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What is Energy?
In Economics,
Energy means power utilized from utilization of physical or chemical resources to run machines and provide heat and light
Example
We burn coal to generate heat, so it is form of energy
We use petrol to run our cars (which is a machine), so petroleum is a form of energy
Why do we need energy?
It is used in Industries to Run Machines
It is used in houses for cooking, heating and lighting
It is used in Agriculture to transport agriculture goods, fertilizers, seeds as well as irrigation (tub wells use electricity to draw water for irrigation)
In what forms energy available?
Energy is available in various forms like:
Coal
Petroleum
Electricity
Fuel Wood
Cow Dung etc
Some of these are commercial while others are non commercial:
Different Sources of Energy
- Commercial Sources
There is commercial trading of this source of energy
It can be easily brought and sold and is available to consumers at a price
They are produced in power plants
Example
Coal, Petroleum, Electricity
It is used in both urban and rural areas
It is exhaustible source of energy except hydropower energy
(It is available in limited supply and will be finished in future)
They can be conventional or Non Conventional Source of energy
- Non Commercial Sources
There is no commercial trading of the source of energy
It is normally available to customers free of cost
They are naturally found in nature
Example
Cow Dung, Fire wood
It is mainly used in urban areas
It is inexhaustible source of energy
They are conventional sources of energy
Difference between Conventional and Non Conventional Sources of Energy
- Conventional Sources
Those sources of energy which have been used for a long time are called conventional sources
Example
Coal
Petroleum
Cow Dung
Fire wood
These generate more pollution and damage environment
These sources of energy are generally used
- Non Conventional Sources
These are new sources of energy which have been recently developed
Example
Wind Energy
Solar Energy
Tidal Energy
These are more environment friendly
These sources of energy are less used currently but their use is growing
Consumption Pattern of Energy in India
More Commercial Energy Used
Share of Commercial Energy is more than non commercial energy
- Commercial Energy 74%
- Non Commercial Energy 26%
Coal Mostly used
Share of Coal is highest followed by oil and natural gas
- Coal 54%
- Oil (Petroleum) 32%
- Natural Gas 10%
- Hydro and Other Renewable 4%
High Dependence on Imports
As we know, India imports petroleum from Outside India to meet its energy requirement
Hence, Price of petroleum keeps on fluctuating
Hence, it has a severe impact on economy
Energy Requirement of Different Sectors
At the time of Independence
Share of Transport Sector was the highest in energy consumption
Energy was very little used in agriculture and households
By 2017-18
Share of Agriculture and Household Sector increased considerably
And share of transport sector declined
TABLE 8.2
Different Modes of Electricity Generation in India
Electricity is Generated in India through following methods:
| Type of Energy | Generated by | % Share |
| Thermal Energy | Using Coal | 82% |
| Hydro Energy | Using Water | 8.50% |
| Nuclear Energy | Using Uranium | 2.50% |
| Other Energy | Using Solar Energy, Wind Energy | 7% |
Important Points
Coal is mainly used to generate electricity.
It is a fossil fuel and exhaustible in nature
Burning of coal lead to pollution
Share of Atomic Energy is only 2.5% which is much less than global average of 13%
Share of Renewable Sources of electricity like solar energy and wind energy is very less
it needs to be increased
Challenges in Power Sector
1. Insufficient Installed Capacity
Demand for energy in India is rapidly increasing due to Increase in Population as well as Increase in Economic Developemnt
Energy supply needs to increase by 7% but currently we are able to add only 2000 MW energy supply which is very less
2. Underutilized Installed Capacity
Plans which are running are not been functioning properly due to bad governance
Hence, they are not able to generate electricity upto their installed capacity
3. Transmission Loss
(Electricity which is generated in first transferred to power station auxillaries which transfer to our homes and offices
A lot of electricity is lost during this transmission and hence there is lot of difference between electricity generated and electricity used)
4. Wrong Pricing of Electricity
Electricity Rates are heavily subsidized especially to poor and middle class families
In many states ,it is provided free of cost.
This leads to loss of State electricity boards
5. Distribution of Free Electricity to Farmers
In Many states, farmers get electricity free of cost or at subsidized rates for irrigation
This leads to losses of SEB
6. Theft of Electricity
Many people steal electricity and tamper their Electricity meters
This leads to losses of SEB
7. Insufficient Role of Private Sector/Foreign Investors
In many cities, Electricity Boards which were earlier under Govt
8. Shortage of Raw Materials
Thermal Power Plants mainly run on coal
However, supply of coal is insufficient in many areas
9. Public Unrest
Common Public has to face lot of problems due to frequent power cuts as well as high electricity bills
What is the reason for heavy losses to State Electricity Boards?
State Electricity Boards are suffering huge losses due to following reasons:
Transmission Loss
Wrong Pricing of Electricity
Distribution of Free Electricity to Farmers
Theft of Electricity
What measures to be taken to Revive Electricity Sector?
or
What steps to be taken to ensure Energy Requirement of India is fullfilled (there is Additional Electricity Supply)?
