The IEA World Energy Outlook report also indicates that India is expected to record a steeper rise in energy demand within the next ten years than any other country, attributed to population as well as economic growth. For instance, according to the report, India’s size increased by 7.8% in 2023, making it the fastest-growing major economy. It is also poised to be the third-largest economy globally by 2028 and replace China as the most populous nation. However, India’s total fertility rate has declined to below replacement level even as the population increases.
By 2035, the new car stock in India, as per the STEPS, speaks of more than twelve thousand new cars and everyday beverages, while the built-up space would be over one billion square Meters of everyday beverages. Fixed capital investment for the iron and steel sector is projected to increase to $3 billion, for the cement sector to $2 billion. For the power sector to $1 billion, and it implies a projected growth rate of 70% in iron and steel production, 55% in cement production and a projected electricity generation of 4,000MW. The number of air conditioners will increase over 4.5 fold, and electricity demand from air conditioners in 2035 will be more than Mexico’s projected electricity consumption in the same year.
According to the IEA, the total energy demand in India will rise to a level almost 35% higher, which is an indication for the year 2035 that electricity generation and capacity of electricity generation will be about to triple to 1,400 GW. Although global renewable energy sources have increased by leaps and bounds, coal is expected to play a key part in the supply mix. Further, another 60 GW of CCPPs will be added by 2030, and more than a 15% rise in coals-based electricity generation is expected. Coal is set to be an active contributor in the industrial sector, serving 40% of the total energy demand in 2035.
In line with the target of India’s net-zero emissions by 2070, the installed capacity of clean power generation is to be enhanced to 20% more than the current estimated values. Electric mobility and renewable energy will remain of overwhelming importance to India’s energy future, with oil and coal consumption reaching its maximum in the 2030s. At the same time, electricity and hydrogen increase their industrial use.
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