The International Energy Agency (IEA) predicts India will account for the biggest share of energy demand growth over the next two decades. The nation is projected to become the world’s third-largest energy consumer by 2030.
Primary energy consumption in the country was forecast to almost double to 1,123 million tons of oil equivalent as the gross domestic product (GDP) expands to $8.6 trillion by 2040.
India is, at present, the fourth-largest global energy consumer behind China, the United States, and the European Union.
Underpinned by “a rate of GDP growth that adds the equivalent of another Japan to the world economy by 2040,” India will overtake the European Union by 2030 to move up to the third position in terms of energy consumption, the IEA said in the report.
It added that “By 2040, India’s power system is bigger than that of the European Union, and is the world’s third-largest in terms of electricity generation.”
According to the report, a five-fold increase in per-capita car ownership will result in India leading the oil demand growth in the world. It will also become the fastest-growing market for natural gas, with demand more than tripling by 2040.
“India’s continued industrialization becomes a major driving force for the global energy economy. Over the last three decades, India accounted for about 10 percent of world growth in industrial value-added (in PPP terms).”
Oil demand in the country is expected to rise by 74 percent to 8.7 million barrels per day by 2040 under the existing policies scenario. The natural gas requirement is projected to more than triple, to 201 billion cubic meters.
“As India recovers from a Covid-induced slump in 2020, it is re-entering a very dynamic period in its energy development. Over the coming years, millions of Indian households are set to buy new appliances, air conditioning units and vehicles,” said the IEA.
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