Global fuel dynamics and India’s Energy Security

Global fuel dynamics and India’s Energy Security:

India, the third largest oil user worldwide, imports 80% of its oil requirements. The next 25 years will see a 4.5 percent annual increase in India's energy usage. Recent spikes in the price of oil have increased India's current account deficit (CAD), raising questions about the country's long-term economic viability and underscoring the need for energy security. The Indian Rupee fell to its lowest level due to growing CAD.

Energy sources' continuous and inexpensive availability is referred to as energy security. Long-term energy security involves making timely investments to meet energy demands while also keeping up with the needs of the environment and the economy. The capacity of the energy system to react quickly to unexpected changes in the supply-demand balance is the key component of short-term energy security.

Due to its increasing reliance on foreign oil imports, regulatory uncertainties, global monopolies, and opaque natural gas pricing practises, India's already precarious energy security is under tremendous strain. India works with a variety of partners to secure its energy supply.

India has to do the same for LNG pricing as it has done for gasoline and diesel. India should thus take action to ensure energy by boosting the percentage of renewable energy, promoting green energy, and successfully executing the energy strategy.

In New Delhi: According to the International Energy Agency's (IEA) India Energy Outlook 2021, the country is the third-largest primary energy user in the world, Minister of State for Petroleum and Natural Gas Shri Rameswar Teli stated in the Lok Sabha. Energy security, according to the IEA, is the continuous availability of energy sources at competitive prices.

The global energy industry is undergoing significant changes, including increased electrification, an increase in renewable energy, changes in oil production, and the globalisation of the natural gas markets. In order to deal with these changes in the energy industry, India must increase its capacity for research and skill development.

Various future scenarios for energy security are outlined by issues like carbon emissions, air pollution, and energy access. The policymakers in the energy sector should follow the dynamic scenarios predicted by INDIA ENERGY SECURITY SCENARIOS, 2047 (IESS).

India must guarantee long-term planning in order to fulfill its obligation under the Paris Agreement to achieve equitable and sustainable growth.

What is energy security?

It simply means that access to all fuels and energy sources, at a reasonable price.

We can see this in two ways:

• Ø Short-term energy security
• Ø Long-term energy security

Short-term energy security:

The capacity of the energy system to quickly respond to unexpected changes in the supply-demand balance is the key component of short-term energy security.

Long-term energy security:

Long-term energy security primarily involves making timely investments to deliver energy in accordance with societal demands and prevailing economic conditions.

Energy security's importance:

Regional or governmental energy security can be improved via energy efficiency. Efficiency may lessen dependency on imported coal, oil, and gas by lowering overall energy consumption. Therefore, energy efficiency can be a key component in achieving cost-effective long- and short-term energy security.

The possibility of supply disruptions is further decreased by energy efficiency since the only energy source that cannot be stopped is energy that is not being used. Efficiency improvements can also be used in conjunction with urgent conservation efforts to lower demand in the case of an interruption. Effective proof of this was provided in the aftermath of the 2011 Great East Japan Earthquake.

Decreased imports of fossil fuels in IEA nations and significant developing economies as a result of fuel efficiency advancements since 2000.

Improvements to energy security:

1  expanding the availability of sustainable energy:

By 2022, India has already committed to providing power to every home. A more ambitious objective would be to give electricity to every home on a 24-hour basis.

On the agricultural front, the distribution goal for solar irrigation pumps has to be increased and supported through NABARD loan support and government subsidies.

The Pradhan Mantri Ujjawala Yojana should be supplemented by: Establishing biomass pelletizing plants; and distributing "efficient biomass challahs" in rural regions.

To make possible non-conventional energy sources like geothermal energy, tidal energy, etc. economically and technologically feasible, they must be investigated and researched.

2.    Increasing effectiveness:

A detailed cost-benefit study of the available energy-efficient technologies and goods across all sectors, particularly agriculture, housing, and transportation, should be carried out by the National Mission for Enhanced Energy Efficiency (NMEEE).

The institutional level should see a strengthening of the federal and state-authorized organizations working in the field of energy efficiency.

The car gasoline quality should be enhanced to BS VI requirements for a national launch in 2020 in order to increase vehicle fuel efficiency advantages.

3.    policy alterations:

About 75 percent of our energy is produced by coal-fired power plants. To lessen its reliance on imports, India must enhance domestic coal production. It is necessary to expedite regulatory approvals, raise labour productivity, produce more coal, and improve distribution effectiveness.

The goal of the Hydrocarbon Exploration and Licensing Policy (HELP) is to promote growth in the oil and gas industry in India by minimizing government discretion in decision-making, reducing disputes, reducing administrative delays, and introducing the concept of revenue sharing and marketing freedom.

In order to increase the economy's competitiveness, the tax system for the import and sale of energy on a thermal value basis has to be streamlined.

The INDIA ENERGY SECURITY SCENARIOS, 2047 (IESS) was created as a tool for creating energy scenarios. The overarching goal of this is to create energy routes up to the year 2047, including plausible scenarios for energy supply and demand.

4.    Energy diplomacy by India:

India is creating a network of energy connections in its wider area, which includes Myanmar and Vietnam in the east, Central Asian nations like Kazakhstan in the west, and the Gulf States in the east.

The Indo-US Nuclear Deal has given India new opportunities in the nuclear energy sector by enabling cutting-edge technology and nuclear fuel. For nuclear fuel, India has begun to cooperate with China, Kazakhstan, and Australia.

By connecting Central Asia and South Asia, India's SCO membership might now play a bigger part in assuring increased energy cooperation between energy producers and consumers.