India is growing fast. Energy is central to achieving India’s development ambitions, to support an expanding economy, to bring electricity to those who remain without it, to fuel the demand for greater mobility and to develop the infrastructure to meet the needs of what is soon expected to be the world’s most populous country. What happens in India will increasingly influence the global energy economy.
India is set for a period of rapid, sustained growth in energy demand: how could this re-shape the global energy scene? This comprehensive analysis assesses the multiple challenges and opportunities facing India as it develops the resources and infrastructure to meet its energy needs. The report:
India Energy Outlook
- Explores how major new policy initiatives, from “24x7 Power for All” to the “Make in India” campaign, affect India’s energy outlook.
- Identifies the investment required in India’s generation and grid in order to provide universal, secure and affordable electricity supply.
- Highlights the growing role of renewables, led by wind and solar, in India’s energy future, alongside the continued importance of coal.
- Evaluates the energy security and environmental strains that accompany India’s rise and how they can be addressed.
- Assesses the implications for a global energy system in which India exerts ever-larger influence.
India is set to contribute more than any other country to the projected rise in global energy demand, around one-quarter of the total: even so, energy demand per capita in 2040 is still 40% below the world average.
India’s need for new infrastructure underlies strong demand for energy-intensive goods, while the rising level of vehicle ownership keeps transport demand on an even steeper upward curve.
India’s power system needs to almost quadruple in size by 2040 to catch up and keep pace with electricity demand that – boosted by rising incomes and new connections to the grid – increases at almost 5% per year.
Over 50% of new generation capacity to 2040 comes from renewables and nuclear, while new coal-fired plants in India represent nearly half of the net coal capacity added worldwide.
A large expansion of coal output makes India the second-largest coal producer in the world, but rising demand also means that India becomes, before 2020, the world’s largest coal importer, overtaking Japan, the European Union and China.
Production of oil and gas falls well behind the growth in demand: India’s reliance on oil imports rises above 90% by 2040, requiring constant vigilance as to the implications for energy security.
“Make in India” needs energy to work and needs efficiency to prosper
Putting manufacturing at the heart of India’s growth model means a large rise in the energy needed to fuel India’s development.
Investments in Energy
India requires a cumulative $2.8 trillion in investment in energy supply in our main scenario, three-quarters of which goes to the power sector, and a further $0.8 trillion to improve energy efficiency.