Tuesday, August 21, 2012

India and Energy

India's daily peak demand is regularly 12% higher than peak supply but the shortage is managed through rolling or controlled blackouts that cut electricity supply deliberately to specific locations to balance supply and demand.

America typically builds 10,000 to 20,000 megawatts of new generation every year. India has built only about 50,000 megawatts of new generation in the last 5 years or about 5% of the total US generating capacity.

The basic problem in India is that daily demand outstrips supply. This will be exaggerated as growth makes new energy demands. But these energy demands pale in comparison to their national expectations. How can an economy grow in such uncertainty?

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