Moving Towards a Greener Future for Electricity: The Energy Security Dilemma

Our green transition may be one of our most powerful enablers for energy security. Also, a credible transition balancing both energy security and climate responsiveness would involve large-scale investments in grid-scale battery storage, green hydrogen, and pumped storage.

June 06, 2026. By News Bureau

Tags:

articles

Professor Tirthankar Nag

IMI Kolkata

Energy Security Dilemma

Green transition

International environmental summits

Transportation sector

Renewable power generation

Energy Independence

Net zero emission

The energy security question again popped up in the current geopolitical conditions. On one hand lies the steep ambition of a booming economy – in energy terms, it means eradicating energy poverty and keeping industries running and expanding. On the other hand, lies the pressing obligation of curbing carbon emissions and upholding pledges made at international environmental summits. Or is it possible to meet the twain of ambition and obligation somewhere midway? With demand projected to double by 2047 – the centenary year of India’s independence and growing per capita energy consumption with growth in income, the question assumes significance.

For long, coal, primarily mined indigenously and supplemented by imported coal, has remained the backbone of India’s power generation, supplying over 70 percent of the country’s power in the last financial year and 69 percent till January 2026. Coal is cheaper, domestically available, and the sector’s employment and royalty fetch great leverage. But its impact on emissions is high.

On the other hand, India’s renewable energy story is truly remarkable. India has 215 GW of renewable energy capacity, which includes wind, solar and others. Including Hydro, the renewable capacity reaches 267 GW, which is on track to achieve the goal of 500 GW of non-fossil fuel capacity by 2030. This is in sync with global projections: the International Energy Agency (IEA) in its Electricity 2026 report forecasts that half of global electricity is going to come from renewables and nuclear by 2030.

Electricity systems require a precise balance between demand and supply as storage options like pumped storage and battery are still costly options. However, the Sun does not always shine, and the wind does not always blow. This leads to solar and wind being intermittent in nature, causing issues of balancing with other sources and integration with the national grid. So we see a shift towards greener electricity in spite of challenges.

In addition, India is witnessing a rapid growth in electric vehicles, replacing traditional fuels. With over 23 lakhs of electric vehicle sales by 2025, signalling an 8 percent market penetration, the transportation sector is also on a greener pathway. At a country level, this again shifts emissions from oil to emissions from the grid, which is largely powered by coal. In India, there are around 30,00 charging stations.

In the present geopolitical context, are questions around energy security only an economic one? The question has perhaps a far more important strategic angle. Dependence on imported crude and natural gas not only leads to price shocks, but, more importantly, supply disruptions can have a far greater impact on the economy. Wars raging in countries far away and disruptions in supply lines create vulnerabilities for securing our energy supply. Domestic renewables may be an answer to this conundrum. Energy generated from our wind and sunshine need not be procured from volatile international markets. Thus, our green transition may be one of our most powerful enablers for energy security. Also, a credible transition balancing both energy security and climate responsiveness would involve large-scale investments in grid-scale battery storage, green hydrogen, and pumped storage.

Another option could be nuclear, which covers a meagre 1.7 percent of our installed capacity mix. However, nuclear power plants remain expensive to build because of large capital cost requirements per MW added to their widespread safety perceptions. However, the nuclear technologies belonging to generation III+ and generation IV being developed today are considered safer, as they reduce the probability of severe accidents and also limit the off-site consequences of the accidents.

Thus, climate responsibility may be a prime force in driving India’s energy security in addition to global negotiations for powering India. Achieving the policy goals for 2030, 2047, and 2070 thus becomes essential in addressing India’s energy issues.

- Professor Tirthankar Nag, Professor of Strategy, Innovation and Entrepreneurship; Dean (Research); Area Chair - Strategy, Innovation & Entrepreneurship, IMI Kolkata