India Energy Outlook 2021 Report Released by International Energy Agency (IEA)

India Energy Outlook 2021 Report Released by International Energy Agency (IEA)

Recently, ‘India Energy Outlook 2021’ report has been released by the International Energy Agencies.

Highlights of the report:

By 2030, India will become the third largest energy consumer in the world, overtaking the European Union, as in the next two decades, India’s energy demand will increase by 25%.
India’s energy consumption is expected to nearly double as the nation’s gross domestic product (GDP) expands to an estimated $8.6 trillion by 2040 under its current national policy scenario. For this reason, India’s rising energy needs can make the country more dependent on fossil fuel imports. Despite the government’s policies on promoting petroleum exploration /production and renewable energy, there has been no progress in domestic oil and gas production over the years.
According to the International Energy Agencies, India’s oil demand is expected to increase from 5 million barrels per day (BPD) in 2019 to 7 million barrels per day in 2040.And, its refining capacity can grow from 5 million barrels per day in 2019 to 6.4 million barrels per day by 2030 and 7.7 million barrels per day by 2040.
India, the world’s second largest net oil importer after China, currently imports about 76% of its crude oil needs, and its dependence on imported oil is expected to be 90% by the year 2030 and 92% by the year 2040.
Due to rising oil demand, India’s oil import cost has doubled to around $ 181 billion by 2030 compared to 2019, and by the year 2040, it can be 255 billion dollars.

International Energy Agency:

The International Energy Agency is an inter-governmental autonomous organization. It was established in the year 1974 based on the Organization for Economic Co-operation and Development Framework.
Its functions primarily focus on four main areas: energy security, economic development, environmental awareness and global participation.
Its headquarters (Secretariat) is in Paris, France.
The International Energy Agency was established to help member countries cope with oil supply disruptions during the 1973–74 oil crisis.
This role is also being discharged by the International Energy Agency at the present time. The International Energy Agency mandate has expanded over time. Its functions include tracking and analyzing major energy trends globally, promoting strong energy policies and promoting multinational energy-technology cooperation.
The International Energy Agency currently consists of 30 member countries and eight partner countries.To be a member of the IEA, it is mandatory for a country to be a member of the Organization for Economic Co-operation and Development (OECD). However not all members of the OECD are members of the IEA.

Work:

The International Energy Agency was established to help member countries cope with oil supply disruptions during the oil crisis of 1973–
Its functions include tracking and analyzing major energy trends globally, promoting strong energy policies and promoting multinational energy technology cooperation.

IEA structure and eligibility for its membership:

The International Energy Agency currently consists of 30 member and eight partner countries. To be a member of it, it is mandatory for a country to be a member of the Organization for Economic Co-operation and Development (OECD).

Criteria for membership of the International Energy Agency:

Crude oil and/or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply.
A demand restraint program to reduce national oil consumption by up to 10%.

Reports to be published by the International Energy Agency: