Glossary term
Commercial Energy: Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
Commercial energy comprises sources of energy that are bought and sold in the market, namely coal, petroleum, natural gas and electricity. Most commercial sources are exhaustible, with the exception of hydropower. They are different from non-commercial sources such as firewood, dung and crop waste, which are gathered from nature.
In more detail
As incomes and industry grow, an economy shifts from non-commercial to commercial energy. Dependence on imported oil is a particular concern for India because price rises abroad raise costs at home. Renewable sources such as solar, wind and hydro are seen as ways to reduce the burden on exhaustible commercial sources.
Example
A household buying LPG cylinders or paying an electricity bill uses commercial energy; one cooking with firewood collected from a forest uses non-commercial energy.
Key points
- Coal, oil, gas, hydro and electricity.
- Coal gave 55 per cent of the commercial energy used in the book’s data.
- Imports of oil make India dependent on foreign supply.
Common mistake
Calling electricity a primary source. It is a secondary form of energy.
Related terms
InfrastructureSustainable development
Where it is explained
This term is explained in Class 11 Indian Economic Development Chapter 8: Infrastructure.