According to International Energy Agency’s (IEA) report, The India Energy Outlook 2021, the country’s energy demand will grow at the fastest pace globally by 2040 in line with the country’s economic expansion.
As per the report, the rapid expansion of solar power combined with favourable policies is transforming India’s electricity sector, allowing the country to offer clean, affordable, and reliable power to a growing number of households and businesses. The report adds that an additional funding of $1.4 trillion, or 70 per cent more than the current estimates, will also be needed in clean-energy technologies to place India on a sustainable path over the next two decades. Further, domestic production of oil and gas continues to fall behind consumption trends and net dependence on imported oil may rise from 75 per cent at present to above 90 per cent by 2040.