Clean energy allows India to withstand risks

The global energy crisis following the Strait of Hormuz blockade and India’s large crude oil import bill shows why clean energy is not merely a climate obligation but a core energy security strategy

- Amitabh Kant

Since Iran blocked the Strait of Hormuz in February, India has been confronting the full cost of its dependence on imported energy and the numbers are unsparing.

India imports about 85-90% of its crude oil — roughly five million barrels a day. Even before the present crisis — which may come to an end with the announced peace deal — India’s fossil fuel import bill stood close to $180 billion.

Given this stark reality, it is time to treat India’s energy transition as not merely a climate obligation, but as a core energy security strategy. The objective must be to build a clean energy system that is affordable, reliable, diversified and increasingly domestic.

India has already crossed 283 GW of installed non-fossil fuel capacity, including over 154 GW of solar and 56 GW of wind. It has achieved the target of 50% installed electricity capacity from non-fossil sources ahead of the 2030 deadline. It has electrified 28 million households and provided clean cooking fuel to more than 100 million homes.

The economics have also shifted decisively. Solar is now among India’s cheapest sources of new power. Renewable energy with storage is becoming increasingly competitive for evening and peak supply. Green ammonia auctions in India have discovered prices far below prevailing international levels. This progress exemplifies the fact that clean technologies have firmly entered the mainstream of India’s energy economy.