India needs integrated energy storage policy to build resilience against geopolitical shocks: S&P Global Energys Gauri Jauhar

Addressing the need for strategic buffers, Jauhar emphasized moving beyond siloed approaches. “The one word that comes is energy resilience. That resilience has to be factored in to build buffers and storage of all kinds,” Jauhar said.

She called for an integrated framework linking electron and molecule storage across crude, LPG, jet fuel, natural gas, battery energy storage systems (BESS), and pumped hydro.

On macroeconomic stability, Jauhar highlighted that while crude import dependence remains high, India’s refining sector acts as a vital buffer.

Refined petroleum product exports generate foreign exchange earnings that cover approximately 25% of the total amount spent on crude oil imports, reinforced by ongoing capacity expansions at refineries in Rajasthan and Numaligarh.

To manage supply risks, Indian energy firms continue to expand procurement channels. “Today, India imports crude from 41 different countries,” Jauhar explained, adding that options are constantly evaluated to pivot import sources, citing renewed access to Venezuelan crude and shipments from the US.

However, she observed longer shipping routes naturally introduce freight cost inflation, which can add to general price pressures and trigger broader monetary policy responses.

Regarding clean energy transitions, Jauhar clarified that green hydrogen’s impact on domestic oil displacement will be gradual. With nearly 70% of the National Green Hydrogen Mission’s initial focus geared toward exports, green hydrogen will act primarily as an export earner to buffer the balance of payments over the medium to long term.

Concurrently, India remains a premier destination for energy transition investments alongside the US and China, driven by a record 55 gigawatts of renewable energy capacity added this year alongside policy pushes in nuclear power and battery storage.

Finally, regarding end-consumer impacts, Jauhar stated that retail petrol and diesel rates remain shielded through active adjustments in central and state tax structures alongside initiatives like the Ethanol Blending Program. (ANI)

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