India Energy Week 2024: Pioneering the Energy Transition Through Financial Innovation

New Delhi, February 14, 2024 – As part of the prestigious four-day India Energy Week 2024, which featured a multitude of high-profile conferences and exhibitions from major oil and gas corporations, along with country pavilions from Japan, the UK, Sweden, and many more, an insightful panel discussion titled Making the Energy Transition Bankable brought together industry leaders to address the critical issue of financing the shift to sustainable energy.

Moderating the session, Ashish Garg, APAC Lead, People & Organisation Practice, BCG emphasized the inherent risks of failure when investing in energy, particularly in ensuring affordability. Highlighting a breakthrough initiative, Anjana, a senior representative  from GAIL stated, “To overcome these challenges, GAIL has established India's largest green hydrogen plant to date, with an investment of INR 250 crores and a daily production capacity of 4.3 tonnes. Our commitment is to make hydrogen widely acceptable in the market.” However, she noted that “the primary risk associated with hydrogen remains its transportation and storage. As technology advances, hydrogen will become increasingly viable.”

Addressing the financing aspect, Prasad Hegde, MD and Regional Head, Infrastructure & Development Finance Group, South Asia Energy & Infrastructure, Standard Chartered, a senior executive from Standard Chartered, remarked, “At Standard Chartered, we are closely collaborating on projects that prioritize sustainability. Over USD 20 billion has already been invested in the energy sector, with strong participation from international stakeholders.”

Afeena Ashfaque, Associate Director, SED Fund posed a pivotal question: Should the largest steps in financing come from existing oil and energy giants, commercial banks, or development financial institutions? Responding to this, Abhijit Majumdar, Director, Finance, Oil India Limited, an industry expert, stated, “Funding for renewable energy is readily available, and banks are comfortable investing in this sector. However, for emerging areas like green hydrogen and sustainable aviation fuels, the market remains untested, and we have yet to instill confidence in financial institutions.”

Anjana, a senior representative from GAIL, underscored the role of natural gas in India's energy roadmap, stating, “Natural gas is the cleanest fossil fuel available, and the government aims to increase its share to 15% by 2030. The power sector holds immense potential for growth, reinforcing natural gas as a key pillar of India’s energy transition.”

With India at the cusp of a transformational shift in energy, the insights from this distinguished panel underscored the necessity of strategic financial backing, regulatory support, and technological advancements. As the nation accelerates towards a greener, more sustainable energy ecosystem, collaborative efforts between industry, financial institutions, and policymakers will be instrumental in ensuring long-term success.