Energy Security and India's Dependency
The ongoing crisis in West Asia highlights the vulnerability of global energy security due to geographical constraints. The disruption in the Strait of Hormuz amid the US-Israel-Iran tensions has substantially impacted global energy flows. Approximately 20% of global oil and LNG passes through this passage, affecting countries heavily reliant on these imports, including India.
India's Energy Import Dependency
- India imports over 90% of its oil needs and roughly 50% of its gas requirements.
- Around 60% of its LPG consumption is met through imports, with 90% of those imports transiting the Strait of Hormuz.
- Despite diversifying its crude oil sources, West Asia's share in India's import basket increased to 59% by February 2026.
- India's annual oil and gas import bill persists around $180 billion.
Challenges of Fossil Fuel Dependency
This reliance poses a systemic security problem due to India's limited control over these regions. Prolonged conflicts could exacerbate India's import expenses and stress on various sectors.
Non-Fossil Fuel Prospects
Non-fossil energy sources such as solar and wind provide more stability during geopolitical tensions. India has made progress in its energy transition with over 275 GW of non-fossil fuel capacity.
Strategic Actions for Indian Energy Transition
- Expand Renewable Energy Targets: Increase renewable energy goals from 500 GW to 1,500 GW by 2030.
- Strengthen Transmission Infrastructure: Enhance grid capacities in renewable-rich states like Gujarat, Rajasthan, Karnataka, and Tamil Nadu.
- Integrate Battery Storage: Include battery storage in renewable tenders, promote pumped hydro storage, and lower GST for storage assets.
- Reduce LPG Dependency: Introduce demand aggregation for induction cookers, leveraging the Ujjwala scheme model.
- Promote Electric Mobility: Establish a clear roadmap for transport electrification and improve battery storage policies.
- Enhance Nuclear Energy Capacity: Target 100 GW of nuclear capacity by 2047 with a focus on execution.
Critical Mineral Strategy
India must ensure its clean energy transition by diversifying the supply chain of critical minerals like lithium and cobalt, building processing capabilities, and forming international partnerships to avoid new dependencies.
Conclusion
By focusing on domestic clean energy development, India can mitigate geopolitical risks and achieve energy sovereignty. The current crisis offers an opportunity for India to realign its energy strategy towards self-reliance.
