Explain the need for diversification of the energy basket in India. Identify the associated challenges in this regard.

Energy consumption has a strong association with Human Development Index. Also, it powers the economy and most essential requirement for industrialization. It helps in achieving a higher standard of living.

Need for energy diversification:

  • India is a net importer of oil and gas. Most of them come from West Asia which is a conflict-ridden world. Thus there is a need to diversify our partners.
  • More than 60% of power generation from coal plants, which is a major contributor to carbon emissions. So there is a need to increase the share of renewable energy.
  • Excessive reliance on foreign sources makes us vulnerable to exchange rate variations.
  • New sources of energy are coming up like poly metallic nodules which will reduce reliance on others’ needs to be used.


  • Research and development
    • New energy sources like shale gas have their sufficient deposits in India, but India does not have the technology to extract it in an efficient manner.
  • Finances
    • Poly metallic nodules can solve our problem and energy requirement for the next 100 years. But we do not have the finances to explore them.
  • Renewable energy
    • Lack of domestic manufacturing capabilities.
    • Reliance on imports from China.
    • Unreliable nature of renewable energy.
    • People are reluctant to adopt these technologies.
  • e-vehicle adoption
    • Lack of charging infrastructure.
    • Electricity consumption and associated delays.

India’s plan to achieve 50% renewable energy goal to ensure sustainability requires greater government commitment, people’s participation, and engagement of all stakeholders towards a more energy-efficient future.


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