Nuclear power and natural gas are set to drive the next phase of energy cooperation between India and the US, aiming to reduce costs, diversify supply chains, and enhance long-term energy security. Dinsha Mistree, an expert from Stanford University’s Hoover Institution, highlighted the significance of nuclear energy for future collaboration between the two nations. Despite the 2008 civil nuclear agreement laying the foundation for cooperation, it faced hindrances due to liability laws in India. However, recent legislative changes have opened up new opportunities for close collaboration on nuclear energy.
Mistree emphasized the evolving US stance, noting the need to expand its energy projects. He pointed out that nuclear power enjoys bipartisan support in the US, with cost being a major constraint that India could help alleviate by producing nuclear component parts. While acknowledging the early stages of progress, Mistree mentioned the cautious approach of industry players awaiting further developments to engage with the US market.
Regarding natural gas, Mistree anticipated a growth in bilateral trade, especially considering the US’s significant gas production capacity. He highlighted structural challenges in India such as taxation and distribution, suggesting that policy adjustments, including potential GST reforms, could make gas more affordable and thus more appealing to US suppliers. He stressed the importance of diversification in the energy supply chain, emphasizing the necessity for India to include the US as a key partner.
Mistree also underlined the environmental benefits of gas, citing its role in promoting clean air and complementing renewable energy sources. He urged Indian policymakers to adopt a structured energy security strategy, diversify partnerships, and explore new resources in light of recent geopolitical disruptions. Recognizing the US’s extensive experience in energy security, Mistree advocated for enhanced cooperation between the two countries in this crucial sector.
