Electric Vehicles and Air Conditioners to Boost India’s Electricity Demand by 2035
A report by IKIGAI Asset Manager Holdings, an investment management firm, highlights that electric vehicles (EVs) in India are set to consume a significant share of the country’s electricity by 2035. According to the report, EVs are expected to account for 6 to 8.7 per cent of India’s total electricity consumption by 2035, reflecting the growing adoption of EVs and their impact on the power grid.
Globally, EVs are seeing increased adoption. In 2023, EVs made up 18 per cent of all car sales worldwide, with China contributing to more than half of those sales. This rapid increase in the use of EVs is expected to have a significant impact on global electricity consumption as well. The report estimated that with the rising penetration of EVs, their share in global electricity consumption will rise from 0.5 per cent in 2023 to between 8.1 per cent and 9.8 per cent by 2035.
This growth in EV usage 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.
The report also sheds light on another critical issue for India – the increasing demand for cooling devices, particularly air conditioners (ACs). With extreme temperatures becoming more frequent across the country, the demand for cooling solutions is expected to rise sharply. According to the data, the penetration of household appliances, particularly ACs, is expected to see a sharp increase in India over the next decade. The report highlights that the demand for ACs in India is projected to double by 2030, driven by the surge in extreme heat. As temperatures continue to rise, more households are likely to invest in cooling devices, adding to the overall electricity consumption in the country.
Doubts Revealed
Electric Vehicles -: Electric Vehicles (EVs) are cars or bikes that run on electricity instead of petrol or diesel. They use batteries to store energy and are better for the environment.
IKIGAI Asset Manager Holdings -: IKIGAI Asset Manager Holdings is a company that studies and manages investments. They look at how different things, like electric cars, will affect the economy and environment.
6 to 8.7% -: This means that out of all the electricity used in India, 6 to 8.7 parts out of 100 will be used by electric vehicles by the year 2035.
Globally -: Globally means all around the world. It includes all the countries, not just India.
18% of car sales -: This means that out of every 100 cars sold in 2023, 18 of them were electric vehicles.
China leading -: China is the country where the most electric vehicles were sold in 2023. They are ahead of other countries in using electric cars.
Air Conditioners -: Air Conditioners (ACs) are machines that cool down the air inside a room or building. They are used a lot when it gets very hot.
Extreme temperatures -: Extreme temperatures mean very hot or very cold weather. In this case, it refers to very hot weather in India.
Doubling of AC demand -: This means that the number of air conditioners people want to buy will become twice as much by the year 2030.
