The South Asia Group for Energy (SAGE) is a high-level group established by the Ministry of External Affairs (MEA) think tank Research and Information System for Developing Countries (RIS). The South Asia Energy Security tries to meet the supply-demand mismatch in the energy requirements among the South Asian countries. This article will explain to you about South Asia Energy Security which will be helpful in preparing for the International Relations in UPSC Civil Services Examination.

What is Energy Security?

• It is defined as the continuous availability of energy sources at a reasonable cost.
• Long-term energy security is concerned with making timely investments to supply energy in accordance with economic and environmental developments.
• Short-term energy security is concerned with the energy system's ability to respond quickly to sudden changes in the supply-demand balance.

What led to the establishment of South Asia Energy Security?

• To begin with, South Asian countries face a massive challenge in securing energy to sustain rapid economic growth while meeting people's rising aspirations.
• Second, the region is home to a large population that lacks access to clean energy sources.
• A large portion of the population, particularly in rural areas, lacks access to electricity and must rely on traditional biomass cooking methods.
• Because of limited domestic energy resources, most South Asian countries rely heavily on energy imports, particularly crude oil, from other regions.
• This disparity between energy demand and resource endowment in individual countries resulted in the establishment of South Asia Energy Security.

Objectives of South Asia Energy Security

• To achieve a balanced and optimal development of energy infrastructure through mutual understanding and cooperation.
• To promote, initiate and facilitate effective policy dialogue and capacity building among South Asian countries on bilateral, sub-regional, and regional levels for energy and related issues.

Challenges for India’s Energy Security

Accessibility Challenges

• The household sector is one of India's largest energy consumers. It accounts for roughly 45 percent of total primary energy consumption. Biomass accounts for 90 percent of total primary fuel consumption for cooking in rural areas. This has serious health consequences for rural residents.
• Currently, 304 million Indians lack access to electricity, and approximately 500 million Indians rely on solid biomass for cooking.

Policy Challenges

• Inability to attract international investment in domestic hydrocarbon exploration, for example. NELP did not pique the interest of major international energy corporations.
• To acquire hydrocarbon reserves abroad, significant investments will be required.
• Delays in coal mining in India are caused by regulatory and environmental clearances.
• The Indo-US nuclear deal helped fuel domestic power plants and provided India with access to critical technologies in strategic areas, but it did not result in India establishing foreign-built reactors.

Infrastructure & Skill Related Challenges

• There is a lack of skilled labor and infrastructure for developing conventional and unconventional energy.
• India lacks transportation infrastructure for making energy accessible.
• For example, pipelines could be a useful way to increase the country's total supply of gas.
• Gas will play a significant role in the Indian energy mix as it can be used effectively in a variety of demand sectors.

Economic Challenges

• In India, the most important primary energy sources are coal, oil, and natural gas.
• Due to insufficient domestic supplies of these hydrocarbons, the country's import bill is increasing.
• Rising fuel subsidies and rising CAD make economic conditions difficult.

External Challenges

• India's fragile energy security is under severe strain as a result of the country's increasing reliance on imported oil, regulatory uncertainty, international monopolies, and ambiguous natural gas pricing policies.
• India seeks to achieve energy security through a variety of partners, such as the Indo-US nuclear deal, oil imports from the Middle East, and so on. However, due to conflict between India's energy partners, such as the United States and Iran, India has had to reduce its oil imports from Iran in recent years.
• India faces a strategic challenge in meeting its energy needs as a result of its difficult geographic location in South Asia.
• China's One Belt One Road initiative has the potential to give China a decisive advantage in the event of a conflict between countries by interfering with India's access to energy.
• Failure to include all interested parties in the IPI (Iran-Pakistan-India) gas pipeline and the TAPI (Turkmenistan, Afghanistan, Pakistan, and India) gas pipeline for guaranteed natural gas supply.

Benefits of Energy Security

• Many countries are pursuing energy security as a goal in order to ensure that their economies run smoothly and that their people have access to adequate, reliable, and affordable supplies of modern and clean energy.
• Energy efficiency also reduces the likelihood of supply interruptions; the only source of energy that cannot be interrupted is energy that is not used.
• Furthermore, in the event of a disruption, efficiency measures can be combined with emergency conservation measures to reduce demand.
• This was effectively demonstrated in the aftermath of the 2011 Great East Japan Earthquake.
• Lowering imports also have broader macroeconomic implications, such as the improved balance of payments and increased competitiveness.

Measures to Enhance Energy Security

Increasing Accessibility to Clean Energy

• India has already pledged to provide electricity to every home by 2022.
• An even more ambitious goal would be to provide electricity to all households 24 hours a day, seven days a week.
• The Pradhan Mantri Ujjawala Yojana should be supplemented by the establishment of biomass pelletizing units and the distribution of 'efficient biomass chullahs' to bring clean fuel to rural areas.
• On the agricultural front, the distribution of solar irrigation pumps must be increased and financed through National Bank for Agriculture and Rural Development (NABARD) credit and government subsidies.
• Potential non-conventional energy sources, such as geothermal energy and tidal energy, must be explored and researched in order to make them technologically affordable and accessible.

