India’s renewable energy credentials look set to receive a boost as the country’s largest refiners slow fossil fuels projects and instead focus on green projects.

Biofuels in India are being pushed by the Modi government but experts say its plan to substitute 20 percent of gasoline with ethanol could be a shortsighted approach to energy security in the water-scarce nation.

India and fossil fuels, once a promising mix, are now being edged out by renewables as new government policies are resulting in companies either scrapping or delaying oil and gas projects.

It was set to be the next big gas market but high gas prices in India have put that target beyond reach – and the shortfall in gas supplies will be substituted by renewables, experts said.

Analysts say the only way forward amidst surging LNG prices is to steer India, Pakistan and Bangladesh towards more sustainable renewable energy sources.

A surge in gas prices in India has led to an increase in rates for end-consumers including household and automobile consumers.

India expects its power generation base to more than double by 2032, mainly on the back of fast-paced expansion in solar and wind power capacity, but fossil fuels will continue to play a prominent role.

Indian state energy companies have been rushing to announce net zero emissions targets but many lack a clear, realistic path to move away from fossil fuels and towards net carbon neutrality.

Some climate watchers are unhappy India has dropped bold commitments made by Modi in Glasgow last year and fear the nation will burn more dirty cheap coal to provide affordable energy to its population.

Investment in fossil fuels by India’s 14 largest state-owned energy firms was 11 times higher last year than investment in clean energy, a new study shows.

India’s gas market has been struggling to take off for over a decade, and is now being further tested by the impact of the Ukraine war on LNG prices.