A State-by-State Analysis
A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember, a clean energy think tank, evaluates the clean electricity transition preparedness at the sub-national level in India. The report highlights the need for a state-specific approach to accelerate the transition to clean energy.
Karnataka and Gujarat Lead the Way
Karnataka and Gujarat continue to lead the race to clean energy transition, effectively integrating renewable energy sources into their power sectors and making strong strides in decarbonisation. However, other states like Jharkhand, Bihar, West Bengal, and Uttar Pradesh need to step up their efforts. These states are in the early stages of their transition and need to focus on increasing renewable energy deployment, enhancing short-term market participation, and strengthening their distribution companies.
The Importance of State-Level Analysis
While the central government is taking steps to integrate more renewable energy into the grid, states also need to be prepared to do so. Gauging sub-national progress requires constant monitoring of several parameters at the state level. A purely national overview can often overshadow subtle intricacies at the state level, which may hinder the country's electricity transition.
States Exhibiting Preparedness
Several states are exhibiting preparedness to embrace electricity transition. They perform well in the "Readiness and Performance of the Power Ecosystem" and "Market Enablers" dimensions but need to improve in the "Decarbonisation" dimension. Delhi's power system is well-prepared for decarbonisation, while Odisha has robust market enablers to support decarbonisation in the power sector. However, their actual decarbonisation progress so far does not match their strengths in these aspects.
States Needing Improvement
Kerala, Haryana, Andhra Pradesh, Punjab, and Maharashtra all exhibited considerable progress in certain aspects but also lower performance in other aspects. For example, Kerala and Punjab need to improve when it comes to market enablers for decarbonisation, while Andhra Pradesh and Maharashtra need to focus on the readiness of their power ecosystems.
Recommendations for Accelerating the Transition
Strengthening state-level regulatory ecosystems
Shifting focus from national-level to state-level studies
Tailoring policy interventions to address state-specific challenges
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. This will ultimately help India achieve its clean energy goals.