India's Progress Towards Energy Security
India is taking significant steps towards achieving energy security by addressing longstanding issues in various energy sectors. Key achievements and strategic actions are outlined below:
Coal Production
- Coal production in India now exceeds 1 billion tonnes.
- Both Coal India and private miners have shown healthy growth in production.
Oil Market Dynamics
- The US intervention in Venezuela indicates an intent to maintain an oversupply in the oil market.
- India strategically sources crude oil from affordable sources like Russia, especially if the market remains saturated.
- Oil-producing nations face challenges due to difficulty maintaining production quotas.
- India's neutral stance on sourcing crude oil and natural gas facilitates vendor switching and deflects strategic criticism.
Nuclear Energy
- Changes in liability laws are anticipated to attract private capital into the nuclear energy sector.
Renewable Energy
- Renewables now account for over 50% of India's total installed power capacity.
- The target is to achieve 500 GW of non-fuel capacity in the next 5 years.
Economic and Policy Implications
- India aims to maintain economic momentum through access to diverse energy sources during anticipated high growth periods.
- The economy has a low-energy intensity; however, policy focus on manufacturing exports may alter this scenario.
- Emerging technologies like AI and EVs will boost energy demand.
- There's a need for improvements in energy demand management alongside supply enhancements.
Challenges in Energy Pricing and Distribution
- Correct energy pricing is crucial for leveraging energy for accelerated growth.
- The politicization of electricity prices hampers reform efforts, affecting the investment climate.
- Addressing distribution bottlenecks is vital to prevent impacts on upstream revenue.
