ENERGY SECURITY:-
National Energy Security can be understood as the capacity of the State to guarantee
sufficient uninterrupted energy availability in a sustainable and affordable manner for the
entire population. Energy security is an integral parameter to promote sustainable
development. Energy security is an evolving concept, and its scope is expanding and has not
reached a universal definition. A widely accepted definition of energy security is based on
the notion of an uninterrupted energy supply.
Although energy security is currently one of the most debated issues in the UNECE region, a
generally accepted definition is still lacking. Therefore, the term “energy security” or
“security of energy supplies” is used in various contexts, for different purposes, often having
very dissimilar meanings. While energy security is not easy to define because it is a
multifaceted concept, there are four dimensions of particular relevance: (a) physical
disruption of supplies resulting from infrastructure breakdown, natural disasters, social
unrest, political action or acts of terrorism; (b) long-term physical availability of energy
supplies to meet growing demand in the future; (c) deleterious effects on economic activity
and peoples due to energy shortages, widely fluctuating prices or price shocks; and (d)
collateral damage from acts of terrorism resulting in human casualties, serious health
consequences or extensive property damage. All four dimensions are relevant in the current
environment.
Taking into consideration these four dimensions, energy security could be defined as “the
availability of usable energy supplies, at the point of final consumption, at economic price
levels and in sufficient quantities and timeliness so that, given due regard to encouraging
energy efficiency, the economic and social development of a country is not materially
constrained”. Clearly, this is but one of a number of possible definitions that could be put
forward, however it does have the merit of capturing the multidimensional nature of energy
security.
Over the last few decades, the spotlight on energy security has subsided as globalised markets
provided a sense of secure energy supplies. In the past two years, many governments have faced
reevaluating their approach to energy security because of skyrocketing energy prices, the cost of
living challenges that followed and the geopolitical risk associated with securing energy sources.
This reassessment acknowledges that to secure public support and prevent significant economic
disruptions, with the potential political consequences that could follow, the energy transition needs
to be grounded in energy security, with adequate and reasonably priced supplies.
But conventionally, the idea of energy security is concentrated on securing access to supplies
of oil; however, the idea has subsequently broadened to capture the influence on energy
security of other energy sources, price volatility, supply chain mechanisms, political stability
of oil nations, sustainability, and other factors. With the emerging challenges, the meaning
and scope of energy security has been transformed and the modern definition incorporates a
degree of reliability, adequacy, consistency, affordability, sustainability, and
environmental acceptability of energy supplies to match the emerging challenges.
there are also different approaches and methodologies toward both qualitative and
quantitative assessment of energy security.
Mansson et al. (2014) reviewed and suggested that energy security is a multidisciplinary
concept rather than interdisciplinary concept with a variety in methodologies according to the
researcher's background in multiple disciplines like macroeconomics using methodologies
like partial equilibrium models, cost–benefit analysis, etc.; microeconomics using market
behaviour studies; industrial organisation focusing on market risk exposure, financial theory,
financial portfolios, real options theory, etc.; engineering researchers focusing on the
reliability of power systems, operations research using multi-criteria analysis, analytical
hierarchy processes, etc.; political science focusing on international relations theory, complex
system analysis applying simulation, dynamic system modelling methods, general system
analysis using methodologies like energy system scenario analysis, complex indicators and
indexes, etc. Cherp and Jewell (2011) distinguished the two most fundamental
methodological choices in energy security assessments that are the choice between facts and
perceptions in deciding what constitutes a significant energy security concern and concludes
that the methodological choice should be systematic, rational, and transparent.
How can we achieve strategic autonomy in the energy sector ?
1. Prioritise the availability of fossil fuels:-
Use renewable energy :- use renewable energy sources like solar and wind which are
replenished faster than their consumption . They are often cheaper than fossil fuels and
emit little to no greenhouse gases
Conserve fossil fuels :- use fossil fuels only when necessary and avoid wasting them.
Reduce your demand of fossil fuels :- Buy products made from recycled materials and
reuse and recycle what you can
Reduce fossil fuel use at home :- Replace your gas water heater, furnace , stove and
fireplace with heat pump alternatives
2.Nuclear Power :- Radioactive fuels, such as uranium,are used to generate nuclear power.
However, the country's uranium reserves are extremely small. India needs to have better
partners who can help in achieving uranium needs along with, the membership of the Nuclear
Supplier Group.
3. Blending ethanol is a step in the right direction for energy security and self-sufficiency
measures. The Indian government has moved forward the deadline for mixing 20% ethanol
(commonly known as E20) into gasoline from 2030 to 2025.
4. Taking down the barriers to domestic mining:Although India has some resources, like
cobalt, nickel, copper, and heavy rare earth metals, we haven't done anything to hasten their
extraction and processing. They are necessary building blocks for EVs, solar panels, wind
turbines, and batteries.
ISSUES:-
Economic Difficulties :-
Energy is an essential factor input in economic production to stimulate economic growth and
is a critical resource demanded by economic sectors such as agriculture, industrial
production, transportation and services. However, emerging economies like India, despite
growing at a fast pace, has the lowest per capita energy consumption, which is approximately
one-third of the global average per capita energy consumption (MoSPI, 2019). India is one of
the world's largest emerging economies, with primary energy demand anticipated to increase
by 33% from 2013 to 2040 (IEA 2015). Primary energy use in India constitutes just 6 percent
of the world total despite being home to 18 percent of the world's population. There is a
significant difference in per capita energy usage of India compared to that of other upper-
middle-income countries. Energy insecurity measured by energy intensity and carbon
intensity variables has a negative impact on economic growth.
