India To See 8% Rise In Electricity Consumption In 2024: IEA Report

India To See 8% Rise In Electricity Consumption In 2024: IEA

A latest report from the International Energy Agency (IEA) said that India’s total electricity consumption is set to rise by around 8 percent in 2024. It also said that power consumption is set to the rise significantly in countries like China, India and the United States (US). IEA’s latest report titled ‘Electricity Mid-Year Update’ talked about the global power demand trends.

The report said that over the 2024-2025 forecast period of this report, global electricity consumption is expected to increase at the fastest pace in years, fuelled by robust economic growth, intense heatwaves and continued electrification worldwide. “The growth is driven by strong electricity demand in multiple regions and countries, especially in the People’s Republic of China (hereafter, “China”), India and the United States. We expect this demand trend to continue in 2025, with growth also at 4%. In both 2024 and 2025,
the rise in the world’s electricity use is projected to be significantly higher than global GDP growth of 3.2%. In 2022 and 2023, electricity demand grew more slowly than GDP,” the report said.

IEA report talks about the transition in India’s power consumption and how the demand is likely to be taken care by more green power in India. Source: IEA Report

Talking about the trends and forecasts from India, the IEA report said, “The growth is driven by strong electricity demand in multiple regions and countries, especially in the People’s Republic of China (hereafter, “China”), India and the United States. We expect this
demand trend to continue in 2025, with growth also at 4%. In both 2024 and 2025, the rise in the world’s electricity use is projected to be significantly higher than global GDP growth of 3.2%. In 2022 and 2023, electricity demand grew more slowly than GDP.”

“India, the fastest growing major economy in the world, is forecast to post an 8% rise in electricity consumption in 2024, matching the rapid growth it saw in 2023. This is supported by strong GDP growth and increased cooling demand due to long and intense heatwaves,” the report said. It also added, “In the first half of 2024, the country grappled with heatwaves of record duration, with peak load reaching a new high and putting exceptional strains on power systems. Assuming a return to average weather
conditions, we expect electricity demand growth in India to ease moderately to 6.8% in 2025,” the IEA report said.

The report said that the IMF forecast in their April 2024 World Economic Outlook that India’s GDP growth will average 6.8% in 2024 and 6.5% in 2025. “Indian per capita electricity consumption is currently 20% of that in the European Union. Along with strong economic activity, purchasing of new appliances and air conditioning units will continue to support electricity demand.

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