Union minister for petroleum and natural gas Hardeep Sing Puri on Wednesday said that India will turn into as a major green hydrogen hub and exporter by 2040, catering to both domestic and global demand.
Speaking at the CII Annual Session 2023, the minister said that the energy demand in the country would continue to grow at a rapid pace for the next 20 years, and energy demand in India would account from 25% of the global demand growth during the period.
He also said that along with growth in cleaner fuels, the exploration and production of oil and gas in the country also would go up “exponentially”.
Citing the recent decision by OPEC and its allies, commonly known as OPEC+, to go ahead with additional production cuts, the minister said that although there were concerns that the move would cause a surge in global crude prices, it did not happen as several member countries of OPEC did not ho ahead with the committed production cuts to avoid revenue losses.
“India’s energy sector is today witnessing a trilemma in terms of lack of availability, affordability and sustainability, and it is imperative to find out solutions to address these issues,” he said.
He was of the view that due to India’s size and complexity; India cannot afford even a marginal disruption in supply availability. Further, it is essential to prioritise affordability as there is no point in having accessibility without affordability, he added. The third essential focus area is sustainability, Puri said.
Elaborating on the need for availability and affordability of energy supply, Puri said: “in India you can’t afford to suddenly raise prices.” He added that although India is following market principles with regards to setting the price, it continues to need some form of administered price mechanism.
The minister said it is essential to prioritise affordability as there is no point in having accessibility without affordability.
Further, in terms of energy innovation, the minister stated that India has already significantly reduced the cost per unit of solar power, however, further success will come from the use of green hydrogen or the fuel of the future.
He said that through the national green hydrogen mission, the government has already established and ecosystem for green hydrogen that is conducive to success. (May 24, 2023)
INDIA - GREENH2 - SUPPLIES - IMPORTS - EXPORTS