The International Energy Agency (IEA) published its World Energy Outlook Report 2022. As per the report, energy demand in India is expected to be the highest globally, growing at more than 3 per cent on annual basis, from 2021 to 2030.

 

Highlights of ‘World Energy Outlook’ 2022

  • Increasing energy demand –
    • India will become the worlds most populous country by 2025. This combined with the twin forces of urbanisation and industrialisation, energy demand in India will rise by more than 3 per cent per year from 2021 to 2030.
    • India’s coal generation and oil imports are going to peak in 2030, while gas imports will double around the same time.
  • Coal Production in India –
    • The report states that India became the worlds second‐largest coal producer in 2021 (in energy terms), overtaking Australia and Indonesia.
    • India plans to increase domestic production by more than 100 million tonnes of coal equivalent (Mtce) by 2025 from the current levels.
  • Appreciation for Government Initiatives –
    • The IEA cited government programmes such as the Gati Shakti National Master Plan and the Atmanirbhar Bharat scheme, and strong economics to state that India will see a robust growth in renewables and electric mobility, notably for two/three‐wheelers.
  • Challenge for India –
    • The IEA report points out that the primary challenge for India is to meet the rising electricity demand with renewables and nuclear on a large enough scale to reduce use of unabated coal‐fired generation.
    • Currently, coal is used to produce nearly 75 per cent of electricity in India.

 

About the ‘International Energy Agency’

  • The International Energy Agency was born with the 1973-1974 oil crisis, when industrialised countries found they were not adequately equipped to deal with the oil embargo imposed by major producers that pushed prices to historically high levels.
  • This first oil shock led to the creation of the IEA in November 1974 with a broad mandate on energy security and energy policy co-operation.
  • The IEA was established as the main international forum for energy co-operation on a variety of issues associated with energy production.
  • This included setting up a collective action mechanism to respond effectively to potential disruptions in oil supply.

 

Member countries

  • Only OECD member states can become members of the IEA. The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade.
  • IEA member countries are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.
  • Currently, there are 31 IEA member countries. India is one of the 8 associate member countries.
  • Headquarters — Paris, France