Will the war in Ukraine delay India's green energy transition?

03 May 2022

Russia's war on Ukraine has triggered a huge rise in global crude oil prices and for India, which imports 80% of its crude oil and 45% of its natural gas, there is a high price to pay. The war is driving up food inflation and increasing manufacturing production prices. India's wholesale price-based inflation quickened to 14.55 % in March from 13.11 % in February amid hardening of fuel prices. Retail inflation last month has also climbed to 6.95 %, a 17-month high, as food prices went up A tough transition to clean energy Given that fossil fuels are intrinsically economically volatile, experts believe that one viable way to shield consumers from global oil price fluctuations, in the long term, is to cut reliance on fossil fuels by boosting India's clean energy capacities.

Currently, India's energy mix is skewed towards the use of coal for power generation, oil for transport and industry, and biomass for residential heating and cooking. Since the 1990s, over 80% of India's energy needs have been largely met by the three — Coal, Oil and Biomass (COB). Increasing electricity output while cutting coal will require huge growth in renewables, especially wind and solar, paired with energy storage. High energy prices could also make it harder politically for some countries to push through green policies. According to Chandra Bhushan, CEO of the International Forum for Environment, Sustainability and Technology, the conflict in Ukraine has clearly brought out the vulnerabilities in India's energy security framework.