The term ?sustainable development? has various meanings. For business, it would mean sustainability of profits. For environment, it would mean sustainability of natural resources. But the country needs both. To ensure the desired rate of growth of the economy, India also needs adequate energy sourced either indigenously or from abroad. But the challenge is to harness energy resources in an environmentally sustainable way.

A way forward is to establish energy markets to optimally utilise indigenous and external trade energy resources to meet the demand at affordable prices in an environmental correct manner. The restructuring of the energy sector is important for it.

Energy Conservation (EC) Act 2001 provides for institutionalising and strengthening delivery mechanism for energy-efficiency services in the country and the much-needed coordination between the various entities.

Further, the high level of energy intensity in some of the sectors is a matter of concern. In such a scenario, efficient use of energy resources and their conservation assume great significance. As per estimates, India has a saving potential of more than 25,000 mw annually by adopting energy conservation measures. This saving alone could help India in bridging the present demand supply gap.

The energy intensity in India is still higher than some global leaders and it provides a good opportunity for undertaking energy conservation measures and energy-efficiency initiatives. The Union government has already set up the Bureau of Energy Efficiency to assist to develop policies and strategies with a thrust on self-regulation and market principles to reduce energy intensity of the Indian economy.

Similarly, India has to invest in R&D to promote energy-efficient fuels and machines. India would find it increasingly harder to import the required commercial energy as India?s share of the incremental world supply of oil & gas could be as high as 20% since its demand is growing faster than that of industrialised nations. R&D in the energy sector is critical to augment energy resources to meet India?s long-term energy needs, attain energy independence, promote energy-efficiency and enhance energy security. R&D requires sustained and continued support over a long period of time.

The Indian power sector is highly inefficient. Subsidy, political interference, inefficiency in billing and collection, electricity thefts etc cause losses to state electricity boards, which is simply unsustainable.

The government has already enacted the Electricity Act, 2003 to consolidate the laws relating to generation, transmission and distribution, trading and use of electricity and for taking measures conducive to the electricity industry, promoting competition therein, protecting interests of consumers and supply of electricity to all areas, rationalisation of tariff, ensuring transparent policies regarding subsidies etc. The Electricity Act has been instrumental in introducing significant changes in the overall electricity industry structure of India.

India?s household consumption has increased considerably and it?s important that energy-efficiency and conservation form a part of our lifestyle.

The Integrated Energy Policy, 2008, lays focus on sustainable development by promoting energy efficiency, ren-ewable energy, encouraging mass transportation, undertaking afforestation, enforcing pollution abatement, rationalising tariff energy pricing, use of CDM, clean fuels and technologies. Concern about the threat of climate change has been an important issue in formulating the energy policy. This policy has suggested a number of initiatives that will reduce the greenhouse gas intensity of the economy. These include energy efficiency in all sectors, emphasis on mass transport, active policy on renewable energy including biofuels and plantations, accelerated development of nuclear and hydro-electricity, technology missions for clean coal technologies and focused R&D on many climate-friendly technologies.

India?s high energy consumption and unprecedented economic growth has to be sustainable to cater to both current and future needs of people, acknowledging the fact of limited potential of the earth to regenerate its resources. For India, the best approach for economic growth and sustainability of its environment is to adopt clean and energy-efficient technology along with energy conservation measures to ensure sustainability.

?The writer is dean of executive postgraduate programme and professor of economics at Management Development Institute, Gurgaon