E-Paper
Energy self-reliance: Next pillar of India’s economic security
This article is authored by Varun Puri, managing director, Green Power International Pvt. Ltd.
The ongoing conflict in the Gulf and its impact on global energy are a powerful reminder of why energy self-reliance is crucial for every nation. The war has entered its third week with no clear end in sight, and its repercussions are being felt across the globe, with spiking energy prices due to the disruption of oil and gas supplies.
LPG and LNG prices have already spiked in India. Petrol and diesel remain stable for now. In tier-2 and tier-3 cities, domestic and industrial kitchens are feeling the pinch as energy costs soar and availability remains limited. The persisting situation could soon fuel domestic inflation and further strain household budgets.
Energy security is the cornerstone of any country's economic and sustainable growth. A consistent supply ensures that industries keep running, homes have warm meals, and transportation operates smoothly. Even the slightest disruption can significantly impact daily life and economic activity. It is even more true for a country like India, which depends heavily on foreign nations for oil and gas.
We import 90% of our oil, 66% of our LPG, and 50% of our LNG. This heavy import dependency to meet our energy needs not only makes us vulnerable to global tensions but also increases our import bill. The situation calls for accelerating renewable energy and strategically investing in infrastructure to support hybrid systems with flexible backup capacity.
India’s electricity demand is expected to reach 366 GW by 2031–32, necessitating an installed generation capacity of around 900 GW. Meeting this demand will require a shift to cleaner energy sources, heavy investment in R&D, and investment in grid modernisation and energy storage systems to stay on track for net zero by 2070.
India’s total non-fossil power installed capacity had already reached 262.74 GW by November 2025, accounting for 51.5% of the country’s total installed electricity capacity of 509.64 GW. The government is working to achieve 500 GW of non-fossil energy capacity by 2030. Furthermore, the National Green Hydrogen Mission aims to produce 5 MMT of green hydrogen by 2030. These initiatives substantiate the commitment to a transition to renewable energy by gradually increasing its share in the energy mix.
Gas-based EPC projects are another ideal solution for supporting long-term energy security goals and transitioning to renewable sources. As a source of reliable and dispatchable power, they can stabilise grids, address intermittency, and reduce dependence on more carbon-intensive fuels. Seamlessly integrating them with renewables and storage can help create hybrid configurations that balance baseload and peak demand efficiently. Their flexibility and lower emissions position them as pragmatic solutions for meeting the growing energy goals.
What is needed is a rapid update of the system and policies to meet the needs on time and fully utilise the potential of renewable energy. We must focus on closing the gap through swift infrastructure development and aggressive research and development. Additionally, we need to invest more in strengthening our grid infrastructure with storage and in streamlining land acquisition. For this, policies to encourage banks and investors to fund projects are mandatory.
Boosting domestic manufacturing through production-linked incentives (PLI) for batteries and battery storage systems, alongside strengthening engineering capabilities and attracting long-term investment, to reduce reliance on imports, is another area that needs attention.
Ensuring energy security requires skilled manpower to design, build, operate, and maintain these systems efficiently. Creating and promoting programmes to train workers for renewable energy jobs can future-proof the sector.
Building an energy self-sufficient country is no longer a choice; it is a necessity. It is, in fact, a strategic move to ensure competitiveness and sustained economic growth. Indeed, achieving this objective would take years, but we must focus on expediting infrastructure development to increase capacity. Additionally, we must consider tweaking our policies to promote investment in the sector and accelerate adoption.
India is a developing economy, and much of our infrastructure is still under development. We have the advantage of building a modern and future-ready system that can make us an energy self-reliant nation. This can put us about 10 years ahead of developed nations and help avoid massive redevelopment costs later. At this point, we must act strategically and invest wisely.
This article is authored by Varun Puri, managing director, Green Power International Pvt. Ltd.
