4 Factors Shaping India's New Energy Dynamics
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India’s energy sector is in the transformation stage wherein while the country is trying to embrace renewable energy, it is also trying to move towards ‘cleaner’ fossil fuel.
At the recent ENRich 2019 event hosted by consultancy firm KPMG, petroleum minister Dharmendra Pradhan said that by April 2020, natural gas will play a key role in reducing carbon footprint of the country. An estimated $60 billion is lined up for developing the gas infrastructure of the country including pipelines.
“With these investments, in the coming years most Indians will be able to afford clean and affordable natural gas,” he said. In total, the government is targeting to bring in investments worth of $100 billion in the oil and gas sector. Inviting foreign investors, Pradhan said, “There is no better place to invest other than India in the business of energy.”
Here are the factors will Pradhan believes are crucial for the growth of the energy sector.
Technology and Innovation
To be equipped with advanced technology and innovation is the need of the hour to accelerate the country’s energy sector. It helps in decreasing the time consuming tasks and increasing productivity in all aspects. Innovative ideas along with advanced technology are boon to the business which increases the influx of capital. In the energy sector, technologically advanced companies are moving ahead with impressive growth.
Importance of Infrastructure
Infrastructure plays a vital role in boosting growth. With expanded infrastructure and a planned strategy, a business gets an expected pace with great return. Oil and gas sector needs upgraded refineries and well-maintained infrastructure to join hands with the world’s largest players in a particular domain.
Business and environment are directly proportional to each other. Every business needs a particular aura to grow with the expected pace. So, environment should be considered of great significance before setting up the business ideas.
The global ecosystem is going through rapid surge in consumption which is driven by efficiency, cost and climate considerations. According to KPMG’s report, the key areas to shaping the consumption pattern of the economy includes renewable energy scale-up, acceleration in energy efficiency, decentralisation of resources and electrification across the board.
According to Pradhan, the government of India is putting in place the right mix of enablers to ensure that the energy transition is secure, affordable, reliable and sustainable. He also believes the initiatives and investments made by Indian energy companies to effect the transition to clean energy and create a strong delivery infrastructure will soon show results.
“We are in the midst of a massive global energy transition and our actions as a country in the energy sector have deep ramifications. In the past few years, some of the government initiatives have transformed energy access. Now and in the future, our next wave must focus on economic development using energy, and electricity, as a principal resource lever,” said Anish De, partner and head - energy and natural resources, KPMG in India.