EVs and Cooling Demand to Surge India's Electricity Consumption

A report by IKIGAI Asset Manager Holdings projects electric vehicles (EVs) to consume up to 8.7% of India's electricity by 2035. The report also details the rising demand for cooling devices due to extreme temperatures, forecasting a significant increase in air conditioner usage by 2030.

A new report by IKIGAI Asset Manager Holdings indicates that electric vehicles (EVs) in India are poised to consume a substantial portion of the country's electricity by 2035. The study estimates that by 2035, EVs will account for 6 to 8.7% of India's total electricity consumption, underlining the growing adoption of electric mobility and its ramifications on the power grid.

According to the report, the global adoption of EVs is also accelerating. In 2023, EVs comprised 18% of all new car sales worldwide, with China responsible for more than half of those sales. This rapid uptick in EV use is anticipated to significantly influence global electricity consumption, with projections showing an increase from 0.5% in 2023 to between 8.1% and 9.8% by 2035.

This surge in EV usage underscores the necessity for countries, including India, to upgrade their energy infrastructure to accommodate the increased demand. As EV adoption rises, the power sector will need to enhance its capacity to meet the new electricity requirements. Additionally, the report highlights a pressing issue for India: the growing need for cooling devices, particularly air conditioners (ACs), amid escalating temperatures. The demand for ACs is predicted to double by 2030, bolstered by the surge in extreme heat, leading to further spikes in electricity consumption. (ANI)