In June 2025, escalating Israel–Iran tensions nearly triggered conflict, threatening vital oil flows and spiking Brent crude prices, underscoring the extreme fragility and vulnerability of global energy security.

About Energy Sovereignty

• Energy Sovereignty refers to the ability of a nation to secure, control, and govern its energy resources, supply chains, and infrastructure without being vulnerable to external shocks, coercion, or dependency.

Global Shocks that Redefined Energy Thinking

• 1973 Oil Embargo: Arab oil producers cut supplies to the West, quadrupling prices and catalysing strategic petroleum reserves and diversification policies.
• 2011 Fukushima Disaster: Japan’s nuclear crisis eroded global confidence in nuclear energy, pushing nations back to coal and gas.
• 2021 Texas Freeze: Extreme weather froze pipelines and wind turbines, underscoring the need for resilient and diversified energy infrastructure.
• 2022 Russia–Ukraine War: Europe, dependent on Russia for 40% of its gas, faced crippling shortages when energy was weaponised.
• 2025 Iberian Blackout: Spain and Portugal’s grids collapsed due to over-reliance on intermittent renewables without adequate backup.

India’s Current Energy Landscape and Vulnerabilities

• Import Dependence: In FY2023–24, India’s merchandise imports stood at USD 677 billion, of which oil and gas alone accounted for USD 170 billion (~25% of total imports). 
  • India imports over 85% of its crude oil and more than 50% of its natural gas.
  • This creates trade deficits, rupee pressure, and macroeconomic vulnerability.
• Russian Oil Factor: Since 2022, Russia has become India’s largest supplier, accounting for 35–40% of imports in 2024–25, up from just 2% earlier. 
  • While discounted barrels have reduced the import bill, over-reliance on one partner is risky.
• Geopolitical Flashpoints: Tensions in the Middle East (e.g., Israel–Iran standoff in June 2025) show how 20 million barrels/day of global flows could be disrupted, sending Brent crude above USD 103 per barrel within days.
• Global Reality: Despite green rhetoric, fossil fuels meet over 80% of global primary energy demand and power 90% of transportation. Solar and wind still constitute less than 10% of the mix.

Why Energy Sovereignty Matters for India?

• Strategic Autonomy: Diversifying sources reduces vulnerability to coercion or weaponisation of energy.
• Economic Resilience: Cuts down foreign exchange outflow and stabilises the rupee.
• Climate Commitments: Aligns with India’s goal of net-zero by 2070 while ensuring growth.
• Geopolitical Positioning: Enhances India’s leverage in forums like International Solar Alliance, BRICS, and G20 as a clean energy leader.

Five Pillars of India’s Energy Sovereignty Doctrine

• Coal Gasification & Indigenous Unlocking: India holds 150 billion tonnes of coal reserves, long sidelined due to high ash.
  • New technologies in gasification and carbon capture can convert coal into syngas, hydrogen, and fertilisers.
  • Harnessing domestic resources reduces crude import pressure.
• Biofuels – Rural Empowerment Meets Security: Ethanol blending programme has already transferred ₹92,000 crore to farmers and reduced import bills.
  • The E20 target will further boost rural incomes and foreign exchange savings.
  • SATAT scheme promotes compressed biogas (CBG), delivering clean fuel and bio-manure that restores degraded soils in North India.
• Nuclear Energy – Zero-Carbon Baseload: India’s nuclear capacity remains stagnant at 8.8 GW.
  • Scaling up thorium roadmap, uranium partnerships, and Small Modular Reactors is critical for grid stability alongside renewables.
• Green Hydrogen – Own the Tech, Secure the Chain: Target of 5 MMT annually by 2030 requires domestic electrolyser manufacturing and storage capacity.
  • Sovereign hydrogen strategy ensures India controls the value chain of the fuel of the future.
• Pumped Hydro Storage – The Inertia Backbone: Proven, durable, and essential for balancing renewable-heavy grids.
  • India’s topography can support large-scale hydro storage systems to provide grid stability missing in solar and wind.

Policy Initiatives of India

• National Hydrogen Mission (2021): Builds a clean hydrogen economy, focusing on green hydrogen production, storage, and utilisation.
  • Targets hard-to-abate sectors like steel, cement, and heavy transport, while positioning India as a hydrogen hub.
• Domestic Solar Programmes: PM-KUSUM Scheme promotes solar pumps and decentralised renewable power for agriculture.
  • Rooftop Solar Programme targets 40 GW capacity, boosting urban renewable adoption.
  • Together, these strengthen India’s domestic solar ecosystem and reduce dependence on imports.
• Biofuel Policies: Ethanol Blending Roadmap: Target of 20% blending (E20) by 2025–26, cutting crude imports and boosting farmers’ income.
  • Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme: Expands compressed biogas (CBG) production, generating clean fuel and bio-manure for rural incomes and soil health.
• Energy Efficiency Mission: Perform, Achieve, and Trade (PAT) Scheme incentivises industries to enhance energy efficiency.
  • Reduces energy intensity and allows trading of surplus savings.
• Diversification in Oil Imports: Dependency on West Asia cut from ~60% to below 45% (2025).
  • Expanded sourcing from Russia, Africa, and Latin America for resilience.
• Renewable Energy Push: Installed renewable capacity has crossed 180 GW (2025).
  • On track for 500 GW by 2030, cementing India’s role in the global energy transition.

Global Initiatives Led/Supported by India

• International Solar Alliance (ISA): Co-founded with France in 2015; joined by 120+ countries.
  • Promotes affordable, accessible, and scalable solar energy worldwide.
• Coalition for Disaster Resilient Infrastructure (CDRI, 2019): Headquartered in India; builds climate-resilient infrastructure in vulnerable nations.
  • Supports adaptation and disaster preparedness.
• Mission LiFE (Lifestyle for Environment, 2021): Launched at COP26, urging sustainable consumption and climate-conscious behaviour.
  • Enhances India’s soft power in climate diplomacy.
• Global Biofuels Alliance (2023): India-led platform with 20+ members including United States, Brazil, and European Union.
  • Expands biofuel adoption, reducing fossil dependency in mobility.
• Critical Minerals Partnerships: With Quad, Australia, and Africa to secure lithium, cobalt, and rare earths.
  • Builds resilient supply chains for EVs, batteries, and renewable technologies.
• International Energy Forum (IEF): India is a key actor in the world’s largest energy dialogue platform.
  • Bridges producers and consumers, shaping global energy security debates.

Way Forward

• Diversify Energy Basket: Beyond Russian oil, India must expand ties with Latin America, Africa, and U.S. LNG suppliers.
• Invest in Critical Minerals: Secure lithium, cobalt, and rare earths from Australia, Africa, and Latin America for clean tech supply chains.
• Resilient Infrastructure: Harden grids with smart technologies, microgrids, and cyber-secure systems.
• Financing Green Transition: Develop innovative instruments like green bonds and leverage Japan–EU partnerships for climate finance.
• Community-Centric Models: Encourage energy democracy through decentralised renewable projects and local cooperatives.

Conclusion

Energy sovereignty, not oil, will shape the 21st century. For India, blending diversification with five sovereign pillars ensures strategic autonomy, economic resilience, and climate responsibility—turning vulnerability into enduring strength.

Read More About: The Energy Sector RoadmapIsrael–Iran Tensions

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