In this article, we will discuss Causes of Energy Poverty in India. So, let’s get started.
Causes of Energy Poverty in India
- Lack of Energy Infrastructure:
- Because of the lack of modern energy infrastructure like power plants, transmission lines, underground pipelines to deliver energy resources such as natural gas, petroleum to rural areas leads to energy poverty.
- They have heavily relied on traditional biomass such as wood fuel, charcoal, burning crop residue and wood pellets.
- Nigeria, the largest oil-producing country in Africa, is second only to India in the number of people living without electricity.
- Without infrastructure for gathering or delivering natural gas much of the natural gas produced in oil fields of Nigeria is flared off.
- Lack of Affordability:
- Households at lower levels of income and development tend to be at the bottom of the energy ladder, using fuel that is cheap and locally available but not very clean nor efficient.
- Inefficiency of Energy:
- Disproportionately high loss of useful energy during energy conversions is a prime factor of Energy Poverty.
- Energy poverty rates tend to drop by 0.21% when energy efficiency index scores increase by 1 point, thus showing the direct effect of energy efficiency in energy poverty.
- Geopolitical Tension:
- Geopolitical instability results into disturbance in global energy supply chain,
- India’s oil import bill soared to 119 billion dollars in the fiscal year that ended on March 31, 2022 as energy prices exploded after the Ukraine conflict.