Need of new Energy Ministry

Environmental related issues

Source: The Indian Express

Context: 

The author discusses the need for India to establish a new ministry of energy.

Editorial Insights:

What’s the matter?

The recent coal shortage and its impact on the country's electricity supply has sparked outrage.

Many experts believe the following are the causes of this situation:

• The Ministry of Coal & Coal India has made mistakes in managing the production process, planning supplies, or leaving critical leadership positions vacant.
• Furthermore, the Ministry of Power/NTPC is to blame for allowing coal inventories to fall below the recommended minimum in order to better manage their working capital.
• At the same time, the state government's electricity distribution companies have not paid their bills on time or in full.
• Furthermore, increasing political pressure on the entities compelled them to sell electricity to residential and agricultural sector consumers at subsidised tariffs that did not cover procurement costs.
• Finally, the entire problem stems from a structural flaw in which there is no single public body with executive oversight, responsibility, and accountability for the entire coal value chain.
• This has a major/huge impact on the entire energy sector, which must be filled not only to avoid another coal crisis, but also for the country to realise its green ambitions.

There is a need for a new single entity to oversee the entire energy chain:

• Despite the fact that India has an energy and environmental problem, there is no energy strategy with executive authority.
• Though the NITI Aayog and previous Planning Commissions issued energy strategies, most of the recommendations have gathered dust; there is a lack of executive authority to give the strategy sanctity; and there is a lack of political and bureaucratic will to implement the recommendations to change the status quo.
• Furthermore, despite the fact that the Cabinet supports the Planning Commission document, the majority of the recommendations were ignored.

In the midst of the coal crisis and the imperatives of decarbonization, the following recommendations are the way forward:

The government should enact the Energy Responsibility and Security Act, which would elevate the importance of energy by making it constitutionally protected.

It should make it a legal obligation for the government to provide citizens with safe, affordable, and clean energy.

It should establish measurable metrics for tracking progress toward energy independence, security, efficiency, and green energy.

To fulfil its mandate, the government should redesign the existing energy decision-making architecture in two ways.

Establishment of an omnibus Ministry of Energy to oversee the currently siloed ministries of petroleum, coal, renewables, and power.

The ministry should be given the same status and power as the finance and home ministries.

However, such a reorganisation would be disruptive to other ministries and would be politically and administratively unfeasible.

Another option is to establish a Department of Energy Resources, Security, and Sustainability within the PM's office, led by a minister of state.

The goal is not to change the current roles and responsibilities of the various ministries.

The goal is to identify and address all issues that currently fall between the cracks created by the existing structure, as well as to develop and implement an integrated energy policy to leverage the weight of India Energy Inc and maximise India's competitiveness in dealing with the international energy community.

It would fund and incubate clean energy R&D and innovation.

The apex regulatory system and the regulatory ombudsman will be in charge of streamlining the current multiple layers of energy regulations.

Finally, it would plan and carry out a communication strategy to raise public awareness about existing and emerging energy-related issues.

Despite having a narrower mandate than others, the department would be the most powerful executive body with ultimate responsibility for navigating the green transition.

Remarks at the End:

The above redesign is critical for generating positive investor sentiment. It is past time for the Indian government to replace the current fragmented and opaque regulatory, fiscal, and commercial systems and processes with a transparent and centralised executive decision body for energy.