India's Energy Transition: Challenges and Opportunities for a Gas-Based Economy
Key Ideas
- India's slow transition to a gas-based economy is a concern, with the current gas share in the energy mix lingering at just 6-7% despite ambitious targets.
- The government is implementing reforms like HELP and OALP to make the bidding process more investor-friendly, aiming to increase domestic production and reduce disputes.
- The focus is shifting towards clean energy, with green hydrogen gaining attention due to falling prices and investments in infrastructure like green hydrogen buses.
- The National Green Hydrogen Mission aims to build 5 MMT of annual production capacity by 2030, supported by incentives, but creating sufficient demand remains a challenge.
India's Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, expressed dissatisfaction at the slow pace of India's transition to a gas-based economy at the CII Annual General Meeting. Despite ambitious targets, the country's gas share in the energy mix remains low at 6-7%. While reforms like HELP and OALP aim to boost domestic production and reduce disputes, challenges persist, with domestic crude output falling and high dependency on oil and gas imports. However, there is optimism as companies like ONGC invest in drilling wells, and the government focuses on policy reforms and cleaner fuels like green hydrogen.
Green hydrogen has emerged as a key focus area, with falling prices making it more viable. The government's National Green Hydrogen Mission aims to build significant production capacity by 2030, but demand creation remains a hurdle. Other cleaner fuel initiatives, such as biofuel blending, have seen success, but challenges like rising fuel imports and transitioning to green energy loom large. The government is optimistic about the future, betting on technology, scale, and policy reforms to bridge the gap and boost the energy sector's ecological impact.
Topics
Green Hydrogen
Public Transit
Clean Energy
Energy Transition
Biofuels
Policy Reforms
Domestic Production
Energy Demand
Oil And Gas Sector
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