(GIST OF YOJANA) Energy Security

(SEPTEMBER-2024)

Energy Security

Context:

The International Energy Agency (IEA) defines energy security as the uninterrupted availability of energy sources at an affordable price. Energy security concerns are key driving force of energy policy, considering that resources are limited, the pace of energy transition would need to factor in alternative demands on the resources for improving resilience to climate change and for sustained social and economic development.

About:

Energy security refers to a country’s ability to ensure a reliable, sustainable and uninterrupted supply of energy to meet its economic, social and political needs.
The four key objectives of the new energy policy of our country are: access at affordable prices, improved energy security and independence, greater sustainability and economic growth.

Budget 2024-25

As part of the Union Budget 2024-25, the Finance Minister announced following key measures to enhance energy security:

The Government will collaborate with the private sector on research and development for Bharat Small Modular Reactors and new nuclear energy technologies, and establish Bharat Small Reactors.
A policy document titled ‘Energy Transition Pathways’ will be released to balance employment, growth and environmental sustainability.
A policy to promote pumped storage projects for electricity storage will be introduced which will facilitate smooth integration of growing share of renewable power with its variable and intermittent nature in the overall energy mix.
A joint venture between NTPC Limited and Bharat Heavy Electricals Limited will be established to create an 800 MW commercial plant using advanced ultra super critical technology.
PM Suraj Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity upto 300 units every month. The scheme has generated remarkable response with more than 1.28 crore household registrations besides 14 lakh applications.

Challenges

Energy demand is expected to increase as the country develops in line with the goal of Viksit Bharat and a concommitant rise in RE capacity may lead to baseline efficiency as the supply composition changes.
Large scale phasing in of RE poses several risks associated with intermittency and dispatch ability in the energy system. Addressing the issue is critical for significant deployment of RE. Expanding RE and clean fuels will increase demand for land and water. The availability of land is a major challenge for India.
Critical minerals/metals are required for RE and battery storage technologies. The sources of minerals are geographically concentrated eg graphite (China 79 per cent), cobalt (DRC 70 per cent), rare earths (China 60 per cent) and Lithium (Aus 55 per cent). The concentration level is even higher for processing with China dominating across the board.

Way forward and Conclusion:

Government initiatives for cleaner coal e.g. coal gasification, CBM, CCS and coal beneficiation, etc. to mitigate emissions and enhance environmental sustainability needs to be promoted. Solar power installed capacity has increased significantly. However, risks are associated with the large scale phasing in of renewable eg intermittency, grid integration, back up power generation, storage, etc.
It is important to supplement with other non-fossil fuel resources eg nuclear, biofuel and hydrogen. High dependency on imports mainly for petroleum for its energy needs shifts to high import dependency for Solar PV panels and critical minerals whose supply chain is heavily skewed. India needs to target diversified energy sources.
Such diversification will help minimise risk associated with energy system while pursuing with low emission path. It is suggested to integrate RE with nuclear power, bio-fuels and green hydrogen to address the risks associated with large-scale RE adoption. Financial support proposed for traditional micro and small scale sector to transition to cleaner energy forms will bring in positive change.