Policy Wise: India’s Power Sector

India’s power paradox- 1

  1. Central Electricity Authority (CEA), under the Power Ministry, had earlier released the Load Generation and Balance Report (LGBR) 2016-17
  2. The report stated that India is likely to experience the energy surplus of 1.1% in 2016-17
  3. Paradox: Though there are 300 million people without access to electricity, rampant power cuts and one of the lowest per capita power consumption in the world, India’s Power Ministry says India is power-surplus
  4. Demand problem: Surplus or deficit is determined by calculating the difference between the demand for power and availability, and the demand definition lies at the base of this paradox
  5. While calculating power demand, only people who are connected to the grid and have access to electricity at present are taken into consideration
  6. Thus those who do not have access to electricity and the demand from them – latent demand – is not included in demand calculations
  7. The ‘real demand’ that encompasses all citizens would be known only when India achieves the goal of ‘Power for All’
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