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24

06/2025

Why Energy Transition In India Is As Much A Governance Challenge As A Technical One

What if the challenge is not the power lines… but the power struggles behind them?

Now the question is: Can India handle its own energy crisis?

What if the energy that powers Indian development today is the same energy that we are using which is propelling us into climate catastrophe?

That is what keeps me up at night, not only as a policy-maker, but for my identity, and in the fact that because I careers  a climate urgent Indian  sitting at the crossroads of climate urgency and economic ambition. I  know that the discussion is not to decarbonize, but how soon and how effectively can we do that?

A Long-Term Commitment, A Short Time Frame

India has made its intentions clear on the global stage. At the COP26 summit in Glasgow we committed to net zero emissions by 2070. This is not an empty promise. It is backed by earmarked targets for 2030:

  • 500 GW of non-fossil fuel electricity generation capacity
  • 50% of total energy requirements from renewable sources
  • 1 billion tonnes of carbon emissions
  • 45% reduction in carbon intensity compared to 2005 levels

Certainly , this has been a fantastic start. We have gone above 198 GW of non-fossil fuel capacity, much of it from solar, wind, and hydro, and the compounded annual growth rate (CAGR) of the renewable energy sector has been 8.6% from 2015 to 2024.

Where Policy and Paradox Collide

What the technical transition does not reveal to you are the non-machine related problems - those problems that are based in mechanisms.

  1. The limiting factor of decentralisation. Renewable energy has to be owned at a community level, and yet the choices about ownership are still very much at the direct discretion of centralised bodies.
  2. The continued battle of State v Centre. Energy is a concurrent subject in India. This bipolar capacity tends to inhibit and ambush the reform process.
  3. Land acquisition issues are running solar and wind projects into the ground. Where is the social governance innovation to overcome this block on the road?
  4. The grid infrastructure is ineffectual, and cannot absorb what it needs to from a decentralised infrastructure perspective. We can generate it but if we can transfer seamlessly .
  5. Carbon trading policy? We are still an evolving space. There is a regulation, but none can be enforced in a meaningful way.

The challenge is not desire: it is permission, legacy rules, and fragmentation that is at the heart of the challenge.

Governance Gaps That Might Sink The Energy Dream

These are not perfunctory policy discussions: these are actual barriers to progress:

  • Thermal generation is not included in the Carbon Credit Trading Scheme (CCTS) - Coal generates more than 50% of electricity in India. Exclusion of coal from the CCTS is like chiselling away at pollution with a blindfold on.
  • Poor coordination across ministries and states - The energy sector cuts across industries of environment, finance, urban development - and yet, each orchestrates energy (as stakeholders) separately and independently, which results in doubling efforts, contradictory policy, and unachievable targets.
  • No central repository for renewable project information - Without transparency and current information available, investors do not want to invest. Bureaucratic rigidity shorts circuits capital.
  • Weak MRV (Modelling, Reporting, and Verification) - Without proper audit of data, India’s sustainability targets will remain targets, not reality.

What We're Already Doing — Not Just Policy on Paper

Let’s all be real: India isn’t just sitting around and talking about clean energy. We're already doing things. Quietly, with determination, and thoughtfully. And it is real meaning something.

1. National Electricity Plan (2023–2027)
This plan is not just a report—this is our way of saying, "We are serious."
We are looking to build 500 GW of non-fossil fuel capacity by 2030. And we are not pretending that coal does not exist. What we have stated is simple: coal use will peak before 2030, and decline after 2030. This is the first time we have set such a clear line. This is courageous, and needed.

2. Solar Manufacturing with the PLI
Along time back in 2013, solar energy was expensive. Today, solar is not expensive because we  have made products and  choices.
The provided ₹19,500 crore PLI has given domestic manufacturing a useful baseline. Now, we are manufacturing Solar Panels, in India.

3. Green Hydrogen is no longer a dream.
With ₹19,744 crore behind the Green Hydrogen Mission, India is looking to produce 5 million metric tonnes a year by 2030 — this isn't just about clean fuel: this is also about 6 lakh (600,000) jobs, and ₹8 lakh crore in investment.

4. Energy Conservation Act (Amended, 2022)
Sometimes, real change comes in the form of laws. This one is significant. 

It is building the legal foundation for carbon trading. And what if you break the rules? New consequences now exist. This is the level of accountability that India's climate policy needs. 

5. States Are Getting in on it, too
Not everything comes from Delhi. 

States that are providing serious climate leadership include Gujarat, Tamil Nadu, and Maharashtra. These states have made renewable power more available, high open access, better net metering, and they are doing what they say. When states are leading like that, change is personal, and local!

But There Are Still Gaps We Must Confront

While we have undoubtedly made considerable headway,but, Some of these gaps have the potential to obstruct our transition if we do not put them squarely on our agenda now .

