India to surpass China as world's largest energy growth market by mid-2020: BP

India will by mid-2020s surpass China as the world's largest energy growth market, accounting for over a quarter of incremental global demand, UK supermajor BP said in its annual energy outlook

Press Trust of India February 15, 2019 17:47:39 IST
India to surpass China as world's largest energy growth market by mid-2020: BP
  • Global energy demand is expected to increase by around a third by 2040

  • India's energy consumption will rise by 156 percent to 1,928 million tonnes of oil equivalent by 2040

  • Almost all of the growth in power demand stems from developing economies, led by China and India, BP said

New Delhi: India will by mid-2020s surpass China as the world's largest energy growth market, accounting for over a quarter of incremental global demand, UK supermajor BP said in its annual energy outlook.

The 2019 edition explores the key uncertainties that could impact the shape of global energy markets out to 2040. "The greatest uncertainties over this period involve the need for more energy to support continued global economic growth and rising prosperity, together with the need for a more rapid transition to a lower-carbon future. These scenarios highlight the dual challenge that the world is facing," it said.

Global energy demand is expected to increase by around a third by 2040, driven by improvements in living standards, particularly in India, China and across Asia. This will be met mostly by natural gas, which is expected to overtake coal as the second largest source of energy by the mid-2020s and converging on oil by 2040, the report said.

Renewables are also expected to continue their upward trajectory, as their share in the energy mix is expected to increase from 4 percent today to 15 percent by 2040.

India to surpass China as worlds largest energy growth market by mid2020 BP

Representational image. Reuters.

"All of the growth in energy demand comes from fast-growing developing economies, led by India and China," the outlook said. "Developing economies account for over 80 percent of the expansion in world output, with China and India accounting for around half of that growth."

India's energy consumption will rise by 156 percent to 1,928 million tonnes of oil equivalent by 2040 from 754 million tonnes of oil equivalent in 2017. This at an annual growth of 4.2 percent.

Much of the increase in global energy demand is concentrated in developing Asia (India, China, and Other Asia), where rising prosperity and improving living standards support increasing energy consumption per head.

"China's transition to a more sustainable pattern of economic growth means that by the mid-2020s, India surpasses China as the world's largest growth market, accounting for over a quarter of the growth in global energy demand over the Outlook. Even so, China remains the largest market for energy: roughly double the size of India in 2040," it said.

All of the net global growth in industrial demand is met by natural gas and electricity, with these fuels accounting for around two-thirds of the energy used in industry by 2040. Coal consumption within industry declines as China, the EU and North America switch to cleaner, lower-carbon fuels, partially offset by growth in India and Other Asia, the outlook report said.

Almost all of the growth in power demand stems from developing economies, led by China and India.

"India is the largest growth market for coal, with its share of global coal consumption more than doubling to around a quarter in 2040," the BP energy outlook said, adding the majority of the increase is used to meet robust growth in power demand.

BP said the focus should be on meeting growing energy demand and the push for lower emissions.

Chief executive Bob Dudley said: "Predicting how this energy transition will evolve is a vast, complex challenge. In BP, we know the outcome that's needed, but we don't know the exact path the transition will take. Our strategy offers us the flexibility and agility we need to meet this uncertainty head-on."

Updated Date:

also read

Nord Stream leaks: How will Europe manage its gas requirements?
World

Nord Stream leaks: How will Europe manage its gas requirements?

Europe plans new LNG import terminal projects all around its coasts. One industry analysis suggests that the EU's total import capacity could increase by 42 per cent by 2025

What does the war in Ukraine means for Asia's climate goals
World

What does the war in Ukraine means for Asia's climate goals

Most Asian countries are prioritizing energy security, sometimes over their climate goals. For rich countries like South Korea or Japan, this means forays into nuclear energy. For the enormous energy needs of China and India it implies relying on dirty coal power in the short term

Suzlon Energy Limited stock price closes over 6% lower after rights issue announced
Business

Suzlon Energy Limited stock price closes over 6% lower after rights issue announced

At the end of the session, the shares of Suzlon closed 6.16 percent lower at Rs 8.53 on the Bombay Stock Exchange