Electricity 2024 Report : IEA
According to the latest International Energy Agency (IEA) projections in Electricity 2024 Report, India’s electricity demand will outpace China’s and have the world’s fastest growth rate by 2026.
- India’s annual average electricity demand growth is pegged at 6.5% over 2024-2026. The robust expansion will make India’s additional electricity demand over the next three years almost equivalent to the UK’s total demand.
- Coal will meet 68% of India’s electricity needs in 2026, as per IEA forecasts.
- While lower than coal’s 74% share in 2023, this highlights its continued dominance despite renewable growth.
- India added 21 GW of renewable energy capacity in 2023.
- But renewables stagnated at a 21% generation share as reduced hydropower output offset solar and wind growth.
- Rapid economic expansion and increased cooling needs are major electricity demand growth drivers.
- Weather fluctuations also periodically spike demand a hot and dry August 2022 led to record power consumption exceeding 240 GW.
- To guarantee supply amidst peaks, the government mandated blending at least 6% imported coal until March 2024. Domestic coal remains the mainstay for baseline generation.
- With China and India leading new reactor construction, Asia’s nuclear generation will exceed North America’s by 2026.
- China started the world’s first fourth-generation reactor in 2023, highlighting its advances.
- India powered up its largest 700 MW domestic reactor last June and expects rapid nuclear growth.
