Public support for renewable energy and clean electrification is proving to be an effective energy-security policy
The push towards securing clean energy globally is increasingly becoming an energy security strategy for countries. For major fossil fuel importing economies, renewable energy, electrification and energy efficiency provide a way to reduce exposure to volatile international fuel prices and geopolitical disruptions, the latest being the Strait of Hormuz crisis.
The economics are even more significant when electricity replaces imported petroleum to power the transport sector. India, which is heavily dependent on imported crude, has been an early mover in this segment, recognising that the shift to electric vehicles helps reduce the country’s transport-related energy bill and moves it towards electricity which can be generated domestically. For an economy where transport is one of the largest sources of oil demand, the cumulative effect runs into billions of dollars.
Therefore, given this focus, India’s electric mobility transition has moved beyond the experimental phase. The strongest growth has been in the two and three-wheeler category, which account for a significant share of urban and commercial mobility. The transition has been supported by a sophisticated policy architecture.
At the national level, initiatives like PM-E Drive supports EV adoption, charging infrastructure and the domestic manufacturing capabilities, sub-national governments are playing their part by combining purchase incentives, road tax and registration concessions, helping build charging networks among others. The result is a transition which is no longer dependent on a single national policy but a combination of central initiatives, state-level experimentation, falling technology costs and consumer economics.
Therefore, given the crisis at the Strait of Hormuz, conflicts around the globe, supply chain disruptions and unilateral trade measures makes the strategic value of this transition more significant. This was also echoed by a new analysis by International Institute for Sustainable Development (IISD) of four major oil importers in the world.
Fig 1: Mahindra's, e2oPlus, operated by Indian ride-hailing company Ola, is seen at an electric vehicle charging station in Nagpur, India January 24, 2018. Picture taken January 24, 2018. REUTERS/Aditi Shah
The analysis argued that “public support for renewable energy and clean electrification is proving to be an effective energy-security policy - expanding and diversifying domestic energy supply, reducing dependence on imported fossil fuels, strengthening resilience to price shocks, and lowering energy costs.” in these four nations. The analysis was done ahead of the G20 Energy Abundance Ministerial in the US.
The analysis examines Germany, Türkiye, China and India that together account for around 40% of global oil imports and 27% of gas imports. “Germany and Türkiye have used renewable energy to reduce exposure to imported gas, China is using solar and wind to meet growing electricity demand at lower cost, and India is using electric vehicles to reduce dependence on imported oil. Across all four, public support for clean energy delivers measurable energy security benefits,” it pointed.
“Renewable energy support in Germany and Türkiye delivered an estimated USD 38 billion in combined net savings from avoided gas imports during the 2022 energy crisis. With gas prices elevated again in 2026, the same policies are projected to deliver around USD 39 billion in combined net savings this year,” the analysis pointed out.
Elaborating more on the findings, the analysis said for China, expanding solar and wind instead of coal can meet growing electricity demand more affordably, with projected savings of USD 1.9 trillion by 2050. For India, “support for electric vehicles is reducing reliance on imported oil, with projected savings of USD 7.8 billion for consumers and USD 2.5 billion in avoided crude-oil imports by 2035,” it added.
“Taken together, these results show why clean energy is an energy security policy. Every fossil fuel price shock hits importing countries twice: first through higher import bills, and then through the cost of protecting households and businesses from those higher prices. The answer is not to stop protecting people––it is to invest in solutions that reduce exposure to volatile fossil fuel markets. Across four very different economies, we see the same result: public support for renewables and electrification can build lasting energy security,” said Tara Laan, lead author of the analysis at IISD.
The clean energy support across all the four countries is expanding. Diversifying domestic energy supply is reducing reliance on imported oil and gas, and leaving economies less exposed to global fuel shocks, it said. The analysis was released ahead of the crucial G20 Energy Abundance Ministerial, where ministers are expected to discuss deregulation, faster permitting and expanded energy production.
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