ABSTRACT
India has seen high economic growth for close to two decades (1990s-2010) and continued high economic growth for the next two decades is necessary before India can become a developed country. A strong nexus exists between energy supply and economic growth, and the determination of energy demand elasticity which is useful for decision making is a challenge for energy economists. The Decision makers in this context include governments, utilities, technology developers and other stakeholders. Long-term projections of energy demand made in recent past in India include a study by Grover and Chandra of the Department of Atomic Energy (DAE).1 This study uses the data of 2002-03, that is, the beginning of the Tenth Five Year Plan, as the base year and makes projections for electricity demand for the next five decades. Table 1 provides primary energy growth in India as projected by Grover and Chandra. The study was aimed at finding the role to be played by nuclear energy in India and therefore, estimates were made about cumulative energy requirements for five decades. The requirements are compared with energy availability from coal, hydrocarbons and renewable energy sources including large hydro and this led Grover and Chandra to conclude that there is a large gap in energy demand and energy availability from domestic sources and hence, maximum possible contribution from nuclear is welcome. Maximum contribution from nuclear power can come from pursuit of closed fuel cycle approach and even after that contribution, there would be a need to import energy sources. Essentially, India is short of energy sources, including uranium, and strategic thinking is necessary to provide for energy security.
