India must cut oil and gas reliance, Power Secretary says, flags grid flexibility
Power Secretary Pankaj Agarwal says India must reduce oil and gas dependence and treat renewables as central to energy security, while building grid flexibility.
India needs to lower its reliance on oil and gas and speed up the transition to renewable energy, Power Secretary Pankaj Agarwal said on Wednesday, arguing that energy security has acquired fresh urgency amid shifting global circumstances.
Speaking at a FICCI conference on building a reliable, flexible and market-ready power system, Agarwal said recent developments around the Strait of Hormuz had sharpened the case for moving away from oil and gas wherever feasible. Solar, wind, biomass, and possibly nuclear and coal would form the available alternatives, he said, adding that renewable energy is now both a reality and a cornerstone of the country's energy security.
A larger renewable share, however, brings its own challenges. Agarwal said India would have to manage the variability of these sources and create more flexibility on both the supply and demand sides of the grid.
He noted that the economics of the power sector have shifted substantially over the past three years, pointing to battery storage costs falling from roughly Rs 10 per unit in 2023 to about Rs 4 per unit at present.
On the generation mix, Agarwal said work is under way on a roadmap for 100 GW of nuclear capacity by 2047, while about 16,000 MW of pumped storage projects are already being implemented.
He identified the geographical concentration of renewable capacity as a significant hurdle for grid stability, since large volumes of solar and wind generation are clustered in states such as Rajasthan and Gujarat. To manage fluctuations, the government is pursuing storage, transmission expansion, time-of-day tariffs and market-based mechanisms.
The forthcoming National Electricity Policy will carry flexibility mandates for large consumers, including data centres and green hydrogen projects, which can impose heavy and variable loads on the grid, he said.
Agarwal also pointed to investment openings in battery storage and pumped storage, especially in renewable-rich states, where such projects can curb curtailment, support the grid and enable energy arbitrage.
He added that the grid-stability challenge could be turned into an opportunity to develop and manufacture power-electronics and related solutions domestically, with an emphasis on products designed in India.