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The Indian power industry crisis

India suffers from a major shortage of electricity generation capacity, even though it is the world’s fourth largest energy consumer.

This recent video from the BBC outlines the problems facing India’s struggling power industry:

Electricity distribution network in India is inefficient – losses exceeded 32% in 2010, compared to world average of less than 15%.

The International Energy Agency estimates India needs an investment of at least $135 billion to provide universal access of electricity to its population.

In India’s effort to add electricity generation capacity over 2009–2011, both central government and state government owned power companies have repeatedly failed to add the capacity targets because of issues with procurement of equipment and poor project management. Private companies have delivered better results.

The existing power grid is far from reliable even in the large cities. So it’s not realistic to expect that rural areas will gain access to reliable grid in the foreseeable future.

The solution to the problem of rural electrification is spelled Micropower – small-scale energy with local generation and distribution.

Read more and view video on BBC’s website >>

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