[Answered] Critically examine the statement “energy sovereignty is the new oil” in the context of India’s current geopolitical and economic vulnerabilities, and evaluate the policy measures needed to achieve uninterrupted, affordable, and indigenous energy security.

Introduction

India, importing 85% of crude oil and 50% of natural gas (MoPNG, 2024), faces a $170 billion energy import bill. In an unstable geopolitical order, “energy sovereignty” has become synonymous with national security.

The Vulnerability Landscape: Why “Energy Sovereignty” is the New Oil

1. Import Dependence: Oil imports form over 25% of India’s total merchandise imports (FY 2023-24), weakening rupee stability and widening CAD.
2. Geopolitical Risks: Russian oil now makes up 35–40% of imports (S&P Global, 2025), creating over-concentration. Middle East flashpoints (Hormuz chokepoint) threaten supply.
3. Energy Transition Imbalances: Despite renewable expansion, fossil fuels still meet 80% of global demand (IEA, 2023). India risks stranded assets and vulnerability if it over-relies on volatile imports.
4. Strategic Risks: India’s SPR (Strategic Petroleum Reserves) covers just 9.5 days of net imports, compared to China’s 90 days and the US’s 60 days.

Global Flashpoints: Lessons for India

1. 1973 Oil Embargo: Triggered diversification strategies in the West.
2. 2022 Russia-Ukraine War: Exposed Europe’s over-dependence (40% gas from Russia) → coal revival.
3. 2025 Iberian Blackout: Showed risks of over-reliance on intermittent renewables without storage.
   ➡ Lesson: Energy strategy must balance sovereignty, diversification, and resilience.

India’s Current Policy Gaps

1. Over-centralisation in fossil imports despite renewable push.
2. Slow nuclear expansion — capacity stagnant at 8.8 GW vs 63 GW in France.
3. Storage Deficit — inadequate pumped hydro and battery capacity.
4. Technology Dependence — China controls 70% of solar PV manufacturing and 80% of lithium-ion battery supply chains (IRENA, 2024).

Pathways to Energy Sovereignty: Five Pillars

1. Coal Gasification & Carbon Capture: Leverage 150 billion tonnes of coal reserves for syngas, methanol, hydrogen; reduce reliance on imported LNG.
2. Biofuels & Ethanol Blending: Ethanol blending already transferred ₹92,000 crore to farmers (NITI Aayog, 2023). Scaling E20 by 2025 can save $4 billion annually in forex.
3. Nuclear Power Expansion: Implement thorium-based reactors and Small Modular Reactors (SMRs) for dispatchable zero-carbon baseload; diversify uranium partnerships (Kazakhstan, Australia).
4. Green Hydrogen Mission (2023): Target 5 MMT/year by 2030; indigenous electrolyser manufacturing crucial to avoid China-like dependence.
5. Pumped Hydro Storage & Grid Inertia: With over 96 GW potential (CEA), India can stabilise renewables-heavy grids.

Complementary Policy Measures

1. Strengthening SPRs to 30–60 days of imports.
2. Diversification of sources (Africa, Latin America, US shale).
3. Atmanirbhar Bharat push for battery, solar, and hydrogen supply chains.
4. Regional energy diplomacy: I2U2 (India–Israel–UAE–US), International Solar Alliance.
5. Just Transition policies ensuring affordability and equity in rural electrification.

Conclusion

As Vaclav Smil argues in Energy and Civilization, power defines prosperity. India’s path lies in foresight-driven energy sovereignty — blending resilience, affordability, and self-reliance to secure tomorrow’s most vital resource.