India's Energy Policy and Governance

India's energy policy has traditionally focused on ensuring universal access, affordability, and security of supply. The country has achieved significant milestones in these areas, such as electrifying all villages and providing subsidized fuel to the poor. Despite importing 85% of its oil and gas, India has diversified its sources, reducing reliance on the volatile Middle East.

Historical Context and Current Structure

• Post-Independence, energy sector management was largely government-driven, with public sector entities (PSEs) at the helm.
• The private sector was later allowed to invest due to the PSEs' limitations in meeting energy policy expectations.
• Currently, the energy sector operates with both public and private investments, with governance shared across various government levels and ministries.
• There is no single executive body responsible for a cohesive national energy policy.

Emergent Challenges and the Need for Policy Shift

The focus of energy policy must shift due to global warming and the rise of AI. The goal is to decouple economic growth and technological innovation from energy demand and environmental degradation.

Key Trade-offs and Dilemmas

• Green Energy vs. Political Reality:
  • The transition to green energy conflicts with social realities, such as the massive employment by Coal India and related sectors.
  • Political challenges arise when phasing out coal, despite environmental concerns, as highlighted by the World Air Quality report with six Indian cities among the world's most polluted.
• China's Dominance in Green Energy Supply:
  • China controls a significant portion of the global supply chain for solar panels and lithium-ion processing, presenting a dilemma between cost competitiveness and security risks.
• AI Data Centres and Energy Demand:
  • Investments in AI data centers by companies like Google and Reliance necessitate massive clean energy, potentially conflicting with decarbonization efforts.
  • Questions arise about the feasibility of meeting energy demands without upgrading infrastructure and creating renewable ecosystems.

Implications for Governance

The emerging energy scenario requires a governance structure that transcends traditional energy management. It needs to:

• Address geopolitical supply chain issues, particularly with China.
• Facilitate regulatory environments conducive to AI and data center operations.
• Promote technological innovation and integrate AI into energy and security frameworks.
• Encourage collaboration among governments, corporates, research institutions, and civic societies.

Ultimately, cohesive and coordinated decision-making is essential to navigate trade-offs and resolve energy policy dilemmas effectively.