These constraints are severe limitations that cannot be…

  1. Thermal power is still outside the Carbon Credit Trading Scheme (CCTS) — which would be understandable if thermal generation accounted for approximately 39.2% of India's total emissions. That'd be quite a contradiction, and this gap relates to energy producers as well as investors, and we cannot afford to ignore this any longer, we must see a phased inclusion.
  2. Energy storage has not received the attention and coverage it deserves. While we have incentivized solar panels, we have completely ignored the technologies that store that energy. Without sufficiently advanced storage, we are unable to reliably provide clean power in the evening and when generation is low.
  3. Our Perform, Achieve and Trade (PAT) scheme is foundering. Delays in Measurement, Reporting and Verification (MRV) are adversely impacting its reputation. Without data to endorse audit plans, the system loses credibility — and so does the capital market and its investors, with whom, they still trust to relinquish some of their revenues.
  4. Infrastructure limits will get tough to venues beyond 300 GW, and as our limitations and barriers go beyond there - difficulties are just around the corner - land becomes expensive to acquire, water becomes increasingly scarce, and population density makes building more risky.

 

What We Need to Do Next

Looking at where we are and considering the impediments we face, here is what I think we need to have done:

  • Build a new carbon pricing regime that can provide stability and confidence in the markets.
  • Improve grid infrastructure, predominantly in rural areas and agriculture contexts, to enable distributed renewable energy adoption.
  • Incentivise renewable + storage hybrids.
  • Align the PAT and CCTS grids for greater rationalisation and efficacy.
  • Digitalise reporting systems and actively promote open data for transparency and verification.
  • Bring the thermal power sector into CCTS with a roadmap to transition.
  • Change the import duty on new critical technologies like solar panels and batteries to expedite affordability.

 

India’s Clean Energy Future Depends on More Than Tech

Let us not forget: technology can’t repair a system that is broken from the top down.

We can have the finest solar panels, hydrogen fantasies, and value from global investments. But without a governance ecosystem that is proactive, clear, and just will keep us out of reach.

Yes, energy transition is a technical problem—but it is, more precisely, a governance revolution. And that revolution must commence now.

Because, clean energy does not run on sunshine alone.

It runs on trust. On leadership. On brazen reforms.

And on the goodwill to govern well.

— Rajni Hasija
 

Disclaimer:

The views and opinions expressed in this post are my own and do not represent those of any organization i have worked with or am associated with. The information shared has been collected from publicly available sources on the internet and is intended for general informational purposes only. I do not claim ownership of any third-party content referenced, and I make no guarantees regarding the accuracy or completeness of the information. : 

FAQs

1.What are the explanations behind India’s energy crisis? 

India's energy crisis is based upon over reliance on coal and fast paced industrial development with increasing energy consumption. Even though during any growth period you would expect the energy sources to be an economic benefit this at the same time limits resources at the same time fuels the associated climate shocked disasters. 

2. How much energy in India is from renewable sources? 

As of 2024 India has approximately over 198 GW of non-fossil fuel capacity with a proposed target of 500 GW by 2030. Solar, wind and hydroelectric are the principal contributors.

3. What are India’s major renewable energy policies?

 The main initiatives are the National Electricity Plan, the Production-Linked Incentive (PLI) scheme, the Green Hydrogen Mission, and various state-led changes to net metering and renewable energy accessibility. 

4. Why is coal still part of India's energy plan?

 Coal still provides the energy reliability needed in the transition. India's plan is to allow coal demand to peak prior to 2030 then taper and draw down use gradually in order to reduce the risk of economic and energy grid instability during the transition. 

5. What is the biggest challenge in moving to clean energy?

 The transition is not only a technical challenge, but social and economic challenge as well. This transition will require, among other things, retraining of workers for new jobs, upgrading infrastructure, operational cost implications, reliability challenges and costs and attracting big capital investment.

6. Is battery storage included in India’s renewable strategy?

Not to the extent it should be. While solar has generated some ground-swell of support, we have largely under incentivized battery storage, and will struggle to consistently have renewable energy available.

7. What can citizens do to support India’s energy transition?

The de-centralised renewable energy movement can rely on support from individuals at a local level, and so can reducing individual consumption, increasing accountability of policymakers, and keeping citizens informed about an energy future that is greener.

Author Image

Rajni Hasija

Founding Partner & Chief Consultant, RR Hasija and Associates LLP

Rajni Hasija, Founding Partner at RR Hasija & Associates LLP and former Chairperson & MD of IRCTC, has 30+ years of experience in Indian Railways. She led IRCTC’s post-pandemic growth by launching Bharat Gaurav trains, expanding catering services, enhancing online ticketing, and profiterating other IT business of company

An expert in tourism, railways, and corporate governance, she has shaped policies and business strategies. As an Independent Director in Autope Payment Solutions Pvt Ltd and MMAD COMMUNICATIONS PRIVATE LTD, she drives regulatory compliance, risk management, digital transformation, and strategic planning to foster innovation and financial inclusion.