Policy Changes

• Coal-fired power plants provide roughly three-quarters of our energy.
• It is critical that India increases its domestic coal production in order to reduce its reliance on imports.
• There is a need to enhance regulatory approvals, improve labor productivity, increase coal production, and improve distribution efficiency.
• The Hydrocarbon Exploration and Licensing Policy (HELP) aims to reduce government discretion in decision making, reduce disputes, reduce administrative delays, and introduce the concept of revenue sharing and marketing freedom to stimulate growth in India's oil and gas sector.
• To improve the economy's competitiveness, the tax structure in the import and sale of energy on a thermal value basis should be rationalized.
• The India Energy Security Scenarios, 2047 (IESS) has been created as a tool for developing energy scenarios.

Enhancing Efficiency

• The National Mission for Enhanced Energy Efficiency (NMEEE) should conduct a comprehensive cost-benefit analysis of available energy-efficient technologies and products in all sectors, particularly agriculture, housing, and transportation.
• The national and state-designated agencies working in the field of energy efficiency should be strengthened institutionally.
• To improve vehicle fuel efficiency, auto fuel quality should be upgraded to BS-VI standards for national release in 2020.

Promotion of Renewable Energy

• A renewable energy capacity of 175 GW target should be achieved by 2022.
• Within the next three years, the Solar Energy Corporation of India Limited (SECI) should develop storage solutions to help bring down prices through demand aggregation of both household and grid-scale batteries.
• By 2020, a large program should be launched to tap at least 50% of the country's biogas potential by supporting technology and credit support through NABARD.

Infrastructure Development

• By establishing new refineries, India can maintain its refined product export capacity.
• At the moment, 31 companies are building City Gas Distribution (CGD) networks in 21 states for the transportation or distribution of natural gas to consumers in the domestic, commercial, or industrial, and transportation sectors via a pipeline network.
• For the hydro projects, the government will need to make efforts to accelerate progress on capacity under construction by implementing satisfactory Rehabilitation and Resettlement.
• India has also built strategic petroleum reserves to meet any supply shocks caused by external exigencies such as wars, natural disasters, and so on.
• These facilities, with a total capacity of 5.33 million tonnes, can meet India's crude oil requirements for about 10 days.
• India now intends to construct another 6.5 million tonnes of storage capacity at Padur and Chandikhol in Odisha, increasing its supply to 22 days.

India’s Energy Diplomacy

• India is establishing a web of energy relationships in its extended neighborhood, which includes Myanmar and Vietnam in the east, Central Asian countries such as Kazakhstan in the west, and Gulf countries in the east.
• The Indo-US Nuclear Deal opened up new opportunities for India in the field of nuclear energy by allowing access to cutting-edge technology and nuclear fuel.
• For nuclear fuel, India has begun discussions with China, Kazakhstan, and Australia.
• By connecting Central Asia and South Asia, India's SCO membership may now play a larger role in ensuring greater energy cooperation between energy producers and consumers.

India’s neighbourhood energy trade & cooperation

• Energy cooperation has taken place in South Asia on both a bilateral and regional level.
• However, bilateral energy cooperation, particularly between India and Bhutan, has been more successful.

Bhutan

• Bhutan has been supplying India with hydropower.
• Bhutan exports surplus power to India in the range of 1,000-1,200 megawatts (MW).
• Bhutan has received technical and financial assistance from India for the development of hydropower, which is Bhutan's primary export to India.

Bangladesh and Nepal

• Bangladesh and Nepal receive electricity from India.
• India and Bangladesh recently signed a memorandum of understanding (MoU) .
• Under this memorandum, India will export 100 megawatts of power to Bangladesh.
• India and Nepal have also collaborated extensively in the energy sector.
• With India's help, four hydroelectric schemes with a total installed capacity of about 50 MW have been built in Nepal.
• In addition, the two countries have signed a $1.04 billion agreement for the construction of a 900 MW power plant on the Arun River.
• Tensions between Nepal and India, on the other hand, hinder the possibility of greater energy cooperation between the two countries.
• India has also established itself as a significant source of refined petroleum in the region.
• Nepal and Bhutan currently import all of their petroleum products from India.
• Bangladesh also imports petroleum products from India.

Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline

• The Asian Development Bank is developing a proposed trans-country natural gas pipeline (ADB).
• The pipeline, which was first proposed in 1995, will transport natural gas from Turkmenistan's energy-rich Caspian Sea (Galkynysh gas fields, the world's fourth-largest) to India via Afghanistan and Pakistan.
• India, Afghanistan, and Pakistan will receive natural gas from the project.
• By economically integrating a region stretching from the Bay of Bengal to the Caspian Sea, it will improve economic engagement through regional connectivity.
• It will not only be a commercial venture, but it will also contribute to regional peace and security.
• The TAPI project will provide a reliable alternative gas supply source, resulting in increased energy security.
• It will help India's economy diversify its energy sources.
• It would primarily be used in the power, fertilizer, and city gas industries.

