Relevance: GS-3 (Economy, Energy Security) & GS-2 (International Relations) | Source: The Indian Express

1. The Core Issue

In 2025, the world hit a historic milestone: 100% of all new global electricity demand was met by renewable energy. However, a recent Middle East crisis exposed India’s harsh reality. Despite record-breaking green energy growth, our daily economic survival remains dangerously dependent on imported fossil fuels.

2. India’s Energy Paradox

• Massive Green Growth: India is adopting clean energy fast. Currently, 89% of all new power plants built in India are solar or wind.
• The Import Trap: Despite this, we still rely on foreign countries for 89% of our crude oil, 47% of natural gas, and 26% of our coal.
• The PMUY Effect: The Ujjwala Yojana successfully gave clean LPG cooking gas to almost all rural homes. However, this massive social success unintentionally skyrocketed our daily demand for LPG, forcing us to import even more.

3. The Crisis: Strait of Hormuz Blockade

• The Trigger: Due to regional conflict, the Strait of Hormuz (India’s primary sea route for Middle Eastern oil) was closed, causing global oil prices to shoot up from $72 to $113 per barrel.
• The “Base-Load” Dilemma: Why couldn’t our new solar panels save us? Solar energy only works during the day. To keep the country running 24/7, the national grid needs a continuous, uninterrupted power supply called “Base-Load.” In India, this still requires burning coal and gas.

4. The Economic Hit

• To protect the common man from extreme inflation, the government did not allow petrol and LPG prices to increase.
• Under-Recoveries: This forced Oil Marketing Companies (OMCs) to sell fuel at a heavy loss.
• The Bailout: The government had to provide a ₹30,000 crore financial bailout to save these companies, which severely widens India’s Current Account Deficit (CAD).

5. The Way Forward (Administrative Action)

To secure true energy independence, India must move beyond just building solar parks:

• Battery Storage (BESS): Invest heavily in massive battery systems to store daytime solar energy for night-time use, solving the base-load problem.
• Strategic Gas Reserves: Just as India stores emergency crude oil underground, we must urgently build emergency storage tanks for Liquefied Natural Gas (LNG).
• Diversify Suppliers: Stop relying solely on the volatile Middle East. Buy fuel from diverse global regions and accelerate domestic Green Hydrogen production.

With reference to India’s energy security and electricity generation, consider the following statements:

1. The ‘Base-Load’ of an electricity grid refers to the maximum peak power demand recorded during the extreme summer months.
2. The Strait of Hormuz serves as a critical maritime route connecting the Persian Gulf with the Gulf of Oman.
3. Despite significant additions to its renewable energy capacity, India continues to import more than 80% of its domestic crude oil requirements.

Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

Correct Answer: (b)