Faster Electrification Could Help India Reduce Energy Import Exposure By 2035: IEA

New Delhi, Sep 24 (KNN) India’s electrification rate could rise from 19 per cent currently to 32 per cent by 2035, with transport electrification expected to play a significant role, according to the International Energy Agency’s (IEA) latest Electrification report.

The IEA said faster electrification could also help fuel-importing economies reduce exposure to energy price and supply shocks. Globally, energy import bills could fall by more than USD 400 billion by 2035 compared with 2025 if countries substantially accelerate electrification.

For India, the resulting reduction in energy imports could amount to savings equivalent to nearly 30 per cent of its 2025 import bill, the report estimated, reported Business Standard.

EV Adoption Gains Momentum

Electric mobility is emerging as a major driver of electrification in India. Sales of electric cars increased by over 115 per cent between March and June 2026 compared with the same period in 2025, while EVs accounted for more than 65 per cent of three-wheeler sales in 2025.

The IEA said smart charging, time-of-use tariffs and vehicle-to-grid systems could help shift EV charging towards off-peak periods in India, improving grid utilisation as solar power generation expands.

India has also launched a programme to procure and deploy 500,000 induction cooktops, amid concerns over energy supply and prices following disruptions linked to the West Asia conflict and shipping through the Strait of Hormuz.

Southeast Asia Also Sees Faster Electrification

In Southeast Asia, the electrification rate could rise from 25 per cent to 37 per cent by 2035. The IEA said electric two- and three-wheelers and cars are already cheaper on average over their typical ownership period than internal combustion engine alternatives in the region.

Electricity demand in both India and Southeast Asia grew at an average annual rate of around 5 per cent between 2015 and 2025, driven by rising demand from buildings and industry.

Cooling Demand To Rise

The IEA also projected rapid growth in cooling demand as incomes and temperatures increase. India and Southeast Asia could together account for around 20 per cent of the global air-conditioner stock by 2035, up from less than 10 per cent currently.

The agency said nearly 90 per cent of new residential air-conditioner stock added by 2035 is expected to be in emerging markets and developing economies.

China accounted for more than 60 per cent of the global increase in electricity demand over the decade to 2025, while strong growth in buildings and non-energy-intensive industries supported rising electricity demand across emerging economies.

(KNN Bureau)