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India’s Electricity Demand Likely To Triple To 4 Trillion Units By 2035: Report

OMMCOM NEWS by OMMCOM NEWS
June 27, 2025
in Nation
India’s Electricity

Mumbai: India’s electricity demand is expected to record a three-fold jump to a staggering 4 trillion units (TWh) by 2035, driven by industrial expansion, urban growth, and the electrification of transport, according to a report from OmniScience Capital released on Friday.

According to the report, by 2035, three transformative sectors — electric vehicles (EVs), data centres (DCs), and railways are estimated to be the largest consumers of power, consuming a combined 500 TWh of electricity, accounting for around 12-13 per cent of India’s total projected power demand of 4 TWh.

This marks a pivotal shift in the country’s energy landscape, where traditional industrial and residential consumption is now being complemented by these futuristic drivers.

Energy transition has become critical for a sustainable future; initiatives and policies such as Net-zero, 500 GW Renewable power target, EV adoption, the rooftop solar push, and others are driving this transformation, the report states.

The report further states that India’s per capita electricity use is likely to nearly double from 1,400 kWh in 2024 to 2,575 kWh in 2035. The reasons behind this surge in growth are the rapid economic growth, urbanisation, and rising household incomes.

Ashwini Shami, EVP at OmniScience Capital, said: “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. This trend unlocks significant investment potential in energy infrastructure, renewable energy, and modernising the grid.”

As more people move to cities and adopt energy-intensive appliances, and as industries expand under initiatives like ‘Make in India’, electricity demand will likely surge. The push for digital infrastructure, electric vehicles, and rural electrification is likely to further accelerate usage.

Additionally, India’s transition to cleaner, more accessible energy sources will make electricity more affordable and widely available, driving higher consumption across all sectors.

India’s commercial and other sectors are emerging as powerful 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 CAGR of 13.2 per cent — the second-fastest among all sectors. This surge is likely to elevate their share to nearly 20 per cent of total electricity consumption, reflecting the country’s rapid shift toward a service-driven, digitally connected economy, according to the report.

India’s transport sector (EV + Railways) is set to become the fastest-growing consumer of electricity, with consumption projected to surge from 25 TWh in 2022 to 162 TWh by 2035, growing at a CAGR of 16.8 per cent. The major drivers behind this transformation are the accelerated adoption of electric vehicles (EVs), the expansion of charging infrastructure and the electrification of railways, the report added.

(IANS)

Tags: ElectricityMumbaireport
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