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The International Energy Agency (IEA) is an intergovernmental, autonomous organization with its headquarters in Paris.
It was created in 1974, after the Arab-Israel War 1973 when Oil Embargo was imposed by producers on major industrialized countries, which found themselves ill-equipped against the oil shock, IEA was formed to ensure security of oil supplies, with a broad mandate for energy policy cooperation.
It has evolved over the years, it lies at the center of global energy debate. Its work spans from energy investments, climate change, energy access and efficiency. It also publishes the World Energy Outlook Report.
It recognizes India’s growing influence in global energy trends, with India becoming the 3rd largest consumer of energy worldwide.
After Online discussion between Executive Director Dr. Fatih Birol and Minister of Petroleum and Natural Gas Hardeep Singh Puri, on October 11 tweeted “As a natural corollary to the India-IEA strategic partnership, Dr. Birol invited India to deepen its cooperation with IEA by becoming a full Member.”
As of now there are a total of 30 members of IEA, with the most recent member country Mexico which joined IEA in 2018. Four countries seeking access for membership are Chile, Lithuania, Columbia and Israel. It also has 8 associate members, India became an associate member of IEA in March 2017.
What are the advantages of being a member of IEA for India?
- The IEA has a robust system to maintain energy security for member nations through both long-term and short-term plans.
- It being a center of global discourse on energy will also help India enhance the reliability, affordability and sustainability of resources.
- The Energy Data Center of IEA collects, assesses and disseminates energy statistics data that can help countries to build policies.
- This will help India to take a step forward towards clean energy and modernization of energy infrastructure building resilience.
New Delhi requires fulfilling the criteria for the membership as laid down by IEA.
- Crude oil reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access. Not necessarily having the ownership of oil.
- Country must furnish details regarding program that will reduce the oil demand in country by 10 percent.
The current strategic oil reserves are equal to a mere 9.5 days of its requirement, as of October 2021.
In order to fulfill the demands, India needs to boost its infrastructure for development of Strategic Petroleum Reserves (SPRs), two new SPRs at Padur, Andhra Pradesh and Chandikhole, Odhisha have been given approval, but the work is yet to start.
To grab the opportunity, it will require efforts from the state, to attain requirements that have been laid by the IEA.
This article has been written by Rutam Pimplapure for The Paradigm
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