At 4.3 per cent Compounded Annual Growth Rate (CAGR), India is the fastest growing energy consuming nation, he said.

New Delhi: Prime Minister Narendra Modi today said India’s rapid economic growth will emerge as a key driver of the rise in global energy demand over the next quarter century amid fundamental transformations in the global energy landscape.

“At 4.3 per cent Compounded Annual Growth Rate (CAGR), India is the fastest growing energy consuming nation and will be a key driver of global energy demand over 25 years,” Modi said in his speech at the 16th International Energy Forum (IEF) here.

The PM noted a host of energy sector reforms undertaken over the past few years including the launch of a new bidding regime for oil and gas blocks, new policy for enhancing production from difficult fields, liberalisation of the downstream sector, digital payments in fuel sales, free LPG connections for poor households and the rollout of the BS VI grade of clean automobile fuel.

“Indian oil refineries are on path to achieve the target of making BS VI fuel available throughout the country by April 2020. Refineries are undergoing massive upgradation to provide clean fuel. We have already started the rollout of BS VI fuel in Delhi. The adoption of latest technology is leading to cost reduction for both downstream and upstream oil and gas operations,” Modi said.

He also said the world is moving towards a major transformation of the energy landscape including a change in the demand and supply centres, US becoming the largest producer of crude oil, solar Photo Voltaic becoming economical as compared to other sources of energy, the growing importance of natural gas in the energy basket and coal moving out of favour.

“We are entering an era of energy abundance. However, 1.2 billion people do not have access to electricity and many do not have access to clean fuel. The World must have access to renewable energy. Oil and gas are commodities of trade but they are also a necessity. World has for too long seen prices on a roller coaster. We now need a balance in crude prices and transparent and flexible trading of natural gas,” Modi said, adding that artificial distortion of price is self-defeating.

The PM also said India’s efficiency in energy use has improved and the nation is committed to curbing emissions and climate change. He said the launch of the International Solar Alliance (ISA) is a step towards this commitment, adding that the country is also blessed with the highest demographic dividend in the world and its high growth is increasing energy consumption.