Komal Kumar Singh gives his views on the changing energy politics, China's dominance in manufacturing supply chains, and joint efforts between India and the United States in the energy transition
What is the goal of the energy transition?
The energy transition is the way of transforming fossil-fuel-based energy sources to zero-carbon energy sources. Wind energy, electric vehicles, and solar energy are a few examples.
This has become a global motto in recent years. All worldwide leaders in business and government are sharing their energy transition plans for their companies or countries.
According to IERA, the goal is to transfer the global energy sector from fossil fuels to zero-carbon energy sources by the second half of this century.
The bottom line is to provide affordable, reliable, and increasingly sustainable energy.
What are your thoughts on the energy transition?
Just as the smart phone changed the landscape of communication, the energy transition will change the landscape of energy. It will provide world easily accessible clean energy.
Simultaneously, it will change global energy politics. The world will no longer be reliant on oil-producing countries such as Saudi Arabia.
It will provide a variety of energy options at competitive prices. Many parts of the world are still in need of electricity. It will change as a result of the energy transition.
How do you envision India's energy transition?
Indian Prime Minister Narendra Modi announced on the country’s 75th Independence Day about energy-independent by 2047. India's government established a road map and has achieved significant progress in the energy transition during the last few years. India has encouraged the widespread use of energy-efficient LED lighting in most homes, and driven an explosion in the use of renewable energy sources, led by solar power, among other things. India came in fifth place in the Solar Country Rankings, ahead of the United Kingdom, France, and Italy.
India will achieve energy independence solely through an energy transition.
What role may India play in supporting the United States in its energy transition?
According to the Wall Street Journal, China presently manufactures 75 per cent of all lithium-ion battery cells. The same China continues to dominate the solar panel supply.
As indicated previously, energy transition is lowering reliance on oil-rich countries, but on the other hand, China is getting control of the manufacture and supply of renewable energy equipment for world demand.
India is home to highly skilled workers who support industries in Southeast Asia, the Middle East, and elsewhere. In terms of manufacturing, India is a low-cost powerhouse for the global market. Automation and digitalisation are expert fields in which India has a large pool of IT workers. Partnership between India and the United States in which high-end technology from the United States is combined with skilled labour and low-cost manufacturing from India can provide an alternate supply chain.
What is the outlook for the oil and gas industry?
With the global population expected to touch the nine-billion mark by 2040, the International Energy Agency IEA’s annual study predicts that global energy demand will more than double from today. And along with other accessible renewable energy sources, oil and gas will continue to be in demand.
Major oil and gas companies have already stated plans to cut carbon emissions and are actively pursuing it. Companies are reviewing its strategies and supply chain to compete in the new market dynamics. The oil and gas industry will continue to work on lowering overall operating costs and investing in cleaner energy.
(The author is an energy and supply chain expert.)