The recent report titled "Indian States' Electricity Transition" (SET) by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember has underscored Karnataka and Gujarat's commendable leadership in advancing towards a cleaner energy transition.

The report, which assesses the clean electricity transition readiness at the subnational level, highlights these states' significant progress in integrating renewable energy sources into their power sectors, thereby making substantial strides in decarbonisation, aimed at reducing carbon dioxide emissions into the atmosphere.

In 2024, the report expanded its scope to include five additional states, bringing the total to 21 states representing about 95% of India's annual power demand from fiscal years 2018 to 2024 (up to November). This year's assessment parameters were updated to better align with states' electricity transition progress, incorporating stakeholder feedback and improved data availability.

However, the report also points out that states like Jharkhand, Bihar, West Bengal, and Uttar Pradesh lag behind in their transition efforts, echoing similar findings from previous years. These states, although in the early stages of transition, need to focus on ramping up renewable energy deployment, enhancing short-term market participation, and fortifying their distribution infrastructure.

The report's release coincided with rising temperatures in India, prompting the Ministry of Power to brace for a projected peak power demand of 260 gigawatts. This surge in demand, coupled with harsh summers, underscores the imperative for states to accelerate their transition to clean energy sources like solar power.

Vibhuti Garg, Director South Asia at IEEFA, emphasised the importance of monitoring subnational progress closely, noting that while national-level progress is commendable, disparities exist at the state level, potentially hindering the country's overall electricity transition.

Aditya Lolla, Asia Programme Director at Ember, acknowledged the progressive steps taken by some states in boosting renewable energy deployment but cautioned that many states are still in the nascent stages of their transition, urging them to expedite efforts to reap the benefits of clean electricity.

One significant finding from the report is that several states demonstrate readiness to embrace the electricity transition, performing well in aspects like the power ecosystem's readiness and market enablers. However, they need to improve in the decarbonisation dimension to align with their strengths in other areas.

Co-author Neshwin Rodrigues highlighted examples like Delhi and Odisha, which excel in certain aspects but need to improve their actual decarbonisation progress. The report emphasises the need for states to bolster their power ecosystems and develop appropriate market enablers to accelerate decarbonisation effectively.

Tanya Rana, an Energy Analyst at IEEFA, noted that states like Kerala, Haryana, Andhra Pradesh, Punjab, and Maharashtra exhibit progress in specific aspects but face challenges in others, necessitating a holistic approach to sustain momentum in decarbonisation.

Saloni Sachdeva Michael, an Energy Specialist at IEEFA, stressed the importance of strengthening state-level regulatory ecosystems to promote compliance, growth, data tracking, and a conducive business environment, aligning with India's goal of energy independence.

Overall, the report calls for a shift in focus from national-level to state-level studies to grasp the nuances of India's electricity transition fully. It underscores the need for tailored policy interventions, monitoring of decarbonisation progress, and enhancement of market enablers at the state level to overcome challenges and expedite the clean energy transition effectively.