Case For An Energy Ministry

Context: Creation of Ministry of Energy would identify and handle all of the issues in energy sector that currently fall between the cracks created by the existing structure.

Need for Ministry of Energy in India

• No responsible and accountable public body in energy sector: At central or state level, no body to oversee entire coal value chain.
• Structural lacuna and cycle of blame: One blaming to another for every issue in coal sector, and this cycle of blame lead to structural lacuna that afflicts the entire energy sector.
• Immense challenges in energy sector: Like preventing a recurrence of another coal crisis and for the country to realise its “green” ambition.
• Policy gap: Planning Commission document “Integrated Energy Policy” published in 2006,
  • Most of its recommendations will gather dust because its implementation depend on responses of bureaucrats in various ministries who, in general, have little incentive to alter status quo.

Way Forward

• “The Energy Responsibility and Security Act” should be passed: Act should elevate the significance of energy by granting it statutory sanctity.
  • Responsibility to provide citizens access to secure, affordable & clean energy be embed in law.
  • Law shall lay out measurable metrics for monitoring progress towards achievements of energy independence, energy security, energy efficiency and “green” energy.
  • Act should provide the constitutional mandate and frame for the formulation and execution of an integrated energy policy.
• Redesign existing architecture of decision-making for energy: Creation of an omnibus Ministry of Energy to oversee currently siloed verticals of the ministries of petroleum, coal, renewables and power.
  • Rank should be on equal footing with other ministries.
• Department of Energy Resources, Security, and Sustainability should be established within PMO: Headed by a person of minister of state rank.
• Facilitate corporate sector investments in clean energy by replacing fragmented and opaque regulatory, fiscal and commercial systems and processes by a transparent and single-point executive decision-making body for energy.