2. General energy policy

Key data

(2017*)

TPES: 881.9 Mtoe (coal 44.3%, oil 25.3%, bioenergy and waste** 21.2%, natural gas 5.8%, hydro 1.4%, nuclear 1.1%, wind 0.4%, solar 0.4%), up 55% since 2007

TPES per capita: 0.66 toe (IEA average: 4.1 toe)

TPES per unit of GDP: 105 toe/USD million PPP (IEA average: 105 toe)

Energy production: 554.4 Mtoe (coal 48.7%. bioenergy and waste 33.8%, oil 7.4%, natural gas 4.8%, hydro 2.2%, nuclear 1.8%, wind 0.8%, solar 0.6%), up 31% since 2007

TFC: 591.2 Mtoe (oil 33.1%, bioenergy and waste 26.6%, coal 17.1%, electricity 16.9%, natural gas 6.1%, solar 0.1%), up 50.2% since 2007

Energy consumption (TFC) per capita: 0.44 toe (IEA average 2.9 toe)

*India collects data based on its fiscal year, which runs from 1 April to 31 March. To align with other countries, the IEA data on India in this report are presented as calendar years. So, the statement: “In 2017 total primary energy supply (TPES) was 881.9 Mtoe” refers to the data India has collected (and supplied to the IEA) from 1 April 2017 to 31 March 2018.

**Bioenergy and waste in this report mean solid and liquid biofuels, biogases, industrial waste and municipal waste. Bioenergy data are estimated by the IEA.

Note: Data are based on IEA (2019a), World Energy Balances 2019, www.iea.org/statistics/.

Country overview

With a population of 1.3 billion, India is the second most populous country in the world and the third-largest economy, measured by purchasing power parity (PPP). India has seen strong economic performance in recent decades, enabling a significant decrease in poverty levels, greater energy access for its citizens and growing penetration of cleaner energy across the economy. India has set a target growth rate of 9%, which would place it on a trajectory towards becoming a USD 5 trillion economy by 2024-25, making it the fastest-growing large economy in the world. India’s sustained economic growth is placing an enormous demand on its energy resources, energy systems and infrastructure. Population density is high throughout most of the country, with the exceptions of the deserts in the west and the Himalayan mountains in the north. Around 45% of the land area is agricultural and over 24% is forest. Two-thirds of the population live in rural areas. However, the cities are growing fast and the urbanisation rate is around 2.4% per year.

The largest cities are the national capital New Delhi (28.5 million), Mumbai (20.0 million), Kolkata (14.7 million), Bangalore (11.4 million), Chennai (10.5 million) and Hyderabad (9.5 million).

19

ENERGY INSIGHTS

IEA. All rights reserved.

2. GENERAL ENERGY POLICY

Major energy supply and demand trends

Over the past decades energy demand has steadily increased across all sectors, including agriculture, industry, commercial and residential, and is expected to continue to grow. Nonetheless, India’s per capita energy consumption stands at 30% of the world’s average (0.44 tonnes of oil equivalent [toe] per capita versus the global average of 1.29 toe and the International Energy Agency [IEA] average of 2.9).

India’s energy system is largely based on the use of coal for power generation, oil for transport and industry, and biomass for residential heating and cooking (Figure 2.1). Bioenergy and most coal supply are produced in the country, while oil and natural gas are mainly imported. In 2017 India’s total primary energy supply (TPES) was 882 million tonnes of oil equivalent (Mtoe), with nearly two-thirds being covered by domestic production (554 Mtoe). Industry accounted for the largest share of India’s total final consumption (TFC), followed by the residential sector, transport and the service sector including agriculture.

Figure 2.1 Overview of India’s energy system by fuel and sector, 2017

Domestic coal used in power generation and biofuels used in the residential sector form the main part of India’s energy system, together with imported oil used in transport and industry.

*Other renewables includes hydro, wind and solar.

**Services includes commercial and public services, agriculture and forestry.

***Industry includes non-energy consumption.

Notes: Bioenergy data are estimated by the IEA; the year runs from 1 April 2017 to 31 March 2018. Source: IEA (2019a), World Energy Balances 2019, www.iea.org/statistics/.

India has been able to meet the gap between demand for and domestic supply of energy while addressing the environmental externalities associated with energy use. Despite high growth rates experienced in energy-intensive sectors, energy consumption and carbon dioxide (CO2) emissions have not grown as rapidly as gross domestic product (GDP). Electricity supply is growing in line with economic growth, while its carbon intensity is in decline thanks to the increase in the share of renewables and declining utilisation of coal power plants (Figure 2.2). India has seen a reduction of around 13% in the emissions intensity of its economy (energy-related CO2 emitted/GDP in PPP) during the past decade, while total final energy consumption and electricity generation continue to rise. The growth in CO2 emissions has slowed and a minor decoupling of GDP growth from emissions has emerged since 2013.

20

IEA. All rights reserved.