Energy Infrastructure

Infrastructure refers to all such activities, services, and facilities needed to provide different kinds of services in an economy. Simply put, it is the support system for the economic and social development of the country. The infrastructure facilities are crucial for the development of agriculture, industry, and now, increasingly, the services sector. Since India’s economic reforms in 1991, the government has placed a significant emphasis on infrastructure development. Infrastructure can be categorised into two parts; viz., Economic Infrastructure (Energy, Transport, and Communication), and Social Infrastructure (Education, Health, and Training).

Economic Infrastructure

It includes the infrastructure associated with energy, transportation, and communication. Under this infrastructure some promoting activities like the production and trade of goods and services are essential. Besides it, Economic infrastructure has a direct positive impact on the process of production and distribution in an economy. In other words, Infrastructure provides direct support to the economic system. Economic Infrastructure is the support system that allows the modern industrial economy to work efficiently. Modern agriculture also relies heavily on economic Infrastructure for the efficient and large-scale transportation of seeds, pesticides, fertilisers, and products through modern highways, trains, and shipping facilities. Agriculture has been more reliant on insurance and financial services in recent times due to the requirement to operate on a large scale.

Energy: Economic Infrastructure

Energy is a key component for most of the consumption activities and production activities and hence plays a vital role in a country’s economic growth and development. It is essential for industries and is now widely utilised in agriculture and related fields such as the manufacture and delivery of fertilisers, insecticides, and farm equipment. It is also required in homes for cooking, lighting, and warmth. 

Sources of Energy

There are two sources of energy:

1. Commercial Energy:

The sources of energy which command a price and their users have to pay a price for them, are known as Commercial Energy. This type of energy is usually consumed by commercial entities and industries rather than by individuals or families. It is a non-renewable source of energy. Commercial Sources such as coal, petroleum, and electricity are bought and traded to users. The utilisation of a commercial source of energy can be taken as a sign of the development of an economy.

2. Non-commercial Energy:

The sources of energy which in general do not command a price, are known as Non-commercial Energy. People utilise this type of energy for domestic use. It shows a country’s standard of living. Non-commercial energy is provided to users at no cost and is generally a renewable source of energy. For Example, Cow dung, firewood, agricultural waste, etc.

Difference between Commercial and Non-commercial Sources of Energy

Basis	Commercial Energy	Non- Commercial Energy
Meaning	The sources of energy which command a price and their users have to pay a price for them, are known as Commercial Energy.	The sources of energy which in general do not command a price, are known as Non-commercial Energy.
Utilisation	The sources of energy that individuals utilise for commercial purposes.	The sources of energy that individuals utilise for domestic usage.
Indicator of	The utilisation of commercial energy sources can be an excellent indicator of how well the economy of a country is doing.	The country’s living standards can be determined by the usage of non-commercial energy sources.
Market	Commercial energy is traded in the market(domestic and international); i.e., a price is demanded for these goods.	Villagers often use non-commercial energy as free goods. At best, these goods have a local market. However, currently, some of the non-commercial sources, such as dried dung and firewood are charged a price in urban areas and are priced to some extent in rural areas as well.
Nature	It is generally an exhaustible source of energy (except hydropower).	It is generally a renewable source of energy.
Example	The main sources of commercial energy are coal, oil, natural gas, and hydroelectricity.	The main non-commercial energy sources include firewood, charcoal, cow dung, and agricultural waste.

Based on the sources from which energy is derived, it can be classified into two categories:

1. Conventional Sources of Energy: 

The sources of energy which are in use for long and can be stored are known as Conventional Sources of Energy. These are non-renewable sources of energy. For example, Coal, natural gas, electricity, thermal power, cow dung, straw, etc. Even in the present times, many industries use coal and oil. Commercial and Non-commercial Sources of Energy are known as Conventional Sources of Energy.

2. Non-conventional Sources of Energy:

The sources of energy which have only recently come into use are known as Non-conventional Sources of Energy. These sources are renewable sources of energy. For example, wind energy, solar energy, bio-gas, tidal power, and geo-thermal energy. As India is a tropical country, its potential to produce non-conventional sources of energy is almost unlimited. Although it is possible if the already available appropriate cost-effective technologies are used. However, as these sources of energy are inexhaustible, besides facing the problem of heavy cost and management, harnessing and storing them also involves a lot of problems. This is the reason why these sources are generally not used in industries.

Energy Consumption Pattern in India 

The consumption pattern of energy in India depicts the percentage use of different commercial and non-commercial sources of energy. Commercial energy consumption accounts for over 74% of total energy consumption in India. Coal and lignite account for 74% of total energy with oil accounting for 10%, natural gas for 9%, and hydro and other new and renewable energy accounting for 7%. Over 26% of total energy consumption is accounted for by non-commercial energy sources such as firewood, cow dung, and agricultural waste. 

The import dependency on crude and petroleum products, which is anticipated to rise quickly shortly is a crucial characteristic of India’s energy industry and is directly connected to economic development.

Sectoral Pattern of Commercial Energy Consumption

As the economy is growing at a fast pace, the use of energy has also increased. It can be understood with the help of the following sectoral pattern of the commercial energy consumption table.

Trends in Sectoral Patterns of Commercial Energy Consumption (in %)

Sector	1953-54	1970-71	1990-91	2017-18
Household	10	12	12	24
Agriculture	1	3	8	18
Industries	40	50	45	42
Transport	44	28	22	1
Others	5	7	13	15
Total	100	100	100	100

Observations:

• In 1953-54, the Transportation Industry was the major consumer of commercial energy. However, the transportation sector’s share has been steadily declining, while the proportions of households, agriculture, and others have been rising. 
• In 2017-18, Industrial Sector has the largest share of the total commercial energy consumption; i.e., 42%.
• In 2017-18, consumption by the Agriculture Sector is very low; i.e., 18%, which means that the agriculture sector is dependent on traditional farming methods.