Karnataka and Gujarat are the Indian states making the most progress in showing overall preparedness and commitment to clean energy transition, a new research has found.
A joint research by the Institute for Energy Economics and Financial Analysis (IEEFA) and Amber analyzed 16 Indian states. All these states together account for 90% of the country’s annual power requirement in all four dimensions. These dimensions track the state’s readiness to move away from fossil-fuel-based electricity, its ability to encourage green market participation, the reliability of its electricity system, and policies advancing decarbonization of the electricity sector. Based on this analysis, the authors of the report created the States Electricity Transition Scoring System, which measures the performance of different states in the clean energy transition.
Report co-author and Director, South Asia, IEEFA, Vibhuti Garg, says, “India’s revised Nationally Determined Contribution (NDC) targets have put the country on the right track for its power sector transformation. To achieve those goals, the Center now needs the cooperation of states to accelerate their clean electricity transition. This means that states have to redouble their efforts to chart the path to electricity transition, and both central and state governments have to monitor progress and take corrective measures as needed.”
The report outlines focus areas for states to improve their preparedness for change, such as harnessing wind and solar generation potential and deploying more electricity storage solutions, such as batteries and pumped hydro, for better renewable power integration Doing.
“Bihar, Uttar Pradesh and West Bengal have work to do to strengthen their clean energy transition performance. These three states must maximize their renewable electricity generation capacity, while simultaneously increasing their commitment to move away from fossil-fuel-based electricity.” Says report co-author Saloni Sachdeva Michael, energy analyst at IEEFA.
In addition to increasing renewable energy capacity and storage, the report recommends that states adopt a multi-pronged approach towards a clean energy transition that includes demand-side efforts.
With more renewable electricity coming online, the report also recommends that states pay more attention to strengthening their electricity systems.
Co-author Aditya Lolla, senior power policy analyst at Amber, says, “Even Rajasthan and Tamil Nadu, long considered leaders in adding renewable electricity capacity, are preparing their power ecosystems to transition to clean electricity. Will have to improve.
He also adds that, “State power departments also need to strengthen power infrastructure for better integration of renewable power. Apart from managing the demand and supply of electricity, it is also very important to ensure effective utilization, monitoring and tracking of electrons.”
Furthermore, according to Lolla, introducing private sector participation and competition will bring more capital and management expertise into the power sector. This will help in increasing operational efficiency and increasing reach and affordability.
The report highlights increased participation of states in green market mechanisms as a key element of the clean energy transition.
“We found limited participation of states in green market mechanisms like Green Day Ahead Market (GDAM), Green Term Ahead Market (GTAM) and more,” says Sachdeva Michael.
She adds, “Developing a more robust market is an opportunity to support states with less renewable electricity capacity. To achieve this, states need to take immediate action such as removing banking restrictions and allowing banking of renewable electricity not only monthly but also quarterly and annually, especially for wind generation.”
The report also highlights that innovative bilateral financial market mechanisms such as Virtual Power Purchase Agreements (VPPAs) and Contracts for Difference (CFDs) need to open up markets and provide assurances to buyers and regulators to deal with intermittent renewable power generation There is great potential to give.
Another important aspect where states can do better is data availability and transparency. To effectively monitor progress and correct where necessary, the report calls for improvements in data availability and transparency.
Also, the report finds that states need to develop a more holistic and circular approach to dealing with solar panel, battery and electric vehicle waste. This will become even more important as India is setting up new manufacturing units under the Atmanirbhar Bharat plan.
Also, the report finds that states need to develop a more holistic and circular approach to dealing with solar panel, battery and electric vehicle waste. This will become even more important as India is setting up new manufacturing units under the Atmanirbhar Bharat plan.
Finally, the report highlights that many states must also bridge the gap between the intent of their electricity transition policies and their implementation.