India needs more than $140 billion in energy investment per year.
By Sreekanth A Nair
India is going to be the top nation contributing to the growing energy demand all over the world over the next 25 years, says an India Energy Outlook report published by the International Energy Agency (IEA).
“India is set to contribute more than any other country to the rise in global energy demand over the next 25 years, underlining its ever-greater influence in Asia and on the world stage; even so, its energy demand per capita in 2040 would still be 40% below the world average,” it says.
To meet its own energy demands, India needs more than $140 billion in energy investment per year by 2040, around $110 billion per year in energy supply and another $30 billion per year to improve energy efficiency. Almost 75% of expenses on energy supply are required to meet India’s growing need for electricity alone.
India’s energy demands have almost doubled over a decade and still India faces some hindrances in energy and development. Around 240 million people of India still don’t have access to electricity.
To overcome the challenges, the report suggests the government to bring more investment to the sector, especially in efficient and low-carbon technologies.
“India’s energy transformation requires three things: investment, investment, and investment”, said IEA Executive Director Fatih Birol.
“A lot is being done already to overhaul the energy regulatory system and get the incentives in place; this is vital, as India will need to call upon a wider range of investors and sources of finance than it has in the past,” he added.
Rising incomes and population, increased access to electricity and clean cooking facilities, urbanization and industrialization are the important factors leading to growing energy demands.
India will have to provide energy access to over 600 million more people by 2040.
The report also states that Indian’s energy efficiency has increased 15% from 2005 to 2015.