The Institute for Energy Economics and Financial Analysis (IEEFA) and Ember, an independent think tank, released a report indicating Karnataka and Gujarat as India’s leaders in the clean energy conversion process. The survey examined 16 Indian states, contributing 90% of the country’s electrical production, utilizing four major parameters to rank them: decarbonization performance, power ecosystem readiness, policies, and political commitment.
Report Findings
Of the 16 states assessed, only Karnataka scored well in all transition dimensions of clean electricity. Moreover, Karnataka exceeded its goal of segregating feeders by 16% and accomplished 100% of its smart meter installation target. Gujarat trailed slightly behind, while Haryana and Punjab showed promising preparation and implementation efforts. However, some states, such as West Bengal, Bihar, and Uttar Pradesh, are falling significantly behind. Outstanding payments to electrical producers in West Bengal have surged by 500% from March 2018 to March 2022.
Recommended Steps Forward
The report recommended a multi-dimensional approach to clean electricity transition, emphasizing demand-side efforts and an increase in renewable energy capacity and storage. Adoption of financial markets mechanisms like virtual power purchase agreements (VPPAs) and contracts for difference (CfD) could unlock potential market opportunities and provide needed assurance for regulators and buyers. It also advocated for improved data availability and transparency for effective progress monitoring and necessary adjustments.
India’s Clean Energy Target
India has pledged to generate approximately 50% of its electricity from non-fossil fuel sources and reduce its Gross Domestic Product (GDP) emissions intensity by 45% by 2030 to meet global obligations. Accomplishing this goal requires states to adjust their infrastructure to accommodate input from various power sources such as solar, wind and hydropower, alongside existing fossil fuel sources. India’s revised Nationally Determined Contribution (NDC) targets steer the country towards a promising electricity sector transition.
Efforts in Clean Energy Transition
Several projects are working towards India’s clean energy transition, including the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), Green Energy Corridor (GEC), National Smart Grid Mission (NSGM), Smart Meter National Programme, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) and the International Solar Alliance (ISA).
The UNFCCC and ‘Intended Nationally Determined Contributions’
The term ‘Intended Nationally Determined Contributions’ (INDC) is associated with greenhouse gas emission reductions, specifically by countries signed on to the Paris Agreement. At COP 21, countries globally made public their intended actions under the accord. The goal is to limit global temperature increase to below 2 degrees Celsius, pursue efforts to keep it within 1.5 degrees Celsius, and attain net-zero emissions in the second half of the century.
The Green Grid Initiative
Launched at the COP26 UN Climate Change Conference’s World Leaders Summit in Glasgow in November 2021, the Green Grid Initiative aims to transform grids for renewable energy. The idea was initially proposed in the International Solar Alliance (ISA). The initiative seeks to unlock the potential of solar power at a larger scale, facilitating the sharing of renewable energy across borders and contributing to reducing carbon emissions.
