India’s fossil fuel consumption rises by 8% in 2023: Report

Fossil fuel consumption in India increased by 8% in 2023, accounting for nearly all the demand growth and maintaining a dominant share of 89% in the country’s overall energy consumption, according to a report by the Energy Institute (EI).

The EI report, produced in collaboration with KPMG and Kearney, highlights that for the first time, India’s coal usage surpassed the combined consumption of Europe and North America.

On Thursday, EI released the 73rd annual edition of the Statistical Review of World Energy, providing comprehensive global energy data for 2023.

The report identifies five key trends from the 2023 data, beginning with record global energy consumption, driven by coal and oil, which pushed fossil fuels and their emissions to unprecedented levels.

“Global primary energy consumption reached a record high, increasing by 2% from the previous year to 620 exajoules (EJ). Fossil fuel consumption globally hit a record high of 505 EJ, a 1.5% increase, with coal up 1.6% and oil up 2%, surpassing 100 million barrels for the first time, while gas consumption remained flat,” the report stated.

Despite the rise in absolute numbers, the share of fossil fuels in the overall energy mix slightly declined to 81.5% from 82% last year. Energy-related emissions increased by 2%, exceeding 40 gigatonnes of CO2 for the first time.

Renewable electricity generation from solar and wind also reached new heights, with non-hydro renewables growing by 13% to a record 4,748 terawatt-hours (TWh), driven primarily by wind and solar, which accounted for 74% of all net additional electricity generation.

Renewables, excluding hydro, constituted 8% of primary energy use, or 15% when including hydro. The ongoing conflict in Ukraine has further rebalanced gas usage in Europe, with European gas demand falling by 7% following a 13% decrease the previous year. Russia’s share of EU gas imports dropped to 15% from 45% in 2021, with LNG imports surpassing piped gas to Europe for the second consecutive year.

In major advanced economies, reliance on fossil fuels appears to have peaked. In Europe, fossil fuels fell below 70% of primary energy for the first time since the Industrial Revolution, driven by reduced demand and growth in renewable energy. The US saw its fossil fuel consumption fall to 80% of total primary energy.

Emerging economies continue to struggle with reducing fossil fuel dependence, although renewables are accelerating in China. Africa’s primary energy consumption fell by 0.5% in 2023, with fossil fuels accounting for 90% of total energy consumption and non-hydro renewables at only 6%.

China, recovering fully post-COVID, saw fossil fuel use rise by 6%, reaching a new high, though its share of primary energy has been declining since 2011, down to 81.6% in 2023. China also contributed 55% of all renewable generation additions in 2023, more than the rest of the world combined, and surpassed Europe in energy consumption per capita for the first time.

*EI President Juliet Davenport OBE HonFEI stated, “With global temperature increases averaging close to 1.5°C, 2023 was the warmest year since records began, and the increasingly severe impacts of climate change were felt across all continents.”**

“In this year’s Statistical Review, we report on another year of highs in our energy-hungry world. 2023 saw record consumption of fossil fuels and record emissions from energy, but also record generation of renewables, driven by increasingly competitive wind and solar energy,” she added.

EI Chief Executive Nick Wayth CEng FEI commented, “The progress of the energy transition is slow, but the big picture masks diverse energy stories playing out across different geographies. In advanced economies, we observe signs of fossil fuel demand peaking, contrasting with economies in the Global South, where economic development and improvements in quality of life continue to drive fossil fuel growth.”**

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