New Delhi, Feb 11: Calling for a nuanced understanding on ‘energy transition’, India on Tuesday said the shift from polluting fossil fuels to cleaner sources should be just where affordable energy is available to meet needs of developing nations.
Speaking at the inaugural session of India Energy Week, Oil Minister Hardeep Singh Puri said energy transition “is not outright replacement (of any fuel) but more shifting the primacy of one energy source over another.”
Developing nations like India meet most of the energy demand from fossil fuels such as coal, oil and natural gas. While there is a call to shift from the polluting sources to renewables, India feels that move cannot be abrupt, with oil and gas as well as coal continuing to meet energy demand in the period when the cleaner sources are scaled up.
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“The very notion of ‘energy transition’ requires a nuanced understanding. It is not outright replacement, but more shifting the primacy of one energy source over another,” he said. “The transition isn’t about eliminating hydrocarbons overnight but leveraging them strategically while scaling renewables to mitigate emissions.”
For too long, energy transition has to be framed as a linear journey – from fossil fuels to renewables, from past to future, from problem to solution.
“Even when renewables become the dominant energy sources, oil and gas will continue to play a pivotal role, not just in power generation but in stabilising grids, industrial hydrogen, and energy storage innovations,” he said.
“Energy justice must shape the new energy order. One thing has become absolutely clear to all stakeholders. Energy justice must remain at the core of the imminent transformation.”
A fragmented transition risks deepening inequality, leaving billions without reliable energy while wealthier nations surge ahead. “If the transition is not just, it will not succeed because the political economy will not allow it.”
“I don’t think anyone here would disagree with me when I say that last few years – encapsulated in the whirlwind events of 2024 – have left the global energy order in transition. These include major geopolitical shifts.”
“Nobody can say, with any degree of certainty, what the new framework for global energy markets will look like. But we can be sure that it is going to be transforming at breakneck speed, driven by forces that are both accelerating and colliding,” he said.
Puri said the world is witnessing a recalibration of strategy, prioritising near-term profitability while keeping long-term transition efforts in play.
“Before anyone accuses me of ignoring our environmental obligations, I must state that the primary focus remains on increasing the adoption of biofuels, renewables, and hydrogen,” he said adding the IEA estimated that global energy investment was going to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion going to clean energy technologies and infrastructure.
Climate change, he said, is no longer a looming threat. It is unfolding in many grave disasters, wildfires, floods, and record-breaking temperatures are clear reminders that the world is running out of time.
The minister said three forces that will play a pivotal role in shaping the energy landscape in the coming years are new drivers of demand – artificial intelligence and clean cooking, balancing immediate challenges with long-term vision and resilient supply chains for an orderly transition.
AI, he said, is now one of the largest energy consumers, with data centre demand rising 18-20 per cent annually by 2030. India’s AI-driven digital economy, projected to reach USD 400 billion by 2030, presents both a challenge and an opportunity. “The real question is not how we will meet this surge in demand, but how we will do so without destabilising grids or derailing climate commitments,” he said.
Stating that renewables alone won’t be enough, he said AI-driven demand requires round-the-clock reliability, meaning natural gas, coal with carbon abatement, and next-generation nuclear will remain essential.
“But the potential benefits are immense. AI itself will enhance fossil fuel efficiency, reshaping the energy equation where intelligence, not just resources, dictates energy security. The next great energy leap will come from dismantling the idea of centralised energy in the form of AI-driven grids that predict demand before it happens,” he said.
On the other hand, expanding clean cooking access requires a multi-fuel strategy, scaling traditional LPG, augmenting bio-CNG, accelerating electrification, and channelling investments into areas such as integrating decentralised renewables like wind-powered micro-grids to support electric and induction cooking.
Puri said the answer to energy transition lies in strategic investment across hydrocarbons and renewables. “The future lies in smart capital reallocation,? for instance, deploying wind and solar where intermittency is manageable, biofuels where liquid fuel demand persists, and gas where firm power is essential. That is how we ensure both affordability and decarbonisation.”
India presents a compelling and diversified investment landscape, 7.6 billion tonne of discovered upstream resources, 500 million tonne of biofuel feedstock, and rising energy demand. At the same time, it is scaling renewables, targeting 5 million tonne of hydrogen by 2030, USD 96 billion in hydrogen investments, and a gas share increase from 6 per cent to 15 per cent, alongside USD 30 billion in refining and petrochemical expansion.
He said supply disruptions – whether in lithium for storage, nickel for EVs, or semiconductors for AI-driven grids – must not create winners and losers in the transition. “Without intervention, the growing gap in energy technology access could leave developing economies locked out of the transition. Governments and industries must act decisively to prevent disorderly shifts.”
“Policy cannot remain static while the world accelerates. Governments must craft frameworks that incentivise bold innovation, de-risk essential investments, and ensure commitments beyond the short term. Success will be measured not by how fast the wealthiest decarbonise, but how inclusively the world transforms,” he added. (PTI)
