Focus on energy security as G20 mantle passes to India

While the plans are at an initial stage and yet to be finalized, the declaration is likely to be proposed on “collective efforts to ensure security of energy sources, critical materials and transnational grid connections to mitigate volatility in energy markets”.

This development comes in the wake of the Russia-Ukraine war and supply disruptions in China.

With India dependent on imports for as much as 85% of its oil needs and 55% of its natural gas demand, record high energy prices are a major concern for a big consumer nation such as India.

New Delhi has also been championing a global electricity grid plan—One Sun One World One Grid (OSOWOG)—that seeks to transfer solar power generated in one region to feed the electricity demands of others.

“There is an Energy Transition Working Group (ETWG) that has been set up. Under that an important focus and priority area is energy security and diversified supply chains that is being steered by the union ministries of power, and new and renewable energy, and Central Electricity Authority (CEA),” said one of the two government officials requesting anonymity.

The G20 group of countries including the US, the UK, China, France, Germany and Saudi Arabia account for 85% of the global gross domestic product, three-fourths of global trade and two-thirds of the world population.

India’s forthcoming G20 presidency is from 1 December to 30 November 2023. The G-20 leaders’ summit will be held in New Delhi on 9-10 September.

Some of the possible areas of discussions are “collective policies and international standards for ensuring secure, diverse, and globally responsible supply chains of energy sources and critical raw materials”

This comes against the backdrop of a sharp output cut by the Organization of the Petroleum Exporting Countries (Opec) Plus of 2 million barrels per day amid record high prices of petroleum products in India and plans of a US-led global price cap on Russian oil that has sparked a Russian threat to cut oil supplies to countries that becomes party to the plan.

India is a key Asian refining hub, with an installed capacity of nearly 250 million tonnes per annum across 23 refineries, with plans to grow this to 400 mtpa by 2025.

Queries emailed to the spokespersons of the ministries of external affairs, power, and new and renewable energy on 26 October remained unanswered till press time.

“Whilst our G20 priorities are in the process of being firmed up, ongoing conversations inter alia revolve around inclusive, equitable and sustainable growth; LiFE (Lifestyle For Environment); women’s empowerment; digital public infrastructure and tech-enabled development in areas ranging from health, agriculture and education to commerce, skill-mapping, culture and tourism; climate financing; circular economy; global food security; energy security; green hydrogen; disaster risk reduction and resilience; developmental cooperation; fight against economic crime; and multilateral reforms,” said a 13 September statement from the ministry of external affairs.

“Transnational grid connection cooperation is one of the possible areas of discussion,” said the second government official also seeking anonymity.

India is currently undertaking the world’ largest energy transition and is running the largest clean energy programme, and is committed to net-zero carbon emissions by 2070.