Energy demand in India will be the highest in the world by 2040, surpassing any major energy guzzlers like China and the US. According the World Energy Outlook 2017, published by the International Energy Agency (IEA) on Tuesday, India’s energy demand would increase by 1,005 million tonnes of oil equivalent (Mtoe) by 2040, beating China (790 Mtoe), Africa (485 Mtoe) and West Asia (480 Mtoe). On the other hand, Europe, US and Japan are expected to cut their energy demand by 200 Mtoe, 30 Mtoe and 50 Mtoe, respectively, by 2040.
Traditional distinctions between energy producers and consumers are being blurred and “a new group of major developing countries, led by India, moves towards centre stage,” the report by the Paris-based agency said. By 2040, the electricity generation capacity that India would add would be as big as the current size of today’s European Union, IEA said. Electricity demand in India by 2040 would be 2,504 billion units (BU). Electricity generated by India in FY17 was 1,154 BU.
Speculations of additional requirement can come as a glimpse of hope for the power industry, which is currently mired in a low-demand scenario, which has led to power plants operating at low plant load factors (PLFs) which is taking them precariously closer towards becoming NPAs. The electric car fleet in the country by 2040 will be third largest in the world, following China and EU. The government plans to introduce it in a vigorous way, so much so, that it envisages a scenario where there would be no petrol and diesel vehicles sold in the market by 2030.