Thanks to rising income, population growth, and urbanization, there is a considerable potential for energy demand growth in India, which is home to about a fifth of the world's population but uses only about six percent of the world's energy. India's energy demand is expected to more than double over the next 25 years, according to the IEA's India Energy Outlook.
Even before COP21 in Paris, India announced a very ambitious renewable target: installing 175 gigawatts (GW) of renewable capacity by 2022, a quadrupling of renewable energy capacity in just seven years.
Prime Minister Modi has put in place policies to press ahead with the country's modernization, including a significant transformation of energy provision. An ambitious programme is underway to expand and upgrade the electricity sector, including a commitment to reliable and affordable power under the 24x7 Power for All initiative, as well as a significant push to deploy solar and wind power. Other energy-sector reforms focus on improving incentives to produce oil and natural gas, promote energy efficiency and increase access to modern fuels.
That said hydrocarbons remain at the core of India's energy policy. Crude oil consumption is expected to grow at a CAGR of 3.60 percent to 500 million tonnes by 2040 from 221.76 million tonnes in 2017. While natural Gas consumption is forecasted to increase at a CAGR of 4.31 percent to 143.08 million tonnes by 2040 from 54.20 million tonnes in 2017.
Meeting the growing demand
There is a total of 23 refineries in India and IndianOil operates 11 of them. They also have the distinction of operating the world's oldest operating refinery, AOD Digboi Refinery, which began production over 100 years ago in 1901 and is still running. The plant is currently undergoing modernization to prepare it for Euro 6 fuel production.
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