India’s per capita energy consumption is less than 40% of the world’s average, but its energy system relies heavily on coal for power generation, as well as for industrial production. Oil is most important for transport, and biomass is most important for residential heating and cooking. Excluding biomass, in 2019, India’s total primary energy supply (TPES) was 734 million tons of oil equivalent (Mtoe), with just over half of this being covered by domestic production. Total final consumption (TFC) was 410 Mtoe, with industry accounting for the largest share, 42%, followed by the residential sector and transport.
India’s pattern of electricity generation and energy use imply that policies to achieve net zero have to have two main foci. The first is greatly increasing the role of cleaner sources of electricity generation, and the second is electrification of industrial production. There are differences across the studies, in terms of modelling and assumptions, but they all emphasise cleaner electricity and electrification.
Currently, electricity accounts for just over a quarter of India’s TFC. Electricity generation capacity in July 2024 was 448 GW, of which 10.47% was hydropower, while 1.82% was nuclear power. Arguably, neither of these sources affords significant scope for growth in capacity. On the...