Talmiz Ahmad Advocates Robust Energy Diplomacy to Ensure India’s Energy Security

August 29, 2012

New Delhi, Aug 29, 2012: India needs a robust Energy Diplomacy to sustain an 8 to 10 per cent economic growth rate, in the next 25 years to meet the energy needs of all citizens, emphasised Talmiz Ahmad, former Ambassador of India to Saudi Arabia, Oman and the United Arab Emirates.

Mr Ahmad was delivering a talk on ‘Trends in the Global Energy Scenario and their Implications for India’s Energy Security’ at the Institute for Defence Studies and Analyses (IDSA) on August 29, 2012. He said that the country needs to increase primary energy supply by three to four times and electricity generation capacity by five to six times of 2003-04 levels to sustain a growth rate of 8 per cent through 2031-32.

Pointing towards the tremendous increase in the Asian demand for hydrocarbons in recent years, with Asia’s Big 4 – China, Japan, Republic of Korea and India’s- demands equalling that of North America, he said that China and India together will be responsible for 35 per cent of the world’s incremental consumption of oil in the next 25 years.

Mr Ahmad said that India alone consumes 3.9 per cent of the total oil and 1.9 per cent of the gas resources of the world. It is therefore essential that the power generation capacity of the country increases to nearly 800,000 MW from the current capacity of around 160,000 MW, inclusive of all captive plants by 2031-32.

Cautioning that India will have to settle for growth rates of 4-5 per cent if the problems of the power sector are not corrected, Mr Ahmad warned that the nation suffers from inadequate power supply, debt-ridden power generation and bankrupt state electricity boards (SEBs). The demand for coal output has increased by 7.4 per cent, but the supply has grown by a meagre by 5.4 per cent in the current five year plan, projecting a coal deficit of 200 million tonnes for the next plan, he added.

Suggesting augmentation of domestic resources as a measure to meet the nation’s energy requirements, Mr Ahmad added that it was important to pursue energy efficiency and demand side management policies, while diversifying energy sources through increased use of renewables and maximising the use of national hydro power potential among other things.

However, the former Ambassador cautioned that even if India is able to achieve the stiff targets of exploiting full hydropower potential, or is able to achieve 20-fold increase in its nuclear power capacity, it will still face a fossil fuel deficit of 15-20 per cent, propelling the need for importing energy resources, and hence the need for ‘Energy Diplomacy’.

India’s energy diplomacy, Mr Ahmad said, comprises substantial, robust, multifaceted engagements across the world to promote India’s energy security interests.

Director General IDSA, Dr Arvind Gupta, who was chairing the proceedings said, “Energy is central to our national security and our foreign policy has to be structured around energy security.”