Editorial 2: Energy and efficiency

Context               

India must lower its power consumption by improving energy efficiency.

Introduction

India’s power sector has witnessed commendable growth, especially with rapid renewable energy integration in recent years. However, a widening peak power deficit highlights persistent supply challenges. As the country grapples with rising energy demand driven by urbanisation and climate pressures, enhancing energy efficiency emerges as the most viable and cost-effective solution to ensure energy security and sustainable development.

India's Power Paradox: Rising Supply but Rising Demand Gaps

Growth in Power Generation vs. Peak Demand Deficit

• India has seen robust growth in electricity generation over the past two decades.
• The last five years witnessed rapid expansion in renewable energy capacity.
• Yet, India is struggling to meet its peak power demand.

• The widening deficit reveals systemic supply constraints, especially:
  • Long gestation periods for new power generation (especially fossil-fuel based).
  • Challenges in integrating renewable energy into the existing grid.

The Need for Energy Efficiency: Fastest & Cheapest Solution

• Energy efficiency is the quickest and most cost-effective approach to:
  • Lower power demand.
  • Combat climate change.
• Holistic energy efficiency measures are essential to address the gap between supply and peak demand.

A Decade of UJALA: India’s LED Revolution

UJALA (Unnat Jyoti by Affordable LEDs for All)

• Launched: 2015
• Impact: Reduced cost of LED bulbs from ₹500 to ₹70.
• Widespread adoption in households across India.

Street Lighting National Programme (SLNP)

• Implemented alongside UJALA.
• LED streetlight installations: 1.34 crore+ units.
• Target areas: Urban Local Bodies (ULBs) and Gram Panchayats.
• Impact: Reduced peak demand by 1,500 MW+.

Why LEDs Matter: Efficiency Comparison

• Significant cost savings for households.
• Major reduction in electricity consumption and carbon emissions.

Broader Energy Efficiency Measures & Their Impact

• Legislative Foundation: Energy Conservation Act, 2001 – Key enabler of energy efficiency initiatives.
• Gains from Energy Efficiency (2000–2018)

The Growing Challenge: Rising Energy Demand

• Urbanisation & rising temperatures driving cooling demand.
• Peak power demand (2024): Reached 250 GW.
• India is now the 3rd largest power consumer globally (after China and USA).
• Energy Mix & Future Coal Dependence

Way Forward: Sector-Wise Energy Efficiency Mandates

• Urgent need for sectoral efficiency mandates in:
  • Buildings (design and insulation).
  • Home appliances (cooling, lighting, heating).
  • SMEs (small and medium enterprises).
• Target: Improve efficiency, reduce reliance on coal, and stabilize peak demand sustainably.

Conclusion

While India remains committed to expanding power generation, especially through coal and renewables, it must prioritize energy efficiency across sectors. Programs like UJALA and SLNP have shown transformative impact. Scaling similar initiatives in buildings, appliances, and MSMEs will be vital to reduce peak demand, lower emissions, and avoid costly infrastructure investments—making efficiency the cornerstone of India’s energy future.