Hydroelectricity generation is ideal for meeting India’s peak demand and has the added advantage of being free from the price difficulties of fuel supply. Only about one-fifth of India’s vast hydel power potential has been utilized so far. Since the 1980s the growth of hydel power generation has been slow at a dismal 4.4%. This figure is especially worrying when compared to the growth of thermal power generation which has been growing at a steady 11.6%. This decrease in use of hydro power has resulted in non-optimal use of power resources as thermal power began to be used increasingly in peak power deficits whereas they should normally be utilized in base load operations. Compared to more developed countries like Norway and Canada who utilize 60%and 40% of their hydro power potential India is lagging far behind with a 1:3 ratio of use of hydro power use to thermal power use.

Nuclear Power

Only 2% of the entire power capacity is produced by 14 power plants which contribute about 2800 MW to overall capacity. Nuclear energy is considered ideal for meeting base load demand. The Government of India has ambitious plans of increasing nuclear power generation to 10,000 MW by 2012 and to of doubling that figure by 2020.To achieve this target, a huge amount of Public sector investments will be injected and the Department of Atomic Energy is considering using recycled fuel and is also examining the option of private sector partnership to see that targets are achieved and if possible, exceeded.

Nuclear power plants are being established away from coal mines. Economies of generation will be a major criterion while setting up nuclear plants. Already, companies like Reliance have expressed interest in setting up nuclear power plants if and when the sector is liberalized for private participation.

Given that India has abundant thorium reserves, Nuclear Power Corporation of India Limited (NPCIL) is bracing to play a major role in future to meet the ever increasing energy demands. The Company is enhancing its initial target of 1300 MW capacity addition during tenth plan (2002-07) to 2520 MW. The installed capacity at the end of eleventh Plan would be around 10280 MW and 20,000 MW by the year 2020.

Rural Electrification

Rural electrification is critically important for agricultural and agro- industrial development, employment generation and improvement in the quality of life of people in rural areas. Electricity distribution including rural electrification is under the purview of the State Governments. Creation of rural electrification infrastructure and their operation and maintenance for securing reliable power supply to consumers is necessity the state governments are looking into.

Electricity Act, 2003 provides the required framework for extending electricity supply in rural areas. It allows operation of the standalone system in rural areas, independent of regulatory regime. It also provides distribution of electricity in rural areas, responsibility of operation & maintenance and collection of bills by utilities or by panchayats, local authorities, NGOs and other franchises.

Some Key Information regarding the state of rural electricity supply:-

• Number of villages (according to 1991 census): 587,258
• Number of villages Electrified: 495,298
• Percentage of Villages Electrified: 84.3%
• Balance villages to be electrified: 91,960
• Potential of Energy of Pumps: 19,594,000
• Number of Pump sets Energized: 14,177,684
• Percentage of Pump sets Energized: 72.4%

In 2003-2004, 4589 inhabited villages were connected with electricity supply and 192,721 pump sets/ tube-wells were energized. In total 494,587 villages have been connected with electricity and 14,002,634 electric irrigation pump sets have been connected as on 31.3.2004. Out of a total of 107,045 tribal villages in the country, 82,976 villages have been connected as on 31.3.2004. Similarly, 301,019 Harijan Bastis have been connected

Energy Conservation

Conservation of energy has emerged as key issue in the national economic agenda in recent years. There is scope of saving 20% of energy output through energy efficiency and demand side management measures in different sectors, without forgoing any of the end-use benefits of energy. The economy will gain significantly from conservation and improved energy efficiency, both in terms of money saved by reducing energy costs in the short run as well as reducing investment needs for energy production in the long run. Having realized the vast potential of energy saving and benefits of energy efficiency, the GoI enacted the Energy Conservation Act, 2001, which came into effect in March 2002. The Act provides necessary legal and institutional framework to enable the government to rapidly promote efficient use of energy and its conservation in different sectors of the economy.

The Ministry of Power has also created, under this Act, a central coordinating body called Bureau of Energy Efficiency, and has handed it the responsibility of promoting energy saving measures. 400 MW of energy has been saved and other energy inputs totaling Rs 2300 cr has been achieved during last five years.