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India can lower clean cooking costs by expanding biogas and electric cooking: IISD report

India can strengthen its clean cooking progress by expanding decentralised biogas and electric cooking in addition to liquefied petroleum gas (LPG) and piped natural gas (PNG), according to a new report by the International Institute for Sustainable Development (IISD), The Economic Times reported.

The report, titled India’s Clean Cooking Shift: Scaling Non-Fossil Fuel Solutions, says non-fossil fuel options — especially decentralised biogas and electric cooking — can be scaled up if backed by adequate financing, reliable service networks and supportive regulations.

“Building on the success of LPG, India now has an opportunity to gradually widen its clean cooking options by unlocking non-fossil fuel solutions alongside existing fuels,” said Sunil Mani, policy advisor at IISD. He added that a more diverse cooking energy mix could improve energy security, support climate goals and help manage long-term costs for households and the government.

Over the past decade, India has expanded access to clean cooking through programmes such as the Pradhan Mantri Ujjwala Yojana and the rapid rollout of city gas distribution networks. LPG connections increased from 16.6 crore in 2016 to more than 33 crore in 2025, while domestic PNG connections rose from about 0.33 crore to over 1.6 crore during the same period. Despite this progress, 37 per cent of households still depend mainly on solid fuels for cooking.

The report notes that growth in connections has been faster than actual fuel use. Domestic LPG consumption rose 48 per cent between 2015–16 and 2023–24, while annual PNG consumption increased only 11 per cent between 2021–22 and 2023–24, even though connections grew by 40 per cent. This gap points to affordability challenges, especially among low-income and rural households.

India’s annual LPG consumption more than doubled between 2011–12 and 2024–25, increasing from around 15 million metric tonnes to 31 million metric tonnes. More than 93 per cent of the additional demand was met through imports. The report says gradually expanding non-fossil alternatives alongside LPG and PNG could improve affordability, enhance energy security and support climate commitments.

Field research conducted in Punjab, Rajasthan, Uttarakhand, Karnataka and Delhi found that decentralised biogas systems can provide a reliable renewable option in rural areas. Households that adopted biogas reduced firewood use by about 70 per cent annually and reported better health outcomes and high satisfaction levels where proper maintenance and financing support were available. Prefabricated systems performed better due to quicker installation and lower maintenance requirements. However, high upfront costs remain a major barrier, even with capital subsidies of up to 40 per cent.

In urban and peri-urban areas, electric cooking is emerging as a cost-effective alternative. At current prices, annual cooking costs are estimated at ₹6,800–6,900 for LPG or PNG, compared with ₹5,800–5,900 for electric cooking. The cost advantage remains even if electricity tariffs increase moderately.

Despite this, electric cooking adoption remains limited. The report cites high appliance costs, concerns over electricity reliability, behavioural factors and gaps in after-sales service as key challenges. Many households currently use electric cooking as a secondary option rather than a primary one.

The analysis suggests that wider urban adoption of electric cooking could reduce LPG demand and imports over time. Under higher adoption scenarios, electric cooking in cities could cut LPG demand by half by mid-century, easing import dependence and reducing pressure on subsidies.

Mani said that while the impact by 2030 may be modest, sustained adoption could generate subsidy savings of up to ₹2.4 trillion by 2050. These savings, he noted, could be redirected to support clean cooking access for low-income households.

The report recommends a phased approach in which LPG and PNG continue as primary fuels while non-fossil solutions are expanded through targeted policies. Suggested measures include reducing upfront costs through incentives, redirecting part of future LPG subsidy savings to support biogas and electric cooking, integrating clean cooking diversification into broader energy and climate strategies, and strengthening local service networks to ensure long-term use.

“India’s clean cooking story is a success — but it is also evolving,” Mani said. “Including non-fossil cooking solutions now allows the country to protect past gains, reduce future risks and align clean cooking with a net-zero and fiscally resilient energy system.”

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