Asia Builds Energy Redundancy to Guard Against Global Supply Disruptions
India and China are expanding diversified energy capacities and import options to protect against growing geopolitical instability.
In response to an increasingly fragmented global landscape, India and China are reinforcing their energy systems with multiple layers of redundancy. China backs its grid with domestic coal, overbuilt renewables, extensive storage, and a mix of hydro, nuclear and imported fuels, while also holding strategic stockpiles and pursuing synthetic fuel technology. India has expanded installed capacity across all major sources except diesel and natural gas, relied on coal to meet record electricity demand during a heat wave, and is opening its nuclear sector under the SHANTI Act to target 100 gigawatts by 2047.
Both countries are diversifying oil and gas imports by supplier, route and contract flexibility, and are promoting electrification of transport. Regional interconnections with neighboring countries and prospective links to the UAE, Saudi Arabia and Singapore further broaden their energy options, creating a credible threat against coercive supply tactics.
Why it matters
Energy diversification shields fast-growing economies from supply shocks that could hinder development.
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