IEA REPORT – ELECTRICITY 2024 (Syllabus: GS Paper 3 – Economy)

Context: India’s electricity demand will outpace China’s and have the world’s fastest growth rate by 2026, the latest projections by the International Energy Agency (IEA) have indicated.

IEA Report - Electricity 2024

• Dominance of Coal: Despite a projected decrease to 74% in 2023, coal will continue to dominate India's power sector through 2026, as per the IEA report.

oPrime Minister of India set a net-zero target for India by 2070 in 2021.

• Stable Renewable Generation: Renewable generation remained stable at 21% of electricity generation in 2023, with 21 GW of renewable energy capacity added.
• Rise in Electricity Demand: India experienced a 7% increase in electricity demand in 2023, driven by economic growth and higher space cooling needs.
• Future Projections: Coal-fired power generation in India is expected to rise by 2.5% annually (2024-2026), while renewable generation will grow by 13% annually.
• Electricity Capacity Growth: About 85% of new electricity capacity is expected to come from emerging economies, particularly in South Asia, with China and India leading.
• Global Nuclear Power Growth: More than half of the nuclear power plants in the global pipeline (2024-2026) are in China and India, contributing to a forecasted 10% increase in global nuclear generation by 2026.
• India's Nuclear Expansion: India aims to triple its nuclear capacity by 2032, with 6 GW under construction, anticipating rapid growth in nuclear power generation (2024-2026).

 International Energy Agency 

• About: It is an autonomous inter-governmental organisation within the OECD framework.
• Foundation: 1974 to ensure the security of oil supplies. 
• Membership:   31 member countries and 11 association countries.
• India joined this organization in 2017 as an Associate member. 
• Reports published by IEA: World Energy Outlook, World Energy Balances, Energy Technology Perspectives, World Energy Statistics and Net Zero by 2050.