Global Energy Markets

In its World Energy Outlook 2024 report, the International Energy Agency (IEA) highlighted that India will witness a significant rise in energy demand across all sectors over the next decade, positioning the country as the global growth engine for energy consumption.

Key Points

Surging Car and Built Space Expansion: India is projected to add over 12,000 cars per day and expand its built space by over 1 billion square meters annually, surpassing the total built space of South Africa.
Energy Demand Growth: The demand for all forms of energy, including oil, gas, coal, and renewable energy, is expected to surge through 2035, with oil consumption alone increasing by nearly 2 million barrels per day.
Air Conditioner Usage and Electricity Demand: Electricity consumption from air conditioners is expected to exceed Mexico's total power usage by 2035, driven by rapid urbanization and increased affluence.
Coal’s Continued Dominance: Despite the growth in renewable energy, coal will retain a strong foothold, with its consumption in industry expected to grow by 50% by 2035.
Challenges Ahead: India faces challenges in reducing fossil fuel import dependence, improving power sector reliability, addressing air pollution, and managing climate impacts like heat waves and floods.
Transition to Clean Energy: India is on a trajectory to meet its net-zero emissions goal by 2070, with clean power generation projected to increase by 20% by 2035 and substantial investments in battery storage and electric mobility.
Oil Demand and Electric Vehicles: While electric vehicles are on the rise, the simultaneous growth of internal combustion engine vehicles will contribute to a 40% increase in oil demand from road transport by 2035.