Bridging India’s booming economy and net-zero ambitions requires an annual infusion of $145 billion, focused on electricity production, storage solutions, and upgrading the power grid. This stark revelation comes from Wood Mackenzie’s latest analysis on energy and natural resources.
The report, unveiled Tuesday, confirms India is on course to achieve 1.5 billion tonnes of coal output by 2030, complemented by accelerated coal gasification initiatives to diversify the energy portfolio.
A sharp rise in natural gas consumption looms ahead, with demand expected to double from 72 billion cubic meters in 2024 to beyond 140 billion by 2050. Industrial sectors will account for the lion’s share, over two-thirds initially and still over half by mid-century.
While acknowledging shortfalls in aligning growth with climate goals, the study spotlights India’s potential as a dependable hub outside China’s dominance in solar panels and batteries. Global supply chain reshuffling favors India’s strengthening manufacturing base.
‘Immediate action on energy security and low-carbon infrastructure is vital for India’s global stature,’ asserted Joshua Ng, Wood Mackenzie Asia Pacific Vice Chairman.
Elaborating on the $1.5 trillion investment window between 2026 and 2035, Rashika Gupta, VP of Power and Renewables, emphasized: ‘This capital will expand capacity and fortify transmission and distribution infrastructure.’ Market liberalization, via the Electricity Amendment Bill, is pivotal to attract private funds and foster competition.
Fossil fuels like oil and gas won’t fade soon; oil import reliance may reach 87% by 2035. The report urges boosting local output and incentivizing foreign oil investments.
India stands at a crossroads, where strategic investments can propel it towards sustainable energy leadership.