There are three pathways for India to develop greater energy resilience

The economic rationale for energy transition is rooted in reducing India's heavy dependence on imported crude oil and natural gas, which currently drains foreign exchange and exposes the economy to global price shocks. The article emphasizes import substitution by utilizing domestic resources like agricultural residue and animal manure to produce biomethane, potentially replacing current Liquefied Natural Gas (LNG) imports. This aligns with the government's push for a circular economy under initiatives like GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan). Furthermore, expanding Small Scale LNG (SSLNG) infrastructure can decentralize energy access for industries and transportation (like City Gas Distribution (CGD) networks), fostering localized economic growth while reducing reliance on large, capital-intensive pipeline networks.

India's transition away from fossil fuels is crucial for meeting its Nationally Determined Contributions (NDCs) under the Paris Agreement and achieving net-zero emissions by 2070. The article highlights the importance of utilizing agricultural and forest biomass, which currently contributes to severe air pollution through practices like stubble burning. By converting this waste into biofuels, biochar, or syngas via the Fischer-Tropsch process (a chemical reaction that converts a mixture of carbon monoxide and hydrogen into liquid hydrocarbons), India can mitigate pollution while generating clean energy. Additionally, the integration of Internet of Things (IoT) and Artificial Intelligence (AI) in energy storage is presented as a vital step to stabilize the grid as the share of intermittent renewable energy (solar and wind) increases toward the target of 500 GW by 2030.

The transition to a more resilient energy framework requires robust policy and financial mechanisms. The article points out the logistical challenges of aggregating low-value, bulky biomass. Overcoming these requires innovative business models and entrepreneurship, which should be incentivized through Payments for Environmental Services (PES)—a system where farmers or landowners are compensated for practices that provide ecological benefits—rather than traditional subsidies. The inclusion of biomass processing in Priority Sector Lending (PSL) norms by the Reserve Bank of India (RBI) could ensure adequate credit flow. Finally, securing rare earth elements, essential for renewable technologies and EVs, requires strategic domestic extraction policies and international partnerships, a key focus area under the Critical Minerals Strategy for India.