Page 48 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The 7th G-STIC (Global Sustainable Technology and Innovation Community) Conference organized by TERI
and VITO along with the support of eight other not-for-profit independent technology research institutes,
is being hosted in India for the first time. The Conference will deliberate on challenges under the umbrella
theme “Harmonizing Technology, Policy and Business Pathways for Sustainable Future and Coexistence”.

Speaking at the inaugural session of the Conference, Shri Hardeep Singh Puri discussed the critical
trilemma that democratically elected governments face globally: balancing affordability, availability, and
sustainability in energy policy. He pointed out that as global energy demand rises, India’s own energy
consumption is projected to increase significantly—from 5.4 million barrels per day today to an
anticipated 7 million barrels per day by 2030. This growing demand positions India as a major contributor
to global energy consumption, with projections indicating that 25% of the increase in global energy
demand over the next two decades will originate from India alone.

Affordability remains a primary concern in addressing this energy transition. The Minister emphasized the
government's commitment to research and development, citing innovative solutions such as hydrogen
fuel cell technology being piloted in public transport. Currently, India is operating 15 hydrogen-powered
buses, which are still in the demonstration phase. These initiatives reflect a broader vision for sustainable
transport solutions that can contribute to reducing the carbon footprint.

A highlight of the address was the substantial progress made in ethanol blending, which has surged from
just 1.53% in 2013-14 to 16% today. This achievement has prompted the government to advance its
blending target of 20% from 2030 to 2025, showcasing a proactive approach to energy sustainability. Shri
Puri noted that discussions have already begun to establish a roadmap for sustainable energy solutions
beyond the 20% blending target, indicating a forward-thinking strategy that anticipates future energy
needs.

The Minister stressed the need for addressing the energy requirements of developing nations, particularly
in the Global South, where many countries rely heavily on energy imports. He expressed confidence that
the success of India’s ethanol initiatives could serve as a model for these regions, although he
acknowledged that unlike Brazil, India lacks the luxury of abundant arable land for biofuel production.
Nevertheless, he emphasized the potential for innovative biofuel strategies to alleviate import
dependency while addressing local energy needs.

The Minister also highlighted the transformative impact of the Ujjwala scheme, launched in 2016, which
has significantly expanded access to cooking gas. The number of cylinder connections has increased from
140 million to 330 million, providing clean cooking fuels to economically weaker sections of society. This
initiative, along with other social schemes of Government, has played a crucial role in lifting approximately
250 million people out of multidimensional poverty under Prime Minister Narendra Modi’s leadership.

In his concluding remarks, Shri Hardeep Singh Puri focused on the potential of green hydrogen as a game-
changer for India’s energy landscape. He outlined the importance of local demand, production, and
consumption in making green hydrogen a viable energy source. The key challenge remains in reducing the
cost of production, and he called for ongoing innovation and scaling of technology in this sector.

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