Energy Imports Will Rise To 84% In 2047 If Policy Not Changed: Planning Commission

India will have to import 84.4% of its energy demand in 2047 against 36% as of now, if the government and industry maintain a status quo on the policy and technology front across six major energy-consuming sectors in the country, the Planning Commission has warned.

India is the fifth-largest energy consumer in the world today, importing in excess of $100 billion worth of fuel per annum. However, the country's import dependence can be significantly brought down to 21% over the next 33 years if India achieves the highest level of production of coal, oil and gas as well as reduces its dependence on fossil fuel by moving to renewable energy sources, the commission says in its mediumterm projections for energy scenarios in the country.

The commission has pegged India's energy demand in 2047 at 23,679 TWh in the least-effort scenario and this is estimated to come down by nearly 40% to 14,732 TWh if there is greater usage of alternate fuels in the country.

"The energy scenarios projected for 2047 call for urgent action to ensure that we do not end up importing huge quantities of fuel as this would significantly impact India's current account deficit and put a question mark on the country's energy security," a senior Planning Commission official told ET.

According to the official, the projections made by the Planning Commission for India's energy demand and supply under four levels also suggest that going forward India's availability of oil and gas will shift in favour of gas, which is likely to constitute 60% of the total production against 40% now. "This would mean that the policies and efforts of the government as well as industry will have to be directed towards higher usage of CNG-run or electric vehicles if the transport sector continues to grow," the official quoted above said.

Planning Commission deputy chairman Montek Singh Ahluwalia will officially launch the Indian Energy Security Scenarios 2047 Tool on Friday.

Source : economictimes.indiatimes.com