By Anil Jain
Energy security is increasingly being shaped not only by domestic policy but by developments far beyond national borders. Recent geopolitical tensions and disruptions to global energy supply chains have reinforced a fundamental reality, countries heavily dependent on imported fossil fuels remain vulnerable to external shocks that can quickly translate into higher energy costs, inflationary pressures and economic uncertainty. For India, one of the world’s largest energy consumers, building a more diversified and resilient energy system is no longer optional, it is a strategic necessity.
India has made remarkable progress in expanding access to energy while supporting one of the world’s fastest growing major economies. Yet around 88% of its crude oil requirement is still met through imports, leaving the economy exposed to global price volatility and geopolitical disruptions. Long-term resilience therefore rests on three complementary pillars: diversifying imports, expanding domestic low carbon energy sources and improving energy efficiency across the economy.
India has strengthened resilience through strategic petroleum reserves that provide roughly 9-10 days of crude import cover, excluding commercial inventories maintained by refiners and oil marketing companies. While these inventories improve overall resilience, dedicated reserves remain well below the 90 days of net import cover that member countries of the International Energy Agency (IEA) are required to maintain.
According to government data, India now sources crude oil from more than 40 countries, reducing dependence on any single supplier. Yet diversification alone cannot shield the country from volatile global energy markets. Energy security is often discussed in terms of where fuel comes from. Increasingly, it must also be viewed in terms of how much energy a country can produce, recover and conserve within its own economy.
According to the International Energy Agency’s 2026 India Bioenergy Market Report, modern bioenergy already accounts for around 13% of India’s total final energy consumption. The IEA projects modern bioenergy consumption could grow by 45% between 2023 and 2030, making India the world’s fastest growing bioenergy market and accounting for more than one-third of the projected increase in global modern bioenergy demand.
The opportunity extends well beyond electricity generation. The IEA estimates that India possesses the sustainable potential to produce around 90 billion cubic metres of compressed biogas (CBG) annually, equivalent to approximately 120% of the country’s natural gas demand in 2024. Unlocking this potential would convert agricultural residues, livestock waste and municipal organic waste into strategic domestic energy resources while reducing dependence on imported fossil fuels.
India has already laid the policy foundation through initiatives such as the Sustainable Alternative Towards Affordable Transportation (SATAT) programme, the National Bioenergy Programme and the mandatory Compressed Biogas Blending Obligation, which rises from 1% in FY2025-26 to 5% from FY2028-29. The IEA estimates that India currently mobilises around 180 million tonnes of bioenergy feedstock annually but significantly greater mobilisation will be required over the coming years, making efficient collection systems, rural logistics and supply chain infrastructure critical.
The significance of bioenergy extends beyond decarbonisation. Every additional unit of domestically produced bioenergy reduces exposure to international fuel markets while creating value from agricultural and municipal waste. Unlike imported hydrocarbons, these resources are generated within India’s own economy, making them inherently more resilient to geopolitical disruption.
Energy security, however, is determined not only by how energy is produced but also by how efficiently it is consumed. Improving industrial energy efficiency, deploying next-generation cooling technologies and accelerating the transition to lower global warming potential refrigerants under the Kigali Amendment can significantly reduce electricity demand while lowering emissions. Resource recovery, circular economy practices and productive utilisation of industrial by-products such as fly ash similarly improve resource efficiency while reducing energy intensity and dependence on imported raw materials.
The challenge is execution at scale. The IEA identifies feedstock aggregation, financing and market development as the principal constraints limiting faster deployment of India’s bioenergy sector. Addressing these bottlenecks will require coordinated public policy, investment in supply-chain infrastructure and commercially viable long-term offtake arrangements that enable proven technologies to scale.
The defining question for India’s energy future is no longer whether it can secure enough imported fuel. It is whether it can unlock the energy already embedded within its own economy. In an era of geopolitical uncertainty, the most secure energy system will not be the one that imports from the greatest number of countries but the one that depends least on imports in the first place. Building that future will require policy continuity, sustained investment and an expanded view of energy security, one that values domestic innovation and resource efficiency as much as fuel security.
The author is Managing Director at Refex Group
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.
