In partnership with NITI Aayog, the International Energy Agency (IEA) has released the first in-depth review of India’s energy policies. The report highlights the achievements of India’s energy policies and provides recommendations to support the government’s goals of promoting well-functioning energy markets and boosting deployment of renewables.
Fatih Birol, Executive Director of the IEA, presented the key findings of the IEA in-depth review of India’s energy policies in New Delhi in the presence of government ministers, key energy secretaries, ambassadors, think tanks and the media. The IEA regularly conducts in-depth reviews of energy policies for its member and association countries. This is the first review carried out for India, which has been an IEA association country since March 2017.
The report congratulates the Indian government on its achievements in extending citizens’ access to electricity, affordable efficient lighting and clean cooking through historic schemes like SAUBHAGYA, UJALA and UJJWALA, while pursuing energy market reforms and the swift deployment of renewable technologies.
The report highlights the growth of renewables in India, which now account for almost 23% of the country’s total installed capacity. The review also found that energy efficiency improvements in India avoided 15% of additional energy demand, oil and gas imports, and air pollution as well as 300 million t of CO2 emissions between 2000 – 2018.
India is becoming increasingly influential in global energy trends. The country’s demand for energy is set to double by 2040, and its electricity demand may triple, according to the IEA report. Indian oil consumption is expected to grow faster than that of any other major economy. This makes further improving energy security a key priority for India’s economy, the report says.
The IEA welcomes Indian government policies designed to conduct large-scale renewable energy auctions, open up coal mining to private companies, and promote access to oil and gas markets for foreign investors. The report offers a wide range of recommendations for reforms in support of India’s goal of promoting open and well-functioning energy markets in sectors such as coal, gas and electricity. These include building strong regulators to ensure non-discriminatory access, moving from state allocation to market pricing, and further rationalising energy subsidies.