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India's Energy Landscape: Access, Consumption, and Challenges

1. Progress in Electrification

  • Near-universal access: Over 99.9% of rural households connected to the grid (e.g., via Saubhagya scheme).
  • Quality ≠ Access: Many face intermittent supply, voltage fluctuations, and poor grievance redressal.
  • Visual Progress: Refer to Prayas’ Know Your Power report for electrification trends.

2. Electricity Consumption Patterns

A. User Categories:

Category % of Connections % of Electricity Consumed
Domestic 79% 24%
Industrial 1.5% 42%
Agricultural – 17%
Commercial – 9%
Others (railways, municipalities) – 8%

B. Key Insights:

  • Industrial sector uses the most power (42%) despite having few connections (1.5%).
  • Domestic users have the most connections (79%) but consume only 24%.
  • Agricultural consumption is significant (17%), mainly for irrigation pumps.
  • Industrial consumption has declined.
  • Domestic and agricultural usage have grown due to:
    • Rural electrification
    • Rising middle-class consumption
    • Expanded irrigation needs

3. Agricultural Electricity Use: Challenges

  • States affected: Punjab, Haryana, Maharashtra, Andhra Pradesh.
  • Issues:
    • Free/subsidized power → inefficient energy/water use
    • Groundwater over-extraction
    • Financial stress on distribution companies (discoms)
    • Often unmetered → hard to estimate usage or target subsidies
  • Emerging Solution: Solar-powered irrigation (must be managed to avoid worsening groundwater depletion).

4. Grid Management Challenges

  • Diverse demand patterns:
    • Steady industrial demand
    • Fluctuating agricultural loads
    • Peak residential consumption
  • Reforms Needed: Tariff design, subsidy targeting, grid stability measures.

Exam Tip:
Focus on the disparity between electricity access and quality, and the mismatch between connection share and consumption share (e.g., industry vs. domestic). Understand the socio-economic reasons behind agricultural electricity subsidies and their environmental impacts (groundwater depletion). Be prepared to discuss trends in consumption patterns and the need for reforms in tariff design, metering, and renewable integration (e.g., solar pumps). Use data from the Prayas report to support your answers.

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