India to add 12,000 cars per day, energy demand to grow 35% by 2035: IEA

23 Oct 2024

The International Energy Agency's (IEA) World Energy Outlook 2024 indicates that India is set to drive global energy demand growth over the next decade, with projections of over 12,000 new cars hitting the roads daily by 2035. India's total energy demand is expected to increase by approximately 35% by 2035 under the Stated Energy Policy Scenario (STEPS), the report states.

The IEA report predicts substantial expansion in built space, with an annual increase exceeding 1 billion square meters, an area greater than the entire built space of South Africa. Furthermore, India's iron and steel production is expected to rise by 70%, while cement production is projected to grow by around 55% by 2035.

Electricity demand is set to surge significantly due to a 4.5-fold increase in the number of air conditioners. By 2035, the electricity consumption from air conditioners alone will surpass Mexico's projected total electricity usage for that year. Additionally, India's electricity generation capacity is expected to nearly triple, reaching 1400 GW by 2035.

Coal will remain a significant component of India's energy landscape. The report forecasts an increase of 60 GW in coal-fired capacity by 2030, with coal accounting for more than 15% of electricity production. Even with the swift expansion of solar capacity, coal output is expected to surpass solar PV generation by 30% by 2035, primarily because of the lower capacity factor associated with solar installations.