India to see investment of $67 billion in next five to six years in energy sector: PM Modi

(The Hindu) - Prime Minister Narendra Modi on Tuesday said India was working on the development of environmentally friendly energy sources to enhance its energy mix. He was delivering the inaugural address at the second edition of India Energy Week (IEW) in the presence of Indian and global audience. 

The IEW 2024 is being held from February 6 to 9 in Goa, and is India’s largest and only all-encompassing energy exhibition and conference, bringing together the entire energy value chain, and is expected to serve as a catalyst for India’s energy transition. 

Mr. Modi said as India was poised to be 3rd largest economy in the world, the energy sector would play a crucial role in India’s growth story.

He said the India’s energy demand would double by 2045; keeping that in mind the country had started working on developing affordable and sustainable energy. 

Highlighting the need for affordable fuel, Mr. Modi said that despite adverse global factors, India was among the few nations where petrol prices had come down and 100% coverage was achieved by electrifying crores of houses. 

“India is not just meeting its needs but is also determining the global direction,” Mr. Modi said. 

Stating that India had embarked on an unprecedented infrastructure push, he mentioned that ₹11 lakh crore had been earmarked for this by the recently tabled interim budget.

“A big part of this will go to the energy sector. This amount will create assets in railways, roadways, waterways, airways, and housing which will need energy leading to India’s efforts to expand its energy capacity,” he said. 

Mr. Modi said the country was making efforts to take the percentage of domestic gas in the primary energy mix from six to 15%. “This would see an investment of about $67 billion in the next five to six years,” he said.

Touching upon the Global BioFuel Alliance which was unveiled during G20 Summit held in India, he said 22 nations and 12 international organisations had come onboard to encourage the use of biofuels in the world, and this would create economic opportunities worth $500 billion.

Emphasising India’s progress in the biofuel sector, Mr. Modi said ethanol blending in per litre of petrol had witnessed a significant rise from 1.5% in 2014 to 12% in 2023 leading to a reduction in carbon emissions by about 42 million metric tons.

“Government has set a target of 20% ethanol blending in petrol by 2025”, he said. 

Recalling the initiation of 20% ethanol blending in more than 80 retail outlets during India Energy Week last year, he said the number of outlets had now increased to 9,000. 

He said the Government was working towards the installation of 5,000 compressed biogas plants in India.

On India’s seriousness to facilitate the transition he said, “despite being home to 17% of the world’s population, India’s Carbon Emission Share is only 4% but are committed to further improving our energy mix by focusing on the development of environmentally sensitive energy sources.” 

He said India now ranks fourth in the world in Renewable Energy Installed Capacity and 40% of India’s installed capacity comes from non-fossil fuels. 

“In the past decade, India’s Solar Energy Installed Capacity has grown by more than 20 times. The campaign to connect with Solar Energy is gaining momentum in India,” he said. 

He urged international investors to invest in the solar energy value chain. 

Highlighting the importance of National Green Hydrogen Mission, he said it would pave the way for India becoming a center of hydrogen production and export. “India’s green energy sector can make both investors and industries a sure shot winner,” he said. 

Mr. Modi said India Energy Week event was not just India’s event but a reflection of ‘India with the world and India for the world’ sentiment.”