INDIA-U.S. ENERGY FUTURE

GS-2: International Relations

Key Highlights
  • India-U.S. energy collaboration now emphasizes critical minerals, nuclear energy, and clean technology.
  • A 2024 MoU aims to diversify critical mineral supply chains and reduce reliance on China.
  • India targets 20 GW of nuclear capacity by 2047, up from approximately 8 GW currently.
  • The partnership focuses on joint development in battery technology, small modular reactors (SMRs), and clean hydrogen.
  • India will co-develop traceability systems, explore blockchain for mineral tracking, and expand clean energy R&D.
Detailed Insights
  • Energy Security Principles:
    • Ensure secure energy at predictable prices.
    • Prevent supply disruptions.
    • Develop a sustainable, clean energy system.
  • Critical Minerals Compact:
    • U.S. and India to share strategic stocks and build resilient supply chains.
    • Leverage institutions like the U.S. Strategic Petroleum Reserve and India’s stockpile.
    • Explore cooperation at the Quad level.
  • Clean Tech Investments:
    • Focus on modular nuclear reactors, green hydrogen, and advanced battery storage.
    • Strengthen the India-U.S. Clean Energy 2030 agenda with clear benchmarks.
  • Private Sector Role:
    • Speed up project timelines.
    • Standardize designs.
    • Provide long-term purchase agreements for financial viability.
  • Nuclear Strategy:
    • Offers reliable base power to complement intermittent renewables.
    • Supports India’s ambitious expansion from 7 GW to 20 GW by 2047.
    • Enhances nuclear safety, decommissioning, and waste disposal through U.S. collaboration.
Scientific/Technical Concepts Involved
  • Critical Minerals: Essential elements for clean technologies like batteries, wind turbines, and semiconductors (e.g., lithium, cobalt, rare earths).
  • Small Modular Reactors (SMRs): Compact nuclear reactors with enhanced safety and lower spatial/financial requirements.
  • Traceability Blockchain: Technology for tracking and verifying mineral origins to ensure supply chain transparency.
Significance
  • Strengthens the India-U.S. strategic energy partnership, critical in global geopolitics.
  • Reduces India’s reliance on China for energy components.
  • Supports India’s Make in India and energy transition objectives.
  • Lays the foundation for a clean, resilient, long-term energy ecosystem.
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