Indian Economy·Revision Notes

Energy Security — Revision Notes

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Version 1Updated 7 Mar 2026

⚡ 30-Second Revision

  • Energy Trilemma:Security, Affordability, Sustainability.
  • Crude Oil Import Dependency:~85% (as of March 2024).
  • Natural Gas Import Dependency:~50% (as of March 2024).
  • Total Installed Power Capacity:~440 GW (as of March 2024).
  • Coal Share in Power:~50% (~220 GW).
  • Renewable Energy Capacity (incl. Large Hydro):~190 GW (~43% of total, as of March 2024).
  • Solar Capacity:~82 GW (utility-scale, as of March 2024).
  • Wind Capacity:~45 GW (as of March 2024).
  • Nuclear Capacity:~7.5 GW.
  • SPR Phase I Locations:Visakhapatnam, Mangaluru, Padur.
  • SPR Phase I Capacity:5.33 MMT (~9.5 days of crude oil).
  • National Solar Mission:Part of National Action Plan on Climate Change.
  • International Solar Alliance (ISA):Co-founded by India & France, HQ Gurugram.
  • Electricity Act:2003 (landmark reform).
  • Energy Conservation Act:2001 (amended 2022).
  • BEE:Bureau of Energy Efficiency (under EC Act).
  • PAT Scheme:Perform, Achieve and Trade (market-based energy efficiency).
  • UJALA Scheme:LED bulb distribution.
  • National Green Hydrogen Mission:Launched Jan 2023.
  • 500 GW Non-Fossil Fuel Target:By 2030.
  • Net-Zero Emissions Target:By 2070.
  • Constitutional Entries:Union List Entry 38 (Atomic Energy), State List Entry 23 (Mines).

Vyyuha Quick Recall Mnemonic: SECURE Energy

  • Supply Security (SPR, Diversification)
  • Equity (Affordability, Access - Ujjwala, Saubhagya)
  • Clean Energy Transition (Renewables, Nuclear, Green Hydrogen)
  • Utility & Efficiency (BEE, PAT, Smart Grids)
  • Resource Optimization (Coal reforms, Domestic E&P)
  • Energy Diplomacy (ISA, Bilateral Pacts)

2-Minute Revision

India's energy security is a critical balancing act, often termed the 'Energy Trilemma' – ensuring Security of supply, Equity (affordability and access), and Sustainability. The nation's energy mix is still heavily reliant on fossil fuels, with coal forming the backbone of power generation (approx.

50% of installed capacity). However, there's a rapid shift towards renewables, which now constitute over 40% of the total capacity (as of March 2024), driven by ambitious targets like 500 GW non-fossil fuel capacity by 2030 and a Net-Zero goal by 2070.

A major challenge is India's high import dependency for crude oil (~85%) and natural gas (~50%), making it vulnerable to global price volatility and geopolitical risks. To mitigate this, India has established Strategic Petroleum Reserves (SPR) at key locations.

Policy levers include the Electricity Act 2003 for power sector reforms, the Energy Conservation Act 2001 for efficiency (BEE, PAT scheme), and the National Green Hydrogen Mission for future fuels. Energy diplomacy, exemplified by the International Solar Alliance (ISA), plays a crucial role in securing supplies and fostering global clean energy transition.

The Vyyuha framework emphasizes that this transition must be 'just' and leverage digital infrastructure for smart grids and efficient demand management.

5-Minute Revision

India's energy security is a cornerstone of its developmental aspirations, navigating the complex 'Energy Trilemma' of ensuring reliable supply, equitable access, and environmental sustainability. The nation, as the world's third-largest energy consumer, faces a dual challenge: meeting burgeoning demand while transitioning to a cleaner energy future.

Historically, India's energy landscape has been dominated by fossil fuels, particularly coal, which still accounts for roughly 50% of its installed power capacity. However, the last decade has witnessed a transformative push towards renewable energy, with solar and wind power leading the charge.

As of early 2024, renewables (including large hydro) contribute over 40% to the total installed capacity, reflecting India's commitment to its 500 GW non-fossil fuel target by 2030 and Net-Zero emissions by 2070.

This transition is crucial for mitigating climate change and reducing India's significant import dependency, which stands at approximately 85% for crude oil and 50% for natural gas, exposing the economy to global price volatility and geopolitical risks.

To counter these vulnerabilities, India has strategically built Strategic Petroleum Reserves (SPR) and is actively diversifying its energy import basket. Policy frameworks like the Electricity Act 2003 have unbundled the power sector, while the Energy Conservation Act 2001 (amended 2022) promotes efficiency through initiatives like the PAT scheme and star labeling.

The National Green Hydrogen Mission is a forward-looking step towards future energy independence. Geopolitically, India employs robust energy diplomacy, exemplified by its leadership in the International Solar Alliance (ISA), to secure supplies, foster technology transfer, and shape global energy governance.

The Vyyuha analysis underscores that achieving energy security requires a holistic approach, balancing domestic resource optimization, technological innovation (e.g., smart grids, energy storage), and strategic international partnerships, all while ensuring a 'just transition' for affected communities and leveraging digital solutions for efficiency.

