Ensuring India's Energy Security: Challenges and Pathways to a Sustainable Future

Introduction:

Energy is the lifeblood of a nation's progress, a driving force that fuels economic growth, empowers industries, and improves the quality of life for its citizens. For India, a nation of over a billion people with diverse energy needs, the pursuit of energy security is not just a strategic imperative; it is a pathway to sustainable development. This report delves into the multifaceted landscape of energy security in India, examining its current status, the challenges it faces, and the strategies it employs to safeguard its energy future. From the intricacies of its energy mix to the geopolitical factors shaping its energy choices, we explore the dynamic realm of India's energy security to offer insights into a critical aspect of its national journey. As we embark on this exploration, we aim to shed light on the complex web of factors that influence India's energy security and provide recommendations for a more secure, sustainable, and prosperous energy future.

Energy Mix:

In 2022, coal retained its position as the primary energy source in the country, commanding a substantial share of 46%, followed by oil at 24%, and biomass contributing 20%. Natural gas accounted for 5% of the energy mix, while primary electricity sources, including hydro, nuclear, solar, and wind, collectively constituted 4%. As of March 31, 2022, India's renewable energy potential stands at 14,90,727 megawatts. This includes 7,48,990 MW from solar power, 6,95,509 MW from wind power, 21,134 MW from small-hydro power, 17,538 MW from biomass power, 5,000 MW from bagasse-based cogeneration, and 2,556 MW from waste-to-energy. These figures underscore India's significant progress in adopting cleaner and sustainable energy sources. This vast potential not only enhances India's energy security but also positions the nation as a vital player in the global transition towards renewable and eco-friendly power solutions, further solidifying its role on the international stage.

Sustainability:

India, in pursuit of Sustainable Development Goals, has prioritized the universal accessibility of affordable and modern energy. As part of this endeavor, the electrification of villages in various states has reached a 100% coverage rate as of March 31, 2022, based on 2011 census data. Sustainable energy systems also emphasize long-term enhancements in energy efficiency by reducing energy intensity and transitioning to cleaner technologies, as well as increasing the share of renewable energy in the national energy mix. Energy intensity, measured as the energy consumed per unit of Gross Domestic Product at constant prices, and 'Per Capita Energy Consumption (PEC),' which relates total energy consumption to the mid-year population, are commonly used policy indicators both nationally and internationally. Typically, these indicators rely on data pertaining to conventional energy consumption, particularly in rural areas, due to limited information on non-conventional energy sources. Notably, the Energy Intensity, calculated at 2011-12 prices, has decreased from 0.2801 Mega joules per rupee in 2012-13 to 0.2245 Mega Joules in 2021-22, sourced from Energy Statistics India -2023 by The Energy and Research Institute.

Demand and Supply:

In August of this year, the country witnessed a substantial surge in power consumption, recording a remarkable growth of over 16% compared to the same month last year, reaching a total of 151.66 billion units, according to UPSC-India data. This increase was primarily attributed to heightened usage of cooling appliances during the scorching weather. In contrast, power consumption in the previous year for the same period stood at 130.39 billion units, exceeding the 127.88 billion units consumed in August 2021, as reported by government data. Additionally, the peak power demand met in August 2023 peaked at 236.59 GW, significantly surpassing the 195.22 GW recorded in August 2022 and 196.27 GW in August 2021. The Power Ministry's initial projection for electricity demand in the summer season was 229 GW, which was not realized in April-July this year due to unseasonal rains. However, it's worth noting that peak supply reached a new pinnacle at 236.59 GW in August and soared to a record-breaking 239.97 GW on September 1, 2023, marking a notable milestone in the nation's power consumption landscape.

Energy Imports:

India is bracing for a substantial 43.6% surge in energy imports during the fiscal year 2023, posing a significant challenge to the country's import expenditure. These energy imports, including coal, coke, crude oil, LNG, and LPG, constitute a substantial portion, accounting for 36.6%, of India's overall merchandise import bill, sourced from www.enerdata.net. If this ongoing growth trend persists, the energy import bill could soon surpass the costs of all other merchandise imports, with projections suggesting it might breach the USD 1 trillion mark by December 2026, a cause for concern. Furthermore, the import expenses associated with clean energy essentials like photovoltaic cells and Lithium Ion batteries could exacerbate this burgeoning economic challenge.

Future Plans:

India's potential to lead in renewable batteries and green hydrogen could create an $80 billion market by 2030. Achieving this and transitioning toward a low-carbon trajectory necessitates international support. To attain net-zero emissions by 2070, the International Energy Agency (IEA) estimates that an annual investment of $160 billion, on average, will be necessary across India's energy sector between now and 2030. This figure represents a threefold increase from current investment levels. Therefore, securing access to low-cost, long-term capital will be a critical factor in realizing India's net-zero aspirations.

Ambassador’s Suggestions and Recommendations 

1. Diversify Energy Sources:Invest renewable energy sources like solar, wind, and hydro to reduce reliance on coal and oil.
2. Energy Efficiency Standards:Enforce stricter efficiency standards for appliances, buildings, and industries.
3. Public Awareness:Educate the public on energy conservation and responsible use.
4. Robust Policy Framework:Develop comprehensive energy policies with clear regulations to encourage sustainability.
5. Long-Term Investment:Promote public and private sector investment in sustainable energy projects for a net-zero future.

Conclusion:

India's energy security is at a critical juncture, with significant progress in renewable energy adoption, electrification, and increasing power demands. However, the challenge of rising energy imports and the path to a sustainable, low-carbon future requires concerted efforts, both domestically and internationally. India's energy journey, as illuminated in this report, is a roadmap to secure, sustainable, and prosperous energy security.