New Delhi, January 27 (IANS). India will have to invest about $145 billion every year to bridge the gap between its fast-growing economy and its net-zero target (zero carbon emissions). This investment should particularly focus on power generation, energy storage and modernizing the electricity grid.
A report by energy and natural resources data analytics company Wood Mackenzie released on Tuesday said India is on the right track to achieve the target of 1.5 billion tonnes of coal production by 2030. Also, more emphasis is being given to coal gasification to diversify energy sources.
According to the report, the demand for natural gas in India will increase rapidly in the coming years. This demand may increase from 72 billion cubic meters in 2024 to more than 140 billion cubic meters by 2050. Of this, more than two-thirds of the demand will come from industries and even by 2050, more than 55 percent of the demand is expected to remain from the industrial sector only.
Although the report points out some shortcomings between India’s economic growth and climate goals, it also says that India can become a major and reliable alternative to China’s solar and battery supply chain.
According to the report, as global markets shift their suppliers, India’s strong manufacturing ecosystem gives it a significant competitive edge.
Joshua Ngu, vice chairman of Wood Mackenzie Asia Pacific, said India needs to urgently strengthen its energy security as well as build a low-carbon energy system so that the country can become a strong global economy.
At the same time, Rashika Gupta, Vice President of Power and Renewables Research of Wood Mackenzie, said that the investment of $ 1.5 trillion between 2026 and 2035 is not only for adding new power capacity, but it is also necessary to strengthen the power delivery network (wire and grid).
He said success will depend on how fast market reforms are carried out, especially the Electricity Amendment Bill, to increase competition in power distribution and attract private investment.
The report also states that despite the increasing pace of the energy transition, fuels such as oil and gas will still remain essential in the near future.
According to the report, India’s dependence on crude oil may increase to 87 percent by 2035. Therefore, the report emphasizes on increasing domestic production of oil and gas and attracting international oil companies to invest in India.
–IANS
DBP/AS
