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India set to nearly double its energy consumption over the long term, says Modi
New Delhi, October 26, 2020
India is set to nearly double its energy consumption over the long term, Prime Minister Narendra Modi today said at the inauguration of the 4th India Energy Forum CERA Week.
US Secretary of Energy Dan Brouillette, Saudi Arabian Energy Minister Prince Abdul Aziz, IHS Markit Vice Chairman Dr Daniel Yergin, Minister for Petroleum & Natural Gas and Steel Dharmendra Pradhan and Captains of Global Oil and Gas Industry attended the inaugural session of the forum.
Referring to the theme of the conference, "India's Energy Future in a World of Change", the Prime Minister said India's energy future was bright and secure despite the challenge faced by the energy sector this year with the demand falling by almost one third.
“There has been price instability. Investment decisions have been impacted. Leading global bodies project that there will be a contraction in global energy demand over the next few years also. But these agencies project India to emerge as a leading energy consumer. India is set to nearly double its energy consumption over the long term.
“There are many areas in which we see this vibrancy. For example, take aviation. India is the third-largest and the fastest-growing aviation market in terms of domestic aviation. Indian carriers are projected to increase their fleet size from 600 to 1200 by 2024. This is a big jump,” he added.
“India believes that access to energy must be affordable and reliable. That is when socio-economic transformations can take place. We view the energy sector as one that empowers people and furthers Ease of Living. India achieved 100% electrification. LPG coverage increased. These changes particularly helped our rural areas, our middle class and the women of India.
“India's Energy Plan aims to ensure energy justice. That too while fully following our global commitments for sustainable growth. This means more energy to improve the lives of Indians. But, with a smaller carbon footprint. Our energy sector will be growth-centric, industry-friendly and environment conscious. That is why India is among the most active nations in furthering renewable sources of energy,” Modi said.
In the last six years, more than 36 crores or 360 million LED bulbs were distributed. The cost of LED bulbs has also reduced 10-fold. More than 1.1 crores or 11 million smart LED streetlights were installed. These have enabled an estimated energy savings of 60 billion units per year.
The estimated greenhouse gas emission reduction with this programme is over 4.5 crore or 45 million tonnes of Carbon dioxide annually.
“Along with all this, we also saved around Rs 24,000 crore or Rs 240 billion annually. It is due to such interventions that reports have said that India is the most attractive emerging market for clean energy investment.
“As I said, India will always work keeping in mind global good. We are well on track to meet the commitment we made to the global community. We had aimed to increase the renewable energy installed capacity by 175 GW by 2022. We have further extended this goal to 450 GW by 2030. India has one of the lowest carbon emissions than the rest of the industrialized world. Yet, we will continue to make efforts to fight climate change,” he said.
India’s reform journey has been at high speed for the last six years. The energy sector has seen many path-breaking reforms. Reforms in Exploration and Licensing Policy were put in place in February 2019. The focus has shifted from 'revenue' to 'production' maximisation. There is also focus on greater transparency and streamlined procedures, he noted.
“We plan to grow our refining capacities from about 250 to 400 Million Metric Tonnes Per Annum by 2025. Increasing domestic gas production has been a key government priority. We plan to achieve 'One Nation One Gas Grid' and shift towards a gas-based economy,” he added.
The Prime Minister also made a plea for responsible pricing of oil as for too long, the world has seen crude prices on a roller-coaster. “We need to move towards responsible pricing. We have to work towards transparent and flexible markets for both oil and gas.”
Earlier this month, the Government announced Natural Gas Marketing Reforms to increase domestic production of natural gas as also to bring uniformity in the market price discovery of gas. They will give greater marketing freedom in the sale of natural gas through e-bidding. India's first automated national-level gas trading platform was launched in June this year. This prescribes standard procedures to discover the market price of gas.
“We are moving forward with the vision of ‘Atmanirbhar Bharat,' a self-reliant India that will also be a force multiplier for the global economy. Energy security is at the core of our efforts. You would be happy to know that our work is giving positive results. During these challenging times, we have witnessed investment through the oil and gas value chain. We are seeing similar signs in other sectors too.
“We are driving strategic and comprehensive energy engagements with the key global energy players. As part of India's Neighbourhood First Policy, we are developing energy corridors with our neighbouring countries for mutual benefit,” he added.