India to Reduce Oil and Gas Dependence, Power Secretary Says
POWER & RENEWABLE ENERGY

India to Reduce Oil and Gas Dependence, Power Secretary Says

India needs to reduce its dependence on oil and gas and accelerate its transition to renewable energy as energy security gains importance amid changing global conditions, Pankaj Agarwal, Secretary, Ministry of Power, said at the FICCI Indian Power Sector Conference in New Delhi. He said recent developments around the Strait of Hormuz had reinforced the need to reduce reliance on hydrocarbons wherever possible.

Agarwal said solar, wind, biomass, nuclear power and coal would all remain part of the energy mix, but renewable energy had become central to India’s energy security. He added that the rising share of variable renewable generation would require greater flexibility on both the supply and demand sides of the electricity system.

The economics and underlying assumptions of the power sector have changed significantly over the past three years, Agarwal said, noting that battery storage costs had declined from about Rs. 10 per unit in 2023 to Rs. 4 per unit currently. India is also preparing a roadmap for 100 GW of nuclear capacity by 2047, while pumped storage projects with a combined capacity of about 16,000 MW are under implementation.

Agarwal identified the geographical concentration of renewable generation as a challenge for grid stability, with substantial solar and wind capacity located in Rajasthan and Gujarat. The government is considering storage, transmission expansion, time-of-day tariffs and market-based mechanisms to manage fluctuations in generation.

The forthcoming National Electricity Policy is expected to include flexibility mandates for large consumers, including data centres and green hydrogen projects, whose electricity demand can fluctuate considerably. Agarwal also highlighted investment opportunities in battery and pumped storage, particularly in renewable-rich states, saying these assets could reduce curtailment, support the grid and enable energy arbitrage. He said India should use the grid-stability challenge to develop and manufacture power-electronics equipment and other solutions domestically.

India needs to reduce its dependence on oil and gas and accelerate its transition to renewable energy as energy security gains importance amid changing global conditions, Pankaj Agarwal, Secretary, Ministry of Power, said at the FICCI Indian Power Sector Conference in New Delhi. He said recent developments around the Strait of Hormuz had reinforced the need to reduce reliance on hydrocarbons wherever possible. Agarwal said solar, wind, biomass, nuclear power and coal would all remain part of the energy mix, but renewable energy had become central to India’s energy security. He added that the rising share of variable renewable generation would require greater flexibility on both the supply and demand sides of the electricity system. The economics and underlying assumptions of the power sector have changed significantly over the past three years, Agarwal said, noting that battery storage costs had declined from about Rs. 10 per unit in 2023 to Rs. 4 per unit currently. India is also preparing a roadmap for 100 GW of nuclear capacity by 2047, while pumped storage projects with a combined capacity of about 16,000 MW are under implementation. Agarwal identified the geographical concentration of renewable generation as a challenge for grid stability, with substantial solar and wind capacity located in Rajasthan and Gujarat. The government is considering storage, transmission expansion, time-of-day tariffs and market-based mechanisms to manage fluctuations in generation. The forthcoming National Electricity Policy is expected to include flexibility mandates for large consumers, including data centres and green hydrogen projects, whose electricity demand can fluctuate considerably. Agarwal also highlighted investment opportunities in battery and pumped storage, particularly in renewable-rich states, saying these assets could reduce curtailment, support the grid and enable energy arbitrage. He said India should use the grid-stability challenge to develop and manufacture power-electronics equipment and other solutions domestically.

Related Stories

Gold Stories

Next Story
Real Estate

Japanese companies expand GCC operations in India

More than 100 Japanese companies have established or are expanding Global Capability Centres (GCCs) in India, with a growing focus on artificial intelligence (AI), engineering, digital innovation, product development, cybersecurity and advanced analytics. The shift marks an expansion beyond traditional back-office and operational support functions towards higher-value technology and innovation activities.Japanese companies are increasingly using their Indian GCCs to support digital transformation, address talent shortages and contribute to global business strategies. These centres are taking o..

Next Story
Real Estate

India’s flexible office stock projected to reach 160 million sq ft by 2030

India retained its position as the world's most mature flexible office market, scoring 100 per cent on Cushman & Wakefield's Flexible Office Market Maturity Index, according to the firm's Global Trends in Flexible Office 2026 report.India's flexible office inventory reached 88.7 million sq ft (MSF) in H1 2026, accounting for 10.5 per cent of the country's total office stock. The report projects this to exceed 100 MSF in 2026 and reach approximately 160 MSF by 2030.Flexible office operators leased 8.5 MSF across India's top eight cities in H1 2026, their strongest first-half performance to ..

Next Story
Infrastructure Urban

K2 Infragen appoints Abhishek Sharma as DGM, supply chain

K2 Infragen has appointed Abhishek Sharma as Deputy General Manager, Supply Chain Management. He will oversee procurement planning, vendor partnerships and coordination with project teams.Sharma brings nearly two decades of experience in infrastructure procurement across railways, highways, expressways and hydropower. His experience includes procurement responsibilities associated with the Delhi–Meerut Expressway and the Delhi–Vadodara greenfield corridor. ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code