[September Thematic Report] Energy Security in Indiaby Shreya Kaushik | 01-03-2024 01:11 |
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Energy Security in India Energy Security refers to the uninterrupted availability and accessibility of energy sources and affordability to the common mass. According to the International Energy Agency, two aspects of energy security are long-term energy security which focuses on timely investments to supply energy in line with economic developments and environmental needs, and short-term energy security which focuses on the response of the energy system during the supply-demand disruptions or changes. As the population and GDP of India continue to grow, the energy demand has also seen a surge of about 6.5% in 2022 crossing the 1Gtoe for the first time and showing about 3.5% growth every year. Energy Security holds a vital position in India's economic growth and surge in population. As a key driver of industrialization, urbanization, and technological advancement, a stable and reliable energy supply is crucial for sustaining and accelerating this growth. Energy security ensures the uninterrupted functioning of critical sectors such as manufacturing, transportation, healthcare, and agriculture, contributing directly to the country's economic stability and development. Moreover, the pursuit of long-term energy security aligns with India's commitment to environmental sustainability. As the world deals with climate change, the developing nations in several parts of the continents have the dual responsibility of taking innovative approaches to maintain the development and net zero carbon emissions parallel. In the process, India is facing multifaceted challenges encompassing areas across accessibility, infrastructure, policy and economy. Policy challenges include the failure to attract international investment in domestic hydrocarbon exploration, delays in coal mining due to regulatory and environmental clearances, and the limited success of the Indo-US nuclear deal in facilitating the establishment of foreign-built reactors. Accessibility issues arise from the household sector's significant energy consumption, particularly in rural areas heavily reliant on biomass for cooking, leading to adverse health impacts. Infrastructure and skill-related challenges involve a lack of skilled manpower and poorly developed infrastructure for both conventional and unconventional energy sources. Economic challenges stem from inadequate domestic supplies of coal, oil, and natural gas, necessitating increased imports and contributing to rising fuel subsidies and a growing Current Account Deficit (CAD). External challenges include India's vulnerability to rising dependence on imported oil, regulatory uncertainties, and geopolitical tensions affecting oil imports from countries like Iran. India's strategic location in South Asia poses challenges, with China's One Belt One Road initiative potentially disrupting India's access to energy during conflicts. Additionally, India faces difficulties in garnering support for key gas pipeline projects like IPI and TAPI. India has been taking several steps to deal with these challenges and promote energy security at several frontiers. On the policy front, initiatives like the Pradhan Mantri Ujjawala Yojana and the Hydrocarbon Exploration and Licensing Policy (HELP) aim to increase access to clean energy and minimize government discretion in decision-making for the oil and gas sector. Efforts are also directed at increasing domestic coal production to reduce import dependence and enhancing the tax structure for thermal value-based energy imports. The India Energy Security Scenarios (IESS) and the India Energy Security Scenarios 2047 (IESS 2047) calculator provide tools for scenario-building and exploring diverse energy pathways. Technologically, India is exploring non-conventional energy sources like geothermal and tidal energy, and enhancing energy efficiency through the National Mission for Enhanced Energy Efficiency (NMEEE). The upgrade of auto fuel quality to BS-VI norms contributes to improving vehicle fuel efficiency. The focus on infrastructure includes augmenting the refining and distribution of oil and gas, developing City Gas Distribution (CGD) networks, and constructing strategic petroleum reserves. India has also been investing in innovations like the Solar Energy Corporation of India Limited (SECI) to develop storage solutions within the next three years, aiming to bring down prices through demand aggregation for both household and grid-scale batteries. Diplomatically, India is forging energy relationships in its extended neighborhood, engaging with countries like Myanmar, Vietnam, Kazakhstan, and Gulf countries. The Indo-US Nuclear deal has facilitated nuclear energy advancements, while India's membership in the Shanghai Cooperation Organization (SCO) opens avenues for greater energy cooperation between Central Asia and South Asia. These initiatives at various frontiers have been playing a vital role in India¡¯s Energy Security and have been also positively impacting the world. References: [1] Energy Security. (n.d.). Drishti IAS. https://www.drishtiias.com/to-the-points/paper3/energy-security [2] Emergency response and energy security - About - IEA. (n.d.). IEA. https://www.iea.org/about/emergency-response-and-energy-security# |