Energy Security Frameworks and Policies of India

India’s energy security strategy balances economic growth, environmental commitments, and geopolitical resilience. As the world’s third-largest energy consumer, India relies on imports for nearly 88% of its crude oil and over 50% of its natural gas needs. The nation’s policy architecture centers on the Energy Trilemma: maintaining uninterrupted availability, ensuring economic affordability, and accelerating clean energy transition to hit net-zero carbon emissions by 2070. Achieving energy independence (Urja Aatmanirbharta) by 2047 requires diversifying primary energy sources, modernizing power infrastructure, expanding domestic strategic reserves, and establishing robust regulatory frameworks.

Institutional Architecture and Regulatory Policy

India’s energy governance involves multiple specialized ministries working alongside statutory apex bodies to drive operational efficiency and policy design.

Governance Structure

• Ministry of Power: Regulates power generation, transmission, grid distribution, and interstate electricity commerce.
• Ministry of Petroleum and Natural Gas (MoPNG): Oversees exploration, refining, pipeline distribution, and strategic petroleum reserves.
• Ministry of New and Renewable Energy (MNRE): Executes grid-connected and off-grid renewable energy projects, tech development, and national green targets.
• Ministry of Coal: Manages coal production, allocation, and chemical utilization projects.
• Department of Atomic Energy (DAE): Manages nuclear power generation under the Prime Minister’s Direct Oversight.

Key Regulatory Bodies

• Central Electricity Regulatory Authority (CERC): Statutory body constituted under the Electricity Act, 2003, regulating tariffs of central power-generating companies and inter-state transmission.
• Petroleum and Natural Gas Regulatory Board (PNGRB): Established under the PNGRB Act, 2006, regulating downstream refining, processing, storage, transportation, and distribution of petroleum products and natural gas.
• Bureau of Energy Efficiency (BEE): Statutory entity created under the Energy Conservation Act, 2001, tasked with developing policies to reduce energy intensity.

Strategic Energy Reserves and Fossil Fuel Policy

To protect domestic markets from global supply chain disruptions and geopolitical volatility, India maintains dedicated physical buffer stocks alongside enhanced domestic resource extraction policies.

Strategic Petroleum Reserves (SPR)

Under Phase I, the Indian Strategic Petroleum Reserves Limited (ISPRL) established 5.33 million metric tonnes (MMT) of underground rock cavern storage across three locations:

• Visakhapatnam (Andhra Pradesh): 1.33 MMT capacity.
• Mangaluru (Karnataka): 1.5 MMT capacity.
• Padur (Karnataka): 2.5 MMT capacity.

Phase II expansion plans aim to add an additional 6.5 MMT storage capacity at Chandikhol (Odisha) and Padur (Karnataka) through public-private partnership models.

Upstream and Hydrocarbon Policy Initiatives

• Hydrocarbon Exploration and Licensing Policy (HELP): Introduced in 2016 to replace the New Exploration Licensing Policy (NELP). It features a Uniform Licensing System, Open Acreage Licensing Policy (OALP), Revenue Sharing Contracts, and marketing/pricing freedom for produced crude oil and natural gas.
• National Gas Grid Initiative: Aims to expand the natural gas pipeline network across the country to raise the share of natural gas in India’s primary energy mix from ~6% to 15%.
• Coal Gasification Mission: Targets gasification of 100 MMT of coal to produce syngas, dimethyl ether, and synthetic natural gas, reducing dependence on imported petrochemicals and LPG.

Renewable Energy Schemes and Green Initiatives

India has set a target of achieving 500 GW of non-fossil fuel power generation capacity by 2030 and meeting 50% of its electric power requirements from non-fossil sources.

Key Schemes and Missions

• National Green Hydrogen Mission: Aims to develop a green hydrogen production capacity of at least 5 MMT per annum by 2030, supported by the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.
• PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan): Focuses on solarization of agricultural pumps, providing standalone solar units and grid-connected options to boost rural energy independence.
• PM Surya Ghar: Muft Bijli Yojana: Targets installing rooftop solar systems for up to 1 crore households, delivering subsidized electricity generation directly to urban and rural consumers.
• National Bioenergy Programme: Supports the deployment of biomass pellet plants, waste-to-energy conversion systems, and compressed biogas (CBG) under the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative.
• Offshore Wind Viability Gap Funding (VGF) Scheme: Provides central financial assistance to set up offshore wind energy infrastructure off the coasts of Gujarat and Tamil Nadu.

Grid Infrastructure, Storage, and Energy Efficiency

Maintaining grid stability during rapid renewable integration requires storage solutions, long-distance transmission corridors, and stringent demand-side energy management.

Quick Energy Facts

• India ranks as the 3rd largest primary energy consumer globally, behind China and the United States.
• Coal accounts for nearly 70–74% of total electricity generation within India’s operational power grid.
• Non-fossil fuel capacity comprises over 40% of India’s total installed electric power generation capacity.
• India’s Strategic Petroleum Reserve Phase I currently holds 5.33 MMT, equivalent to approximately 9.5 days of crude oil requirements.
• The Ethanol Blended Petrol (EBP) Programme achieved a 15% ethanol blending target, aiming for 20% blending (E20) nationwide.
• Under the Paris Agreement, India updated its Nationally Determined Contribution (NDC) to reduce emission intensity of GDP by 45% below 2005 levels by 2030.
• The Open Acreage Licensing Policy (OALP) allows companies to carve out exploration blocks of their choice without waiting for formal government bidding rounds.