Author: PPD Team Date: 18/10/2024
India is set to become the global engine for energy demand growth through 2035, according to the International Energy Agency’s (IEA) World Energy Outlook 2024.
The report highlights India’s rapid expansion, with the country adding more than 12,000 cars daily, increasing built space equivalent to South Africa, and seeing its air-conditioners consume more electricity than Mexico’s total power consumption by 2035.
As the world’s third-largest oil consumer, India will increase oil demand by nearly 2 million barrels per day by 2035, becoming the main source of global oil demand growth. Energy supply in India is projected to rise from 45.4 exajoules (EJ) in 2023 to 70.5 EJ in 2050 under current policies.
India’s electricity generation capacity will nearly triple to 1,400 GW by 2035, with coal retaining a dominant position in the energy mix. Coal-fired capacity will add 60 GW by 2030, while coal consumption in industry is expected to grow by 50%. However, India will also make significant strides in clean energy, driven by its goal of net-zero emissions by 2070. Clean power generation is expected to be 20% higher under announced pledges, and India will have the third-largest installed battery storage capacity globally by 2030.
India’s expanding energy demands pose challenges, including reliance on fossil fuel imports, air pollution, and the need for climate resilience in the face of extreme weather events. The report also notes that electric mobility is rising, but oil demand from road transport is expected to increase by 40% by 2035 due to the simultaneous growth of internal combustion engine vehicles.