An Outlook of India’s Electricity Demand Analysis and Projections to the Next Decade

An Outlook of India’s Electricity Demand Analysis and Projections to the Next Decade
An Outlook of India’s Electricity Demand Analysis and Projections to the Next Decade

Following independence, electricity consumption has increased from a mere 16 kWh per capita in 1947 to 1208 kWh in 2020 (Hindustan Times, 2020) indicative of economic growth, increased electricity access due to provision of affordable electricity to all households, reduced electricity shortages, and continued transition to the use of emerging technologies. The changing economic landscape has further led to structural changes of the Indian electricity demand. Residential electricity consumption, which has overtaken industrial consumption, now accounts for more than a third of total consumption, resulting in daily and seasonal electricity demand patterns.

As compared to other global economies, the per capita electricity consumption in India remains fairly low. This can be gauged from Figure 1. showing the comparison of electricity consumption per capita versus Gross Domestic Product (GDP) per capita for developed as well as emerging market and developing economy (EMDE) countries. India’s per capita electricity consumption is almost one tenth of the developing countries and a fifth of EMDE countries. The varied margin indicates that India is likely to experience electricity growth in the years to come.

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