Integrated Energy Policy

The energy policies that have been adopted since independence to serve the socio-economic priority of development have encouraged and sustained much inefficiency in the use and production of energy. Indians pay one of the highest prices for energy in purchasing power parity terms. This has eroded the competitiveness of many sectors of the economy. The challenge is to ensure adequate supply of energy at the least possible cost. Another important challenge is to provide clean and convenient “lifeline” energy to the poor even when they cannot fully pay for it, as it is critical to their well-being. Therein lies the importance of an effective and comprehensive energy policy.

In this context, the Prime Minister had directed the Planning Commission, to setup an Expert Committee to prepare an integrated energy policy linked with sustainable development that covers all sources of energy and addresses all aspects of energy use and supply including energy security, access and availability, affordability and pricing, as well as efficiency and environmental concerns

The Integrated Energy Policy prepared by the Planning Commission has identified DSM as one of the important options for energy planning. However, as of date, very little experience exists in India regarding development, implementation and monitoring of the DSM programmes.