India is on track to become the third-largest electricity consumer globally by 2050, according to the International Energy Agency (IEA). The World Energy Outlook report predicts a 4% annual growth in electricity demand, driven by increased cooling needs, appliance ownership, and electric vehicles (EVs).
The report highlights that the daily variability in electricity demand, which averaged 15% in 2023, is expected to nearly triple by 2050, primarily due to higher demand for air-conditioning as incomes rise. This trend is expected to be seen across emerging markets and developing economies (EMDEs).
While India’s electricity demand is projected to soar, it will still be behind China and the US in 2050. The IEA also noted that coal will remain a significant part of India’s energy mix, with nearly 60 GW of new coal-fired capacity expected by 2030 and a 15% rise in coal-based electricity generation. Coal continues to meet a substantial portion of industrial energy needs and its consumption is set to grow by 50% by 2035.
This forecast underscores the dual challenge of meeting growing energy demands while transitioning to cleaner energy sources.
