Explained: How Karnataka And Gujarat Are At The Forefront To Achieve India¡¯s Clean Energy Target

The Institute for Energy Economics and Financial Analysis (IEEFA) and Ember, an independent not-for-profit climate and energy think tank, recently released a report highlighting India's transition to clean electricity. The report noted that the states of Karnataka and Gujarat are at the forefront of this transition.

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The report shows that Karnataka and Gujarat have been able to increase their share of renewable energy in their power mix while decreasing their reliance on fossil fuels. Both states have been successful in implementing policies and regulations that encourage the development of renewable energy projects.

How was it evaluated?

The report 'Indian States' Energy Transition' provides an assessment of the progress made by Indian states towards the transition to clean electricity. The report evaluates the performance of 16 states that account for 90% of electricity production in India.

The assessment is based on four broad parameters: decarbonisation, the performance of the power system, readiness of the power ecosystem, and policies and political commitments.

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Decarbonisation refers to the reduction of greenhouse gas emissions from the electricity sector. The report assesses states based on their progress towards decarbonising their electricity systems.

Karnataka emerged as the best-performing state

Karnataka emerged as the best-performing state, scoring well across all four dimensions of the clean electricity transition. Gujarat was a little behind Karnataka in terms of decarbonising its electricity sector.

The performance of the power system is another important parameter evaluated in the report. This includes factors such as the availability of power, the reliability of the power supply, and the quality of power.

West Bengal, Bihar, and Uttar Pradesh need to catch up

States like Haryana and Punjab have shown promising preparations and implementations for electricity transition, while Rajasthan and Tamil Nadu need to improve their power system readiness.

The readiness of the power ecosystem is another important parameter assessed in the report. This includes the availability of infrastructure and technology required for clean electricity generation and distribution. Karnataka exceeded its target of segregating feeders by 16% and achieved 100% of its target of installing smart meters.

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Policies and political commitments are also assessed in the report. This includes the state's commitment to clean energy, the policies and regulations in place to support clean energy, and the financial support provided by the state for clean energy projects.

States like West Bengal, Bihar, and Uttar Pradesh need to catch up in the transition to clean electricity. West Bengal scored poorly across all parameters, and its outstanding payments to generators have increased by 500% from March 2018 to March 2022.

What can be improved?

The report suggests that the transition to clean electricity requires more than just increasing renewable energy capacity and storage. States should adopt a multi-dimensional approach that includes efforts on the demand side.

Innovative financial mechanisms like virtual power purchase agreements (VPPAs) and contracts for difference (CfD) can help open up the market and provide assurance on handling intermittent renewable energy generation.

To ensure effective monitoring and course correction, data availability and transparency must improve.

Clean Energy Target set by India

India has set ambitious clean energy targets as part of its international commitments to address climate change. The country aims to generate about half of its electricity from non-fossil fuel sources, such as solar, wind, and hydropower, and reduce the emissions intensity of its Gross Domestic Product (GDP) by 45% by 2030.

To achieve this goal, India's electricity infrastructure needs to be modified to effectively integrate inputs from multiple power sources, including renewable energy and existing fossil fuel sources.

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The government has implemented policies to encourage the adoption of renewable energy, including the creation of financial incentives for renewable energy generation and the establishment of a National Solar Mission to increase solar energy capacity.

States are also being encouraged to adopt cleaner energy practices, such as phasing out coal-fired power plants and implementing energy efficiency measures. Additionally, India has introduced initiatives to increase access to electricity in rural areas through the use of off-grid renewable energy systems.

In 2020, India revised its Nationally Determined Contribution (NDC) targets, which are part of the Paris Agreement, to include more ambitious clean energy targets. The revised targets indicate that India is on track to transition its electricity sector towards more sustainable and cleaner energy sources.