PM Modi: Energy reforms to drive India’s growth and sustainability

Posted on 11 Feb 2025

Prime Minister Narendra Modi delivered his remarks at the India Energy Week 2025 via video message today. Addressing the gathering at Yashobhoomi, he emphasized that the attendees are not just part of the Energy Week, but are also integral to India's energy ambitions. He extended a warm welcome to all participants, including distinguished guests from abroad, highlighting their crucial role in this event.

Highlighting that experts worldwide are asserting that the 21st century belongs to India, Modi remarked, “India is driving not only its growth but also the growth of the world, with the energy sector playing a significant role”. He emphasized that India's energy ambitions are built on five pillars: harnessing resources, encouraging innovation among brilliant minds, economic strength and political stability, strategic geography making energy trade attractive and easier, and commitment to global sustainability. The Prime Minister noted that these factors are creating new opportunities in India's energy sector.

Underlining that the next two decades are crucial for a Viksit Bharat, the Prime Minister highlighted that several significant milestones will be achieved in the next five years. He noted that many of India's energy goals are aligned with the 2030 deadline, including the addition of 500 gigawatts of renewable energy capacity, achieving net zero carbon emissions for Indian Railways, and producing five million metric tons of green hydrogen annually. He acknowledged that these targets may seem ambitious, but the achievements of the past decade have instilled confidence that these goals will be attained.

“India has grown from the tenth largest to the fifth largest economy in the past decade”, remarked Modi. He highlighted that India's solar energy generation capacity has increased thirty-two times in the last ten years, making it the third-largest solar power generating nation in the world. He noted that India's non-fossil fuel energy capacity has tripled and that India is the first G20 country to achieve the goals of the Paris Agreement. The Prime Minister emphasized India's achievements in ethanol blending, with a current rate of 19%, leading to foreign exchange savings, substantial farmer revenue, and significant reductions in CO2 emissions.

He highlighted India's goal of achieving a 20% ethanol mandate by October 2025. He remarked that India's biofuels industry is ready for rapid growth, with 500 million metric tonnes of sustainable feedstock. He further noted that during India's G20 presidency, the Global Biofuels Alliance was established and is continuously expanding, now involving 28 nations and 12 international organizations. He highlighted that this alliance is transforming waste into wealth and setting up Centers of Excellence.

Highlighting that India is continuously reforming to fully explore the potential of its hydrocarbon resources, Modi highlighted that major discoveries and extensive expansion of gas infrastructure are contributing to the growth of the gas sector, increasing the share of natural gas in India's energy mix. He noted that India is currently the fourth largest refining hub and is working to increase its capacity by 20%.

Pointing out that India's sedimentary basins hold numerous hydrocarbon resources, some of which have already been identified, while others await exploration, the Prime Minister highlighted that to make India's upstream sector more attractive, the Government introduced the Open Acreage Licensing Policy (OALP). He emphasized that the Government has provided comprehensive support to the sector, including opening the Exclusive Economic Zone and establishing a single-window clearance system. Modi noted that changes to the Oilfields Regulation & Development Act now offer stakeholders policy stability, extended leases, and improved financial terms. He emphasized that these reforms will facilitate the exploration of oil and gas resources in the maritime sector, increase production, and maintain strategic petroleum reserves.

Prime Minister underlined that due to several discoveries and the expanding pipeline infrastructure in India, the supply of natural gas is increasing. He emphasized that this will lead to a rise in the utilization of natural gas in the near future. He also highlighted that there are numerous investment opportunities in these sectors.

“India's major focus is on Make in India and local supply chains”, exclaimed Modi. He highlighted the significant potential for manufacturing various types of hardware, including PV modules, in India. The Prime Minister noted that India is supporting local manufacturing, with the solar PV module manufacturing capacity expanding from 2 gigawatts to approximately 70 gigawatts in the past ten years. He emphasized that the Production Linked Incentive (PLI) scheme has made the sector more attractive, promoting the manufacturing of high-efficiency solar PV modules.

Highlighting the significant opportunities for innovation and manufacturing in the battery and storage capacity sector, the Prime Minister remarked that India is rapidly advancing towards electric mobility and emphasized the need for swift action to meet the demands of such a large country in this sector. Modi noted that the current year's budget includes numerous announcements supporting green energy. He highlighted that the Government has exempted several items related to the manufacturing of EV and mobile phone batteries from basic customs duty.

This includes cobalt powder, lithium-ion battery waste, lead, zinc, and other critical minerals. He remarked that the National Critical Minerals Mission will play a crucial role in building a robust supply chain in India. He also highlighted the promotion of the non-lithium battery ecosystem. The Prime Minister emphasized that the current year's budget has opened the nuclear energy sector, and every investment in energy is creating new jobs for the youth and generating opportunities for green jobs.

“To strengthen India's energy sector, the Government is empowering the public”, emphasised the Prime Minister. He highlighted that ordinary families and farmers have been made energy providers. He remarked that the PM Suryagarh Free Electricity Scheme was launched last year, and its scope is not limited to energy production. He noted that this scheme is creating new skills in the solar sector, developing a new service ecosystem, and increasing investment opportunities.

Concluding his address, the Prime Minister reiterated India's commitment to providing energy solutions that energize growth and enrich nature. He expressed confidence that this Energy Week would yield concrete outcomes in this direction. He encouraged everyone to explore every possibility emerging in India and extended his best wishes to all participants.

Inaugurating the event union minister of petroleum and natural gas Hardeep Singh Puri said what the globe currently seeing was a recalibration of strategy–prioritising near-term profitability while keeping long-term transition efforts in play.

“The primary focus remains on increasing the adoption of biofuels, renewables, and hydrogen. 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,” he said.

He emphasised that climate change was no longer a looming threat. It was already here. It was unfolding in many grave disasters, wildfires, floods and record-breaking temperatures were clear reminders that the world was running out of time.

Even when renewables became the dominant energy sources, oil and gas would 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,” Puri said.

According to him there are three forces that will play a pivotal role in shaping the energy landscape in the coming years.

1. New drivers of demand: Artificial Intelligence and Clean Cooking

· Artificial Intelligence (AI) and clean cooking are emerging as major energy demand drivers, each shaping the future of economies and societies.

· AI is now one of the largest energy consumers, with data centre demand rising 18-20% 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.

· Renewables alone won’t be enough—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.

· 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.

· The challenge is not technology but scaling access equitably. India has achieved 100% clean cooking access through the Pradhan Mantri Ujjwala Yojana (PMUY), city gas expansion, and solar cooking pilots, proving that policy-driven solutions can transform lives.

2. Balancing immediate challenges with long-term vision

· 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 tonnes of discovered upstream resources, 500 million tonnes of biofuel feedstock, and rising energy demand. At the same time, it is scaling renewables, targeting 5 million metric tonnes of hydrogen by 2030, USD 96 billion in hydrogen investments, and a gas share increase from 6% to 15%, alongside USD 30 billion in refining and petrochemical expansion.

3. Resilient supply chains for an orderly transition

· 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.

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