India is at a crossroads in its energy mission right now. The country's economic growth is closely tied to its ability to provide reliable, affordable, and long-lasting energy, as it is the world’s third-largest
energy consumer. But there is a structural weakness behind this rise: a crippling dependence on fuels from other countries. India is almost 80-85% dependent on imported crude oil and approximately 50% on imported natural gas, which exposes it to global market fluctuations, political tensions, and supply disruptions.
This has once again been revealed through the recent events in West Asia and the instability in world energy markets. Even minor shocks have an immediate impact on fuel prices, inflation, the fiscal situation, and industry uncertainties. In the meantime, domestic electricity consumption is increasing at an alarming rate due to urbanization, industrialization, and better living standards. In summer seasons, India still relies on coal as a major contributor to electricity generation, accounting for about 70-75 percent. This dual pressure—external dependence and internal demand—makes energy
security not just an economic issue, but a strategic necessity.
Where Energy Is Consumed: Understanding the Root of Dependence
To tackle the problem, one has to know the location of energy consumption. The oil consumption in India is highly concentrated in transport. Road transport, aviation, and shipping are the largest sources of oil demand, accounting for 45-50%. This is dominated by diesel and petrol and is directly affected by fluctuating global oil prices, logistical costs, inflation, and the daily costs of citizens.
The same structural pattern is evident in natural gas. Fertilizers consume about 30-35 percent of the gas, guaranteeing the agricultural productivity and food security, and about 20 percent is consumed in power generation. The remaining share is allocated to city gas systems (CNG and PNG) and
industrial applications. Reliance on imported LNG may increase India's dependency as it seeks to increase the share of gas in its energy mix.
In practice, India's energy weakness is embedded in its economic set-up: mobility systems are too oil- dependent, and industry and agriculture are too gas-dependent. Without these sectors being shifted towards electrification, integration of renewable, and other alternative fuels, the objective of energy self-reliance would not be fulfilled.
The world's experience is a good teacher. China has been operating on a long-term approach to energy security. It has also invested heavily in renewable energy, established a strong domestic
manufacturing base for solar panels and batteries, and built large strategic reserves to cushion the company against supply shocks. These two combined approaches have significantly lower vulnerability and enhanced supply stability.
Another important lesson is provided in Europe. The crisis that affected European countries after the Russia-Ukraine war was characterized by severe energy shortages due to reliance on imported gas.
Nevertheless, they greatly reduced reliance in a short time through rapid policy responses, i.e., diversification of supply sources, increased renewables, and greater energy efficiency. This shows
that policies that are urgent and coordinated can speed up the transition to a new energy source.
Japan and South Korea, for example, have large strategic reserves and supply chains that are spread out, even though they don't have much at home. These examples clearly show that energy security is not just about availability—it is about planning, diversification, storage, and technological capability.
The transition of renewable energy in India is gaining good momentum. The country's renewable capacity has already surpassed 250 GW, with solar energy at the center stage. But the actual change is decentralization, decentralizing centralized generation to distributed, citizen-controlled energy systems.
A good example is the state of Andhra Pradesh and Telangana. Andhra Pradesh has a solar capacity of approximately 5.4 GW, with Telangana at 4.8 GW. However, these figures are just the tip of the
iceberg, since Andhra Pradesh alone has an estimated potential of 33 GW of solar, which does not reflect the potential for exploitation.
Rooftop solar is expanding steadily, with thousands of households adopting it and government programs aiming to scale it to lakhs of homes. This represents a fundamental shift—from passive energy consumption to active citizen participation in energy production.
Agriculture is also changing. The use of solar-powered pump sets eliminates the need for grid
electricity and diesel, benefiting farmers and reducing the fiscal burden on the power industry. These forms of decentralized solutions increase energy security and also inclusive growth.
Beyond Solar: Hybrid Systems, Storage, and Hydro Power.
Although solar energy is the focus of the Indian strategy, it cannot work alone. The new way forward is in integrated energy systems. New technologies, such as small rooftop wind turbines, especially vertical-axis designs, are also considered a complement to the same. Although they are still in the
early stages, these systems can be used to support solar energy in hybrid systems.
Energy storage is the actual game changer. Having battery storage enables storing surplus solar or wind power for use during peak demand, helping ensure reliable power. Renewable energy is intermittent without storage, but reliable with storage.
Another strong solution is hydropower, especially pumped hydro storage. As a natural battery, it retains excess renewable energy and releases it on demand. India has significant untapped potential in this sector, which will stabilize the grid and reduce reliance on fossil fuels.
India’s energy strategy must go beyond renewables to include advanced and transitional technologies. Large-scale energy storage expansion is critical to ensuring grid stability and maximizing the utilization of renewable energy.
Concurrently, India must be pragmatic about coal. Domestic coal can be turned into cleaner fuels
through technologies such as coal gasification and coal-to-liquid (CTL), ensuring the country does not rely on imported oil and gas. Together with carbon capture, utilization, and storage (CCUS) measures, these strategies can help cut emissions while also providing energy security.
In the future, India should invest in frontier energy industries. Gas hydrates, found under the ocean floor, form a huge untapped natural gas deposit, and they have potential along the coast of India.
Likewise, the thorium deposits are a rare opportunity to utilize thorium nuclear energy, which can provide a safe, long-term base-load. Energy capacity can be further enhanced by advances in next- generation nuclear technologies, particularly small modular reactors (SMRs).
Additionally, emerging solutions such as green hydrogen, bioenergy, and waste-to-energy systems can diversify the energy mix and reduce import dependence, particularly in industrial sectors.
India now needs a bold, mission-driven approach a National Energy Mission, similar in vision and
scale to Digital India. This mission should aim to transform every citizen from a passive consumer into an active participant in energy production, storage, and efficient consumption.
Every household can become a micro energy unit by adopting rooftop solar, using energy-efficient appliances, and shifting to electric cooking solutions such as induction, rice cookers, and other appliances. Diversifying household energy use can reduce dependence on LPG and gas.
The government should also, at the policy level, support scientific mapping of energy potential to determine which areas are most viable for solar, wind, hydro, or other energy sources. There should be strategic investment in high-impact sectors, such as hydro, storage, and nuclear power.
Equally important is public awareness. India has already demonstrated its adaptability from cash- based transactions to digital payments within a few years. A similar behavioral shift in energy consumption and production is both possible and necessary.
India has a radical and acute energy problem. Additional dependence on foreign oil and gas will constrain economic growth and strategic freedom. However, India will make this challenge a historic opportunity with a national purpose, a strong focus on policy, and involvement of its citizens.
The way to go is to combine renewable energy, invest in new technologies, enhance the storage facilities, and empower citizens. India has the assets, the skill, and the aptitude to lead.
The question is no longer whether solutions exist.
The question is whether India will act decisively and in time.
Prof. P. Srinivas Subbarao
(The author is Director, Management Studies & Chairman, International Affairs, NALSAR University of Law, Hyderabad.)
(The content of this article reflects the views of writer and contributor, not necessarily those of the publisher and editor. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only)
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