Planning for electricity generation in India

A country's economy and its energy base have a complex yet strong relationship. As a result the provisioning of an increasing quanta of energy is a vital pre-requisite for the economic growth of a country. With certain exceptions it has been found from a study of the per capita electric energy generation and per capita income that between 0·7 and 2 units of electric energy are required for generation of one unit of income. The exact relationship will vary from country to country depending on the particular energy-mix, the extent of industrialization and the energy efficiency of the economy. In the case of India, with the increasing contribution being made by the manufacturing, mining, transportation and communication sectors to the gross national product, the linkage between energy consumption and the deflated GNP are specific and strong. This paper outlines the methodology by which the relationship has been modelled and a forecast made of the energy demand.