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To navigate evolving geopolitical uncertainty and supply chain disruptions, India must prioritise energy resilience by adopting an integrated storage policy spanning power and transport systems.
Speaking exclusively to ANI, Gauri Jauhar, Global Executive Director for Strategic Climate & Clean Energy Initiatives and CERA Week at S&P Global Energy, outlined strategic imperatives for India's energy security and transition roadmap. Addressing the need for strategic buffers, Jauhar emphasized moving beyond siloed approaches. "The one word that comes is energy resilience. That resilience has to be factored in to build buffers and storage of all kinds," Jauhar said. She called for an integrated framework linking electron and molecule storage across crude, LPG, jet fuel, natural gas, battery energy storage systems (BESS), and pumped hydro. This strategic pivot is also creating fresh financial avenues. "Because of this geopolitical push and this push towards an integrated storage policy which should happen, storage is likely to also emerge as an investment class," Jauhar noted, adding that patient capital, infrastructure funds, and long-term pension funds stand to benefit from investing in Indian energy storage. On macroeconomic stability, Jauhar highlighted that while crude import dependence remains high, India's refining sector acts as a vital buffer. Refined petroleum product exports generate foreign exchange earnings that cover approximately 25% of the total amount spent on crude oil imports, reinforced by ongoing capacity expansions at refineries in Rajasthan and Numaligarh. To manage supply risks, Indian energy firms continue to expand procurement channels. "Today, India imports crude from 41 different countries, Jauhar explained, adding that options are constantly evaluated to pivot import sources, citing renewed access to Venezuelan crude and shipments from the US. However, she observed longer shipping routes naturally introduce freight cost inflation, which can add to general price pressures and trigger broader monetary policy responses. Regarding clean energy transitions, Jauhar clarified that green hydrogen's impact on domestic oil displacement will be gradual. With nearly 70% of the National Green Hydrogen Mission's initial focus geared toward exports, green hydrogen will act primarily as an export earner to buffer the balance of payments over the medium to long term. Concurrently, India remains a premier destination for energy transition investments alongside the US and China, driven by a record 55 gigawatts of renewable energy capacity added this year alongside policy pushes in nuclear power and battery storage. Finally, regarding end-consumer impacts, Jauhar stated that retail petrol and diesel rates remain shielded through active adjustments in central and state tax structures alongside initiatives like the Ethanol Blending Program. (ANI)
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