India Can Curb Clean Cooking Costs by Scaling Biogas, Electric Stoves: IISD Report

Why It Matters

Diversifying India’s cooking mix strengthens energy security, cuts import dependence, and delivers billions in subsidy savings while supporting climate goals.

Key Takeaways

• Biogas cuts fire‑wood use by ~70% in rural homes
• Electric cooking costs ₹5.8k‑5.9k, cheaper than LPG
• LPG imports supply >93% of incremental demand
• Upfront appliance costs hinder electric stove adoption
• Scaling non‑fossil fuels could save ₹2.4 trillion by 2050

Pulse Analysis

India’s clean‑cooking journey has been marked by rapid LPG expansion, yet solid‑fuel reliance remains stubbornly high. The Pradhan Mantri Ujjwala Yojana and city‑gas networks have more than doubled LPG connections, but consumption growth lags behind, exposing affordability gaps for low‑income families. This mismatch underscores the need for a broader energy mix that can sustain the gains while addressing cost pressures and import reliance.

In rural districts such as Punjab and Rajasthan, decentralized biogas systems have demonstrated tangible benefits. Households report a 70% reduction in fire‑wood use, improved indoor air quality, and higher satisfaction when financing, maintenance, and installation support are available. Prefabricated biogas units further reduce setup time and upkeep, yet capital costs—even with 40% subsidies—remain a deterrent, highlighting the importance of innovative financing models and local service ecosystems to drive scale.

Urban and peri‑urban markets are witnessing a quiet shift toward electric cooking, which currently offers a 10‑15% cost advantage over LPG and PNG at prevailing electricity tariffs. Despite this, high appliance prices, grid reliability concerns, and limited after‑sales service slow adoption. Policy levers such as targeted rebates, tariff stabilization, and reinvestment of future LPG subsidy savings into electric and biogas solutions could accelerate uptake, halve LPG demand by mid‑century, and generate up to ₹2.4 trillion in savings by 2050, reinforcing India’s net‑zero and fiscal resilience objectives.