Context: India is poised to face a higher increase in energy demand than any other country over the next decade, according to the 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.

• Note: India, while not a full member, is an IEA “Association” country and works closely with the agency, particularly in energy security and the transition to renewable energy.

Key highlights of 2024 Report

• Ongoing conflicts, such as the Russia-Ukraine war, threaten global energy security.

• Record highs in clean energy investments, with 560 GW of renewable capacity added in 2023 alone.

• By 2030, renewable energy is expected to dominate electricity sources, with solar PV and wind energy leading the shift.

• Expected surplus in oil and LNG supply in the latter half of the 2020s, leading to price drops.

• Electric Vehicles projected to account for 50% of new car sales by 2030.

• However, current policies unlikely to meet the global target of doubling efficiency by 2030.

Key highlights Related to India

• Expected to witness highest increase in global energy demand over the next decade, expected to rise by nearly 35% by 2035.

• Despite renewable targets, coal remains crucial; nearly 60 GW of new coal capacity projected by 2030.

• Significant growth in industrial sectors; iron and steel production to rise by 70%, cement by 55%.

• Electricity Demand for Cooling – Air conditioner stock projected to grow 4.5 times by 2035, causing a surge in cooling-related electricity demand.

• Electricity generation capacity to nearly triple to 1,400 GW by 2035; set to have world’s third-largest installed battery storage capacity by 2030 by integrating variable renewables like solar and wind..

• Aiming for net zero by 2070; clean power generation expected to be 20% higher by 2035 compared to current projections.

Key Features of the IEA

• Membership: The IEA consists of 31 member countries, primarily from the OECD (Organisation for Economic Co-operation and Development). Non-members like China, India, and Brazil also collaborate with the IEA under its “Association” framework.

• Primary Goals:

• Promote energy security by ensuring stable energy supplies.

• Encourage economic growth through energy innovation.

• Advance clean energy transitions to address climate change.

• Facilitate international collaboration on energy policies.

• Areas of Focus:

• Energy Security: Ensuring stable and affordable energy supplies through diversification and the development of resilient energy systems.

• Clean Energy Transitions: Promoting the shift from fossil fuels to renewable energy sources such as solar, wind, and hydropower.

• Energy Efficiency: Encouraging policies and technologies that use energy more efficiently, reducing consumption while maintaining output.

• Data & Analysis: The IEA publishes detailed reports on global energy trends, market data, and policy recommendations. Examples include the World Energy Outlook and Energy Technology Perspectives.

• Reports & Forecasts: The IEA’s World Energy Outlook is a flagship publication that provides an annual forecast of global energy trends. It covers areas such as energy demand, production, and the global progress toward meeting climate goals like the Paris Agreement.

• Climate Action: The IEA plays a critical role in supporting countries to achieve net-zero emissions by 2050. Its Net Zero by 2050 roadmap outlines steps required for the global energy sector to decarbonize.

• Collaboration: The IEA works closely with governments, industries, and international organizations, helping to shape energy policies that balance environmental and economic goals.