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  • Principal source of energy in the world. 


  • Inexhaustibility: There are many sources of electricity generation and hence they will replace each other. Currently, for India Thermal> Hydro> Nuclear power generation. In Japan where hydroelectric power plants were the important.
  • Cleanliness: Electricity is much cleaner compared to other sources like coal and oil. It is an invisible source of energy i.e.; usage of electricity leaves no mark. However, a lot of pollution is done while producing electricity. 
  • Easy to use: It is highly adaptable. Current flow and voltage can be monitored to suite the requirements. Ideal for use in highly complex industries: precision is very important.
  • Convenient to Transport: Unlike coal or oil, it does not require physical transport, loading and unloading, electricity can be transferred efficiently over long distance grids. Thus, it has an advantage of reaching difficult and uneconomic areas over coal and oil.
  • Industrial importance: Indispensable in Information communication, internet and electronic equipment. It has led to decentralisation of manufacturing sector. Earlier access to energy was one of the main considerations for industries to locate. However, since electricity can be easily transported and easy to use, manufacturing industries have decentralized. For ex. Electric arc technology-based steel mills located in NCR region, Automobile industry using manufacturing robots located near NCR, Chennai & Pune etc.


  • Electricity can only be transported at relatively short distances as compared to coal and oil and only over the grids, if grid is not there it cannot be transported. 
  • Electricity cannot be stored: It has to be used instantaneously. This creates a lot of problems as there is no reserve to fall back to as in the case of coal and oil. 
  • In industrial areas demands are high when production is going on while in city demand peaks during the day. So, the production must be varied accordingly. This is achieved by running big power plants in full capacity and keeping others on partial capacity so that their production can be altered to meet the variation. 
Fossil Fuel
Total Fossil Fuel2,36,46957.4%
Non-Fossil Fuel
RES (Incl. Hydro)1,68,96341.0%
Wind, Solar & Other RE122,11329.6%
Wind42,01510.2 %
BM Power/Cogen10,2182.5%
Waste to Energy5230.1%
Small Hydro Power4,9431.2%
Total Non-Fossil Fuel1,75,74342.6%
Total Installed Capacity4,12,212100%
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