Energy security depends on if we electrify, and how we do it

Why in the News

In March, stalled shipping through the Strait of Hormuz left Indian families queuing for cooking gas and emptied several markets of induction cooktops. India imports about 60% of its Liquefied Petroleum Gas (LPG), and nearly 90% of those shipments pass through the strait. Electrification can cut that exposure, but how India electrifies matters as much as whether it does.

What is electrification, and how does it protect energy security?

1. Electrification: It means running cooking, heating and machines on electricity instead of burning gas, oil or coal on site. Demand then moves from imported fuel to a grid India can supply itself.
2. Net zero pathway: NITI Aayog’s *Scenarios Towards Viksit Bharat and Net Zero* projects electricity meeting most end use energy needs by 2070, with a far smaller fuel import bill.
3. The takeaway: Electrification turns an imported fuel risk into a domestic power question, which makes it part of economic and security strategy.

Why start with industrial heat and the kitchen?

1. Industry’s fuel use: Factories mostly burn fuel on site for their energy, so electricity meets only about a quarter of their needs, against nearly half in China.
2. Carbon border rules: Closing that gap would cut fuel imports and help exporters face the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), a carbon charge on goods entering the EU.
3. MSME heat: About half the heat used by micro, small and medium enterprises (MSMEs) is needed below 250°C, for steam, hot water and drying. Eg. Dairies, textile units and hospitals.
4. Induction cooking: An induction cooktop sends most of its energy straight into the pan, and a gas flame loses much of it to the air. Only 4% of households own one.

What is a heat pump, and why is it efficient?

1. How it works: A heat pump works like an air conditioner in reverse, drawing heat from air, water or waste streams and moving it to where it is needed.
2. Efficiency: In Indian conditions, air source models deliver 2.5 to 4 units of heat per unit of electricity. An electric boiler cannot deliver more heat than the electricity it uses.
3. Grid load: An electric boiler replacing a coal boiler adds its whole heat demand to the grid. A heat pump needs a fraction of that power.

Why does the way India electrifies matter?

1. BEE savings record: The Bureau of Energy Efficiency (BEE) sets efficiency standards for equipment. Its programmes saved energy equal to 53.6 million tonnes of oil in 2023-24.
2. Star label precedent: BEE’s standards and labelling programme made the star label a signal consumers trust. Work on heat pump standards is underway.
3. Induction label deferral: During the LPG shortage, the government deferred mandatory star labelling for induction cooktops to January 2027 to keep supply flowing.

Challenges

1. Upfront cost: A heat pump costs more than a boiler and repays slowly, because industrial power tariffs are high and fuel is cheap.
2. No common yardstick: Makers quote efficiency tested under different foreign standards, so buyers cannot compare claims.
3. Import dependence: Nearly 90% of heat pumps sold in India come from China, exposing the market to the supply shocks electrification should reduce.

Way Forward

1. Indian test standards: Frame heat pump test standards suited to Indian conditions.
2. Minimum performance norms: Set minimum performance requirements for heat pumps, backed by Bureau of Indian Standards (BIS) certification.
3. Heat pump star label: Extend the BEE star label to heat pumps so buyers can compare them.
4. Standards before demand: Set them before demand surges again, so a buying rush does not bring in substandard products.

Conclusion

India has the clean power to electrify heat and cooking, but the rules that make the switch efficient are still being written. The test is whether they arrive before the next fuel shock.

Key numbers

1. Industry’s share of energy use: almost half of India’s total.
2. Electricity’s share of final energy use: 21% in 2025, rising to 60% by 2070 in NITI Aayog’s net zero scenario.
3. Fuel import bill: About 4% of GDP, falling to 0.2% in the same scenario.
4. Clean power rank: India became the world’s fourth largest producer of clean electricity in 2025.

Schemes and Initiatives for Energy Efficiency and Clean Electricity

1. Carbon Credit Trading Scheme (CCTS): This carbon credit market has replaced the Perform, Achieve and Trade (PAT) scheme for several sectors, with BEE as administrator.
2. Solar Standards and Labelling: BEE launched labelling programmes for grid connected solar inverters and solar photovoltaic modules in March 2024.

Matching Previous Year Question

“[2016] On which of the following can you find the Bureau of Energy Efficiency Star Label? 1. Ceiling fans 2. Electric geysers 3. Tubular fluorescent lamps Select the correct answer using the code given below. (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3 ANSWER: (d)”