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The most of the production processes and consumption activities is depended on energy. A study shows that a 3% rise in industrial production in the world is accompanied by a 2% rise in energy consumption. India is currently ranked as the 5th largest energy producer, accounting for about 4% of the world’s total energy production and the 3rd largest energy consumer, accounting for about 6% of the world’s total energy consumption. Major users of electricity are:
  • Industry – 37%
  • Domestic – 25%
  • Agriculture – 21%
  • Commercial establishments – 10%
India’s total installed capacity of generating power was around 2,300 megawatt (MW) in 1950-51that has increased to 74,700 MW in 1990-91, 2,36,000 MW in 2011-12, thus over a period of 60 years, there has been 100 times increase in the installed capacity. Roughly we are adding 4000 – 5000 MW every year.

Sources of energy

There are two main sources of energy:
  • Non-commercial source: It comes from dung cakes, firewood, etc. supplies 23% of the energy.
  • Commercial source: It comes from oil, gas, nuclear power, coal. This supplied 77% of the energy. The major user of this source of energy is industry.

Sources of electricity

There are 5 major sources of electricity:
  • Water
  • Coal
  • Oil
  • Gas
  • Radioactive elements like uranium, thorium and plutonium
Electricity generated from water is also known as hydro-electricity. Electricity generated from coal, oil and gas is called thermal electricity and electricity generated from radio-active elements is called atomic energy. In terms of generation of power:
  • Thermal (Coal, Gas and Oil) 66%
  • Hydro 17%
  • Nuclear to 2.3% and
  • others around 15% of the total
The State and Central Governments, along with the private sector, work towards meeting the huge demand of power by generation of power.
The Central Government operates through:
  • National Thermal Power Corporation (NTPC)
  • National Hydroelectric Power Corporation (NHPC)
  • Nuclear Power Corporation of India Limited (NPCIL)
The State Governments operate through:
  • State Electricity Boards (SEBs)
Central Electricity Authority and Central Electric Regulatory Commission are among the other bodies in this sector.

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