118
3 The Challenges of Energy Supply
6. Oil storage capacity enhancement is a prerequisite for all import-dependent
nations. The Organization for Economic Cooperation and Development (OECD)
members have a storage capacity of up to 90 days. But it will be useful to have
more than 90 days storage to avoid balance of payment crisis at critical times.
Energy demand (Fig. 3.43) in India is projected to escalate over the next two
decades with population expected to cross 1.6 billion by 2040. This will have farreaching implications for the energy consumption as 45% population is expected to
settle in urban areas largely in slums. The demand for energy use will reach 1900
million tons of oil equivalent propelled by economic consideration (expected to reach
five times its current size in 2040), and to meet this demand, India needs to build
more than 880 gigawatts (GW) of new power generation capacity.
All indicators point to the fact that coal will retain a central position in the energy
mix, increasing its overall share in primary energy to 49% in 2040. Demand for
oil will also reach 9.8 mb/d with 65% rise in transport as 260 million additional
passenger cars, 185 million new two and three-wheelers and nearly 30 million new
India's DomesƟc Energy
Balance scenario in 2040
[Source - Outlook, India Energy,
2015]
Coal
Direct Use as Fossil Fuel
404 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
529 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Oil
Direct Use as Fossil Fuel
447 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
69 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Gas
Direct Use as Fossil Fuel
79 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
69 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Nuclear
Electricity
70 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Renewable
Electricity and Heat
126 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Industry; Transport;
Buildings
165 Mtoe
Fig. 3.43 India’s Domestic Energy Balance scenario in 2040 (Source India Energy Outlook 2015)
3 The Challenges of Energy Supply
6. Oil storage capacity enhancement is a prerequisite for all import-dependent
nations. The Organization for Economic Cooperation and Development (OECD)
members have a storage capacity of up to 90 days. But it will be useful to have
more than 90 days storage to avoid balance of payment crisis at critical times.
Energy demand (Fig. 3.43) in India is projected to escalate over the next two
decades with population expected to cross 1.6 billion by 2040. This will have farreaching implications for the energy consumption as 45% population is expected to
settle in urban areas largely in slums. The demand for energy use will reach 1900
million tons of oil equivalent propelled by economic consideration (expected to reach
five times its current size in 2040), and to meet this demand, India needs to build
more than 880 gigawatts (GW) of new power generation capacity.
All indicators point to the fact that coal will retain a central position in the energy
mix, increasing its overall share in primary energy to 49% in 2040. Demand for
oil will also reach 9.8 mb/d with 65% rise in transport as 260 million additional
passenger cars, 185 million new two and three-wheelers and nearly 30 million new
India's DomesƟc Energy
Balance scenario in 2040
[Source - Outlook, India Energy,
2015]
Coal
Direct Use as Fossil Fuel
404 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
529 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Oil
Direct Use as Fossil Fuel
447 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
69 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Gas
Direct Use as Fossil Fuel
79 Mtoe
Industry; Transport;
Buildings; Other uses;
Losses
Electricity and HeaƟng
69 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Nuclear
Electricity
70 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Renewable
Electricity and Heat
126 Mtoe
Industry; Transport;
Buildings; Other uses;
Coversion Losses
Industry; Transport;
Buildings
165 Mtoe
Fig. 3.43 India’s Domestic Energy Balance scenario in 2040 (Source India Energy Outlook 2015)