Solar Energy

The Indian economy is the second fastest growing economy in the G-20, next only to that of China. It has recorded a CAGR of more than 7% since 1997. Even during the current global economic crisis, India remains strong and resilient, on the back of its fundamental strengths - a sizeable young population, increasing urbanization, rising per capita consumption and a growing and more affluent middle class. If the Indian economy continues to grow at the current rate, it would emerge as the second largest in the world, next only to China, by the year 2050. However, India’s substantial and sustained economic growth is creating enormous pressure on its energy resources. There is a prominent energy supply-demand imbalance.

Already, in the electricity sector, official peak deficits are of the order of 10-12%, which could increase over the long term. In addition, 56% of Indian population (mainly in rural areas) does not have access to electricity. There is also a significant risk of lesser thermal capacity being installed on account of lack of indigenous coal in the coming years because of both production and logistic constraints, and increased dependence on imported coal. Difficulties of large hydro are increasing and nuclear power is also beset with unending controversies and problems. The country thus faces possible severe energy supply constraints. With the challenges being faced by the conventional power generation projects, and with the potential Foreign Direct Investment (FDI) availability, the renewable energy sector seems to be the key to India's energy security.