Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

Role of Energy Sector in India

Importance of Energy sector

 Energy is a key driver of socio-economic growth.

 Suitably priced, stable and sustainable energy supply, is essential for
rapid growth of the economy.
 It also helps the poor and deprived sections of society, to partake of
economic benefits.
 At the macro level, the energy sector is a pivot and key enabler of
growth.

Winds of change are evident in the global energy arena. Energy supply, energy
sources and energy consumption patterns are changing. Perhaps, this could be
a historic transition.

 There is a shift in energy consumption from West to East.

 Solar energy and other renewable sources of energy have become more
competitive. They are emerging as sustainable substitutes for traditional
energy forms.
 Natural Gas is fast becoming one of the largest fuels in the global energy
mix.
 There are signs of convergence, between cheaper renewable energy,
technologies, and digital applications. This may expedite the
achievement of many sustainable development goals.

Gajanan Wadje Page 1

Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

 Nations are coming together to tackle climate change. This is visible in

global partnerships, such as the International Solar Alliance, promoted
by India and France.

We are entering an era of greater energy availability.

However, there are some concerns

 More than a billion people across the globe still do not have access to
electricity.
 Many more do not have access to clean cooking fuel.

India has taken a lead in addressing these issues of energy access. People must
have universal access to clean, affordable, sustainable and equitable supply of
energy. India’s contribution in the onset of an era based on energy justice is
significant.

Indian economy is a ray of hope in an uncertain global economic

environment:

 Currently, India is the fastest growing large economy in the world.

Leading agencies such as IMF and World Bank, project the same trend to
continue in the coming years.
 India has shown tremendous resilience as an anchor of the world
economy. India is
o Sixth largest economy in the world. By 2030, India could be the
second largest world economy.
o Third largest energy consumer in the world, with demand
growing at more than five percent annually.
o Remains an attractive market for energy companies with energy
demand expected to more than double by 2040.

Gajanan Wadje Page 2

Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

India has adopted an integrated approach towards energy planning. There are
four pillars for India’s energy future. These are energy access, energy
efficiency, energy sustainability and energy security. Energy justice is also a
key objective and a top priority for India. Towards this end, government
implemented many policies. The results of these efforts are now evident.

 Electricity has reached all our rural areas.

 This year India aim to achieve hundred per cent electrification of
households, through a targeted programme called SAUBHAGYA.
 As we raise production, we also aim to reduce losses in transmission
and distribution. Under our UDAY scheme, we are working towards this
objective.
 India's World Bank Ease of Getting Electricity Ranking, improved from
111 in 2014 to 29 in 2018.
 LED bulbs distributed across the country under the UJALA scheme, have
resulted in an annual saving of 17,000 crore rupees, or nearly 2.5 billion
dollars.
 Access to clean cooking fuel provides major benefits, especially to
women and children at risk of exposure to smoke pollution. LPG
connections have been given to over 6.4 crore households in just under
three years under the Ujjwala Scheme. A ‘Blue Flame Revolution’ is
underway. LPG coverage has reached more than 90%, from 55%
percent five years ago.
 Clean Transportation is getting a boost. We are jumping directly from
BS IV to BS VI fuel by April 2020. This is the equivalent of EURO six
standards.

Gajanan Wadje Page 3

Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

Achievements such as hundred percent electrification, and increased LPG

coverage, are possible only through people’s involvement. Energy justice can
be done only when people believe in their collective power. Government is
only an enabler in converting that belief into a reality.

Major reforms in India’s oil and gas sector:

 Revamped our upstream policies and regulations.

o Launched the Hydrocarbon Exploration and Licensing Policy
(HELP) to bring transparency and competitiveness in the
sector. The bidding criterion has been changed to revenue
sharing. This has helped reduce government intervention.
o An Open Acreage Licensing Policy and a National Data
Repository is helping to increase exploration interest in Indian
fields.
o Gas pricing reforms have also been introduced. The Enhanced
Oil Recovery Policy aims to promote the use of latest
technology in improving productivity of upstream fields.

 Our downstream sector has been completely liberalized.

o Market driven petrol and diesel prices reflect changes in the
international price of crude oil. India has the fourth largest
refining capacity in the world. This will further grow by about 200
million metric tons by 2030.
o A National Biofuel Policy was enacted last year. Research on
second and third generation biofuels is being promoted.

Gajanan Wadje Page 4

Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

o 12 second generation bio-refineries are being set up in eleven

states. The ethanol blending and biodiesel programme is
reducing carbon emissions, and raising farmers’ incomes.
o Bio Aviation Turbine Fuel has already been tried out in our civil
aviation sector.

Indian government has encouraged private participation across the entire oil
and gas value chain.

 India is becoming an attractive FDI destination. Companies like Saudi

Aramco, ADNOC, TOTAL, Exxon-Mobil, BP and Shell are looking to
increase their investments across the value chain.
 India is making rapid strides towards a gas based economy. Over 16,000
kilometres of gas pipeline has been constructed and an additional
11,000 kilometers is under construction.
 Execution of 3,200 kilometers of gas pipeline in Eastern India has begun.
This will connect North East India with the National Gas Grid.
 The tenth bid round for City Gas Distribution will be complete in a
month’s time. This will cover over 400 districts. It will extend coverage
of City Gas Distribution to 70% of our population.

We are gearing up for Industry 4.0. This will change the way industry operates,
with new technology and processes. Our companies are adopting latest
technologies to improve efficiency, increase safety and reduce costs. This is
being done in downstream retail, as well as in upstream oil and gas
production, asset maintenance and remote monitoring.

Gajanan Wadje Page 5

Telegram : @iasdelhi Role of Energy Sector in India Gajanan/Adesh

International cooperation:

 In recent years, we have deepened our international engagement with

organizations such as the International Energy Agency, and OPEC.
 We chaired the International Energy Forum from 2016 to 2018. We
have been able to convert our traditional buyer-seller engagements into
strategic partnerships through bilateral investments.
 We have also promoted our ‘Neighbourhood First’ policy by
strengthening energy engagement with Nepal, Bangladesh, Sri Lanka,
Bhutan and Myanmar.

We have always maintained that Oil and Gas are not only a commodity of
trade but also of necessity. Whether it is for the kitchen of a common man or
for an aircraft, energy is essential.

For too long, the world has seen crude prices on a roller-coaster. We need to
move to responsible pricing, which balances the interests of both the
producer and consumer. We also need to move towards transparent and
flexible markets for both oil and gas. Only then can we serve the energy needs
of humanity in an optimal manner.

Another key issue that needs the world to come together is climate change.
Together, we can achieve the targets we set for ourselves at COP-21 in Paris.
India has made rapid strides in meeting its commitment. We are on our way to
reaching the target.

Gajanan Wadje Page 6