India, at the centre stage of global energy

As India continues to rise up the list of the largest economies on the planet, the role of energy to power it comes into the spotlight. India’s energy sector journey offers valuable insights for other countries.

Since 2015, India has provided power connections to the households of over 300 mn people. At the same time, with Pradhan Mantri Ujjwala Yojana, over 500 million Indians have gained access to modern gas supplies for cooking, moving away from unhealthy traditional fuels.

India has also made a paradigm shift in the way it lights homes, offices and factories, with the government distributing 370 million highly efficient light bulbs under the Ujala Scheme to replace older energy-guzzling bulbs. At the same time, India tapped its immense solar potential to install 160 GW of solar panels in a decade. To put this in perspective, it took India 60 years to install an equivalent amount of power generation capacity from all other sources of electricity combined.


These steps have been taken against a challenging backdrop of geopolitical flux, the Covid pandemic, and recent energy crises. What’s more, India was not dealt the easiest hand when it comes to energy. It has been a net importer of energy, confronting it with supply risks beyond its shores. The country is also hungry for industrial development, which requires vast amounts of energy.

India has skilfully pursued multiple complementary strategies and objectives across different fuels and technologies to strengthen its energy position. Its achievements are the result of thoughtful planning and careful consideration. And the underlying policies have become case studies for other countries, which IEA regularly highlights in its reports and discussions.

Global energy markets remain severely strained amid the Strait of Hormuz crisis, and environmental risks are intensifying. In these difficult circumstances, the measures India has been taking to diversify its energy mix and supplies can bring greater resilience to its energy system.

India’s power capacity from renewables has quadrupled over the past decade, enabling the country to reach its target of 50% of total power capacity coming from non-fossil sources five years earlier than planned. The growth of its renewable capacity is the second fastest in the world, a position it is expected to hold through 2030.

At the same time, reflecting its commitment to diversified energy supplies, India is pursuing 10x growth in its nuclear power capacity by 2047.

Importantly, India is also developing the supply chains and skills it needs to succeed in these industries. The National Critical Minerals Mission, for example, emphasises on developing supplies of the raw materials that are used in the manufacturing of solar panels and batteries. Likewise, existing policies promote domestic manufacturing of these energy technologies.

In parallel, India has been increasing its petroleum refining capacity to strengthen its fuel supply security and its position as an exporter of petroleum products such as diesel--a strategy validated by the scramble for such products among countries around the world amid the Hormuz crisis. India is also among the world’s largest biofuels producers, with production more than quintupling since 2020.

India is moving towards greater self-sufficiency. But no country is an energy island. Trade and cooperation remain vital. Recognising the need for global cooperation on issues of shared concern, India has enhanced international engagement, establishing several significant global institutions such as the International Solar Alliance and Global Biofuels Alliance.

Furthermore, as discussions began in 2024 towards India becoming a full IEA member, Prime Minister Narendra Modi made an emphatic case for India’s role in international energy governance, stating that ‘1.4 billion Indians bring talent, technology and innovation to the table’ and that ‘IEA will benefit when India plays a bigger role in it.’

IEA analysis shows that India will account for the largest increase in energy demand of any country or region in the world over the coming decades, larger than that of entire continents such as Africa or Latin America. As India secures the energy it needs and continues to invest in energy technology manufacturing, it is increasingly becoming a pivotal actor in global energy trade and technology development.

The writer is executive director, International Energy Agency