18-October-2024-Special-Article

WORLD ENERGY OUTLOOK 2024

The International Energy Agency (IEA) released the World Energy Outlook 2024, analyzing key trends in the global energy landscape, including shifts toward clean energy, rising demand, and challenges posed by geopolitical tensions.

India’s growing energy needs and its ambitious goal of reaching net-zero emissions by 2070 are particularly highlighted.

World Energy Outlook 2024

Geopolitical Risks and Energy Security

• Ongoing conflicts, such as the Russia-Ukraine war and Middle Eastern tensions, pose serious risks to global energy stability.

Acceleration of Clean Energy Transitions

• Investment in clean energy, particularly solar and wind, has surged to new heights.
• In 2023, over 560 GW of renewable energy was added worldwide, moving away from fossil fuel dependency.

Transformation in Global Power Mix

• Renewable sources are set to lead global electricity generation by 2030, overtaking fossil fuels.
• Solar PV and wind are driving this change, with low-emission energy sources like nuclear expected to produce over 50% of the world’s electricity by 2030.

Oil and Gas Market Surplus

• By the late 2020s, excess oil and LNG supplies are predicted, potentially driving down prices.

Electric Vehicle Expansion and Oil Demand Shift

• Electric vehicles (EVs) are gaining momentum, projected to make up 50% of new car sales by 2030, influencing oil demand.

Competition in Clean Energy Technology

• High competition is seen in clean energy tech sectors, such as solar PV production and battery storage.

Climate Change and Energy Systems

• Climate-related events like extreme weather are straining energy systems, emphasizing the need for resilience.

Energy Efficiency Challenges

• Improving global energy efficiency is critical for emission reductions, yet current policies fall short of the 2030 target.

India’s Role and Challenges in the Global Energy Landscape

Growing Economy and Population

• India’s economy grew by 7.8% in 2023, the fastest among major economies.

• India has now become the most populous nation globally and is expected to emerge as the world’s third-largest economy by 2028.

Increasing Energy Demand

• India is set to experience the highest growth in energy demand globally, with a nearly 35% increase expected by 2035 due to economic and urban expansion.

Dependence on Coal

• While India aims for renewable growth, coal remains essential to its energy mix.
• By 2030, coal is projected to contribute over 30% of India’s electricity generation, with an additional 60 GW of coal capacity expected.

Industrial Growth

• India’s industrial sector is set for substantial expansion, with a 70% increase in iron and steel production and a 55% increase in cement production by 2035.

Rising Electricity Demand for Cooling

• The demand for air conditioning is projected to grow 4.5 times by 2035, with energy for cooling alone exceeding Mexico’s total electricity consumption.

Renewable Energy and Storage Expansion

• India aims to triple its electricity capacity to 1,400 GW by 2035.
• By 2030, India is expected to have the third-largest installed battery storage capacity, vital for integrating solar and wind power.

Net Zero Emissions Goal by 2070

• India’s net zero target by 2070 includes a focus on clean power, expected to be 20% above current policies by 2035.
• Electric mobility and hydrogen are key in reducing coal and oil reliance, potentially cutting India’s CO2 emissions by 25% by 2035.

What is the International Energy Agency (IEA)?

Foundation and Purpose: The IEA was established in 1974 by the OECD countries to address the 1973-1974 oil crisis.

Scope of Work: Over time, the IEA has expanded its mission to focus on:

• Energy Security: Ensuring reliable and uninterrupted energy supplies.
• Economic Development: Promoting affordable energy for sustained economic growth.
• Environmental Awareness: Supporting transitions to sustainable and clean energy.
• Global Collaboration: Fostering international partnerships for energy innovation.

Headquarters: Based in Paris, France.

Membership: Comprises 31 member countries, 13 association countries (including India), and 4 candidate countries.

Key IEA Publications

• World Energy Outlook
• India Energy Outlook Report
• World Energy Investment Report
• Energy Efficiency Market Report
• Energy Technology Perspectives

Challenges Identified in the Report

• Geopolitical Instability: Conflicts like the Ukraine war threaten energy supplies.
• Supply Chain Concentration: Key clean energy technologies depend on limited suppliers, creating vulnerability.
• High Financing Costs: Expensive funding for renewables, especially in developing nations, hinders growth.
• Grid Infrastructure Delays: Inadequate grid capacity restricts the full potential of renewable energy.
• Slow Energy Efficiency Progress: Global energy efficiency improvements are insufficient to meet targets.
• Fossil Fuel Dependency: Coal, oil, and gas continue to dominate, delaying clean energy transitions.
• Investment Gap in Developing Countries: Limited funding hampers clean energy access in poorer nations.
• Climate Impact: Extreme weather from climate change is straining energy systems, highlighting the need for resilience.

Way Forward

• Boost Clean Energy Investment: Increase funding for renewables and grid infrastructure.
• Ease Clean Energy Investments: Streamline policies and provide incentives for private investments.
• Diversify Supply Chains: Build local manufacturing capacity to reduce reliance on specific countries.
• Enhance Financing for Developing Nations: Make clean energy projects more affordable for developing countries.
• Modernize Grid Infrastructure: Invest in smarter, larger grids to accommodate renewable energy.
• Accelerate Energy Efficiency: Implement stronger policies to reduce emissions through efficiency.
• Strengthen Climate Resilience: Prepare energy systems for climate-related impacts through resilience strategies.

Mains Question:

1. “Discuss the key challenges and strategies for India to balance its growing energy demands with its net-zero emission target by 2070 in the context of the 2024 World Energy Outlook report.” (150 WORDS)