China and India are facing the dual challenge of increasing their energy consumption to improve living standards and meet the needs of their growing populations while also transitioning to cleaner energy sources. Both countries are witnessing a surge in energy demand for services like heating, cooling, transportation, and more, as they strive to reach the living standards of advanced economies.
The growth in energy consumption in both fossil fuels and renewable sources is happening simultaneously. This means that fossil fuels and renewables are acting as complements rather than substitutes, reflecting an ‘all of the above’ approach to economic development and energy security.
This increased energy consumption leads to more labour-saving technologies, higher wages, greater comfort, increased entertainment, and expanded opportunities for travel. If China and India follow this historical pattern, they will likely consume significantly more energy services in the coming decades as they aim to reach the living standards of North America and Europe.
Both countries current energy consumption levels are still much lower than those of OECD countries, even when accounting for their energy-intensive exports. This means that as they continue to modernise, China and India will need to use significantly more energy, necessitating an ‘all of the above’ energy strategy.
In recent years, both China and India have made significant strides in expanding their renewable energy capacities, with a more rapid growth rate in renewables compared to thermal (fossil) capacity. Nonetheless, in 2022, fossil fuels still accounted for a substantial percentage of their primary energy consumption.
As reported by NATURAL GAS WORLD, as India and China progress through their development phases, it becomes crucial for them to strike a balance between increasing energy access, affordability, and reliability and transitioning to cleaner energy sources. This is a challenge that they share with many other developing regions, such as sub-Saharan Africa, which is also experiencing rapid population growth and has great potential for future energy consumption.
