IEA: India’s Power Demand To Grow At 6.3% Annually Through 2027

India’s electricity demand will grow at an average 6.3% annually over the next three years, above the 2015-2024 average growth rate of 5% due to a surge in cooling demand, the International Energy Agency has predicted. According to the IEA, India will account for 10% of the total increase in global electricity demand by 2027.

“Supported by rapid economic expansion and increasing electrification, India’s electricity demand is forecast to grow at a high rate of 6.3% annually from 2025 to 2027 on average,” said the agency.

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The IEA has also predicted that coal will contribute 67% to India’s power mix in 2027, down from 74% in 2024 while gas-powered generation will increase at a 9% annual clip over the forecast period. Two years ago, India’s coal minister declared that the country has no intention of ditching coal from its energy mix any time soon. Addressing a parliamentary committee, minister Pralhad Joshi said that coal will continue to play an important role in India until at least 2040, referring to the fuel as an affordable source of energy for which demand has yet to peak in India.

“Thus, no transition away from coal is happening in the foreseeable future in India,” Joshi said, adding the fuel will continue to play a big role until 2040 and beyond.

According to Global Energy Monitor (GEM), Asia’s largest economies have three times more coal-fired power capacity under construction than gas-fired capacity, with coal accounting for ~45% of the region’s power generation. Asia’s largest economies are developing far more solar, wind and hydropower capacity than gas-fired capacity. According to GEM, across 10 of Asia’s largest economies, there is just over 1 million megawatts (MW) of new power capacity under construction, with coal & clean energy sources dominating the continent’s power development pipeline. Solar energy accounts for 26%, or 270,000 MW, of Asia’s power generation under construction, while new coal-fired capacity makes up the second largest share at 24% with just under 250,000 MW. Wind farms and hydropower plants account for a further 20% each, while gas-fired power plants account for a mere 7% share, or 70,000 MW. For some perspective, natural gas accounted for 43.1% of utility-scale power generation in the U.S. in 2023, renewable energy 21.4%, while coal contributed 16.2%.

By Alex Kimani for Oilprice.com

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