The road to energy atmanirbharta

Source: The post is based on an article “The road to energy atmanirbharta” published in The Indian Express on 5^th September 2022.

Syllabus: GS 3 – Indian Economy – energy

Relevance: steps that can be taken by India to achieve Energy Atmanirbharta.

News: This article discusses about the steps that can be taken by India to achieve ‘Energy Atmanirbharta’ by 2040.

The Prime Minister has called for “Energy Atmanirbharta” by 2040 recently.

What are the requirements needed for India to achieve Energy Atmanirbharta by 2040?

First, India should be clear with the definition of Atmanirbharta. It means self-reliance not self-sufficiency. Self-sufficiency should not be our goal as energy self-sufficiency is infeasible and uneconomic.

Second, we should prioritize access to fossil fuels because the transition to a green energy system is a lengthy, time taking and costly process. There is a low probability of finding substantive, additional domestic resources of hydrocarbons, even if India is able to enhance domestic exploration, it may be difficult to produce them on commercially viable terms. Therefore, our policy must continue to emphasize affordable and secure access to oil and gas.

Third, prioritize access to the building blocks of green energy. We have ambitious targets for renewables. However, minerals/components (copper, cobalt, lithium, semiconductor chips etc.) required to build EVs, solar panels, wind turbines and batteries are concentrated in countries that are not on the same political page with India.  For example, 38 per cent of copper is produced from Chile and Peru. China controls 47 per cent of copper smelting and 42 per cent of copper refining. Therefore, India must remove the obstacles to domestic mining and develop strategies to manage the international market dynamics.

Fourth, In a recent example of Germany, it faced the LNG supply problem because it was not connected by a pipeline built by Spain. Therefore, it became possible for Russia to weaponize the gas supply.

Thus, infrastructure development is needed. GAIL is investing in the development of a national gas pipeline grid. In addition to it India must expand its strategic petroleum reserves to cover at least 30 days of consumption.

Fifth, offering green incentives to encourage private participation. For example, investors response was encouraging after the government’s production-linked incentive scheme (PLI) offers benefits for investment in green energy.

Private capital can help meet net carbon zero targets of the country.

Sixth, In the face of high gas prices, Europe is enjoying the disproportionately positive benefits of demand management. This must be corrected. Energy usage norms must be standardised and tightened. Legislation should be properly enacted to ensure compliance.

Seventh, retraining and upskilling.

The nature of jobs and their location will change with the gradual transition to a green energy system. Therefore, the requirements for training/skilling should be anticipated and delivered.

Eighth, energy diplomacy. Our diplomats should add energy to their diplomacy. This is because of our dependence on the international energy supply chains. Success in navigating economic and geopolitical uncertainties will depend greatly on skillful diplomacy.

Ninth, holistic governance. The current energy governance requires proper administration. Institutions should be created to facilitate integrated energy planning and implementation.