Energetica India Magazine May - June 2026

T he recurring conflict in West Asia is once again exposing the deep energy security vulnerabilities of major oil-im- porting economies such as India and sever- al Asian nations, where rising crude prices, supply uncertainties and shipping disrup- tions threaten to trigger inflationary pres- sures and economic slowdowns reminiscent of the austerity measures witnessed during the Covid-era disruptions. energetica INDIA- May-June_2026 39 FEATURE STORY With the Strait of Hormuz remaining a critical chokepoint for global oil trade, even the possibility of prolonged instability sends shockwaves across Asian en- ergy markets heavily dependent on imported fossil fuels. India, now the world’s third-largest oil consumer, remains particularly exposed as its energy demand continues to rise alongside rapid economic growth. In 2025, India’s crude oil de- mand expanded by around 3.2 percent, significantly outpacing China, even as China moved faster in scaling electric mobility and alternative energy adoption. The current geopolitical volatility is therefore accelerating policy attention to- ward renewable energy, battery storage, green hydrogen and electric mobility as strategic diversification tools aimed not only at decarbonisation but also at insulating economies from recurring fossil fuel shocks and external supply dis- ruptions. Can Renewable Energy Reduce Fossil Fuel Dependence Meaningfully? The ongoing surge in oil and gas prices triggered by geopolitical tensions, in- cluding the US-Israel war with Iran, is accelerating global demand for clean energy technologies such as solar, battery storage and electric vehicles, which are increasingly being viewed as essential tools for strengthening energy securi- ty, improving grid resilience and reducing long-term dependence on fossil fuels. Global energy think tank Ember highlighted that clean energy technologies are beginning to achieve sufficient scale to mitigate the economic and energy sup- ply impacts of global fossil fuel disruptions. Ember’s Global Electricity Review 2026 found that record additions in solar generation during 2025 displaced gas- fired electricity generation equivalent to the entire volume of liquefied natural gas exports transported through the Strait of Hormuz during the year. The report also stated that the global electric vehicle fleet displaced approxi- mately 1.8 million barrels per day of oil demand in 2025, representing nearly 13 percent of total US crude oil production, underlining the growing role of electrification and renewable energy in reshaping global energy markets. India stands third globally in renewable energy installed capacity. So far, a total of 283.46 GW of capacity from non-fossil fuel sources has been installed in the country as on March 31, 2026. This includes 274.68 GW Renewable Energy (150.26 GW Solar Power, 56.09 GW Wind Power, 11.75 GW Bio Energy, 5.17 GW Small Hydro Power, 51.41 GW Large Hydro Power) and 8.78 GW Nuclear Power capacity, according to Ministry of New and Renewable Energy data. And, China stands to gain the most from this shift, given its dominance in the solar and battery energy storage systems supply chain. China Hits New Highs in Solar Exports According to data released by the Chinese customs authority and analysed by Ember through its China Cleantech Exports Data Explorer, China recorded un- precedented exports of solar products, batteries and EVs in March 2026. Over- all cleantech exports rose 70 percent compared to March 2025 and increased 38 percent over February 2026 levels as countries ramped up procurement amid volatile fossil fuel markets.