Speaking at the FT Live Energy Transition Summit India, organised in collaboration with the Government of India, Puri outlined India’s path towards reducing its reliance on crude oil imports and bolstering renewable energy initiatives.
“India is well-positioned. The rates of transition to green energy are good,” Puri remarked, adding that moving ahead 25% of the projected increase in global energy demand will come from India.
The country is currently demonstrating progress on various green energy fronts, and with energy demand three times the global average, the need for a sustainable transition is paramount.
Puri noted the government’s efforts to push the natural gas mix from the current 8% to 15%, saying, “15% gas in the energy mix is feasible now.”
He also underscored India’s achievements in ethanol blending, stating, “We are going to complete 20% ethanol blending by 2025, five years ahead of schedule.”
Touching on the critical role of green hydrogen in the country’s energy future, Puri expressed confidence in its potential.
“My firm belief is that the fuel of the future is green hydrogen. The transition will take place when we are able to crack the equation,” he said. He also pointed out that manufacturers of electrolysers are increasingly setting up operations in India, signalling a localised production boom.
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While the focus shifts to green hydrogen and EVs, the minister assured that India’s refining sector will remain robust, with plans to expand refining capacity from 252 MMT to 400-450 MMT per annum.
“India will be one of the few refining hubs globally,” he stated. However, he cautioned that smaller refineries would no longer be feasible in future.
As the world pivots towards cleaner energy sources, India is taking steps to reduce its dependence on crude oil imports, which cost the nation $150 billion annually.
India’s domestic EV sector has also shown significant growth. “70% of vehicular traffic is two- or three-wheelers, most of which are being powered by battery swap technology,” Puri said. He also praised the rapid rollout of new EV models, emphasising that these vehicles are not imported from China.
On future energy costs, he was optimistic about the declining prices of renewable energy. “We need to bring the cost of clean solar energy down. We have already reduced it from 25 cents to 3 cents,” he stated, noting that the cost of green hydrogen is also expected to fall.