Recent developments, such as the India-UAE CEPA and the focus on energy storage, highlight India's proactive stance in building a resilient and sustainable energy future.

Prelims Revision Notes

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  1. Definitions:Energy Security (uninterrupted, affordable, sustainable supply), Energy Trilemma (Security, Equity, Sustainability).
  2. 2
  3. Key Statistics (as of March 2024):

* Total Installed Power Capacity: ~440 GW. * Coal: ~50% (~220 GW). * Renewables (incl. Large Hydro): ~43% (~190 GW). * Solar: ~82 GW. Wind: ~45 GW. Nuclear: ~7.5 GW. * Crude Oil Import Dependency: ~85%. * Natural Gas Import Dependency: ~50%.

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  1. Targets:

* 500 GW non-fossil fuel capacity by 2030. * Net-Zero emissions by 2070. * National Solar Mission: 100 GW solar by 2022 (achieved utility-scale ~82 GW).

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  1. Strategic Petroleum Reserves (SPR):

* Managed by ISPRL. * Phase I locations: Visakhapatnam, Mangaluru, Padur. * Phase I capacity: 5.33 MMT (~9.5 days of crude oil).

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  1. Key Policies/Acts:

* Electricity Act, 2003: Unbundling, open access, regulatory commissions. * Energy Conservation Act, 2001 (amended 2022): BEE, PAT scheme, carbon credit trading. * National Green Hydrogen Mission (Jan 2023).

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  1. Institutions:

* BEE (Bureau of Energy Efficiency). * ISA (International Solar Alliance - HQ Gurugram, India-France co-founded). * NPCIL (Nuclear Power Corporation of India Limited). * CIL (Coal India Limited).

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  1. Constitutional Provisions:

* Union List Entry 38: Atomic energy. * State List Entry 23: Mines and mineral development (subject to Union).

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  1. Chokepoints:Strait of Hormuz (most critical for Persian Gulf oil).
  2. 2
  3. Schemes:UJALA (LEDs), Ujjwala (LPG).

Mains Revision Notes

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  1. Conceptual Framework:Deep understanding of the 'Energy Trilemma' (Security, Affordability, Sustainability) and its application to India. Vyyuha Analysis: Demographic and digital implications on energy demand and supply.
  2. 2
  3. Challenges to Energy Security:

* Import Dependency: Geopolitical risks, price volatility, current account deficit strain. * Energy Transition: Intermittency of renewables, grid integration, storage costs, land acquisition, financing. * Infrastructure Gaps: Transmission & distribution, smart grid development. * Social/Environmental: Just transition for fossil fuel workers, pollution, water use, land conflicts.

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  1. Policy Measures & Initiatives:

* Diversification: Domestic E&P, SPR expansion, nuclear power, aggressive renewable deployment. * Efficiency: BEE, PAT scheme, UJALA, demand-side management, smart meters. * Clean Fuels: National Green Hydrogen Mission, cleaner coal technologies (CCUS). * Governance: Electricity Act reforms, transparent coal allocation, federal coordination. * Finance: Green bonds, blended finance, international climate finance.

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  1. Energy Diplomacy:

* Securing supply routes, diversifying partners (Middle East, USA, Russia). * Leadership in ISA, bilateral clean energy collaborations. * Advocacy for climate finance and technology transfer.

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  1. Interlinkages (Vyyuha Connect):

* Energy Security & Economic Growth . * Energy Security & Climate Change . * Energy Security & Digital Infrastructure (Smart Grids, Data Centers) . * Energy Security & Water Resources (Food-Water-Energy Nexus). * Energy Security & International Relations .

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  1. Critical Analysis:Evaluate policy effectiveness, identify implementation gaps, propose innovative solutions (e.g., decentralized renewables, energy storage, carbon markets). Focus on a balanced perspective and forward-looking recommendations.

Vyyuha Quick Recall

The Vyyuha Quick Recall mnemonic for Energy Security is SECURE Energy:

  • Supply Security: Think Strategic Petroleum Reserves (SPR), diversification of import sources (e.g., from Middle East to USA, Russia), and protecting maritime chokepoints (Strait of Hormuz).
  • Equity: Focus on affordability and accessibility for all. Remember schemes like Ujjwala (LPG for clean cooking) and Saubhagya (universal electricity access).
  • Clean Energy Transition: This covers India's shift to renewables (Solar, Wind, Hydro) and Nuclear power. Recall targets like 500 GW non-fossil fuel by 2030 and the National Green Hydrogen Mission.
  • Utility & Efficiency: Emphasizes optimal energy use. Think Bureau of Energy Efficiency (BEE), Perform, Achieve and Trade (PAT) scheme, star labeling, and smart grids.
  • Resource Optimization: This involves maximizing domestic production and efficient use of indigenous resources. Recall coal sector reforms (commercial mining) and enhanced oil & gas exploration.
  • Energy Diplomacy: India's international engagement. Remember the International Solar Alliance (ISA), bilateral energy agreements, and securing global energy corridors.
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