Will India's electricity demand triple to 4,000 trillion units by 2035?

Mumbai, June 27 (NationPress) India's electricity demand is projected to experience a remarkable increase, expected to reach an astonishing 4,000 trillion units (TWh) by the year 2035. This surge is attributed to factors such as industrial growth, urbanization, and the electrification of transportation, as highlighted in a report published by OmniScience Capital on Friday.

The report indicates that by 2035, three key sectors—Electric Vehicles (EVs), Data Centers (DCs), and Railways—are expected to emerge as the largest electricity consumers, collectively consuming 500 TWh, which will represent approximately 12-13 percent of India’s total anticipated electricity demand of 4,000 TWh.

This signifies a crucial transformation in India's energy landscape, where conventional industrial and residential energy consumption is increasingly being supplemented by these innovative sectors.

The report emphasizes that the energy transition is vital for a sustainable future; initiatives and policies like Net-zero, the 500 GW Renewable power target, EV adoption, and the Rooftop Solar initiative are fueling this shift.

It further predicts that India's per capita electricity consumption will nearly double, rising from 1,400 kWh in 2024 to 2,575 kWh by 2035. This growth is primarily driven by rapid economic expansion, increasing urbanization, and rising household incomes.

Ashwini Shami, Executive Vice President at OmniScience Capital, stated, “India's electricity demand reaching four trillion units by 2035 reflects the nation's accelerating industrial development, digital evolution, and improving quality of life. This trend presents significant investment opportunities in energy infrastructure, renewable energy, and the modernization of the grid.”

As urban migration continues and the adoption of energy-intensive devices spreads, coupled with industrial growth under initiatives like 'Make in India', electricity demand is expected to rise sharply. The push for digital infrastructure, electric vehicles, and rural electrification will likely further accelerate energy usage.

Moreover, India's shift towards cleaner and more accessible energy sources will enhance affordability and availability, leading to increased consumption across various sectors.

The commercial sector and others are becoming significant contributors to electricity demand. From 181 TWh in 2023, the consumption in these areas is forecasted to increase to 798 TWh by 2035, marking a growth rate of 4.4 times and a CAGR of 13.2 percent—the second-fastest among all sectors. This growth is expected to elevate their share to nearly 20 percent of total electricity consumption, indicating a rapid transition towards a service-oriented, digitally connected economy.

India's transportation sector, which includes Electric Vehicles and Railways, is anticipated to become the fastest-growing electricity consumer, with usage projected to increase from 25 TWh in 2022 to 162 TWh by 2035, driven by a CAGR of 16.8 percent. Key factors behind this transformation include the swift adoption of EVs, the expansion of charging infrastructure, and the electrification of railways, as noted in the report.