A report by IKIGAI Assets, an investment management firm, forecasts that electric vehicles or EVs in India will significantly increase their share of the country’s electricity consumption by the year 2035. According to the findings, EVs are anticipated to contribute between 6% and 8.7% to India’s total electricity usage, highlighting the rapid adoption of electric vehicles and their subsequent effects on the power grid.
The report underscores the global trend of rising EV adoption, revealing that in 2023, electric vehicles accounted for 18% of total car sales around the world. Notably, China played a pivotal role in this surge, representing more than half of the global sales figures. This sharp increase in EV usage is poised to have a profound effect on electricity consumption patterns on a worldwide scale.
As outlined in the report, the share of global electricity consumption attributed to electric vehicles is expected to rise significantly, moving from just 0.5% in 2023 to an estimated range of 8.1% to 9.8% by 2035. This anticipated growth in the utilization of electric vehicles emphasizes the urgent need for countries like India to enhance their energy infrastructure to accommodate the rising demand for electricity.
With more individuals opting for electric vehicles, it will be essential for the power sector to expand its capacity to efficiently meet this new demand. In addition to the increasing electricity consumption from electric vehicles, the report highlights another pressing issue facing India: the surging demand for cooling appliances, especially air conditioners (ACs).
As extreme temperatures become more frequent across the nation, the necessity for cooling solutions is projected to rise dramatically. The data presented in the report indicates that the penetration of household appliances, particularly air conditioning units, is set to escalate sharply in India over the next decade. Specifically, the demand for air conditioning is anticipated to double by the year 2030.
This surge is largely attributed to the intensifying heatwaves and rising temperatures, compelling more households to invest in cooling devices. This trend will further contribute to the overall electricity consumption in the country. With these evolving dynamics in both the electric vehicle sector and the demand for cooling solutions, it is clear that India must strategically prepare its energy infrastructure to meet these challenges.
The confluence of increased electricity consumption from electric vehicles and the rising demand for air conditioning poses a significant challenge for the nation’s power sector. To navigate these changes effectively, concerted efforts will be necessary to ensure that the infrastructure can handle the growing electricity needs and maintain a stable power supply for its citizens.
As India moves towards a future with a greater reliance on electric vehicles and enhanced cooling solutions, the emphasis on developing robust energy systems will be crucial in sustaining economic growth while addressing the environmental implications of increased electricity consumption.
