Energy Security in India: Achievements, Challenges and Opportunities.

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Context

The Union Budget 2025–26 proposed a major policy shift in India's energy strategy:

  • ₹20,000 crore allocated to Small Modular Reactors (SMRs).

  • India aims for 100 GW nuclear capacity by 2047.

  • Plans to amend the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act (CLNDA), 2010 to allow private and foreign sector participation.

This move comes amid India’s dual goals of achieving “Viksit Bharat” by 2047 and Net Zero emissions by 2070.

India’s Energy Mix (as of 2024–25)

SourceInstalled Capacity     Share in Generation Key Issues
Coal      ~210 GW              ~72%     Pollution, high emissions
Renewable Energy      ~190 GW              ~25%     Intermittent, land-intensive
Nuclear        8.18 GW              ~3%    Low but reliable; needs scale-up
Hydro (large & small)      ~47 GW                ~10%     Geographically limited
Natural Gas      ~25 GW              ~3%     High import dependence

Per capita energy consumption: ~1,200 kWh — well below global average (USA: ~12,000 kWh, China: ~4,500 kWh)

What is Energy Security?

According to the International Energy Agency (IEA):

Energy security means uninterrupted availability of energy sources at an affordable price.

For India, this includes:

  • Reducing import dependence

  • Ensuring energy access to all

  • Environmental sustainability

  • Resilience against global price shocks

Major Challenges

  • Import Dependence: India imports ~85% of crude oil, ~50% of gas, and uranium for nuclear power.

  • Intermittency: Solar and wind are not constant; require battery/storage solutions.

  • Coal Dominance: Still accounts for >70% of generation.

  • Land acquisition & Environment Issues: Renewable and hydro projects often face delays.

  • Grid Infrastructure: Outdated grid, high Aggregate Technical and Commercial (AT&C) losses.

  • Investment Gaps: Long gestation periods for nuclear/hydro make private players cautious.

Energy Sources – Expanding Dimensions

1. Renewable Energy

  • Solar: Flagship National Solar Mission (target: 280 GW by 2030)

  • Wind: High potential in Gujarat, Tamil Nadu, Maharashtra

  • Hydropower: Good for base load, but limited scope due to terrain/displacement

2. Nuclear Energy

  • 3-stage program: Pressurized Heavy Water Reactors → Fast Breeder Reactors → Thorium-based

  • Kakrapar 700 MW, Kudankulam (Russian collaboration) in pipeline

  • SMRs: Compact, modular, safer, quicker to deploy (50–300 MW capacity)

  • Regulatory hurdles: Private sector not allowed to own/operate nuclear plants yet

3. Bioenergy

  • Includes biogas, bioethanol, biodiesel, biomass pellets

  • National Bio-Energy Mission under implementation

  • Example: SATAT scheme (Sustainable Alternative Towards Affordable Transportation) for compressed biogas

4. Green Hydrogen

  • National Green Hydrogen Mission (target: 5 MMT annual production by 2030)

  • To be used in industry, transport, and ammonia production

  • Electrolysis powered by solar/wind = 100% clean fuel

5. Energy Storage

  • Key to renewable integration

  • Technologies: Lithium-ion batteries, pumped hydro storage, gravity storage, etc.

  • National Battery Storage Programme in progress

Key Government Policies and Commitments

  • Net Zero by 2070 (COP26).

  • 500 GW non-fossil capacity and 50% energy mix of RE by 2030 (achieved in 2025).

  • Carbon intensity reduction of 45% over 2005 levels.

  • National Electricity Policy 2021 (Draft) – Emphasizes clean, affordable energy

  • Perform, Achieve and Trade (PAT) – Industry energy efficiency

  • Faster Adoption and Manufacturing of Electric Vehicles (FAME) – EV push

  • Unnat Jyoti by Affordable LEDs for All (UJALA) – Household efficiency

  • Renewable Energy Investment Promotion Board (REIPB) – Clearances for RE

  • Hydrocarbon Exploration and Licensing Policy (HELP)

  •  Indian Strategic Petroleum Reserves Ltd. rock cavern reserves like Visakhapatnam and Chandikhol on the East Coast, and at Mangaluru and Padur on the West Coast. 

International Cooperation

  • International Solar Alliance (ISA) – HQ in Gurugram; promoting solar globally

  • Global Bioenergy Partnership – India is active member

  • U.S.-India Strategic Clean Energy Partnership

  • IEA Association Status – India participates in global energy security simulations

Nuclear Energy Focus

  • Legacy: Apsara (1956, Asia's first Nuclear Energy Reactor), Tarapur (1963, Asia's first Nuclear Power Reactor), Bhabha’s 3-stage program.

  • Recent: Kakrapar 700 MW (2024), Kudankulam (Russian partnership).

  • Future: 100 GW target by 2047; SMRs to replace ~100 GW captive thermal.

  • Reforms:

    • Private & FDI participation

    • Amendments in Atomic Energy Act (1962)

    • Overhaul of CLNDA (2010)

    • Independent Nuclear Regulator (AERB Bill pending since 2011)

    • Green classification for nuclear for tax & financial benefits

Reforms Needed

  • Amend the Atomic Energy Act, 1962 to allow private sector in nuclear fuel cycle

  • Revise CLNDA, 2010 to ease liability norms for suppliers

  • Establish independent nuclear regulator (AERB currently autonomous but under DAE)

  • Green taxonomy to classify nuclear and hydrogen as sustainable investments

  • Transmission infrastructure expansion under “One Nation, One Grid”

  • Viability Gap Funding (VGF) for emerging clean technologies

  • R&D and indigenous capacity building (Bharatiya SMRs).

  • FDI norms liberalisation (possibly up to 49%).

Conclusion

India’s path to energy security must balance affordability, access, and sustainability. As the economy grows and climate goals tighten, the pivot to renewables, nuclear, bioenergy, and hydrogen is inevitable.
The recent Budget reforms signal seriousness toward long-term clean energy goals. But without institutional reforms, private participation, and investment in storage and grid infrastructure, the vision of a Viksit Bharat by 2047 and Net Zero by 2070 will remain distant.
Energy security is not just about megawatts — it’s about inclusive, resilient, and future-proof development.

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