India can chart a course toward a clean and secure energy future

The International Energy Agency last released a World Energy Outlook special report on India in 2015. Six years later, with the launch of our India Energy Outlook 2021, it is remarkable to consider the changes that have taken place.

The global energy sector has shifted a great deal over that period, particularly in terms of efforts to strengthen policies to tackle the threat of climate change. The growing number of net-zero emissions pledges by countries and companies reflects the increasing sense of urgency and accelerating momentum around clean energy transitions.

Most recently, the Covid-19 pandemic brought unprecedented disruptions to our societies and economies, with major consequences across the energy world. The damage to lives and livelihoods – and to many parts of the energy sector – will last for years to come.

Expanding energy access and renewables

Focusing on India’s energy system in particular, I would like to highlight two extremely positive developments that stand out to me. The first is India’s success in bringing electricity connections to hundreds of millions of its citizens in recent years. This is a monumental achievement that has improved the material well-being of a huge number of people, and I heartily congratulate the Government of India for it.

The second greatly encouraging development is the way in which India has grasped the transformative potential of renewables, and of solar in particular. As this report shows, the growth of India’s renewable energy sector has been highly impressive – and India is set to lead the world in areas such as solar power and batteries in the coming decades. In our most recent World Energy Outlook, published in October, we declared that solar was becoming the new king of global electricity markets. Our new special report makes clear that India is a kingmaker for solar.

This has also been an exciting period for India-IEA relations. Less than four years after joining the IEA family as an Association country, India recently agreed with IEA members to enter into a Strategic Partnership. Marked by a signing ceremony involving dignitaries from India and IEA members, this was a major milestone that could eventually lead to full membership for India, which would be a game-changing moment for global energy governance.

I hope that the depth and insight of the analysis in this new special report bears testament to the close working relationships and understanding that we have built over these years between India and the IEA.

Ensuring energy security and sustainability

Many challenges remain for India – in terms of energy security, access, affordability, emissions and more. Its population is set to become the world’s largest in the coming years – and increasingly urban – and its economy is growing and industrialising. India is set to experience the largest increase in energy demand of any country worldwide over the next 20 years. More than that of any other major economy, India’s energy future depends on buildings and factories that are yet to be built, and vehicles and appliances that are yet to be bought.

India’s decision makers have shown on many occasions the value of well-designed policies. A compelling example is the roll-out of efficient LED lighting to millions households all across the country, making electricity more affordable and sustainable at the same time.

What this report underscores is the tremendous opportunity for India to develop and successfully meet the aspirations of its citizens without following the high-carbon pathway that other economies have pursued in the past. Government policies to accelerate India’s clean energy transition can lay the foundation for lasting prosperity and greater energy security. Seizing this opportunity is critically important for India – and critically important for the world, as all roads to successful global clean energy transitions go via India.

In its endeavour to bring affordable, clean and reliable energy to all its citizens, the Indian government can count on the enduring support and partnership of the IEA. We sincerely hope this report will be of use to decision makers across the Indian energy sector as they seek to build a brighter future for a country that will remain at the heart of global energy trends for decades to come.

I would like commend the outstanding team behind this report – from across the Agency – for their hard work under the excellent leadership of Tim Gould, with outstanding support from Peter Zeniewski in Paris and Siddharth Singh in Delhi. And I would like to thank the Government of India for its support – and all the experts and friends of the IEA in India and worldwide who contributed their time and insights.