HPAS/Allied Mains 2022 Answer Writing Challenge Day 146 : Model Answer

QUESTION: Examine the major challenges to India’s energy security policy. (8 marks/ 120 words)

Answer:

An energy security policy can be described as long-term measures to adequately maintain the required supplies of energy resources, both domestic and imported, for a country at all times and at minimum costs.

Challenges:

• Growing energy demand: India requires significant investment to meet its growing energy demand and provide access to all citizens. Investment in the energy sector should focus on adopting the latest, green growth energy technology for India’s sustainable energy future. Creating the necessary framework conditions, including moving away from import substitution policy, will be critical to attract much needed investment and to compete internationally for investment.
• Core capacities of energy companies are lacking: The core capacities of energy companies in India should be improved. Energy players need to be commercially viable, with access to adequate financial resources. These players should be enabled to embrace the latest energy technology and improve their managerial expertise.
• Pricing mechanisms in the energy sector lacks commercial viability. The current rigid pricing setting mechanism, which is de facto determined by the government, should be reformed. End-use pricing should support the government’s policy for demand-side management and facilitate a rational allocation of resources along the value-chain.
• Bureaucratic and Administrative Hurdles: An increase in effective implementation of energy policies is required through the improvement of bureaucratic and administrative processes to assure a timely completion of energy projects. This will also contain unnecessary cost escalation of complex projects. Furthermore, intra-ministerial and inter-governmental coordination should be enhanced.
• Lack of integrated Energy policy: An integrated and consistent energy policy is critical to guide and direct India’s energy sector and ensure investment. Pursuing multiple policy objectives through one energy policy can potentially undermine the actual achievement of energy policy objectives.
• India’s Paris pledge to reduce the emission intensity of its gross domestic product (GHG emissions per unit GDP) by 33-35 per cent over 2005 levels by 2030. This commitment would require lot of investment which may put extra burden on Exchequer.

Way Forward:

• There should be formulation of Integrated Energy security policy.
• There is need to diversify our Energy imports to meet the required demand and supply of energy.
• Strong political will is a prerequisite to successfully cope with energy sector challenges

Conclusion: A reliable and adequate supply of modern and clean energy is the prerequisite for India’s continued economic development. India needs to align its energy policies and institutions with global practices.