Hindu nationalist Narendra Modi of the Bharatiya Janata Party (BJP) was elected Prime Minister of India in May with a strong platform of less government, more governance. Modi’s campaign stood on the pillars of development, growth, and good governance. Now, Prime Minister Modi and recently-appointed Minister of State for New and Renewable Energy, Piyush Goyal, will lead India towards energy prosperity and security. Their model for domestic and international energy policy will stem from the BJP Election Manifesto.
The BJP Election Manifesto proposes an ‘all-the-above’ energy strategy (maximizing the potential of oil, gas, solar, hydro power, ocean, wind, coal and nuclear sources), including a responsible and comprehensive ‘National Energy Policy’, a focus on development of energy infrastructure, energy efficiency and conservation crucial to energy security, an increase in small-hydro power generation projects, as well as oil, gas, and coal exploration and production to reduce imports.
Energy security for India is a constant objective, motivating their search for new energy-rich resources, advanced technology and new investment opportunities. Delays in implementation are cause for concern in achieving energy objectives in India. G. Sathiamoorthy, the Managing Director of Black & Veatch, India, stated, “The main reasons attributed to the delay in implementation were delay in land acquisition, rehabilitation and resettlement problems, delay in forest and environment clearances, impediments in supply of feedstock, inflation fuelled higher costs of inputs, and funding constraints. To ensure energy security, the new government needs to be sentient towards these problems and streamline the project approval processes to facilitate quick single window clearances.”
In furtherance of transparency within the new government, Sathiamoorthy said, “It is essential for bidding norms for infrastructure projects in India to be made transparent so as to infuse confidence and create a level playing field for not just domestic players, but also for foreign players who can play a major role in building India’s critical human infrastructure.” These necessary infrastructure projects and developments will solidify the energy boom in India within the coming decade.
According to reports by BP, it is projected that by 2035 India comes to be increasingly import dependent in the face of increases in non-fossil fuel production. BP reports that demand for all fossil fuels expands, led gas (+183%), oil (+121%), and coal (+108%) despite the fact that renewables in power generation expand by 539%, as does nuclear (+366%) and hydro (+127%).
Discussing the role of renewable energy technologies under Modi’s administration, Sathiamoorthy has said, “A focus on renewable energy to bolster India’s energy security is likely under the new government. In part this belief is based upon Narendra Modi’s tenure as Chief Minister for Gujarat. During this time he oversaw the creation of more than 900MW of solar capacity in the state. In addition to solar generation it is likely the BJP-led government will create an environment which will foster investment in other renewable technologies such as offshore wind.”
To further enhance their energy prospects in the coming decade, India must further partnerships abroad. There will likely be changes in relationships and energy partnerships with China, Russia, and the United States. Sathiamoorthy believes that “the new government will need to pursue strategic partnerships with energy rich nations to ensure availability of energy resources with acceptable standards and at affordable rates.” Partnerships with the United States gained momentum in recent years, in part, due to the Indo-US Civil Nuclear deal, US assistance in helping India lessen imports of Iranian crude, and shale gas exploration and production. Sathiamoorthy says, “With India having signed an off-take agreement for the supply of 3.5 million metric tonnes of LNG per annum, policy waiver for energy exports to non-FTA countries would boost trade ties as well as enhance geopolitical relationships between the two nations.”
India’s new energy policy will be critical in global partnerships and development. Prime Minister Modi has the ability to shape the future energy security of India, strengthening India’s energy sector through efficiency, technological advancements, and infrastructure investments.
Bennett Resnik is a law student at Vermont Law School and has worked in both public and private arenas, focusing on government relations, domestic public policy issues, as well as federal and state energy and environmental regulation. Contact: bennettresnik@vermontlaw.edu
