WORLD ENERGY OUTLOOK 2024

About the Report

World Energy Outlook is the flagship publication International Energy Agency, an autonomous intergovernmental organisation.

It is an annual report and it has been published every year since 1998.

It aims to offer crucial insights into the world’s energy demand and supply under various scenarios, as well as the implications for energy security, climatic goals, and economic development.

Findings of the Report

General findings 

Decarbonisation Progress: Momentum for decarbonisation is building with record renewable energy rollout and electric vehicle adoption but the world is  still far from limiting global warming to 1.5°C.

Warming Projections: With current policies the world is at a warming trajectory of 2.4°C by 2100.

CO2 Emission: The CO2 emissions will peak by 2025 and China's emissions are projected to peak around 2025.

Renewable Energy Growth: Over 560 GW of renewable capacity was added in 2023 and it is projected to reach 10,000 GW by 2030. This growth will reduce emissions but still, it will fall short of the 1.5°C targets.

Investment Trends:

• Global investment in clean energy has seen an increase of 60% since the Paris Agreement and it is estimated to be USD 2 trillion annually.
• Investment in clean energy is  nearly double that for oil, gas, and coal supply together in 2024.

India Specific Findings

Energy Demand in India

Total energy demand forecast in India will increase by nearly 35% by 2035 and the electricity generation capacity is expected to triple to 1,400 GW.

Drivers of Energy demand from India

Economic Growth:

India was the fastest-growing major economy in 2023, with a 7.8% increase in GDP from the previous  fiscal year and it is on  track to become the third-largest economy by 2028.

Population:

India overtook China in 2023 as the most populous country, with a declining fertility rate below replacement level.

Infrastructure and Vehicle Growth:

India is projected to add over 12,000 cars daily until 2035, while the built-up space is expected to increase by over 1 billion square metres annually, which is higher than total built space in South Africa. This ensures better accommodation for vehicles.

Industry Growth:

Iron and steel production is set to grow by 70% by 2035 and cement output is projected to rise by nearly 55%. This increases further

Demand for energy.

Air conditioner stock is expected to grow 4.5 times, which will further increase the electricity demand.

Electric Mobility:

A rapid rise in electric mobility  will result in increased oil consumption  and it will peak in the 2030s. Coal use in industry will also peak with the increase in electricity and hydrogen usage.

Role of coal in the economy

Coal will remain significant and nearly 60 GW of new coal-fired capacity will be added by 2030. Coal generation is projected to rise over 15%. 

Coal supplied 40% of industrial energy needs in 2023 and it is expected to grow by 50% by 2035.

Other findings

Renewable power generation

Renewable power generation in India will be nearly 20% higher than current policy projections by 2035.

CO2 Emissions:

India's projected CO2 emissions will reach 2.5 billion tonnes by 2035, which is 25% below current  expectations.

Fossil Fuel Supply:

Oil and gas is expected to be in surplus which will lead to cheaper prices of the oil and gas in the second half of the decade.

PRACTICE QUESTION

Q.Consider the following statements about the World Energy Outlook 2024: 

1. It is a flagship publication of the World Environment Programme.
2. It is an annual report offering crucial insights into the world’s energy demand and supply under various scenarios.
3. As per this report the CO2 emissions will peak by 2025.

How many of the above statements are/are incorrect?

A.Only one

B.Only two

C. All Three

D.None

Answer: B

Explanation:

Statement 1 is incorrect: 

World Energy Outlook is the flagship publication International Energy Agency, an autonomous intergovernmental organisation.

Statement 2 is correct: 

It is an annual report and it has been published every year since 1998.

It aims to offer crucial insights into the world’s energy demand and supply under various scenarios, as well as the implications for energy security, climatic goals, and economic development.

Statement 3 is incorrect: 

The CO2 emissions will peak by 2025 and China's emissions are projected to peak around 2025.

Over 560 GW of renewable capacity was added in 2023 and it is projected to reach 10,000 GW by 2030. This growth will reduce emissions but still  it will fall short of 1.5°C targets.