Static energy analysis of power generation systems has been very much useful for assessing utility of systems in terms of energy input and output over their lifetime. A method of extending such analysis to cover dynamic implications of energy input and output has been established and demonstrated through this work. The methodology establishes a dynamic balance between energy input as cumulative energy demand for building new systems and output from available power plants that puts a limit on rate of building new plants. Separate analysis of different technologies in Indian context reveals that this maximum growth rate can be as low as 7.24% for mono-crystal line photovoltaic systems and as high as 216.7% for small wind energy systems. (C) 2003 Elsevier Science Ltd. All rights reserved.