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Global Scenario of Energy Sector

When is International Energy Day celebrated?

1. International Energy Day is celebrated on 3rd May every year across the world.

2. It is propagated across the world by International Energy Agency.

What does the International Energy Agency do?

1. The International Energy Agency has got the mandate to ensure that energy development across the world takes place in an equitable and sustainable manner without causing undue harm to the ecology.

2. IEA was initially designed to help countries co-ordinate a collective response to major disruptions in the supply of oil, such as the crisis of 1973-4.

3. Energy Security: Promoting diversity, efficiency, flexibility and reliability for all fuels and energy sources.

4. Economic Development: Supporting free markets to foster economic growth and eliminate energy poverty.

5. Environmental Awareness: Analyzing policy options to offset the impact of energy production and use on the environment, especially for tackling climate change and air pollution.

6. Engagement Worldwide: Working closely with partner countries, especially major emerging economies, to find solutions to shared energy and environmental concerns.

How is India’s performance in the energy sector?

1. US and China want to define their responsibilities in overall carbon emission but India is looking at its own per capita consumption.

2. Per capita carbon emission shows India is in a far better position and can go ahead with its development projects.

3. Lot of efforts have been made in the last five years in solar energy, wind energy. Around 8-10% energy requirements are being met from solar and wind energy.

4. River based power generation system have also been developed and the entire energy basket including this is 33%.

5. Electrical vehicles have also made progress in last few years.

Which are the challenges for India?

1. India needs to be cautious regarding sanctions of US on Iran for its crude oil import and look towards other Gulf countries for its oil resources.

2. Venezuela can also be explored as an option for crude oil imports.

3. India is not very active on increasing its hydel power generation share in the overall energy basket.

4. There are many policy challenges as well.

5. Simply boosting solar and wind energy cannot meet certain kinds of energy requirements.

6. Solar energy cannot be used at night unless the storage battery system technology develops to a point where one can store the power that has been produced.

Where is the way ahead for India?

India needs to:

1. Build its strategic reserves in a better way;

2. Invest on domestic sources of energy to be secure in case of hostile geopolitical situations.

3. Have a better exploration policy; and

4. Make energy sector more attractive to the private sector for investment.