India is projected to maintain its impressive economic growth in the foreseeable
future. Without reliable and affordable energy, India will not be able to sustain
such high economic growth, i.e. India's fast-growing economy and rapidly
increasing population tend to raise serious concerns about the nation's energy
security. The fuel production from indigenous resources has failed to keep pace
with the continuously rising demands and is being met by increasing imports.
This is making India more dependant on and vulnerable to foreign energy
supplies (Bahgat, 2006). By 2025, import of oil figures are expected to balloon
to 85% of total consumption for India and approximately 75% for China. As per
the estimates made in the Integrated Energy Policy Report 2005, if the country
like India is to progress on the path of this sustained GDP growth rate during
the next 25 years, it would imply quadrupling of its energy needs over 2003–04
levels with a six-fold increase in the requirement of electricity and a
quadrupling in the requirement of crude oil. The supply challenge is of such
magnitude that there are reasonable apprehensions that severe shortages may
occur.
Infrastructure and skill:-
Energy infrastructures include many components: generation,
transmission, and distribution of electricity; physical networks of oil
and natural gas pipelines; oil refineries; and other transportation
elements such as marine and rail transportation. Historically,
industrialized countries have financed the energy sector privately. Wood,
coal, oil, natural gas, and electricity were produced and transported
mostly by private firms well into the first decades of the 20th century.
Thereafter, as network energy utilities became ubiquitous, public
involvement increased. Infrastructure needs improvement as well as a lack of
competent labor for conventional and unconventional energy development.
India lacks the necessary transportation infrastructure to make energy accessible; for instance,
pipelines could be a good approach to increase the nation's overall gas supply. Because it can
be used efficiently in a number of demand sectors, gas will play a significant role in India's
energy mix.Due to its increasing reliance on imported oil, regulatory uncertainties, global
monopolies, and opaque natural gas pricing practices, India's already precarious energy
security is under enormous strain.Through a variety of partners, such as the Indo-US nuclear
agreement and oil imports from the Middle East, India aims to attain energy security.
Large multinational energy corporations showed no interest in the New Development
Licensing Policy (NELP), which was an attempt to encourage foreign investment in
domestic hydrocarbon exploration.
Hydrocarbon reserves abroad will need to be purchased with significant
investments.Due to delays in receiving regulatory and environmental approvals, coal
mining is delayed in India.
Policies:-
1.The Electricity Act 2003 :-
The Electricity Act, 2003 is a significant legislation enacted by the Parliament of India
aimed at reforming the country's power sector. It replaced earlier laws, including the Indian
Electricity Act of 1910 and the Electricity (Supply) Act of 1948, to address inefficiencies
and promote competition within the industry.
Key Features:-
Consolidation of Laws: The Act consolidates regulations related to generation,
transmission, distribution, and trading of electricity.
De-licensing Generation:It allows for de-licensed generation, enabling any entity to
establish and operate generating stations without prior government approval.
Regulatory Framework: Establishes the Central Electricity Authority and State Electricity
Regulatory Commissions to oversee the sector and ensure consumer interests are protected.
Tariff Rationalisation: Aims to rationalise electricity tariffs and promote transparent
subsidy policies.
Consumer Protection: Introduces measures to protect consumer interests and ensure supply
to all areas, promoting efficient and environmentally friendly practices.
The Act has undergone several amendments since its inception, notably in 2007, to further
enhance competition and efficiency in the electricity market.
2.The Energy Conservation Act 2001:-
The Energy Conservation Act, 2001, enacted by the Indian Parliament, aims to promote
energy efficiency and conservation across various sectors. It establishes a legal framework
to facilitate the efficient use of energy and to mitigate environmental impacts associated
with energy consumption.
Key features of the Act include the creation of the Bureau of Energy Efficiency (BEE),
which is responsible for developing policies and standards for energy consumption. The
Act mandates energy audits for designated consumers and sets energy performance
standards for appliances and equipment. It also introduces the Energy Conservation
Building Code (ECBC) to enhance energy efficiency in buildings.
The Act empowers both the Central and State Governments to enforce energy conservation
measures and impose penalties for non-compliance. It plays a crucial role in India's
commitment to reduce greenhouse gas emissions and enhance energy security.
In response to emerging challenges, the Energy Conservation (Amendment) Bill 2022
proposes to strengthen the Act, including provisions for carbon trading and expanding its
scope to larger residential buildings, thereby reinforcing the importance of energy
efficiency in sustainable development initiatives.
3.India Hydrocarbon Act:-
The India Hydrocarbon Act 2025 is a transformative legislation aimed at revitalizing the
country’s hydrocarbon sector to enhance energy security and promote sustainable
development. Key objectives include increasing domestic hydrocarbon production,
reducing import dependency, and fostering a competitive market environment.
Single Licensing Framework: This simplifies the licensing process for various
hydrocarbons, allowing companies to explore multiple resources under one license.
Revenue Sharing Model: It replaces the traditional Production Sharing Contract (PSC) with
a more transparent revenue-sharing approach, facilitating easier government oversight.
Fiscal Incentives: The act offers incentives such as reduced royalty rates and duty
exemptions to attract investments.
Open Acreage Licensing: Companies can select exploration blocks year-round, enhancing
flexibility in resource exploration.
The Hydrocarbon Act 2025 is expected to significantly boost domestic production,
encourage technological advancements, and position India competitively in the global
hydrocarbon market. By streamlining processes and promoting investment, the act aims to
meet the growing energy demands while addressing environmental concerns, ultimately
contributing to India's economic growth and energy self-sufficiency.
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