Solar energy as a geopolitical tool: Can India reduce dependence on fossil fuel imports?
The reliance on fossil fuel imports poses challenges to achieving sustainability goals as well as energy security, making India vulnerable to various geopolitical risks like upheaval in trade routes, which makes access and availability of resources unequal.
- Oct 3, 2025,
- Updated Oct 3, 2025 3:59 PM IST
India recently became the third largest market of renewable energy from solar and wind power, and in the last year, it has successfully reduced coal imports by 7.9 per cent, saving over $7.5 billion in foreign exchange. Despite this, India remains the second-largest importer of coal. This can be attributed to India’s increasing pace of urbanisation and strengthening industrial economy, which have dramatically increased electricity demands.
The reliance on fossil fuel imports poses challenges to achieving sustainability goals as well as energy security, making India vulnerable to various geopolitical risks like upheaval in trade routes, which makes access and availability of resources unequal. Additionally, energy security and natural resources are directly connected with a country's geopolitical influence and economic growth. Acknowledging this, the government has been relentlessly trying to enhance India’s power as a geopolitical tool through various schemes and international coalitions.
Given that India ranks third globally in the production of solar energy, there is a great opportunity to align sustainability ambitions to boost geopolitical influence while reducing India’s dependence on other countries for fossil fuels. International cooperations, technological innovations, and government programmes centred around solar power are strategically being integrated into India’s actions to not just tackle the wild swings in the global energy supply chain but also disrupt them to gain political influence.
Supporting India’s Industrial Ambitions with Solar Panels
The coal sector is imperative for the growth of India’s economy, given it remains the primary energy source for high-yielding industries like power, steel, cement, and railways. Given that domestic reserves cannot meet their increasing demands, India has no option but to import the black diamond from other countries.
However, a ray of hope comes with advancements in Solar energy technology. The older version of solar cells was inefficient, i.e., it did not utilise the full potential of available sunlight, giving an output efficiency of 18-19 per cent. However, now solar cells made with N-type TOPCon technology have significantly enhanced the per-unit energy output of solar panels, making solar energy more accessible for large-scale utility projects that do not have much space to spare for the installation of huge solar panel parks.
Additionally, with scaling, technological innovations in manufacturing and government schemes to support solar power utilisation, the upfront cost of getting a solar panel has become
more affordable. Thus, more and more industrial powers are slowly making a conscious choice to shift to cleaner energy sources. What is required is acceleration of awareness efforts and an increase in domestic production of solar panels, which mandates public-private partnerships.
Aiding Growing Energy Utilisation Due to Urbanisation
The domestic utilisation of energy has gone up with the improving lifestyle of Indians, thanks to urbanisation, which also means a higher demand for fossil fuels. The government has been promoting solar panel installation in India’s houses through subsidies and other social safety nets under various schemes. As of today, lakhs of houses have benefited from it and are enjoying the benefits of low-cost electricity. However, there is still a long way to go in making people understand the importance and benefits of switching to cleaner energy sources and making them cognisant of existing schemes of support.
Addressing the Gaps: Intermittent Nature of Renewable Energy
Renewable energy is inexhaustible. However, the sunlight is volatile, meaning it is not available at night and during overcast days, and its quality might be questionable. In other words, ensuring a continuous, uninterrupted supply requires cutting-edge storage solutions, given that solar energy cannot be turned on or off on demand. Enhancing the availability of lithium batteries as a storage medium becomes critical here.
Role of International Solar Alliance and Solar Power Exports in Advancing Geopolitical Interests
India is leading the global integration of solar power electricity grids through the International Solar Alliance. This leadership is not just critical for sustainability but also plays a vital role in enhancing India’s geopolitical influence and building its diplomatic power through international collaborations. Focused mainly in the global south in countries that lie on the sunshine belt, it can be argued that India is emerging as a leader of the Global South, spearheading the adoption of solar energy by enabling capital investment, workforce training, and capacity building in African and Latin countries while enhancing diplomatic ties with various nations along the way.
The Bottom-Line
India aims to reach 500 GW of non-fossil fuel-based power capacity by 2030, a target set at COP26. To achieve this, India needs to add approximately 280 GW more renewable energy capacity by 2030, given that the installed capacity was around 220 GW by March 2025. India is actively working towards this goal through annual installation targets, policy measures like
the PM-KUSUM scheme and PM Surya Ghar for rooftop solar, and promoting domestic manufacturing of solar modules and equipment. Such efforts are important tools for geopolitical power, as they will not only reduce our dependence on imported fossil fuels but also enable India’s goal of becoming a global leader.
