New Delhi, Aug 13 India’s renewable energy capacity is heavily concentrated in the southern and western regions, with seven states -- Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and Telangana -- comprising over 80 per cent of the total installed capacity.
This uneven distribution extends to other green industries, such as solar photovoltaic manufacturing, leading to concerns about the sustainability and equity of the country's energy transition.
The facts came to light at a conference organised by an environmental think tank International Forum for Environment, Sustainability, and Technology (iFOREST) here on Tuesday.
The event aimed to address the increasing regional disparity in renewable energy development across India and explore effective policies and strategies for the future.
The national-level conference attracted diverse stakeholders, including national policymakers, state agencies, renewable energy industry leaders, and experts.
In his opening remarks, Chandra Bhushan, CEO and President of iFOREST, emphasised the importance of inclusive participation from all states in achieving India's ambitious renewable energy, green hydrogen, and energy storage targets.
He said, “As India advances towards its ambitious renewable energy goals, it’s vital that all states participate equally. This approach will not only prevent excessive investments in grid infrastructure but also promote equitable green growth, generate jobs, and enhance energy security.
“Achieving this balance requires significant reforms in policies such as Inter-State Transmission System (ISTS) charges waiver and new policies that encourage balanced green growth across the country.”
In his chief guest remarks, Bhupinder Singh Bhalla, Secretary of the Ministry of New and Renewable Energy (MNRE), said, “The required renewable (RE) capacity growth going forward must be spread equitably across the country. The scheduled phase-out of the ISTS waiver will support this, but states also need to be ready for it by proving ease of business, land and transmission for developers.”
During the conference, iFOREST released two critical reports aimed at promoting balanced renewable energy growth in India: They are, ‘Decoding ISTS Charges Waivers: Implications on System Costs and Procurement Decisions.’
This report analyses the impact of waiving ISTS charges on renewable electricity procurement. While the ISTS waiver has spurred renewable energy growth, it has also created market distortions and exacerbated state disparities.
The report suggests eliminating ISTS charges to enable fair competition among all states.
The second report titled ‘Strengthening Renewable Energy Development Agencies in India’ underscores the need to fortify renewable energy development agencies (REDAs) in states with lower clean energy investments.
It highlights best practices from successful REDAs that other states can adopt to enhance policy implementation and foster renewable energy market growth.
The conference discussions come at the time when the Union government is considering developing an energy transition policy for India, as announced by the Finance Minister in her Budget speech.
The stakeholders’ inputs across various sessions underscored the need for concerted efforts to achieve regional balance in India’s next phase of renewable energy growth.
Participants also advocated for less land-intensive technologies such as floating solar, rooftop solar, and agri-photovoltaics to ensure ecological security.
While their potential is significant, there are risks to be considered and addressed.
Policy clarity and guidance is needed for these technologies to be adopted at scale.
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