Resilience In Energy

By Dhurjati Mukherjee

At a time when energy security has become a top priority for countries across the world, including India, building long-term resilience against geopolitical risks requires a fundamental shift in the composition of the energy sector. In India’s case, there has been considerable neglect in the exploration and development of domestic oil and gas resources. Equally significant has been the slow pace of electrification and the inadequate expansion of clean-energy infrastructure that could have reduced dependence on fossil fuels.

Although large-scale solar and wind energy projects have been successfully implemented in states such as Gujarat and Rajasthan, along with several others, investments in transmission infrastructure have not kept pace with generation capacity. As a result, many states continue to face transmission bottlenecks, limiting the efficient distribution and utilisation of renewable energy. Addressing these gaps will be crucial if India is to achieve greater energy security, accelerate its transition to cleaner sources of power, and withstand future external shocks.

A major milestone is the very recent discovery of natural gas in the Andaman Sea by Oil India which is expected to be a game-changer in reducing the country’s high reliance on imported energy. It is understood that the well sits in 355 metres of water. During production testing in the Eocene formation at a depth of 1900 metres, continuous gas firing and pressure built-up were observed. Out of the three wells drilled so far, two have successfully confirmed the presence of hydrocarbons.

Meanwhile, Union Petroleum Minister Hardeep Puri recently stated as India imported 80 per cent of oil and 50 per cent of gas, with the East Andaman Sea discovery, things are destined to change. He further pointed out that India holds the potential of ‘several Guyana’s’ in the Andaman region and outlined several measures taken by the government for exploration and production. Further he observed the country was 3.5 million square kilometres of sedimentary basin but it never explored beyond 8 per cent area, keeping a large expanse of sea beds unexplored.

The other important aspect is that of electrification of the transport sector. Electric cars, buses and trucks are cheaper to run and greatly reduce pollution in cities and urban areas. China is leading the world in electric cars and battery storage, yet, we have rejected proposals from BYD, the world’s biggest electric auto producer and second biggest battery producer, when it proposed a billion-dollar investment. It is time for India to take steps in this direction to reduce pollution.

Since 40 per cent of EV’s price comes down to its battery, lighter cars with smaller batteries are the answer. A rapidly expanding public charging network can address range anxiety. Battery-as-a-service or Naas, model in which you pay a monthly subscription for the battery, also lowers initial price. But while India taxes EVs at 5 per cent, BaaS is taxed at 18 per cent, and this must change.

The Niti Aayog recommended concentration on specific regions, say the metros, first. For network effects this is a good idea because big cities need air quality improvements urgently. Switching to electric cooking should be easier because equipment costs are lower. And the energy savings are enormous because induction plates and microwave ovens, for example, don’t waste fuel heating ambient air and vessels.

As for biofuels when the country is plagued by the West Asian crisis, experts call for need to shift using the biofuel mission from food crops to produce ethanol to using crop residue. Fertilisers, the main chemical urea for food crops, are mostly imported. Thus, the solution lies in biofuels. Waste-based biofuels kill two birds with one stone, —biorefinery – they produce fuel (ethanol) and can replace imported chemical fertilisers (urea) with organic fertilisers at the farm level.

It is encouraging to note that the recent announcement of central excise exemption for petrol laced with 20-30 per cent ethanol follows recently announced standards for various grades in this band. The tax exemption ought to facilitate higher levels of ethanol blending. As per a study, the increase in ethanol blending by around 13-fold from 1.5 per cent in 2014 to 20 per cent in 2025 saved the government around 1.06 trillion rupees in crude oil imports and avoided 54.4 million tonnes of carbon emissions in a decade.

If India were to meaningfully move away from food crops to crop residue like cane stubble and bagasse, rice and wheat straw, corn cobs etc. it will have a multiplier effect. Processing from residue nothing goes to waste as India generates around 500 million tonnes of agricultural residue every year, that could, as per estimates, yield 40 litres of ethanol-equivalent. Biogas slurry –the waste after producing biogas – is excellent organic fertiliser. This, in turn, will help slash the government’s crippling fertiliser subsidy bill, estimated at a staggering Rs 2.4 litres crore this year, and free farmers from imported chemical fertilisers that kill soil nutrients.  There is imperative need to consider this aspect for greater gains in the long-term.

In the nuclear sector, a milestone was achieved in April when a prototype fast-breeder reactor (PFBR) at Kalpakkam attained criticality. Developed indigenously by Bharatiya Nabhikiya Vidyut Nigam (BHA-VINI), the 500 Mwe reactor marks India’s formal entry into the second stage of its 3-stage nuclear programme. Apart from this, a welcome development is the government’s decision to consider measures that include assured power purchase agreements (PPAs) to attract private sector investments in the nuclear sector.

As the country has limited supply of uranium, the 3-state programme was conceived to enable large-scale utilisation of thorium, which is abundant for power generation. Meanwhile Bhabha Atomic Research Station (BARC) is understood to be developing several advanced reactor designs, including 200 MWe Bharat Small Modular Reactor (BSMT-200). 55SMeSMR-55and a high temperature gas-cooled reactor intended for hydrogen production. In coming years nuclear energy may help the cause of energy resilience and play a larger role in this sector. Experts are of the view, and quite rightly, that the combined efforts of renewable energy as well as nuclear programmes could help India’s huge energy requirement.

One may refer to a study in November 2025 by the Council on Energy, Environment and Water estimated that India’s green economy could attract $1 trillion investment and create 48 million jobs. For energy security, scaling biofuels and renewable powered mobility can displace crude oil imports, unlocking #3.6 trillion opportunities. For food and materials, bioeconomy can harness India’s 700 million tonnes of biomass, the largest in the world, to reduce fertiliser imports while the present findings of gas in the Andaman Sea augurs well for the country. — INFA