India’s electricity demand is projected to triple to a staggering 4 trillion units (TWh) by 2035, driven by industrial expansion, urbanisation, and the electrification of transport, according to a report released on Friday by OmniScience Capital.
By 2035, three transformative sectors—electric vehicles (EVs), data centres (DCs), and railways—are expected to be among the largest consumers of electricity, collectively consuming around 500 TWh, or 12–13 per cent of India’s total projected power demand.
This marks a pivotal shift in the country’s energy landscape, where traditional industrial and residential consumption is now being complemented by these emerging drivers.
The report underscores the importance of India’s energy transition for a sustainable future. Policy initiatives such as the Net Zero target, the 500 GW renewable energy goal, EV adoption, and the rooftop solar push are playing a critical role in driving this transformation.
India’s per capita electricity consumption is expected to nearly double—from 1,400 kWh in 2024 to 2,575 kWh by 2035—driven by rapid economic growth, urbanisation, and rising household incomes.
“India’s electricity demand reaching four trillion units by 2035 is a signal of the country’s accelerating industrial growth, digital transformation, and rising quality of life,” said Ashwini Shami, Executive Vice President at OmniScience Capital. “This trend unlocks significant investment potential in energy infrastructure, renewable energy, and modernising the grid.”
As more people migrate to cities and adopt energy-intensive appliances, and as industries expand under initiatives like Make in India, electricity consumption is set to increase significantly. The push for digital infrastructure, EVs, and rural electrification is expected to further drive this growth.
The report also notes that the transition to cleaner and more accessible energy sources will make electricity more affordable and widely available, leading to increased consumption across all sectors.
India’s commercial and service sectors are emerging as major engines of electricity demand. From 181 TWh in 2023, consumption in these segments is projected to rise to 798 TWh by 2035, marking a 4.4x increase and a compound annual growth rate (CAGR) of 13.2 per cent—the second-fastest among all sectors. This would raise their share to nearly 20 per cent of total electricity usage, reflecting India’s rapid shift toward a service-led, digitally connected economy.
The transport sector—comprising EVs and railways—is projected to become the fastest-growing consumer of electricity, with usage expected to surge from 25 TWh in 2022 to 162 TWh by 2035, representing a CAGR of 16.8 per cent. The main drivers include accelerated EV adoption, the expansion of charging infrastructure, and railway electrification, the report added.
—IANS