Why in News?
- As per a report from Institute for Energy Economics and Financial Analysis (IEEFA) and Ember, Karnataka and Gujarat have emerged as India’s frontrunners in the transition to clean electricity.
- Ember is an independent, not-for-profit climate and energy think tank while the IEEFA inspects issues related to energy markets, trends, and policies.
Key Highlights of the Report-
- Methodology of Assessment- The report ‘Indian States’ Energy Transition’ prepared a scoring system for 16 States (account for 90 percent of electricity production in India), and their performances are evaluated on four broad parameters namely,
- Decarbonisation.
- Performance of the Power System.
- Readiness of the Power ecosystem.
- Policies and Political commitments.
- Assessment- Karnataka is the only state among the 16 analysed that scored better across all four dimensions of clean electricity transition.
- The State also exceeded its target of segregating feeders by 16% and attained 100% of its target of installing smart meters.
- Gujarat was a little behind Karnataka in terms of decarbonising its electricity sector. Haryana and Punjab have shown hopeful preparations and implementations for electricity transition.
- States such as West Bengal, Bihar and UP are lagging far behind in the field.
- West Bengal scored low across all the parameters and its outstanding payments to generators have increased by 500% in between March 2018 to March 2022.
- Rajasthan and Tamil Nadu needs to enhance their power system readiness.
- Suggestions- Apart from encouraging renewable energy capacity and storage, it is recommended that states take a multi-dimensional approach towards clean electricity transition, which involves efforts on the demand side.
- Innovative bilateral financial markets mechanisms such as virtual power purchase agreements (VPPAs) and contracts for difference (CfD) have huge potential to open up the market and provide buyers and regulators the required assurance on handling intermittent renewable energy generation.
- To check progress effectively and course correct when required, it called for data availability and transparency improvement.
India’s Clean Energy Target-
- As per its international obligations, India has committed to generating about half of its electricity from non-fossil fuel sources and decreasing the emissions intensity of its Gross Domestic Product (GDP) by 45% by 2030.
- Accomplishing this is predicated on States modifying their infrastructure, used to deliver electricity, to efficiently accommodate inputs from various power sources like solar, wind, hydropower along with existing fossil fuel sources.
- India’s revised Nationally Determined Contribution (NDC) goals have put the country on the right path for transitioning its electricity sector.
Various Efforts in Clean Energy Transition-