(Views are personal; the author is Director at Gautam Solar)
India recently became the third largest market of renewable energy from solar and wind power, and in the last year, it has successfully reduced coal imports by 7.9 per cent, saving over $7.5 billion in foreign exchange. Despite this, India remains the second-largest importer of coal. This can be attributed to India’s increasing pace of urbanisation and strengthening industrial economy, which have dramatically increased electricity demands.
The reliance on fossil fuel imports poses challenges to achieving sustainability goals as well as energy security, making India vulnerable to various geopolitical risks like upheaval in trade routes, which makes access and availability of resources unequal. Additionally, energy security and natural resources are directly connected with a country's geopolitical influence and economic growth. Acknowledging this, the government has been relentlessly trying to enhance India’s power as a geopolitical tool through various schemes and international coalitions.
Given that India ranks third globally in the production of solar energy, there is a great opportunity to align sustainability ambitions to boost geopolitical influence while reducing India’s dependence on other countries for fossil fuels. International cooperations, technological innovations, and government programmes centred around solar power are strategically being integrated into India’s actions to not just tackle the wild swings in the global energy supply chain but also disrupt them to gain political influence.
Supporting India’s Industrial Ambitions with Solar Panels
The coal sector is imperative for the growth of India’s economy, given it remains the primary energy source for high-yielding industries like power, steel, cement, and railways. Given that domestic reserves cannot meet their increasing demands, India has no option but to import the black diamond from other countries.
However, a ray of hope comes with advancements in Solar energy technology. The older version of solar cells was inefficient, i.e., it did not utilise the full potential of available sunlight, giving an output efficiency of 18-19 per cent. However, now solar cells made with N-type TOPCon technology have significantly enhanced the per-unit energy output of solar panels, making solar energy more accessible for large-scale utility projects that do not have much space to spare for the installation of huge solar panel parks.
Additionally, with scaling, technological innovations in manufacturing and government schemes to support solar power utilisation, the upfront cost of getting a solar panel has become
more affordable. Thus, more and more industrial powers are slowly making a conscious choice to shift to cleaner energy sources. What is required is acceleration of awareness efforts and an increase in domestic production of solar panels, which mandates public-private partnerships.
Aiding Growing Energy Utilisation Due to Urbanisation
The domestic utilisation of energy has gone up with the improving lifestyle of Indians, thanks to urbanisation, which also means a higher demand for fossil fuels. The government has been promoting solar panel installation in India’s houses through subsidies and other social safety nets under various schemes. As of today, lakhs of houses have benefited from it and are enjoying the benefits of low-cost electricity. However, there is still a long way to go in making people understand the importance and benefits of switching to cleaner energy sources and making them cognisant of existing schemes of support.
Addressing the Gaps: Intermittent Nature of Renewable Energy
Renewable energy is inexhaustible. However, the sunlight is volatile, meaning it is not available at night and during overcast days, and its quality might be questionable. In other words, ensuring a continuous, uninterrupted supply requires cutting-edge storage solutions, given that solar energy cannot be turned on or off on demand. Enhancing the availability of lithium batteries as a storage medium becomes critical here.
Role of International Solar Alliance and Solar Power Exports in Advancing Geopolitical Interests
India is leading the global integration of solar power electricity grids through the International Solar Alliance. This leadership is not just critical for sustainability but also plays a vital role in enhancing India’s geopolitical influence and building its diplomatic power through international collaborations. Focused mainly in the global south in countries that lie on the sunshine belt, it can be argued that India is emerging as a leader of the Global South, spearheading the adoption of solar energy by enabling capital investment, workforce training, and capacity building in African and Latin countries while enhancing diplomatic ties with various nations along the way.
The Bottom-Line
India aims to reach 500 GW of non-fossil fuel-based power capacity by 2030, a target set at COP26. To achieve this, India needs to add approximately 280 GW more renewable energy capacity by 2030, given that the installed capacity was around 220 GW by March 2025. India is actively working towards this goal through annual installation targets, policy measures like
the PM-KUSUM scheme and PM Surya Ghar for rooftop solar, and promoting domestic manufacturing of solar modules and equipment. Such efforts are important tools for geopolitical power, as they will not only reduce our dependence on imported fossil fuels but also enable India’s goal of becoming a global leader.
(Views are personal; the author is Director at Gautam Solar)