A Panel Discussion on "World Energy Report 2017"
TERI in collaboration with the International Energy Agency (IEA) hosted a panel discussion addressing the facts and findings of the 'World Energy Report 2017' on July 18, 2017 at the Seminar Hall, TERI, IHC.
IEA Report: India ranks third globally in energy investment
'Energy investment in India has grown by 7% since 2016 and is attributed to Modi government's keenness to expand the power system'
The latest report by the International Energy Agency (IEA) - the 2017 World Energy Investment report - stated that the energy investment in India has upped by 7%. The report that was released on Tuesday went on to say that India has cemented its position as the third-largest country in energy investment after China and the United States, and attributed this to the strong push by the government to modernise and expand the country's power system and enhance access to electricity supply.
"Investment in India's electricity sector reached nearly US $ 55 billion. Of this, over 50% has gone to renewables and networks. However, progress is needed to reform electricity tariffs to reflect underlying system costs, finance the grid and strengthen price signals for efficient generation," said Michael Waldron, the project co-manager of the IEA World Energy Investment report, releasing the report in India on Tuesday.
Dr Ajay Mathur, Director General, TERI pointed out at the launch of the report that the investment in energy sector is declining. Referring to the report, he said, "While US, China and India might be investing more in energy sector, the fall in investment in other countries is so drastic that it has impacted the global investment adversely."
One field that was extensively discussed was the increase in investment in promoting energy efficiency. The report said that the total energy investment was $1.7 trillion in 2016, where energy efficiency was the biggest growth sector. "Policy continues to underpin efficiency spending, especially in buildings insulation, heating systems and home appliances. Much of the growth in transport efficiency spending is in electric vehicles," said Waldron in his presentation.
He also spoke about China's thrust on clean power, and said that China, the world's largest energy investor, has been cutting down its investment on coal. "China's rate of commissioning new coal-fired power plants has dropped by 25 per cent in 2016. This is likely to lead to a dramatic decline for global investment in coal-fired power plants, after China invested an all-time high in coal during the past several years," he added.
The key findings of the World Energy Investment Report, 2017 are:
- Investment fell by 12% in 2016, a second consecutive year of decline, and electricity sector investment overtook oil, gas and coal investments combined
- An upswing of US shale investment is creating a two-speed oil market and triggering a rapid transformation of the oil and gas industry
- Although electricity investment remains robust, policies need to focus on maintaining supply adequacy, stimulating an acceleration of clean power and strengthening market signals for investment in flexibility
- The clean energy transition needs more R&D but energy R&D expenditures are stable; there is a lot of scope for increased spending on energy innovation by governments and, in particular, the private sector