India’s Deepening Energy Crisis
India’s greatest vulnerability is energy insecurity. Its incremental energy demand over the coming decade is projected to be among the highest in the world. This stems from accelerating economic growth, scarcity of domestic energy resources, increasing population and an expanding cohort of high energy consuming middle class with rising incomes. Domestic hydrocarbon and fossil fuel reserves are limited and even with massive investment marked for the sector will take time to bring on stream and even then self-sufficiency will not be achieved. By 2017, Indian power and steel sectors alone will need to import 300mt – 400mt of coal (87mt in 2012). India is now committed to expanding its nuclear energy production to provide a ‘clean’ alternative to coal. Indian public and private sectors are now desperately seeking new energy sources – coal, oil and gas, uranium, solar and wind. They have two objectives: Secure reliable supply chains of raw resources and to buy energy assets overseas to sustain the growing Indian economy.
The Group has extensive background in Australian energy resources relevant to India. However, our major focus is on uranium and solar power, the two vital resources for clean energy and, inevitably, on coal, which will remain an unavoidable ingredient in India’s quest for energy security. Since Australia is the most desirable source of energy resources and assets for reasons of quality, transactional transparency and logistics, we specialise in identifying Australia – India energy opportunities.
- Australia has now agreed to sell uranium to India. The Administrative Arrangements Agreement to operationalise this is well advanced and once in place will enable uranium ore trading and enhanced opportunities for Indian investment in Australian mines. Axessindia maintains contacts with potential Indian and Australian parties, which would be interested in both aspects.
- The Modi Government is committed to a multifold increase in the production of solar power – from current 2.5 GW to 15GW annually by 2022. 17 solar parks have already been approved in various states, which would benefit from foreign technological inputs. Axessindia is closely monitoring such developments in India and can assist Australian companies to identify relevant Indian partners.
- Australia has long been the largest supplier of thermal and metallurgical coal to India. Indian companies are increasingly seeking coal assets in Australia. Axessindia facilitates both trading and M&A activity.
|Australia-India Uranium Deal Receives Conditional Approval||January 27, 2016|
|India to build a strategic uranium reserve||January 27, 2016|