GEOECONOMICS AND GLOBAL ENERGY SECURITY

 GEOECONOMICS AND ENERGY

Geoeconomics has been shaping global energy supplies from different countries and  sources.Geoeconomics studies the combination of economic and geographic factors impacting international trade, investment and factor mobility.Accordingly government policies are largely guided by geoeconomics  and frequently geopolitics and geoeconomics are used interchangeably.In effect geoeconomics is " the geostrategic use of economic power" .It has been observed that the post cold war resurgence of Geoeconomics has been influenced by largely Washington led  global economic integration, charecterised by neoliberal capitalists conventions that have transformed the foundations of global security, foreign policy and statecraft.In energy sector also  shifting is taking place from traditional fossil fuel exporters to countries supplying renewable energy technologies and  critical material supply chains.Historically energy security were dependent on oil and gas flows, largely from Middle East countries and Russia. Further the transition towards low carbon economies resulted in emergence of new dependencies especially on China that leads in the manufacture of solar panels, wind turbines and electrical vehicles. While geoeconomics emphasises interconnected roles of economic leverage, supply chain resilience, and technological innovation in shaping a nations global standing, geopolitical strategies on the otherhand,it involves territorial defence or coercive diplomacy. However contemporary geoeconomics gives more emphasis on economic strength than military strength, contrary to historical fact that  how mercantalist countries used force to  achieve their interests  like in Portugal hegmony in spice trade,British Piracy against Spain or US naval Pressure on Japan etc.

DOMINANCE OF CHINA IN GLOBAL RENEWABLE ENERGY 

Global distribution of energy resources are highly unequal. Among fossil fuels oil reserves are concentrated in the Middle East, Coal deposits are high in USA, Russia, China and  Australia, whereas natural gas are largely concentrated in Russia, Iran and Qatar.Among Renewable and Alternative sources hydropower is concentrated in places of high rainfall and mountainous terrain and top producers are China, Brazil  Canada and the US. Eventhough Solar and wind energy are widely available but commercial utilisation of it is tapped largely by China followed by Europe and US. In nuclear energy  power generation centers are in North America, France, and East Asia while Uranium mining is prominent in Kazakhstan, Canada and Australia. 

As per United Nations Sustainable Development Goals  in order to achieve SDG 7" affordable and clean energy "last few decades made great strides to tackle issues pertaining to technological barriers to renewable energy RE adoption. But significantly major challenges to RE  are basically due  to social, economic and political factors. RE systems require raw materials that are subject to supply constraints and the geopolitics of global trade ..Researchers observe that China's strategic positioning within Global trade and investment networks enables it to exert significant control over critical elements of the RE market,similar to role of choke points in geopolitics. But  unlike geopolitical choke points  relying on territorial control or military dominance geoeconomic points are determined by trade,investment, and institutional mechanism and integration. China is able to influence the global economic landscape surrounding RE development.  Instead of eliminating RE competitors China asserted market control through cooperation and interdependence fostering market integration and the resilience of trade networks. 

INDIA'S ENERGY  SECURITY 

Energy security refers to uninterrupted supply of energy sources at affordable price which is critical for national security economic growth, sustainable development and country's march towards becoming global economic power.Major challenges to energy include heavy dependence on fossil fuels to the extent about 83%.Further lack of adequate investment in hydrocarbon exploration delays in coal mining and lack of infrastructure in turn adversely affect the energy sector. However opportunities exist in diversifying energy sources through renewable energy targeting 500 GW by 2030.Initiatives for renewable energy include Surya Ghar ,Mufti Bijli yogana for rooftop solar,the National Green Hydrogen Mission , Solar Parks and Ultra Mega Solar power projects etc. While  Green Hydrogen Mission aims to make India a global hub for producing, using and exporting Green Hydrogen, Green Energy Corridor builds out modern transmission lines and substations to optimally integrate fluctuating Green energy into the national power grid.

ENERGY SECURITY AND GEOECONOMICS

Energy security refers to uninterrupted supply of  energy sources at affordable price along with availability and  accessibility which is critical for national security and economic growth.Accoding to former IMF Chief economist Gita Gopinath global economy is entering a fragile  phase marked by geoeconomic fragmentation,driven by rising tariffs,geopolitical tensions and AI driven shifts.Despite world remained deeply integrated, trade is increasingly aligning with political alliances.She that fractures within Western Alliance is a primary risk especially when  US and European trade policies are turning against each others Geopolitical fragmentation is disrupting global energy supply Chains. According to World Economic Forum's Energy  Transition  Index 2026 ,rising geopolitical tensions and supply disruptions led to significant disconnect between capital deployment and system resilience. Market fragmentation tariff and trade restrictions etc tripled to $ 2.64 trillion by mid 2025 necessitating countries to adopt protectionist measures that slow technology diffusion and increase cost.Disruptions in critical choke points like Strait of Hormuz and Red Sea have made import dependent economies from Globai South highly vulnerable and fragile. On the contrary advanced economies including Nordics and China continue to scale clean energy. Unfortunately emerging markets face tremendous gaps in  both infrastructure and investment  resulting in a fractured transition where decarbonisation accelerates  unevenly. 

CONCLUSION 

In 2025 renewable energy overtook coal in electricity generation and solar and wind energy grew  sufficiently faster to meet global power demand. European region and UK have almost decarbonized their electricity grids. According to International Energy Agency  forecasting renewable energy, particularly solar power will grow faster than any other major source. China has accelerated its economic leverage particularly in RE .Cheap wage,relatively weak exchange rate in relation to US$ and Euro € and availability of adequate RE infrastructure .Systems or  technology make both China and India competitive in the market. However China stands out both in Asia and the world accounting for  three fourth global clean energy and 66% of wind energy. Throughout history powerful nations used economic leverage to bend others to their Will. In recent times utilisation of tarrifs as a weapon by US, Russia Ukraine war,frequent escalation of crisis in West Asia and consequent  blockade imposed on movement of petroleum products through Strait of Hormuz etc resulted in fragmentation of the global economy. In other words global energy security and supply chains are fragmented by existing geoeconomic conditions.