Energy is vital for the internal and external security of a country and is at the core of many social, environmental and economic challenges. High economic growth and rapid industrialization are resulting in an exponential growth in energy demand world wide. Global energy demand is expected to rise from 14 billion tce (Tonnes of coal equivalent) to 19 billion tce in 2020 and to 27 billion tce in 2050.
Some of the key energy challenges that the world is facing today are :
Growing energy demands
• Coal, oil, and natural gas are leading sources of energy fuel which are fast depleting
• Global hydrocarbon reserve crunch – widening gap in consumption and production
• Market imbalances in crude supply – high cost of energy to fuel importers
• Risk of global temperature rise – natural calamities, food shortages, water crises, extinction of life-forms
• Need for balanced, renewable and sustainable energy portfolio
In the context of this scenario, the world is facing the need for rapid transition to a low-carbon, sustainable, efficient and environmentally benign energy system based on renewable resources.