Social, economic and scientific developments are directly linked to the development of energy sources.
However, the present stock of energy resources of the world is limited and can last only for a few decades. Moreover, most conventional energy sources are non-renewable. Hence mankind is searching future sources of energy and the development of renewable sources energy along with the rational use of existing sources of energy.
Considering all these facts, the Government of India has also formulated an energy policy with objectives of ensuring adequate energy supply at a minimum cost, achieving self-sufficiency in energy supplies and protecting environment from adverse impact of utilizing energy sources in an illegitimate manner.
The main features of energy policy are: – (i) Accelerated exploitation of domestic conventional energy resources e.g. oil, coal, hydro, and nuclear power, (ii) Intensification of exploration to increase indigenous production of oil and gas (iii) Management of demand for oil and other forms of energy (iv) Energy conservation and management (v) Optimization of utilization of existing capacity in the country (vi)Development and exploitation of renewable sources of energy to meet energy requirements of rural communities (vii) Intensification of research and development activities in new ad renewable energy sources (viii) Organization of training for personnel engaged at various levels in energy sector.
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Emphasizing on the need of increasing power requirement, following provisions have made in the Eleventh plan. Such as:-
(a) Availability of fuels such as coal or natural gas for new power plants must be assured.
(b) A national consensus on royalty rates for fuels and compensation for host states also need to be worked out.
(c) Long-term finance should be made available to power capital charge.
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(d) The plan also emphasized on an efficient inter-state and intra-state transmission system of adequate capacity that is capable of transferring power from one region to another.
(e) Rehabilitation of thermal stations through research and management to augment generating capacity and improve P.L.F.
(f) Rehabilitation of hydro station to yield additional peaking capacity.
(g) Improving supply side and demand side efficiencies to effectively, lower primary energy demand by 5-7% during the eleventh plan period.
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(h) Ensuring use of washed coal for power generation and harnessing captive capacity to support the grid.
(i) Coal will remain the dominant primary source of commercial energy and the total demand for coal is projected to increase 600 million tonnes during the plan. Therefore, coal India is aiming to increase production of coal by 60% during the 11th plan.
(j) India will remain dependent on crude oil imports.