India to Witness the Biggest Jump in Demand of Coal and Crude Oil by 2030, as per the World Energy Outlook 2022 Report
The International Energy Agency, in their published report- World Energy Outlook 2022, has reported a remarkable surge in demand for coal and crude oil by 2030. As per the report, India has been astoundingly engaged in the production of coal which significantly lays its hand concerning the dynamics of energy generation. It surpassed the established coal-producing countries such as Indonesia and Australia in 2021. The pace with which India is headed towards coal production doesn’t seem to decelerate anytime soon.
Dynamics Directing Towards Developing Coal and Oil Demand in India
India is set to heighten its domestic coal production by approximately 100 MTCE (Million tonnes of Coal Equivalent) by the end of 2025 compared to the existing level. India is second in coal consumption after China, which harnesses 55% of global coal utilization.
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India stands at 10% in this regard. India’s gargantuan share of electricity generation is meted out to coal-fired powder, as a result of which, the demand for coal in India sprung up eminently from 2010 to 2019. Although the demand saw a slight plunge of 7% in 2020 thanks to the COVID-19 pandemic, 2021 proved to be the backer of coal demand to surpass the 2019 demand. The recorded hike in 2021 was around 13%.
India is on its way to becoming the world’s most populous nation by 2025, which would then conspicuously increase the energy demand. To top it, the factors of urbanization and industrialization would elevate the demand even more. It all sums up to a haste upsurge in the energy requirement that would almost see a considerable jig of 3% each year per the projections of STEPS (Stated Political Scenario) from 2021-2030. As per the report, it would be the most eminent demand-cry.
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The report also elucidated how the noteworthy leaps of India in terms of availing renewable resources and efficiency plans would also translate to the doubling of the import bills in the coming years. The import bill would significantly lunge in the next two decades, oil taking the most significant part.
The report augurs the topmost elevation in coal production around 2030; however, its contribution to electricity generation would extenuate from 75% to 55%. Although the inclusion of renewables and low-carbon emission fuels would take up a vast portion of generating energy, coal demand would still not be mitigated to an unbothered degree.
Talking of the oil import, the APS (Announced Pledged Scenario) projects the peak in oil import in 2030 which will noteworthily slip down by 2050. Although natural gas would dislodge the existing energy production and touch the demand of around 115 billion cubic meters by 2030, oil would still constitute a 5% contribution to energy generation however this is enough to increase demand by 10 bcm.
This projection of oil proportion to contribute to energy production is enough to witness the demand peak by 2030. The APS projections of ‘Net-Zero Emission’ would be the primary key in palliating the demand for coal and oil after 2030 owing to more environment-friendly and substantial energy generation.
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According to Procurement Resource, the demand is primarily chalked to the skyrocketing population and energy requisites. Unless India has dependable sources of alternative energy-producing substitutes, the coal and oil demand will not die soon.