India a bright spot for energy demand: BP official
India's energy production rises by 117 percent to 817 million tons of oil equivalent to 2035 while consumption grows by 128 percent, according to BP's Energy Outlook 2035.
India is not just a bright spot in economic growth worldwide but also in terms of energy demand, BP Group Chief Economist Spencer Dale said as he saw the country's import dependence rising in next two decades.
India's energy production rises by 117 percent to 817 million tons of oil equivalent to 2035 while consumption grows by 128 percent, according to BP's Energy Outlook 2035. Oil imports rise by 161 percent from current level of 190 million tons and account for 61 percent of the net increase in imports, followed in volumetric terms by increasing imports of coal (96 percent) and gas (270 percent).
"India is bright spot in GDP and in terms of energy demand," he said adding other big consuming nations like China, Russia and Brazil have their own problems. But in India "its growth rate is strong," he told reporters. The challenge for India is to find energy sources for the rising demand.
"The sharp slowing in China's energy demand growth is partially offset by a pickup in other developing countries. India accounts for more than a quarter of the growth in global energy demand in the final decade of the Outlook, double its contribution over the past decade," BP Energy Outlook said. India shows the largest growth in coal consumption (435 million tons oil equivalent), overtaking the US to become the world's second biggest consumer of coal.
Over two-thirds of India's increased coal demand feeds into the power sector. Demand for gas expands by 155 percent, followed by coal (121 percent) and oil (118 percent), while renewables rise by 656 percent, nuclear by 334 percent, and hydro by 99 percent.
"India's energy mix evolves very slowly over the Outlook, with fossil fuels accounting for 87 percent of demand in 2035, compared to a global average of 79 percent. This is down from 92 percent in 2014," it said. Its share of global demand rises to 8.7 percent in 2035, accounting for the second largest share of the BRIC countries with China at 25 percent, Russia 4 percent, and Brazil 2 percent. Coal remains the dominant fuel produced in India with a 66 percent share of total production in 2035.
Renewables overtake oil as the second largest, increasing from 4 per cent to 13 percent in 2035 as oil drops from 11 percent to 4 percent.
"By 2035, India's energy intensity of GDP is nearly 40 percent lower than today's level, compared to an average BRIC decline of 44 percent," he said.