India has firmly become centre of global energy affairs: IEA chief Birol

India has firmly become the centre of global energy affairs, executive director of the International Energy Agency (IEA) Fatih Birol said on Wednesday.
 

Speaking at a G20 event on energy transition in Delhi, Birol said the country has attracted global attention for its initiatives in a variety of sectors such as solar, coal, hydrogen and biofuels.

“India can soon become a world leader in green hydrogen production,” he said. India is targeting up to Rs. 8 trillion worth of investments in the sector as part of the National Green Hydrogen Mission.

The country is currently targeting a green hydrogen production capacity of at least 5 million metric tonnes per annum (MMTPA) with an associated renewable energy capacity addition of about 125 Gw by 2030.

Birol said protectionist measures by countries aiming to localise green hydrogen production are not in the best interest of the sector.

“In last five years, India was the largest contributor to the global solar capacity,” he said. He added that it has provided 500 million people access to electricity and given cooking gas to nearly 100 million. This helped eliminate household pollution caused by wood and other materials for cooking.

 

Birol also said the IEA is studying how to enable Prime Minister Narendra Modi’s LIFE initiative, which focuses on sustainable practices while reducing carbon footprint, globally.

Birol highlighted that aligning with India’s initiative could significantly expedite global climate goals while delivering economic benefits.

Energy transition is here

Arguing that the recent volatility in energy supplies as a result of the Ukraine war has accelerated a move away from oil, Birol said energy transition is already here.

Of the total $2.7 trillion worth of investments in the global energy sector, a majority ($1.7 trillion) was for clean energy sources, with the rest committed for fossil fuels, Birol said. Of the total number of power plants opened globally in 2022, 80 per cent were renewable, Birol said.

Also, for the first time, investments attracted by the solar power sector have crossed those of oil production, he said.

However, 90 per cent of the investment in renewable energy continues to take place in advanced economies and China, Birol added.

He said the IEA will ask the G20 leaders to ensure that a larger share of investments in renewables happens in emerging economies and Africa.