Electric cars key to India's energy independence, says IEA chief

Time of India

2 days ago

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India should prioritize electric vehicle (EV) adoption to reduce its dependence on oil imports and strengthen energy security, International Energy Agency (IEA) Executive Director Fatih Birol said on Monday after a meeting with Commerce and Industry Minister Piyush Goyal."India should look at the electrification of mobility very closely because currently we have low oil prices, but the country is definitely at the mercy of some key oil producers," Birol warned. "If India wants to have the upper hand in terms of domestic energy trajectories, electric cars are one of the key solutions."The IEA chief highlighted the rapid global shift toward electric vehicles, noting that electric car sales have surged from just 3 per cent of total car sales four years ago to 25% this year. "One out of four cars sold today is electric," he said. "This is mainly because electric cars are getting cheaper, slowly but surely."In many countries, electric and conventional vehicles now carry similar price tags, while operating costs favour EVs. "In most countries around the world, driving one kilometre costs less with electricity than with oil, unless oil prices fall below $50," Birol explained.He predicted that electric vehicles will eventually dominate global transportation. "The world is going to see that sooner or later, electric cars will be dominating the streets."Birol praised India as "one of the drivers of the global clean energy transition," particularly highlighting the country's solar energy achievements. "India has achieved a huge success story, especially on the solar front, and this is good for India's economy and its energy security," he noted.The IEA executive director also commended India's LED bulb program, calling Minister Goyal its architect and describing it as "one of the most successful programs in the history of energy transition." The initiative has made India's electrification system more cost-effective and environmentally friendly.He also praised the Ujjwala program for bringing clean cooking solutions to hundreds of millions of households and for its efforts to provide electricity access to Indian villages.Addressing concerns about the energy transition's supply chain, Birol warned of growing concentration in critical mineral mining and processing. "We are seeing major concentration. This is a worry because we at the IEA believe that the best energy security policy is diversification," he said.The concentration of critical minerals--essential for energy transition, defense, and chip manufacturing--poses "serious risk for the years to come," he warned. Birol urged all countries to diversify mining, refining, and processing of key critical minerals to avoid potential supply disruptions.For oil-importing nations like India, Birol recommended government incentives to accelerate electric vehicle adoption. "Countries importing oil should consider giving incentives to electric cars to reduce imports from different parts of the world," he said.He emphasized the importance of supporting consumers in purchasing their first electric vehicles, noting that countries must avoid falling behind in the electric car revolution.Despite concerns about potential trade conflicts affecting the energy transition, Birol maintained that diversification remains the best strategy for ensuring energy security in an increasingly electrified world.