India must invest nearly 145 billion dollars annually to bridge the gap between its rapidly growing economy and net-zero carbon emission targets. This investment should primarily focus on electricity generation, energy storage, and modernising the power grid, according to a report released by energy and natural resources data analytics firm Wood Mackenzie.
The report, published on Tuesday, states that India is on track to achieve its target of producing 1.5 billion tonnes of coal by 2030. It also highlights increased emphasis on coal gasification to diversify energy sources.
Demand for natural gas in India is expected to grow rapidly in the coming years, rising from 72 billion cubic metres in 2024 to over 140 billion cubic metres by 2050. More than two-thirds of this demand will come from industries, with the industrial sector projected to account for over 55 percent of total demand even by 2050.
While the report identifies gaps between India’s economic growth and climate goals, it also points out that India has the potential to become a major and reliable alternative to China’s solar and battery supply chains.
As global markets diversify their suppliers, India’s robust manufacturing ecosystem provides it with a distinctive competitive advantage, the report adds.
Joshua Ng, Vice Chairman of Wood Mackenzie Asia Pacific, emphasised the urgent need for India to strengthen its energy security and develop a low-carbon energy system to establish itself as a strong global economy.
Rashika Gupta, Vice President of Wood Mackenzie’s Power and Renewables Research, noted that the $1.5 trillion investment planned between 2026 and 2035 is not only for adding new power capacity but also crucial for enhancing the electricity delivery network, including wires and grids.
She stressed that success will depend on the speed of market reforms, especially the Electricity Amendment Bill, which aims to increase competition in power distribution and attract private investment.
The report also indicates that despite accelerating energy transition, fuels like oil and gas will remain necessary in the near future.
India’s crude oil dependence may rise to 87 percent by 2035. Therefore, the report advocates boosting domestic oil and gas production and attracting international oil companies to invest in India.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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