Myanmar-Bangladesh-India Pipeline (MBI)

• 6.900 km of pipelines connecting Sitwe (Myanmar), Chittagong (Bangladesh), most north-eastern states, Siliguri, and Durgapur will be laid as part of the Hydrocarbon Vision 2030 for the north-eastern region.
• The Hydrocarbon Vision 2030 aims to double oil and natural gas production in the north-east while also promoting trade between the region and neighboring Saarc countries.
• A joint venture company will be formed to design, build, and operate the pipeline.
• Thirteen pipeline routes totaling about 6,900 kilometers have been proposed for this purpose.

Conclusion

There is an urgent need, as well as a tremendous opportunity, in South Asia to increase per capita energy consumption, particularly electricity consumption, for the region's overall development. Towards this end, mutual cooperation among South Asian nations can lead to optimal solutions that benefit all, while addressing climate change concerns simultaneously.

FAQs

MCQs

1. Which of the following is a major concern for energy security in South Asia?

A) Excessive domestic energy production

B) Dependence on fossil fuel imports

C) Overproduction of renewable energy

D) Technological self-sufficiency in energy generation

2. How can regional cooperation help address energy security issues in South Asia?

A) By building more domestic refineries

B) Through cross-border electricity trade and joint renewable energy projects

C) By limiting foreign investment in energy infrastructure

D) By increasing fossil fuel production locally

3. Which energy source has the highest growth potential for South Asia's energy security?

A) Coal

B) Nuclear energy

C) Solar energy

D) Hydropower

4. What is the strategic impact of China’s Belt and Road Initiative on South Asia's energy security?

A) It decreases China’s influence in the region

B) It increases China’s economic influence through energy infrastructure investments

C) It enhances India’s leadership in regional energy projects

D) It leads to energy self-sufficiency for South Asia

5. What is the primary goal of India’s renewable energy initiatives in South Asia?

A) To replace fossil fuels with nuclear energy

B) To export renewable energy to other regions

C) To ensure energy security and sustainable development in the region

D) To increase coal-based power generation

GS Mains Questions and Model Answers

Q1: Discuss the impact of China’s Belt and Road Initiative on South Asia's energy security.

Answer: China’s Belt and Road Initiative (BRI) has had a significant impact on South Asia’s energy security. The initiative has led to increased Chinese investments in energy infrastructure, including power plants, pipelines, and renewable energy projects. This has enhanced energy access in countries like Pakistan, Sri Lanka, and Nepal. However, the geopolitical implications are complex. Many South Asian nations are concerned about the growing Chinese influence in their energy sectors, fearing economic dependency and strategic leverage by China. The BRI’s projects often involve debt financing, which has raised concerns about the long-term sustainability of these investments. Additionally, the increased Chinese presence in critical energy infrastructure may affect the regional balance of power and energy geopolitics.

Q2: Examine the role of regional energy cooperation in achieving energy security in South Asia.

Answer: Regional energy cooperation is crucial for ensuring energy security in South Asia, a region with substantial energy demands but limited domestic energy resources. Cross-border electricity trade, like the India-Bhutan power agreement, demonstrates the potential for shared infrastructure to address energy shortages. Multilateral platforms such as SAARC and bilateral agreements have facilitated joint investments in renewable energy, particularly in hydropower and solar energy. Such cooperation reduces energy costs, promotes efficient resource utilization, and fosters economic interdependence, which in turn can enhance political stability. However, challenges remain, including political tensions, lack of adequate infrastructure, and differing energy priorities among South Asian nations, which can hinder deeper cooperation.

Q3: Analyze the environmental implications of energy security strategies in South Asia.

Answer: Energy security strategies in South Asia have significant environmental implications. While the region's increasing reliance on fossil fuels for energy generation exacerbates air pollution and contributes to global warming, the shift towards renewable energy sources like solar and wind offers a sustainable alternative. However, the rapid growth of renewable energy, especially hydropower, raises concerns about the environmental impact on ecosystems and communities. Large-scale hydropower projects in Nepal and Bhutan have faced criticism for disrupting local ecosystems and displacing communities. Additionally, coal-fired power plants, particularly in India and Bangladesh, continue to be major sources of carbon emissions. Sustainable energy security strategies in South Asia must balance energy needs with environmental preservation, prioritizing cleaner technologies while mitigating adverse environmental impacts.

Previous Year Questions on  South Asia Energy Security

1. UPSC CSE Prelims 2019:

Question: Which of the following measures would be the most effective in addressing India’s energy security concerns?

A) Increasing domestic coal production
B) Developing renewable energy infrastructure
C) Expanding nuclear energy capacity
D) Importing more natural gas

2. UPSC CSE Mains 2018 (GS Paper 2):

Question: Critically evaluate the role of regional cooperation in enhancing South Asia’s energy security.

Answer: Regional cooperation is vital for improving South Asia’s energy security by enhancing resource sharing, reducing energy deficits, and fostering economic stability. Projects like cross-border electricity grids and joint renewable energy ventures between India, Nepal, Bhutan, and Bangladesh demonstrate the potential for mutual benefit. However, political instability, competing national interests, and insufficient infrastructure are significant challenges to such cooperation. The future of regional energy cooperation depends on overcoming these barriers through diplomatic efforts and creating robust, inclusive frameworks for energy trade.