World Energy Outlook 2024

About World Energy Outlook 2024:

• It is an annual report published by the International Energy Agency (IEA).
• It is the most authoritative global source of energy analysis and projections.
• It identifies and explores the biggest trends in energy demand and supply, as well as what they mean for energy security, emissions, and economic development.
• Highlights of 2024 Report:
  • Projections based on current policy settings indicate that the world is entering a new energy context, marked by persistent geopolitical hazards but also an abundance of various fuels and technologies.
  • This includes a surplus of oil and liquefied natural gas (LNG)expected in the second half of the 2020s, alongside a significant increase in manufacturing capacity for key clean energy technologies.
  • The report finds that low-emissions energy sources are set to generate more than half of the world’s electricity by 2030.
  • Meanwhile, demand for coal, oil, and gas is expected to peak by the end of this decade.
  • Global electricity demand growth is projected to accelerate further, adding the equivalent of Japan’s annual electricity consumption to global use each year.
• Highlights Related to India:
  • India is poised to face a higher increase in energy demand than any other country over the next decade, mainly because of its size and the scale of rising demand from all sectors.
  • According to the Stated Policies Scenario (STEPS), India is on track to add over 12,000 cars daily to its roads over the period to 2035.
  • Built-up space is set to increase by over 1 billion square metres annually. This is larger than the total built space in South Africa.
  • By 2035, iron and steel production are on track to grow by 70%. The cement output is set to rise by nearly 55%.
  • The stock of air conditioners is projected to grow by over 4.5 times, resulting in electricity demand from air conditioners in 2035 more than Mexico’s total expected consumption that year.
  • The total energy demand in India is set to increase by nearly 35% by 2035, and electricity generation capacity nearly triple to 1400 GW.
  • Coal is set to retain a strong position in the energy mix in India over the next decades, with the country projected to add about 60 gigawatts of new coal-fired power capacity by 2030.
  • Coal-based electricity generation is projected to increase by over 15 per cent.
  • Coal provided 40 percent of the energy used in industries like steel, cement, and manufacturing in 2023. By 2035, coal use in industry is expected to grow by 50 percent.

Q1: What is the International Energy Agency (IEA)?

It is an autonomous inter-governmental organisation within the OECD framework. It works with governments and industry to shape a secure and sustainable energy future for all. It was founded in 1974 to ensure the security of oil supplies. It was created in response to the 1973-1974 oil crisis when an oil embargo by major producers pushed prices to historic levels and exposed the vulnerability of industrialised countries to dependency on oil imports. It consists of 31 member countries and eleven association countries. 

Source: India faces higher increase in energy demand over next decade: IEA