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Global Electric Vehicle Sales Reach 18% in 2023, with India's Electricity Consumption Set to Rise Significantly by 2035

But what does this mean for India's energy infrastructure? The report highlights the need for countries, including India, to prepare their energy infrastructure for the increased demand. As more people adopt electric vehicles, the power sector will need to expand capacity to meet the new electricity needs efficiently. And it's not just EVs driving electricity demand. Rising temperatures in India are also driving the need for cooling devices, particularly air conditioners (ACs). The demand for ACs in India is projected to double by 2030, driven by the surge in extreme heat.

What does this mean for India's energy future? Read to know more.

#EVAdoption #IndiaEnergy #Sustainability

India is on the rise of technological advancement and EVs (Electric vehicles) are the drawing force behind it. With a significant shift to EVs marking the growth of electric vehicles, the need for more energy is now the need of the hour. On the other hand, with the rapid adoption of EVs, an increased demand for cooling devices, particularly air conditioners (ACs) have also been seen.

As per a recent report by IKIGAI Asset Manager Holdings, an investment management firm, these highlighted trends provide insights into the potential impact on the country’s electricity consumption over the next decade.

Currently, India’s transportation sector largely depends on fossil fuels, but the increasing popularity of electric vehicles is expected to drive a surge in electricity demand. According to the report, “EVs in India to consume around 6 to 8.7 per cent of the electricity by 2035.”

India’s EV trend mirrors a larger global shift. The IKIGAI report highlights that electric vehicles are seeing increased adoption worldwide. In 2023, EVs accounted for 18% of all car sales, with China contributing to more than half of those sales.

The IKIGAI report also examined global growth in EVs and said, “EV Cars Seeing Increased Adoption Worldwide, EVs accounted for 18 per cent of all car sales in 2023 with China accounting for more than half of those.”

This also bears weight as China is the most dominating country in the rapid expansion of EV use worldwide. With China’s country’s robust manufacturing capabilities and government incentives fueling growth, China is the largest manufacturer of EVs globally.

The report estimated that the share of EVs in global electricity consumption will rise from a mere 0.5% in 2023 to between 8.1% and 9.8% by 2035. This growth is poised to place substantial pressure on energy infrastructures across the globe, emphasizing the need for countries, including India, to invest in energy generation and distribution capacity to meet the increasing demand.

As this rise in EV adoption will bring a surge in electricity requirements, India needs to respond by expanding capacity and improving efficiency. The report stresses that India must take proactive steps to enhance its energy infrastructure to accommodate the growing electricity demands of both electric vehicles and household appliances.

This move to more electricity generation won’t be easy as India is currently stressed, and energy grids see frequent power cuts. Amidst this, India needs to invest more in renewable energy. On the other hand, grid modernization and storage solutions will be crucial too for ensuring the electricity supply can keep up with the growing demand, particularly as the nation pushes for a more sustainable, electric-powered future.

According to the IKIGAI report, “The demand for ACs in India is projected to double by 2030.” With this rise in demand for cooling solutions will become more extreme as India is seeing frequent rises in temperature. This increased reliance on air conditioning will add substantial pressure to India’s electricity grid, making it imperative for the country to expand its energy capacity and improve the efficiency of its power distribution.

The IKIGAI report highlights two key trends that will shape India’s energy landscape in the coming years: the rise of electric vehicles and the increasing demand for cooling devices. Both factors are expected to significantly increase the country’s electricity consumption by 2035.