Energy Security Through Electrification In India
Source: Indian Express
GS III: Infrastructure- Energy
Overview
- India’s dependence on imported LPG and fossil fuels highlights the need for electrification to strengthen energy security.
- Industrial heat and household cooking are key areas where heat pumps and induction cooktops can reduce fossil-fuel consumption.
- High initial costs, limited consumer confidence, low adoption and import dependence constrain electrification.
- India needs domestic manufacturing, affordable technologies and robust efficiency standards to accelerate electrification and achieve its net-zero goals.
Why in the News?
The disruption of shipping through the Strait of Hormuz highlighted India’s dependence on imported LPG, reinforcing the need for electrification to strengthen energy security and reduce fuel imports.
News in Brief
- India imports around 60% of its LPG requirements, with nearly 90% of these shipments passing through the Strait of Hormuz, exposing the country to geopolitical disruptions.
- According to NITI Aayog’s Scenarios Towards Viksit Bharat and Net Zero, electricity’s share in India’s final energy consumption could increase from 21% in 2025 to 60% by 2070 under the net-zero scenario.
- Industrial heat and household cooking are two important areas where electrification can reduce dependence on coal, oil and gas.
- Heat pumps and induction cooktops can improve energy efficiency, reduce fuel imports and support India’s transition towards cleaner energy.
Energy Security Through Electrification
- Energy security refers to the uninterrupted availability of energy at affordable prices.
- India’s dependence on imported fossil fuels makes its economy vulnerable to geopolitical tensions, supply disruptions and international price fluctuations.
- Electrification refers to replacing fossil-fuel-based energy uses with electricity across sectors such as transportation, industries, cooking and heating.
- It can strengthen energy security by;
- Reducing dependence on imported coal, oil and natural gas.
- Diversifying energy sources through renewable electricity.
- Improving energy efficiency and reducing energy costs.
- Supporting industrial competitiveness and economic resilience.
India’s Energy Transition
According to NITI Aayog’s net-zero scenario:
- Electricity’s share in final energy consumption is projected to increase from 21% in 2025 to 60% by 2070.
- The fuel import bill could decline from approximately 4% of GDP to 0.2% of GDP.
- India became the world’s fourth-largest producer of clean electricity in 2025.
The Bureau of Energy Efficiency (BEE)-led programmes also saved 53.6 million tonnes of oil equivalent in 2023–24, demonstrating the importance of energy efficiency.
Key Areas for Electrification
Industrial Heat
- Industries consume almost half of India’s total energy, with a significant share coming from burning coal, oil and gas directly at industrial sites.
- Electricity currently meets only about one-fourth of India’s industrial energy requirements, compared with nearly half in China.
- Increasing electricity use in industries can reduce fossil-fuel imports and industrial emissions.
- It can also help Indian exporters meet international carbon-related requirements, including the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Heat Pumps as an alternative;
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- Heat pumps are an efficient alternative to conventional fossil-fuel-based boilers.
- They work like air conditioners in reverse, extracting heat from air, water or waste heat streams and transferring it where required.
- Under Indian conditions, air-source heat pumps can deliver approximately 2.5–4 units of heat for every unit of electricity consumed.
- In comparison, an electric boiler delivers at most one unit of heat per unit of electricity.
- They are particularly suitable for industrial processes requiring temperatures below 250°C.
- Potential Applications include; diary and food-processing industries, textile units, pharmaceutical manufacturing, hospitals and hotels, steam generation, hot water, washing and drying in MSMEs.
- Replacing conventional boilers with heat pumps can meet industrial heating requirements using significantly less electricity.
Electrification of Household Cooking
Household cooking is another important area where electrification can reduce dependence on LPG.
- Induction Cooktops:
- Induction cooktops transfer energy directly to the cooking vessel, reducing heat losses.
- Conventional gas stoves lose a significant amount of heat to the surrounding air.
- Electrification of cooking can reduce household dependence on imported LPG.
- Despite these advantages, only around 4% of Indian households own an induction cooktop.
- The recent LPG supply disruption highlighted the need to diversify household cooking options rather than depend predominantly on a single fuel.
Challenges to Electrification
Three major factors constrain the adoption of electrification technologies.
High Initial Cost
- Heat pumps generally cost more initially than conventional boilers.
- High industrial electricity tariffs and relatively low fossil-fuel prices make the payback period longer.
- This discourages MSMEs from adopting cleaner technologies.
Lack of Consumer Confidence
- Manufacturers often provide efficiency figures based on different international testing standards.
- Consumers find it difficult to compare the actual performance of different products.
- The absence of India-specific performance standards affects purchasing decisions.
Supply Chain Dependence
- Nearly 90% of heat pumps sold in India are imported from China.
- This creates another form of external supply-chain vulnerability.
- Excessive dependence on imported equipment could undermine the energy security benefits of electrification.
Limited Adoption and Infrastructure
- Induction cooktop ownership remains low among Indian households.
- Lack of awareness, affordability concerns and dependence on traditional cooking practices restrict adoption.
- Reliable and affordable electricity supply is essential for large-scale electrification.
Government Initiatives and Institutional Framework
Bureau of Energy Efficiency (BEE)
- Promotes energy efficiency through standards, labelling and awareness programmes.
- Its star-labelling programme helps consumers identify energy-efficient appliances.
- Similar standards are required for heat pumps to improve consumer confidence.
Bureau of Indian Standards (BIS)
- Plays an important role in developing product standards and certification requirements.
- India-specific performance standards can ensure that heat pumps perform efficiently under domestic climatic conditions.
Energy Efficiency Programmes
- BEE-led initiatives have contributed to substantial energy savings.
- The experience of these programmes can be extended to industrial heating and household electrification.
Carbon Border Adjustment Mechanism (CBAM)
- The EU’s CBAM increases the importance of reducing the carbon intensity of industrial production.
- Electrification can help Indian industries remain competitive in international markets.
Way Forward and Conclusion
India should promote affordable electrification through India-specific standards, financial incentives, domestic manufacturing and wider adoption of heat pumps and induction cooktops.
Electrification can reduce fossil-fuel imports, strengthen energy security, improve industrial competitiveness and support India’s net-zero goals.
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