ABSTRACT
The availability of energy is not only a pre-requisite but also a necessary requirement for development of economies. The history of growth shows that the demand for energy increased significantly with the growth and the structural transformation of the economies. Apart from growth, the increased use of energy, especially electricity, raises the standards of living and improves the degree of human development. Alternatively, a shortage of energy resources limits the growth prospects and even the potential of growth remains unrealised. The Indian experience shows very high income elasticities of demand for energy (Ghuman, 1983) in the past. The present growth scenario of the Indian economy, i.e., the growth of around of 8 per cent (Government of India 2006), is largely a result of the increased use of energy and sustaining this growth rate in the times to come will require higher and higher doses of energy input. Therefore, the planning of energy supplies and the management of energy demand must be an area of interest for the government, policy makers and the civil society. This article depicts the global experience of per capita energy and electricity use and their relationship with GDP and HDI, analyses the demand and supply scenario of energy for the next two- and- a-half decades and brings out the potential shocks, threats and opportunities. The conclusions and policy options have been discussed in the end. This article is largely based upon the data provided in the recent expert committee report brought out by Government of India (Planning Commission 2006).
