Energetica India Magazine May - June 2026

The question is no longer whether India can build this future. The progress of the past decade clearly demonstrates that it can and already is. The opportunity now lies in accelerating this momentum and strengthening the energy systems that will support India’s long-term economic ambitions. Every time tensions rise in West Asia, every time OPEC announces an unex- pected production cut, and every time shipping routes like the Strait of Hor- muz come under scrutiny, India watches closely. For a country that imports near- ly 90 percent of its crude oil, spending over USD 137 billion on it in FY 2024–25 alone, movements in global energy mar- kets inevitably influence domestic fuel prices, freight costs, inflation, and the broader economy. This dependence is deeply embedded in India’s energy architecture. A USD 1 rise in global crude prices adds roughly USD 1.5 billion to India’s annual import bill. In early 2026, when geopolitical developments pushed Brent crude past USD 120 a barrel, India’s merchandise trade deficit widened significantly during the April–February period. The rupee saw pressure, and the impact was visible across households and industries alike. This raises an important question: can renewable energy meaningfully strength- en India’s long-term energy security? In- creasingly, the answer appears to be yes. India’s Renewable Energy Momentum India is already making notable prog- ress. The country crossed 150 GW of installed solar capacity by March 2026, overtaking the United States to become the world’s third-largest solar producer. Solar capacity has grown from just 3 GW in 2014 to over 132 GW by the end of 2025, one of the fastest renewable ener- gy expansions globally. On July 29, 2025, renewables met 51.5 percent of India’s total electricity demand in a single day, marking a significant milestone in the country’s energy transition journey. The scale of this transformation mat- ters. Programs such as PM Surya Ghar: Muft Bijli Yojana have already brought rooftop solar to over 24 lakh households, supported by a government commitment of INR 75,021 crore to reach one crore homes by FY 2026–27. PM-KUSUM has solarised over 13 lakh agricultural pump sets, helping reduce dependence on die- sel-powered irrigation. India has also achieved record-low solar tariffs, rein- forcing renewable energy’s growing cost competitiveness. These developments may not completely insulate India from short-term fluctu - ations in global oil prices, but they are steadily building a more resilient and self-reliant energy ecosystem. Why Energy Security Matters for India India today is the world’s third-largest oil consumer, and demand continues to grow alongside economic expansion. In 2025, India’s crude demand grew at roughly 3.2 percent, nearly double Chi- na’s rate. While countries such as China have accelerated electric mobility and alternative fuel adoption, India is still in the early stages of that transition, which also means the opportunity ahead is sub- stantial. In recent years, nearly 40 percent of In- dia’s crude imports came from Russia following shifts in global energy trade af- ter the Ukraine conflict. India has since diversified sourcing across the US, UAE, and West Africa, demonstrating its abil- ity to adapt strategically to changing geopolitical realities. At the same time, the broader objective remains clear: re- ducing long-term exposure to external fuel dependencies through domestic en- ergy generation. This is where renewable energy becomes far more than a climate initiative. It has become a pillar of economic resilience, industrial competitiveness, and national energy security. Viksit Bharat and the Renewable Energy Vision Prime Minister Narendra Modi’s Viksit Bharat 2047 vision, to transform In- dia into a fully developed nation by the centenary of independence, places en- ergy security at the centre of long-term growth. A rapidly expanding economy will require stable, affordable, and scal- able energy infrastructure, and renew- able energy is increasingly becoming central to that foundation. The vision aligns closely with India’s larger sustainability goals, including achieving net-zero emissions by 2070 and 500 GW of non-fossil fuel capac- ity by 2030. A 2026 NITI Aayog study highlighted that the reduction in fossil fuel imports over time could significantly Can Renewable Energy Protect India from Future Global Oil Shocks? Vinay Thadani Executive Director and CEO Grew Solar ENERGY SECURITY 54 energetica INDIA- May-June_2026