Foreword

or four years prior to the onset of the global downturn, India had averaged close to 9 per cent annual GDP growth. However, the country’s ailing infrastructure network for power remains a major constraint in sustaining this high growth rate. To eliminate poverty, India needs to grow at 810 per cent a year for the next two decades, which entails energy consumption growing four to five times.

The challenge before the country is to give priority to global concerns on climate change, even as it meets the surge in demand that accompanies a highgrowth path. This could be done through the efficient use of energy and the promotion of environmentfriendly technologies. This special report argues that given India’s large geographical spread and ready availability of sunshine, solar energy could be the answer to our energy shortage; that an effective natural gas market is imperative; that wind power can meet 10 per cent of our longterm energy requirements, at close to zero emissions; that with 76 per cent of the country’s hydropower potential of about 149 GW yet to be harnessed, this energy source needs more attention; and that nuclear energy must contribute 63,000 Mw by 2030.

The special report highlights the fact that building longterm energy security requires policy and legislative changes that can bring regulatory clarity and economic viability for investors. That, for the government, is the key challenge posed by the energy sector.