India needs to rapidly increase energy consumption to achieve the ambitious target of 9 percent economic growth in the 12th five-year plan (2012-17), prime minister Manmohan Singh today said.

"We have set for ourselves an ambitious target of 9 percent annual growth in GDP in the 12th five-year plan. This high rate of economic growth would require our energy consumption also to increase rapidly," he said at the National Energy Conservation Day celebrations here.

The government has targeted 9 percent annual expansion in the country's GDP over the next five years, even though the country's economy is passing through a difficult phase.

The centre recently reduced the GDP growth forecast for the ongoing 2011-12 financial year to 7.5 percent (plus/minus 0.25 percent), as against the earlier projection of around 9 percent.

Singh said since the country relies on imports for a large component of its energy requirement, it is vital to "redouble" efforts to enhance energy efficiency as a step toward reducing the energy intensity of the national GDP.

"Since we are largely dependent on fossil fuel, any improvement in energy efficiency of our thermal power generation plan would help reduce the energy intensity of our GDP," the prime minister said.

The prime minister also said India should encourage the use of super-critical and ultra-super critical technologies for power generation to reduce energy intensity.

The National Solar Mission aims to generate 20,000 MW of solar power by 2020.

"Successful implementation of the National Mission... would lead to annual fuel saving of about 23 million tonnes oil equivalent -- in coal, gas and petroleum products -- along with an expected avoided capacity addition of over 19,000 MW," Singh said.

Here is the official text of the PM's address at the National Energy Conservation Day
    
“I am very happy to participate in this function which marks the National Energy Conservation Day. I congratulate the winners of the National Energy Conservation Awards 2011. It is my fervent hope that their efforts to put in place systems and processes for conserving energy in their areas of industrial and commercial activity will act as an inspiration all to other users of energy in our country.

I take particular pleasure in congratulating the children who have participated in the painting competition organized to spread the message of energy conservation. Their colorful paintings are a simple but very effective tool to make people aware of the need and importance of conserving energy and increasing efficiency in energy use.

If India is to successfully meet the challenges of poverty, hunger and disease and improve the quality of life of its citizens, it must achieve high economic growth for a sustained period. Therefore, we have set for ourselves an ambitious target of 9 percent annual growth in GDP in the 12th Five Year Plan. This high rate of economic growth would require our energy consumption also to increase rapidly. Given that we import a large component of the commercial energy that we use, it is of vital importance that we redouble our efforts both to increase the domestic supply of energy and to reduce the energy intensity of our GDP.

Since we are largely dependent on fossil fuels, any improvement in the energy efficiency of our thermal power generation plants will help reduce energy intensity of our GDP. To this end, we must encourage increased use of super critical and ultra-super critical technologies for power generation. I understand that efforts are being made to create domestic capacities for building such power plants. Increased use of public transport in our cities, shift in the mode of freight movement from roads to railways, use of new technologies like Integrated Gasification Combined Cycle and energy efficient use of gas plants through facilitating distributed generation should also be encouraged. These would also contribute to our efforts to deal with the problem of Climate Change by reducing our carbon foot print. We are committed to increasing the proportion of clean energy in our total energy consumption, as spelt out in the National Action Plan on Climate Change. The National Solar Power Mission aims at production of 20000 MW of solar power by the year 2020.

The successful implementation of the National Mission on Enhanced Energy Efficiency by the Ministry of Power would lead to annual fuel savings of about 23 million tons oil-equivalent - in coal, gas, and petroleum products, along with an expected avoided capacity addition of over 19,000 MW. This would also imply substantial reduction in carbon dioxide emission. I understand that the ongoing efforts have already resulted in about 9000 MW of avoided capacity generation. I compliment all those who have contributed to make this possible. But we cannot be satisfied with the status quo. We must make more energetic efforts to save energy.

I am happy to know about the efforts that have been made to promote energy efficiency in appliances, buildings and industry. I understand that labeling has been introduced for 16 major energy-consuming appliances and a national Energy Conservation Building Code has been prepared for new commercial buildings. In order to focus on energy savings by bulk consumers, 467 industrial units, accounting for 35% of our total energy consumption, have been declared Designated Consumers with prescribed reduction in specific energy consumption by 2014-15. Efforts are also being made to improve energy efficiency in residential lighting and in agricultural pumping.

Let me end by once again congratulating today’s award winners. They have not only increased the cost effectiveness of their industrial and commercial activities but have also contributed to the national endeavour to conserve a precious resource that energy is. Their efforts need to be replicated. I also compliment the Ministry of Power for instituting these awards, and for initiatives like the painting competition whose winners we have felicitated today. With these words, I wish all of you the very best in your endeavours to contribute to the processes of nation building.”