2. India’s Energy Demand and Supply

This chapter examines India’s energy demand profiles and supply options. Unlike other markets, the energy sector is slow moving and changes in consumption and production profiles are a result of lumpy investment decisions as also gradual improvements in efficiency. As a result, India’s energy sector profile appears unchanged since 1980, with coal and oil dominating the energy mix. This broad average, however, masks a significant shift away from coal and towards oil until 2000s, and the subsequent recovery in coal’s share. The competition between coal and oil in the last century has now been played out between coal and gas over a much shorter period. The outcome has been an energy mix that is dominated by coal with some gains being made by renewables. In addition, India remains significantly import dependent for all forms of fossil fuels.