India’s energy demand to triple by 2050

Sub: Eco

Sec: Infrastructure

Context:

India’s GDP growth is 7%, and power demand has risen by over 8% this year.
India is now the third-largest power market globally.
Energy demand in India is expected to triple by 2050, making the country a crucial investment destination.

India’s Growing Role in Global Energy Transition:

India’s economy has surpassed the UK and France and is on track to overtake Germany and Japan within the next 5–10 years.
By 2030, India is expected to have over 200 GW of solar and wind capacity.
India has emerged as the second-largest solar module manufacturer, exporting to key global markets.

Coal and Nuclear in India’s Energy Mix

Despite rapid growth in renewables, 70% of India’s power still comes from coal.
By 2030, India will have 50 GW of coal and 10 GW of nuclear capacity.
In a net-zero scenario, electrification would need to exceed 50%, balancing fossil fuel and electric economies.

Challenges in Energy Transition

Key challenges include energy storage, grid infrastructure, and renewable energy deployment.
Leveraging domestic market strength and global partnerships is critical for driving a low-carbon future.

Global Climate Milestone

A major climate milestone in 2023: for the first time, global surface temperatures exceeded 2°C above pre-industrial levels.
Greenhouse gas emissions have not peaked, indicating continued temperature rise.
India is a key player in the global energy transition, with more solar and wind projects than coal plants expected by 2030.

Battery Energy Storage & Electrification:

The intermittency of renewable energy poses challenges, making Battery Energy Storage Systems (BESS) essential for grid stability.
Global energy demand is expected to triple by 2050, driven by advancements in storage technology.
Batteries are crucial for both the power sector and electric mobility.

India’s Electric Mobility Sector:

India’s electric vehicle market is growing rapidly, with major automakers setting up battery assembly plants.
The Production Linked Incentive (PLI) scheme is helping create 50 gigawatt hours of battery manufacturing capacity.
Lithium-ion battery demand is expected to rise from 10 GWh today to 200 GWh by 2035.
In India, the production capacity of Lithium-ion battery is expected to reach 150 GWh by 2030, covering 13% of total cell demand.

Government initiative:

Ministry of Heavy Industries (MHI), in June, 2021 launched a Production-Linked Incentive (PLI) scheme for the manufacturing of Advanced Chemistry Cell (ACC) battery storage of 50 GWh capacity, which includes more than 10 GWh grid-scale battery storage.
- The PLI-ACC scheme has an outlay of Rs 18,100 Crores.
The Government has approved the scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS) with a capacity of 4,000 megawatts hours (MWh) by 2030-31.
- By offering VGF support, the scheme targets achieving a Levelized Cost of Storage (LCoS) ranging from Rs. 5.50-6.60 per kilowatt-hour (kWh), making stored renewable energy a viable option for managing peak power demand across the country.

Source: TH