Maharashtra leading all Indian states in energy generation. Electricity remains a major engine of India's economic growth, with an elasticity ratio of 0.8 emphasizing its importance.Â
Renewable energy has gained traction, accounting for 25% of total installed capacity. India's power generation capacity has increased dramatically, currently standing at roughly 5 GW, with a goal to reach 450 GW by 2030.
The government is also supporting using energy-efficient technologies such as LED lighting and smart meters to reduce energy use and waste. Initiatives like the National Solar Mission, Wind Energy Mission, Smart Cities Mission, and UJALA scheme seek to encourage renewable energy and energy-efficient technologies.
Challenges faced by the energy sector in India
Energy Access:Â Despite recent improvements, India continues to face hurdles in guaranteeing universal access to energy. According to the International Energy Agency, around 240 million people in India still lack access to electricity. The lack of access to electricity has an impact on the country's socioeconomic development.
Energy Security:Â India relies largely on imports for its energy requirements. According to the Ministry of Petroleum and Natural Gas, India's crude oil import dependency has risen from 77.3% in 2014-15 to 85.8% in 2019/20. This reliance on imports exposes the country to global price volatility and geopolitical concerns.
Environmental Sustainability:Â The energy industry is a major source of greenhouse gas emissions that contribute to climate change. According to the Global Carbon Project, India was the world's third-largest CO2 emitter in 2019, accounting for 6.6% of total emissions. The challenge for the energy sector is to encourage economic growth while maintaining environmental sustainability.
Infrastructure:Â India's energy sector has insufficient transmission and distribution infrastructure, ineffective storage systems, and insufficient refining capacity. According to the Ministry of Power, India's peak demand gap was 0.5% in 2019-20, highlighting the need for more infrastructure development.
Financing:Â The energy sector requires large expenditures to address rising energy consumption and promote sustainable development. However, finance remains a concern due to the high capital costs involved with energy projects and the scarcity of funds.
Ministries
Ministry of PowerÂ
It came into being in July 1992. Its function is to monitor the quality and quantity of the production. On top of provision delivery, provide appropriate electricity production to sustain infrastructure growth. Sections of the Power Ministry contain:
Power Ministry
Coal Ministry
Ministry of New and Renewable EnergyÂ
Coal MinistryÂ
It also has a sub-body called the Coal Controller’s Organization (CCO) that has the following functions and responsibilities:
 Inspection of collieries to ensure quality.
Decision-making in case of any issue between the consumer and owner concerning the grade and size of coal.
Regulation of disposal of coal stock.
Providing grants for opening or re-opening of any coal mine.
Submitting monthly data related to coal to various ministries.
Ministry of New and Renewable EnergyÂ
It was established in October 2006. Earlier there was a commission for additional sources of Energy which was established in March 1981 to look after the issues such as cost hikes of oil, and problems regarding its supply. Later, the Department of Non-conventional Energy Sources (DNES) came into being in 1992 and finally became the Ministry of New and Renewable Energy (MNRE).
Indian Renewable Energy Development (IREDA) was established in 1987 and was a public-sector nonbanking company under MNRE that started providing loans for new and renewable sources of energy. Two main objectives of IREDA are financial support and betterment in efficiency.
