03-03-2021 | 12:26 PM
India Energy Outlook 2021
Context
Recently, the International Energy Agency (IEA) has released the India Energy Outlook 2021 Report which explores the opportunities and challenges ahead for India as it seeks to ensure reliable, affordable and sustainable energy for a growing population.
Key Highlights
At present India is the 4th largest global energy consumer after China, U.S.A. and the European Union. By 2030, India will overtake the European Union as the world’s third-largest energy consumer.
India's energy consumption is expected to double as under its current national policy scenario, the nation's Gross Domestic Product (GDP) expands to an estimated USD 8.6 trillion by 2040.
Over the last three decades, India accounted for about 10% of World Growth in Industrial Value-added in PPP terms. By 2040, India is set to account for almost 20% of Global Growth in Industrial value-added.
As its domestic oil and gas production has been stagnant for years, India's rising energy needs would make it more dependent on fossil fuel imports. The growing demand for oil could double India's oil import bill to approximately USD 181 billion by 2030 and nearly treble it by 2040 to USD 255 billion compared to 2019.
Under the current policy scenario, India's oil demand is seen to rise by 74% to 8.7 million barrels per day by 2040. A five-fold rise in per capita car ownership would result in India leading the world's growth in oil demand.
India's net dependence on oil imports increases to more than 90% by 2040 from the current 75%, as domestic consumption rises much more than production.
India will become the fastest-growing market for Natural gas with demand more than threefold by 2040. Dependence on imports of natural gas has risen from 20% in 2010 to nearly 50% in 2019 and is expected to rise further to more than 60% in 2040.
India's share in the growth in renewable energy is the second-largest in the world, after China.
International Energy Agency (IEA)
The International Energy Agency is an autonomous Intergovernmental Organisation established in 1974 in Paris.
International Energy Agency (IEA) focuses primarily on its energy policies which include economic development, energy security and environmental protection. These policies are also known as the 3 E’s of IEA.
India became an Associate member of IEA in March 2017. Recently, India has inked a Strategic Partnership Agreement with the IEA to strengthen cooperation in global energy security, stability and sustainability.
The IEA annually release the World Energy Outlook Report.
