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Hospitality industry offers a model of energy independence

This article is authored by Ranganath Tannir, secretary general, Think Change Forum.

Published on: Apr 25, 2026, 23:36:59 IST
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Coal-based tandoors and traditional slow cooking with firewood are back in fashion due to the West Asia conflict. But the hospitality industry, in many ways, has long been preparing for a more sustainable future that is less dependent on fossil fuel energy. Today, that preparedness is proving invaluable for various establishments, from small off-grid properties to luxury hotels pursuing net-zero carbon emissions. These properties are able to maintain operations even as global energy supply comes under strain in the wake of the ongoing crisis.

Hospitality (Getty Images/iStockphoto)
Hospitality (Getty Images/iStockphoto)

As global attention intensifies on climate action, the relevance of such transitions becomes even more pronounced. The call for sustainable practices needs to accelerate climate action across industries. In this context, the hospitality sector’s shift toward renewable energy and resource-efficient operations is not just a response to immediate geopolitical challenges, but also a reflection of a broader commitment to environmental stewardship. What was once seen as progressive is now becoming imperative.

Geopolitical instability offers a critical lesson that energy self-reliance is no longer optional. For a country like India, accelerating the transition toward sustainable and locally-anchored energy systems is as much about resilience as it is about environmental responsibility. In this journey, the hospitality sector has set a powerful example. By integrating renewable energy and reducing dependence on centralised power systems, it has begun to build a buffer against external shocks. Going forward, this shared responsibility must deepen where industry innovation and government support work in tandem to strengthen the nation’s energy security.

For decades, hotels have depended on fuels such as LPG, PNG, and fuel oil to power kitchens, laundries, and boilers. These systems deliver efficiency when supply is stable. But when global tensions disrupt fuel flows, the impact is immediate and unforgiving. Across the sector, hotels are scaling back menus, reducing operating hours, or turning to temporary alternatives. In a business where energy is as essential as service itself, such disruptions do not just affect margins; they threaten continuity.

What the current situation makes clear is a simple and fundamental truth. Resilience cannot be improvised in moments of disruption but must be designed into the system with foresighted infrastructure choices, well before a crisis arrives.

Thankfully, the industry’s response to this structural risk did not begin with the current crisis. Several years ago, leading players and novel properties had already initiated a deliberate transition away from fossil fuels toward electrification and renewable-aligned energy systems. This shift was anchored in philosophies like Responsible Luxury that seamlessly integrate high-quality guest experience, environmental stewardship, and long-term operational resilience into a unified operating model.

Today, this approach is visible across a growing number of hospitality properties. Solar and wind energy are increasingly powering core operations. Energy efficient technologies are embedded into kitchens, heating systems and water management. Many hotels are investing in electric alternatives to replace fossil fuel-driven processes. Importantly, new developments are being designed with these principles at the outset rather than being retrofitted later, making the systems more robust and future-ready.

Luxury chains such as ITC Hotels exemplify this transformation, operating largely on renewable energy and significantly reducing reliance on fossil fuels. The investments by such companies in green buildings and resource efficient infrastructure are not just environmental achievements. They are strategic choices that are now proving their value. Reduced dependence on conventional fuels has helped limit exposure to supply disruptions and price volatility. In periods of stress, this translates into greater operational stability and predictability.

The benefits of this approach extend beyond individual properties. By reducing reliance on external fuel supply chains, hotels are also easing pressure on broader energy systems. In times of shortage, this distributed and diversified approach to energy use contributes to overall resilience.

In many ways, the growing global focus on sustainability reinforces the direction that forward-looking hospitality players have already embraced. Sustainability is not a seasonal narrative but an embedded philosophy that guides everyday operations. From large-scale renewable energy adoption to green building certifications and circular resource management, such initiatives echo the core message— that long-term resilience is rooted in responsible choices made consistently over time. As the industry navigates uncertainty, these efforts stand as proof that environmentally conscious strategies are also sound business decisions.

This is where the idea of the grey rhino becomes particularly relevant. A grey rhino is a risk that is large, visible and highly probable, yet often ignored until it becomes unavoidable. Energy volatility fits this description perfectly. But then it is not a sudden or unpredictable threat; it is a recurring and foreseeable challenge shaped by geopolitics, market dynamics and resource constraints. The hospitality industry chose to recognise these risks early and respond with intent. That choice is what distinguishes those who are coping today from those who are struggling.

Energy security is often discussed in terms of national policy, infrastructure and supply chains. While these are critical, resilience is also built at the level of individual sectors and enterprises. It depends on how industries design their systems, how they diversify their energy sources and how they invest in long-term stability rather than short-term convenience.

The hospitality sector, often viewed primarily through the lens of service and experience, has been quietly demonstrating what this kind of thinking looks like in practice. It shows that sustainability and resilience are not competing priorities. In fact, they reinforce each other. Systems designed to reduce emissions often also reduce risk. Investments made for environmental reasons often deliver economic and operational benefits over time, especially in times of crisis.

(The views expressed are personal)

This article is authored by Ranganath Tannir, secretary general, Think Change Forum.