India's incremental demand to equal UK's current power consumption in 3 yrs

India’s increase in electricity demand over the next three years is expected to be roughly equivalent to the UK's current consumption. India’s electricity demand grew by 7 per cent in 2023, the highest among major economies, according to recently released data from the International Energy Agency. Demand is expected to grow at 6 per cent till at least 2026, according to the organisation’s Electricity 2024 report.

 

India remains heavily dependent on coal to meet its energy needs. The share has been twice that of the world at over 70 per cent. The rising electricity demand in India and its neighbourhood is therefore expected to increase emissions.

 

The switch to cleaner power, whether renewable or nuclear, is not the only challenge for the electricity sector in India. Power distribution companies have been grappling with poor finances for years, though there has been some improvement of late, according to a government review that looked at financial stability, in addition to performance factors such as distribution loss and collection efficiency.

 

The broader trend in the last few years seems to have been towards lower deficits. Electricity supply has kept pace with demand.

 

That said, India’s per capita electricity generation remains significantly lower than even emerging market peers. The closest peer among Brazil, Russia, China, and South Africa (Brics) pack generates twice as much power per person as India.