WEC: Huge energy investment needs seen for China, India

Nov. 14, 2007
China will need $3.7 trillion worth of investment for energy projects by 2030, India's secretary for power said Nov. 14 at the World Energy Congress in Rome.

Uchenna Izundu
International Editor

ROME, Nov. 14 -- China will need $3.7 trillion worth of investment for energy projects by 2030, of which three fourths will be dedicated to electric power alone, India's secretary for power said Nov. 14 at the World Energy Congress in Rome. India, by contrast, will require $1.25 billion, with a similar share for power.

Anil Razdan said both countries need technology that will reduce emissions of coal used for power generation because oil and gas imports are too expensive. Market forces alone cannot develop technologies, he said. International cooperation is necessary to ensure that developing countries benefit from the best technologies if they are to meet their power requirements.

"We can't leave market forces alone for individual profit," he stressed, calling demand-cycle management and energy efficiency critical strategies.

Although India and China have plentiful coal reserves, Razdan warned that they might have to import coal. "India may have to import more than China whose reserves are on the coast," he said. "India's are in the interior, and this adds more pressure with transportation costs."

According to Razdan, India's coal demand is projected to grow two-fold by 2030, and oil requirements are expected to increase by 2.5% and nuclear power by 5.8%.

"China's oil needs are forecasted to rise by 2.6% and nuclear by 10.5%," he said.

Economic growth in these countries with the world's largest populations is fuelling the huge demand for energy. Conservative estimates place their growth in gross domestic product at 8-9%/year and energy consumption at 7-8%/year, Razdan added. Chinese and Indians aspire to own cars and consumer goods, which will have serious implications for carbon emissions if left unchecked.

Razdan said efforts are being made to increase the use of renewable energy sources, but these are not always economic options or available in sufficient amounts.

Contact Uchenna Izundu at [email protected].