1. More Public investment
Govt needs to increase its spending in Electricity Sector by opening Power Plants
This will generate additional electricity
2. Better Research and Development Efforts
Research and Development needed to develop alternative sources of energy and reduce the dependence on coal and petroleum (Example-Electric Cars)
3. Use of Renewable Sources of Energy
Currently coal and petroleum are mainly used to generate electricity
These are harmful to environment
Instead of them, we can use alternative sources of energy like wind energy, solar energy
4. Use of CFL and LED Bulbs to Save Energy
Traditional bulbs consume lot of electricity
They were replaced by CFL Bulbs which were later replaced by LED Bulbs
LED Bulb consumes half electricity compared to a CFL Bulb and 1/10 energy as compared to traditional incandescent bulb
Moreover, this bulb last longer compared to traditional bulb
This has led to saving of Rs 400 for a average household in electricity
NCERT Questions
Question 6
What is the significance of ‘energy’?
Differentiate between commercial and non-commercial sources of energy.
View AnswerEnergy means power utilized from utilization of physical or chemical resources to run machines and provide heat and light
Example
We burn coal to generate heat, so it is form of energy
We use petrol to run our cars (which is a machine), so petroleum is a form of energy
Question 7
What are the three basic sources of generating power?
View AnswerElectricity is Generated in India through following 3 basic methods:
| Type of Energy | Generated by | % Share |
| Thermal Energy | Using Coal | 82% |
| Hydro Energy | Using Water | 8.50% |
| Nuclear Energy | Using Uranium | 2.50% |
Question 8
What do you mean by transmission and distribution losses?
How can they be reduced?
View AnswerElectricity which is generated in first transferred to power station auxillaries which transfer to our homes and offices,
A lot of electricity is lost during this transmission and hence there is lot of difference between electricity generated and electricity used
This is called transmission and distribution losses.
They can be reduced by taking the following measures:
- Improvement in Plant Load Factor
- Promoting the role of Private Sector
- Better research and development efforts
- Proper check on power theft and strict punishment for culprits
Question 9
What are the various non-commercial sources of energy?
View AnswerThe various non-commercial sources of energy are - cow dung, fire wood, agricultural waste etc.
Question 10
Justify that energy crisis can be overcome with the use of renewable sources of energy.
View AnswerIndia has a lot of untapped potential when it comes to renewable sources of energy like the- solar energy, wind energy, geo-thermal energy etc.
The use of these resources do not deplete the fossil fuels or cause any carbon emissions.
Most of India's energy generation is fulfilled by coal and India is facing serious shortage of the same
So, there is an urgent need to shift to renewable sources of energy to overcome this energy crisis.
Question 11
How has the consumption pattern of energy changed over the years?
View AnswerThe consumption pattern of energy over the years:
Commercial energy makes for 74% of the total energy consumption of the country.
Out of this, coal accounts for the highest share i.e. 74%, followed by oil 32%, natural gas 10% and hyrdo power and other renewables 4%
Non commercial energy accounts for only 26% of the total energy consumption of the country
The sectoral pattern of energy consumption from 1953-2015:
- Share of household sector increased from 10% to 23%;
- Share of agricultural sector increased from 1% to 18%;
- Share of industrial sector increased from 40% to 44%;
- Share of transport sector decreased from 44% to just 2%;
- Share of others increased from 5% to 13%
Question 12
How are the rates of consumption of energy and economic growth connected?
View AnswerEconomic growth and energy are correlated in a positive way.
The demand for energy will increase if there is an increase in productive work, which ultimately displays economic growth
Energy is required in agriculture for transporting seeds, pesticides, fertilizers as well as finished goods
It is also required for cooking, household lighting and heating
So, it is clear consumption of energy rises with economic growth
Question 13
What problems are being faced by the power sector in India?
View AnswerThe problems being faced by the power sector in India are:
1 Insufficient Installed Capacity
Demand for energy in India is rapidly increasing due to Increase in Population as well as Increase in Economic Developemnt
Energy supply needs to increase by 7% but currently we are able to add only 2000 MW energy supply which is very less
2. Underutilized Installed Capacity
Plans which are running are not been functioning properly due to bad governance
Hence, they are not able to generate electricity upto their installed capacity
3. Transmission Loss
(Electricity which is generated in first transferred to power station auxiliaries which transfer to our homes and offices
A lot of electricity is lost during this transmission and hence there is lot of difference between electricity generated and electricity used)
4. Wrong Pricing of Electricity
Electricity Rates are heavily subsidized especially to poor and middle class families
In many states ,it is provided free of cost.
This leads to loss of State electricity boards
5. Distribution of Free Electricity to Farmers
In Many states, farmers get electricity free of cost or at subsidized rates for irrigation
This leads to losses of SEB
6. Theft of Electricity
Many peole steal electricity and tamper their Electricity meters
This leads to losses of SEB
7. Insufficient Role of Private Sector/Foreign Investors
In many cities, Electricity Boards which were earlier under Govt
8. Shortage of Raw Materials
Thermal Power Plants mainly run on coal
However, supply of coal is insufficient in many areas
9. Public Unrest
Common Public has to face lot of problems due to frequent power cuts as well as high electricity bills
Question 14
Discuss the reforms which have been initiated recently to meet the energy crisis in India.
View AnswerThe reforms initiated to meet energy crisis in India:
1. More Public investment
Govt needs to increase its spending in Electricity Sector by opening Power Plants
This will generate additional electricity
2. Better Research and Development Efforts
Research and Development needed to develop alternative sources of energy and reduce the dependence on coal and petroleum (Example-Electric Cars)
3. Use of Renewable Sources of Energy
Currently coal and petroleum are mainly used to generate electricity
These are harmful to environment
Instead of them, we can use alternative sources of energy like wind energy, solar energy
Other Questions
Question 1
Distinguish between conventional and non-conventional sources of energy?
View Answer
