Indian Economy News

India’s final energy demand expected to double by 2070, says Deloitte-FICCI report

  • IBEF
  • September 26, 2023

According to a report titled India's energy-transition pathway: A net-zero viewpoint by FICCI and Deloitte India, India's energy demand is predicted to double to around 1200 Mtoe (Millions tonnes of oil equivalent) by 2070 under a net-zero scenario with aggressive energy efficiency initiatives. To reach its net-zero emissions goal by 2070, India will need to invest US$ 15 trillion, according to the report's additional findings.

It has emphasised three key pillars, including grid decarbonization, industrial decarbonization, and transport transition, which together serve as the foundation for India's energy transition goals and are anticipated to reduce current emissions by 90%.

Grid decarbonisation aims for a dramatic increase in the amount of electricity in the final energy mix, with estimates ranging from 18% in 2020 to more than 50% by 2070. According to a Deloitte estimate, the roadmap to grid decarbonisation necessitates more than 2000 GW of grid-scale renewable energy (RE), including wind and solar, as well as an additional 1000 GW of RE for green hydrogen production. This transformation will necessitate an ambitious capacity addition of around 50 GW/year of RE, a significant increase from the historical norm of 15-20 GW per year. To meet these lofty goals, the research suggests that the central and state governments speed up the bidding process for renewable energy procurement. State governments, who are in a unique position to play a critical role, must facilitate quick land allocation/acquisition and expedite legislative permissions for project development.

The second pillar, industrial decarbonisation, focuses on critical industries such as steel, cement, aluminium, and fertilisers. Green Hydrogen (GH2) is the focus of this pillar. By 2070, GH2 is expected to meet a significant amount of global energy demand, with more than 50 million tonnes (MT) produced. The research recommends actions be taken to lower its cost and create an atmosphere that encourages GH2's widespread acceptance in order to address the economic ramifications of the technology. Early-stage demonstration projects must be supported, especially in the steel and cement sectors.

The third pillar, transport transformation, highlights India's strategic shift towards low-emission technologies. The spectrum includes everything from battery electric vehicles (BEVs) through hydrogen combustion engines (HCEs) to fuel cell electric vehicles (FCEVs). The creation of a robust charging infrastructure, supplemented by imaginative urban design, is critical to this change. In order to create charging infrastructure and hydrogen refuelling systems, a strong Public-Private Partnership (PPP) is necessary, according to the paper. Both the federal and state governments must prioritise efficient urban planning strategies that can reduce travel distances and motorised travel demand through investments in railways, including augmentation and modernization, freight corridors, and mass public transit.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.