India’s choices for powering further economic growth, plugging energy gaps, and addressing local air pollution will largely determine the rate of the transition in this region.
Key insights from DNV GL’s Outlook:
- With increases in population and GDP, the region’s energy demand continues to grow rapidly over the coming decades, with the largest increase coming from manufacturing.
- The share of electricity in final energy demand more than doubles, and by 2050 solar PV will stand at about 37% — the highest such share among all regions.
- The region’s electricity share in final energy demand will almost triple by 2050, comparable to developments in South East Asia and Latin America.
- Despite the rapid growth of renewables, fossil-fuel energy sources will still represent 62% of the energy mix in 2050.
- While electrification materializes much later than in OECD countries and China, the Indian Subcontinent benefits from the evolution of technologies and cost-competitiveness, making renewables cheaper sources of energy than coal.