Karnataka, Gujarat continue to exhibit strong progress towards clean electricity transition

This marks the second year of IEEFA and Ember collaboration on the Indian States’ Electricity Transition (SET) report, which evaluates the clean electricity transition preparedness at the subnational level. In 2024, the report adds five more states, totalling 21 states and representing about 95% of India’s annual power demand in the past seven financial years (FY) 2018 to 2024 (up to November). This year, the assessment parameters have been updated to better align with states’ electricity transition progress, incorporating stakeholder feedback and data availability.

Despite the changes, Karnataka and Gujarat showcased strong performance across dimensions, effectively integrating renewable energy sources into their power sectors, making strong strides in decarbonisation. But progress in states like Jharkhand, Bihar, West Bengal and Uttar Pradesh needs to improve, similar to last year’s findings. While these states are in the early stages of their transition, they now need to focus on increasing renewable energy deployment, enhancing short term market participation and strengthening their distribution companies.

The report releases when temperatures in India have started to soar, leading to the Ministry of Power preparing for a projected peak power demand of 260 gigawatts. Harsh summers also offer the chance to utilise more clean energy like solar power. Although, this requires the preparedness of states to transition to clean sources of electricity.

The report recognises the considerable efforts that states are making towards transitioning to clean electricity and, thus, recommends some key steps to accelerate the pace of transition.

“We recommend the strengthening of state-level regulatory ecosystems. This not only ensures compliance but also promotes growth, data tracking and monitoring, and a conducive environment for business,” says Michael.

“India has formulated many central and state-level policy schemes to reinforce its goal of energy independence by supporting various reforms and regulatory interventions across the value chain. However, actual implementation has not been adequate and transparent,” she adds.

The report also calls for a need to shift focus from national-level to state-level studies to understand the nuances of the electricity transition in India fully.

“Each state faces unique challenges in decarbonising its power system, necessitating tailored policy interventions. By tracking decarbonisation progress, assessing the power system’s readiness for transition, and monitoring the advancement of market enablers, state-specific challenges and potential interventions can be better understood,” says Neshwin.