Diversification of energy basket has not remain a choice, rather it is key for survival. Elucidate.

India has an energy basket that is heavily tilted towards fossil fuels like coal. While Socio-economic imperatives have contributed to reliance on coal, recent developments have prompted a shift in approach.

Necessity of diversifying energy basket:

• India has to meet intended nationally determined contributions made to UNFCCC, e.g. 40% of energy from fossil fuels by 2030.
• Need for increasing renewable energy has been increased by the ‘Panchamrit’ commitments made at the Glasgow conference of parties like –

1. 50% of installed electricity capacity will be from renewables by 2030.
2. Emissions intensity of gross domestic product will be reduced to 45% by 2030.
3. India will achieve net zero emissions by 2070.

• Import dependence for coal, crude oil and natural gas affects exchange rate stability and adds to the current account deficit.
• Recently, a shortage of coal was experienced in India. The restrictions on mining in China and Australia prompted this.
• Environmental and judicial activism in India has affected coal mining, e.g. cancellation of coal blocks in 2014.
• Geopolitical development affects the prices of crude oil, g. current Russia-Ukraine crisis.
• OPEC cartel can manipulate prices at any time.
• Air pollution (nitrogen and sulphur oxides) has led to criticism of fossil fuels.

Therefore, there is a need to expand reliance on –

• Solar and wind energy.
• Increase nuclear energy capacity.
• Research and development in emerging resources, e.g. ocean thermal, tidal, gas hydrates.

To increase the human development index score to a level of developed countries, India needs to increase per capita energy consumption four times. SDG, calls for universal access to clean energy. Thus reforms are needed on priority basis.