Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, on Tuesday emphasized that oil and gas will continue to play an important role in the energy sector, even as renewable energy becomes the dominant source.He stated this during his address at the inauguration of the India Energy Week 2025 on Tuesday in Delhi. Puri said "Even when renewables become the dominant energy sources, oil and gas will continue to play a pivotal role - not just in power generation but in stabilising grids, industrial hydrogen, and energy storage innovations".
He also highlighted that hydrocarbons will remain essential not just for power generation but also for stabilizing grids, industrial hydrogen production, and energy storage innovations.Mr Puri pointed out that the energy transition is not about completely eliminating fossil fuels but about using them strategically while scaling up renewable energy sources to reduce emissions.
"For too long, we have framed energy transition as a linear journey - from fossil fuels to renewables, from past to future, from problem to solution," he stated.
Instead, he suggested a balanced approach where both renewable and traditional energy sources work together to ensure a stable and sustainable energy system.
The minister also highlighted that Artificial Intelligence (AI) and clean cooking are emerging as major drivers of energy demand in the future.AI is becoming one of the largest energy consumers globally, with data centers expected to see an 18-20 per cent annual increase in power demand by 2030. India's AI-driven digital economy, projected to reach USD 400 billion by 2030, presents both challenges and opportunities.Puri noted that the key issue is not just meeting this growing demand but doing so in a way that does not destabilize power grids or hinder climate commitments.He explained that renewable energy alone would not be sufficient to meet AI-driven demand. Instead, a combination of natural gas, coal with carbon abatement, and next-generation nuclear energy will be required to ensure round-the-clock power reliability.
At the same time, AI itself can contribute to improving fossil fuel efficiency and reshaping energy security by predicting and managing power demand more effectively.
