New Delhi, Jan 27 (NationPress) The Indian energy sector needs to secure approximately $145 billion each year to effectively connect the dots between its vigorous economic growth and its ambitious net-zero objectives. These investments should primarily focus on power generation, storage, and critical grid modernization, according to a recent report released on Tuesday.

The analysis by Wood Mackenzie, a firm specializing in energy and natural resources data, indicates that India is on course to meet its target of producing 1.5 billion tonnes of coal by 2030. This will be achieved by putting more emphasis on coal gasification to diversify the country’s energy portfolio.

The report predicts that the demand for natural gas will see a twofold increase, soaring from 72 billion cubic metres in 2024 to over 140 billion cubic metres by 2050. Notably, the industrial sector will account for more than two-thirds of this demand until 2030, and over 55 percent until 2050.

While the report highlights various disparities between India's economic ambitions and climate goals, it asserts that “India is uniquely positioned to become one of the world’s most credible, large-scale alternatives to the Chinese solar and battery supply chain.”

As global markets look to diversify their supply chains, India’s evolving manufacturing ecosystem offers a unique competitive advantage, the report observes.

Joshua Ngu, Vice Chairman for Asia Pacific at Wood Mackenzie, emphasized the necessity for India to mitigate its immediate energy security risks while simultaneously constructing the low-carbon framework essential for a leading global economy.

“The required $1.5 trillion investment between 2026 and 2035 for energy transition isn’t solely about increasing megawatt capacity; it’s about enhancing the infrastructure,”

stated Rashika Gupta, Vice President of Power and Renewables Research at Wood Mackenzie.

Success largely depends on the speed of market reforms, particularly the Electricity Amendment Bill, which aims to enhance distribution competition and provide the clear investment signals necessary to attract private capital for grid modernization, Gupta added.

Despite the rapid progress in energy transition, the firm pointed out that hydrocarbon fuels continue to be vital for immediate stability.

The forecast indicates that India's dependency on crude oil imports could escalate to 87 percent by 2035, urging a revitalization of the upstream sector to attract international oil firms for exploration and production in India.

aar/na