• Recently, the International Energy Agency (IEA) has released the India Energy Outlook 2021 Report which explores the opportunities and challenges ahead for India as it seeks to ensure reliable, affordable and sustainable energy for a growing population.

More about Report

  • Energy Consumption – India is the world’s third‐largest energy consuming country, thanks to rising incomes and improving standards of living.
    • Energy use has doubled since 2000, with 80% of demand still being met by coal, oil and solid biomass.
    • On a per capita basis, India’s energy use and emissions are less than half the world average, as are other key indicators such as vehicle ownership, steel and cement output.
  • Future of Energy – India has so far contributed relatively little to the world’s cumulative greenhouse gas emissions, but the country is already feeling their effects.
  • Covid‐19 impact – Prior to the global pandemic, India’s energy demand was projected to increase by almost 50% between 2019 and 2030, but growth over this period is now closer to 35% in the STEPS, and 25% in the Delayed Recovery Scenario.
  • India’s size and dynamism – An expanding economy, population, urbanisation and industrialisation mean that India sees the largest increase in energy demand of any country, across all of our scenarios to 2040.
  • Solar‐powered revolution in India – Solar power is set for explosive growth in India, matching coal’s share in the Indian power generation mix within two decades.
    • As things stand, solar accounts for less than 4% of India’s electricity generation, and coal close to 70%. By 2040, they converge in the low 30%s and this switch is even more rapid as per govt ambitions.
    • This dramatic turnaround is driven by India’s policy ambitions, notably the target to reach 450 GW of renewable capacity by 2030, and the extraordinary cost‐competitiveness of solar, which out‐competes existing coal‐fired power by 2030 even when paired with battery storage.
  • Third Largest Energy Consumer by 2030 – India will make up the biggest share of energy demand growth at 25% over the next two decades, as it overtakes the European Union as the world’s third-biggest energy consumer by 2030.
    • Presently, India is the fourth-largest global energy consumer behind China, the United States and the European Union.
  • Industrialisation is a Major Driving Force – Over the last three decades, India accounted for about 10% of World Growth in Industrial Value-added [in Purchasing Power Parity (PPP) terms].
    • By 2040, India is set to account for almost 20% of Global Growth in Industrial value-added, and to lead global growth in industrial final energy consumption, especially in steelmaking.
  • Oil Demand –  India’s oil demand is seen rising by 74% to 8.7 million barrels per day by 2040 under the existing policies scenario.
    • A five-fold increase in per capita car ownership will result in India leading the oil demand growth in the world.
    • Its net dependence on oil imports – taking into account both the import of crude oil and the export of oil products – increases to more than 90% by 2040 from the current 75% as domestic consumption rises much more than production.
  • Reliance on Imports –  India’s growing energy needs will make it more reliant on fossil fuel imports as its domestic oil and gas production has been stagnant for years despite government policies to promote petroleum exploration and production and renewable energy.
    • Rising oil demand could double India’s oil import bill to about USD 181 billion by 2030 and nearly treble it to USD 255 billion by 2040 compared with 2019.


  • The International Energy Agency is an autonomous Intergovernmental Organisation established in 1974 in Paris, France.
  • IEA mainly focuses on its energy policies which include economic development, energy security and environmental protection. These policies are also known as the 3 E’s of IEA.
  • India became an Associate member of IEA in March 2017 but it was in engagement with IEA long before its association with the organization.
  • Recently, India has inked a Strategic Partnership Agreement with the IEA to strengthen cooperation in global energy security, stability and sustainability.
  • The World Energy Outlook Report is released by the IEA annually.
  • IEA Clean Coal Centre is dedicated to providing independent information and analysis on how coal can become a cleaner source of energy, compatible with the UN Sustainable Development Goals.

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