Energy intensity

Indian Economy glossary

Topic: Environment and Sustainable Development · NCERT: Beyond NCERT

Meaning

Energy intensity is the amount of energy an economy uses to produce one unit of GDP.

Energy intensity = Total energy consumption ÷ GDP

Lower energy intensity means the economy gets more output from the same energy, so it is using energy more efficiently. India's energy intensity has been falling, helped by the Energy Conservation Act 2001 and the Bureau of Energy Efficiency (BEE).

Example

Suppose an economy uses 100 units of energy to produce ₹10 lakh crore of GDP. If it later produces the same GDP with 80 units, its energy intensity has fallen by 20%. Efficient appliances, LED lighting and better industrial processes all help cause this kind of fall.

Don't confuse with

  • Carbon intensity: this is emissions per unit of GDP, not energy per unit of GDP. India's updated NDC (2022) targets a 45% cut in carbon intensity below 2005 levels by 2030.

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