Energy transition to become a $23 trn market by 2030: US Energy Secretary

The global energy transition -- the shift from fossil-based fuels such as oil and coal to renewable sources like wind and solar -- is estimated to become a USD 23-trillion market by 2030, US Energy Secretary Jennifer Granholm said on Tuesday as American companies seek closer ties with Indian firms to tap this opportunity.

Speaking at the ministerial meeting of the US-India Strategic Clean Energy Partnership (SCEP) here, she said the US will have to add 2,000 gigawatts of clean energy to its electric grid by 2035 to meet the goal of using 100 per cent electricity from clean sources.

 

"So that means we have to do everything, everywhere, all at once. And so in order to do that, we have to partner and we've got to learn from those who are doing it well and can scale (up) really well," she said.

India has announced aims to reach net zero emissions by 2070 and to meet 50 per cent of its electricity requirements from renewable energy sources by 2030. It is targeting installing 500 gigawatts (GW) of renewable energy capacity, reducing the emissions intensity of its economy by 45 per cent, and cutting a billion tonnes of CO2.

These common goals provide scope for cooperation, which led to the setting up of the SCEP.

"We say, in the United States, this transformation, this transition, this explosion of clean energy is private sector-led government enabled," she said. "And so it is very important that we hear from you who are doing it."

A "USD 23 trillion global market awaits us in terms by 2030. So there is a huge economic opportunity. And obviously, we cannot walk outside without realizing that we all share a home and our shared home requires us to help from all."

Speaking at the meeting, Oil Minister Hardeep Singh Puri said New Delhi greatly values this bilateral clean energy, strategic green energy partnership.

India-US energy trade in 2023 would be USD 20 billion, he said. "The United States is a very major partner in our energy cooperation today, even in the traditional areas, the amounts of gas we are buying and the potential this strategic clean energy partnership has an altogether new."

A joint statement issued after the ministerial said during the meeting, the two sides noted the growing importance of bilateral energy cooperation between the countries while underscoring the critical importance of clean energy engagement and the achievements of the SCEP in strengthening energy security, creating opportunities for clean energy innovation, addressing climate change and creating employment generation opportunities.

"The sides renewed their commitment to work towards a just, orderly and sustainable energy transition, which prioritises access to reliable, affordable, and clean energy supply," it said.

The two reviewed the ambitious and dynamic SCEP mandate, which over the years has deepened and strengthened collaboration across a wide breadth of clean energy work streams, including clean and renewable energy, energy efficiency, increased collaboration in emerging technologies like battery storage and swapping technologies, gas hydrates, advanced biofuels, and hydrogen and electrolyzer production.

"In this context, the sides recognised the importance of producing green/clean hydrogen as a critical energy source for global decarbonisation and agreed to support each other's national hydrogen missions," it said.

The two sides emphasized the importance of promoting energy access, affordability and energy justice in each country. They also acknowledged that successfully achieving ambitious climate and clean energy aspirations necessitates coordinated efforts on the development of energy transition roadmaps, capacity building, job skilling, and sharing of best practices at all levels of government.

In that context, the sides agreed to work toward the development of net zero villages in India to support the clean energy transition, the statement said.

Both sides launched the South Asia Group for Energy (SAGE) to deepen the engagement between Indian agencies and US national laboratories to support research, analysis and capacity-building activities such as building modelling capacity in Life Cycle Assessment of low carbon technologies and analytics on energy consumption in the building sector.