While India’s energy transition over the next decade will largely influence global emission targets, the path towards net zero may not be straightforward for India, S&P Global said in its latest Look Forward report on Thursday.
“How India meets its growing energy demand and changes its primary energy mix over the coming decade will substantially influence global energy markets and help determine if, and when, global emissions targets are reached,” it said.
Already the third largest consumer of energy globally, India’s per capita energy consumption remains just one tenth that of the US. S&P Global Commodity Insights expects India’s total energy demand to double by 2050. “The longer-term path towards India’s goal of net-zero by 2070 may not be straightforward, but there are several technology, policy and finance levers that India’s policymakers and companies can utilise,” the report said.
India’s efforts to meet its growing energy needs while lowering emissions will be closely watched as a model for other emerging economies. “India and the rest of the world are joined at the hip in the journey to reach net-zero emissions,” S&P Global chief energy strategist Atul Arya said.
Part of the equation to securing reliable, affordable and sustainable energy supplies to meet India’s growing energy demand will be reducing dependency on energy imports, the report said. Oil imports are expected to exceed 90% of the country’s demand by 2030 and natural gas imports are likely to surpass 60% of demand that same year, the research and analytics firm said.
“India will have to strike a balance to increase energy access and reliability while delivering affordable energy supplies and diversifying its fuel mix to reduce the overall carbon intensity of its energy system,” said S&P Global executive director (energy transitions) Gauri Jauhar said.