New Delhi, Jan 27 (IANS) India’s energy sector must mobilise about $145 billion a year to bridge the gap between its robust economic expansion and ambitious net‑zero pathways, with the investments concentrated in power generation, storage and urgent grid modernisation, a report said on Tuesday.
The report from energy and natural resources data analytics firm, Wood Mackenzie, said India remains on track to reach its 1.5 billion tonnes coal production target by 2030 with increasing emphasis on coal gasification to diversify the energy mix, the report said.
The data analytics firm forecasted natural gas demand to double from 72 billion cubic metres in 2024 to over 140 billion cubic metres by 2050, with industry accounting for over two‑thirds of demand through 2030 and above 55 per cent until 2050, the report said.
Though the report cited many gaps between India’s growth and climate, it maintained that “India is uniquely positioned to become one of the world’s most credible, large-scale alternatives to the Chinese solar and battery supply chain.”
As global markets seek to diversify their procurement, India’s maturing manufacturers ring ecosystem offers a distinct competitive edge, the report said.
Joshua Ngu, Vice Chairman, Asia Pacific at Wood Mackenzie, urged that India must de-risk its immediate energy security while simultaneously building the low-carbon architecture required to support a top-tier global economy.
“The $1.5 trillion investment between 2026 and 2035 for energy transition is not just about adding megawatts; it is about the wires,” said Rashika Gupta, Vice President, Power and Renewables Research at Wood Mackenzie.
Success hinges on the pace of market reforms, specifically the Electricity Amendment Bill to improve distribution competition and provide the transparent investment signals needed to unlock private capital for grid modernisation, Gupta added.
Despite the acceleration of the energy transition, the firm noted that hydrocarbon fuels remain fundamental to near-term stability.
The firm forecasted that India’s crude oil import reliance could reach 87 per cent by 2035 and urged revitalisation of the upstream sector and attract international oil companies to Indian exploration and production (E&P).
—IANS
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