Oil Minister Hardeep Singh Puri urged a balanced approach to energy transition, emphasizing that while fossil fuels remain critical in the short term, the shift to cleaner sources should be just and affordable for developing nations. Speaking at the India Energy Week inaugural session, Puri stressed that the transition is about prioritizing energy sources, not eliminating hydrocarbons overnight.
“Energy justice must shape the new energy order,” Puri remarked, pointing out that fragmented efforts could deepen global inequality by leaving billions without reliable energy access. He warned that a politically unsustainable transition could fail without inclusive strategies.
Fossil Fuels in the Energy Mix
India continues to rely heavily on coal, oil, and natural gas to meet its growing energy demand. Puri emphasized that even as renewable energy expands, fossil fuels will play an essential role in ensuring grid stability, industrial hydrogen production, and energy storage innovations.
“The world is witnessing major geopolitical shifts and recalibrating its energy strategies,” Puri added, noting that global energy markets are evolving rapidly. He also highlighted that despite this transition, India remains focused on increasing biofuel, renewable energy, and hydrogen adoption.
According to the International Energy Agency (IEA), global energy investments surpassed $3 trillion in 2024, with $2 trillion directed toward clean energy technologies. However, Puri pointed out that climate change is no longer a distant threat, with record-breaking wildfires, floods, and extreme temperatures serving as urgent warnings.
Emerging Drivers of Demand
Puri identified artificial intelligence (AI) and clean cooking access as critical drivers shaping India’s future energy landscape. AI, now a major energy consumer, is projected to drive up data center demand by 18-20% annually through 2030.
India’s AI-driven digital economy, valued at $400 billion by 2030, presents both challenges and opportunities. “The question is how we will meet this surge in demand without destabilizing grids or derailing climate commitments,” Puri said, advocating for a hybrid energy strategy combining natural gas, coal with carbon abatement, and next-generation nuclear power.
Also read: Tata Power to Double Tirunelveli Solar Capacity
Strategic Investments for Transition
Puri underscored the importance of targeted investments in both renewable and conventional energy. He pointed to India’s ambitious goals, including producing 5 million tonnes of hydrogen by 2030, scaling biofuel capacity, and increasing the gas share in its energy mix from 6% to 15%.
“Smart capital reallocation is essential—deploying wind and solar where intermittency is manageable, biofuels where liquid fuel demand persists, and gas where firm power is needed,” he explained.
Additionally, he cautioned against supply chain disruptions in critical resources like lithium, nickel, and semiconductors. Such issues, he warned, could leave developing economies marginalized in the global energy transition.
Policy Reforms and Investment Opportunities
India offers a compelling investment landscape with extensive upstream resources, biofuel feedstock, and rising energy demand. Puri called for dynamic policy frameworks to incentivize innovation, mitigate investment risks, and support long-term commitments.
“Success will be measured not by how fast the wealthiest decarbonize, but by how inclusively the world transforms,” he concluded, emphasizing the need for both government and industry collaboration to ensure a just and equitable energy transition.
