The petroleum minister said he believes energy transition involves using existing fossil fuels strategically while expanding renewable energy sources, rather than immediately phasing out hydrocarbons.
13 Feb 2025 | 2400 Views | By Kiran Murali
At a time when electric vehicles and other cleaner transport systems are being pushed to reduce carbon emissions, Minister for petroleum and natural gas, Hardeep Singh Puri highlighted the importance of a resilient supply chain for an orderly energy transition. He noted that any potential risks in the supply of ...
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At a time when electric vehicles and other cleaner transport systems are being pushed to reduce carbon emissions, Minister for petroleum and natural gas, Hardeep Singh Puri highlighted the importance of a resilient supply chain for an orderly energy transition. He noted that any potential risks in the supply of critical materials like lithium, nickel, and semiconductors could affect the success of energy transition, particularly in developing countries.
“Supply disruptions, whether in lithium for storage, nickel for electric vehicles, or semiconductors for Artificial Intelligence-driven grids, must not create winners and losers in the transition,” Puri said while speaking at the India Energy Week. “Without intervention, the growing gap in energy technology access could leave developing economies locked out of the transition.”
Transportation is a major source of carbon emissions in India, making it critical for reducing the overall emissions. Battery-powered vehicles and other alternative fuel technologies, with the potential for hydrogen in the long term offer robust solutions in addressing the emission concerns.
However, when it comes to electric vehicle components such as batteries and rare-earth minerals, China plays a central role in the global supply chain. Any disruption due to geopolitical tensions or trade issues can pose risks to the production and availability of electric vehicles.
“Policy cannot remain static while the world accelerates. Governments must craft frameworks that incentivize bold innovation, de-risk essential investments, and ensure commitments beyond the short term. Success will be measured not by how fast the wealthiest decarbonize, but how inclusively the world transforms,” Puri said.
Balancing Decarbonization and Affordability
While emphasizing the need for smart capital reallocation to balance decarbonization and affordability, Puri said that he believes energy transition involves strategically using existing fossil fuels while expanding renewable energy sources, rather than immediately phasing out hydrocarbons.
“The transition isn’t about eliminating hydrocarbons overnight but leveraging them strategically while scaling renewables to mitigate emissions,” he said.
India is heavily dependent on fossil fuels for road transport. It is the world’s third-largest consumer of crude oil and imports more than 85% of its crude oil requirements. In 2023-24, India imported 232.5 million tonnes of crude oil, which is refined into fuels like petrol and diesel, and spent $132.4 billion on the imports.
While continuing investments in the oil and gas sector, the government has been pushing for local manufacturing of batteries, green hydrogen, and the blending of ethanol in fuel. The industries and government believe local production of renewable energies will reduce the cost and make it more accessible for end consumers while reducing the country's import bill.
“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 decarbonization,” he said.
“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.”