Energy is a vital component for economic growth. For a country of its size and population, India is a poor consumer of energy. Per capita primary energy consumption is about 4,500 kWh-equivalent while the world average is 21,000 kWh. Similarly, per capita electricity consumption is only <600 kWh, while the world average is ~2,500 kWh. However, the Indian economy is now showing signs of robust economic growth leading to a surge in energy demand. For instance, electric power generation capacity is targeted to cross 400,000 MW, making India the 3rd largest in the world. Likewise, there are projections that one in five Indians could own a car by the year 2040, compared to one in one hundred presently.
This presents India with a formidable challenge. In addition to constraints of fuel supply and huge investments, two issues further complicate the challenge. India imports more than 75 percent of its crude oil and hence is subject to price volatility. Second, India is tipped to be the world’s third largest emitter of greenhouse gases and is vulnerable to the adverse impacts of climate change. Thus India’s strategies for meeting future energy requirements will have to consider a range of fuel options and new technologies. CSTEP focuses on several such options such as biofuels, solar energy, nuclear power, and coal gasification and liquefaction. CSTEP's Research involves technology modeling, economic analysis and life cycle assessment. CSTEP researchers also focus on assessment of natural gas supply and pricing options.
The Indian power sector requires significant upgrading and reforms, in particular in power transmission and distribution, in order to reduce electricity losses and improve efficiency. CSTEP has produced outstanding reports in the political-economy of power sector reforms. The Center's reseachers are also leading the charge towards innovative IT-based solutions for a state-of-the-art “smart-grid”.

