As per the January 2022 ‘Electricity Market Report’ of International Energy Agency (IEA), power demand in India is expected to grow at an annual rate of 6.5 percent between 2022 and 2024 backed by rising consumption from residential and industrial segments.
- India clocked the highest 10 percent Y-o-Y growth in power demand during the 2021 calendar year (CY).
- Global electricity demand grew by 6 percent in 2021. The majority of supply growth in 2021 to 2024 is expected in China, accounting for around half of the net total increase, followed by India (12%), Europe (7%) and the United States (4%).
Key Analysis of the Report:
a.Power consumption in India:
i.Power consumption in India declined by more than 2 percent during 2020 due to COVID-19.
ii.India’s electricity mix remains largely coal-dominated. In 2021 coal made up 74 percent of power generation, followed by renewables with a share of 20 percent.
iii.As of November 2021 India had 7 nuclear reactors under construction with a total gross capacity of 5.2 GW.
b.Power Demand in India:
i.Demand in India declined by 7 percent from April to May 2021 due to increasing COVID-19 cases.
ii.By 2024, Coal-fired generation was forecast to account for 70 percent of the electricity mix, and renewables for 22 percent.
iii.48 percent of new electricity demand of India was expected to be met by coal-fired generation; low carbon sources provide about half of the additional supply.
iv.Renewable generation is expected to increase by 30 percent by 2024 relative to 2021, driven by State and central auctions, as well as a target of 450 GW of installed renewable capacity.
v.While progress towards universal electricity access in India has long been a main driver for increases in demand (rising from 76 percent in 2010 to 98 percent in 2019).
vi.As per the report, Per-capita electricity demand in India is still below the global average and therefore quality of service improvements are expected to drive consumption.
|Time Period||All India Peak Power Demand (Megawatt)|
|9 Months of FY22||203014|
c.Electric Vehicle (EV) Adoption:
i.The electric vehicle (EV) adoption numbers are expected to increase in following years with policy support.
ii.The policy support:
- Government of India extended its Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) Phase II (in June 2021) by two years to March 2024.
- NITI (National Institution for Transforming India) Aayog also released a handbook to guide EV charging infrastructure to improve EV adoption.
iii.New records for renewable capacity addition are expected in 2021 and 2022, principally wind and solar PV (PhotoVoltaic).
Recent Related News:
In October 2021, the government of India released 1st guidelines for cybersecurity in the power sector. These guidelines were released under the direction of Union Power and New & Renewable Energy Minister Raj Kumar Singh and the Central Electricity Authority (CEA).
About International Energy Agency (IEA):
Establishment – 1974
Headquarters – Paris, France
Executive Director – Fatih Birol