PARTNER COUNTRY SERIESUnderstanding Energy Challenges in India Policies, Players and Issues Understanding Energy Challenges in India Policies, Players and Issues Sun-Joo Ahn and Dagmar GraczykPARTNER COUNTRY SERIESINTERNATIONAL ENERGY AGENCYThe International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was and is two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agencys aims include the following objectives: n Secure member countries access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies.n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders.IEA member countries:AustraliaAustria BelgiumCanada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United StatesThe European Commission also participates in the work of the IEA. OECD/IEA, 2012 International Energy Agency 9 rue de la Fdration 75739 Paris Cedex 15, Francewww.iea.orgPlease note that this publication is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http:/www.iea.org/termsandconditionsuseandcopyright/ OECD/IEA 2012 Understanding Energy Challenges in India Policies, Players and Issues Page | 3 Page | 3 Table of contents Acknowledgements . 6 Executive summary . 7 Introduction . 10 1. Country background . 11 Political system . 11 Economic development . 12 Social context. 13 2. Energy policy framework . 16 Policy context . 16 Institutional arrangements . 18 Key energy policies . 21 3. Overview of the energy sector . 24 Energy demand . 24 Energy supply . 26 Carbon emissions . 27 4. Power sector . 29 Policy framework . 29 Supply .