Energy

Energy

Introduction:
The security of energy supply plays a major role in the economic growth of a country. The IEA’s (International Energy Agency) definition of energy security is “the uninterrupted physical availability at a price which is affordable, while respecting environment concerns” [1]. There are risks associated with energy security. These energy risks may arise due to the inability to meet the energy demand, system failure, physical attacks and due to international political actions [2].The continuation of using fossil fuel poses a threat to energy security and thus countries have to look for alternative sources for sustainable development. One of the ways to mitigate this energy risk is to diversify the energy portfolio.
Energy supply:
According to IEA World Energy Outlook 2006 report, the increase in oil demand and the dependence on fossil fuels will lead to price shock and is an energy security issue [3].For countries primarily depending on the import of fossil fuel to meet their energy demand, renewable energy is an alternative as it reduces the dependence on import of fossil fuel.
For countries like India, addressing the security of energy supply issue is important to maintain its economic growth rate. India is currently one of the fastest growing economies. The fluctuating prices of oil and gas has a severe impact on developing countries like India and since India’s dependence on fossil fuel is set to increase its vulnerability also increases.
India’s Energy scenario:
The Indian economy continuous to grow at a rapid rate thanks to the reforms initiated during the 20th century. The Indian economy grows at a rate of 8% which makes it one of the fastest growing economies in the world today [4]. Figure 1 shows the growth rate of the India’s GDP (Gross Domestic Product).