Clean Energy in India: IEEFA & Ember Report [UPSC Notes]

The Institute for Energy Economics and Financial Analysis (IEEFA) and Ember India released a report in 2023 analysing the progress the Indian states are making towards the transition to Clean Energy. In this article, you can read all about the report for the IAS exam environment and ecology segment.

Why Clean Energy Transition?

India, in its commitment to the Paris Convention, announced its Intended Nationally Determined Commitments towards Green House Gas emission reduction in 2015. In August 2022, these goals were updated and more ambitious targets were adopted:

• Reduce the emission intensity of the GDP by 45% (based on 2005 levels) by 2030. (Up from 33-35%)
• Create an additional carbon sink of 2.5-3 billion tonnes of carbon through afforestation.
• Achieve 50% of the cumulative electric installed power through non-fossil fuel sources by 2030. (Up from 40%)

In line with achieving the last target, India has put into place many schemes in order to make a transition from the carbon-intense energy sources to clean ones.

IEEFA/Ember Report

The report analysed 16 States which together account for almost 90% of the total annual power requirement of India across four different dimensions. These dimensions include:

1. Decarbonization: How the states have shifted from fossil fuel-based power resources to renewable energy resources.
2. Performance of the power system: This indicator studied how well are the states working in a direction to be able to create a greener market pulse effectively.
3. Readiness of the power ecosystem: How prepared the states are with regard to the transformation of the power systems while also ensuring that there is a reliable and regular electricity supply.
4. Policies and political commitments: How enthusiastic the states are in the promotion of various policies that are innovative with regard to the decarbonization of the power sector.

Based on these dimensions the report came up with the SET (States Electricity Transition) scoring system to measure the performance of the different states in their efforts to transition to Clean Energy systems. 

Also read: PAT Scheme

The Findings

• Out of the 16 States, Karnataka and Gujarat are making the most progress with regard to the 4 dimensions when it comes to that transition towards greener and cleaner electricity sources. Karnataka has performed well on all four dimensions; it is the best-performing state when it comes to decarbonizing the power sector, the performance of its power systems and the readiness of the power ecosystem. It also has many innovative and encouraging policies in this regard.
• Apart from these two states, even Haryana and Punjab have shown good performance regarding their preparation for the transition.
• Some states however, which have been traditional front-runners in clean energy, like Tamil Nadu (Wind) and Rajasthan (Solar) are yet to improve the readiness of their power systems.
• States like Bihar, Uttar Pradesh and West Bengal are lagging behind the rest of the analysed states, in almost all the dimensions, and need to improve their performance to keep up with India’s national targets.

Major Recommendations:

1. Multifaceted and collaborative efforts are needed both to increase the supply and demand of clean energy.
2. The transmission infrastructure needs to be revamped so as to accommodate better integration of renewable systems (e.g. smart meters, smart grids, etc.)
3. The states need to be more involved in the Green Market mechanisms of banking of power, open access, Virtual (bilateral) power purchasing agreements (VPPA), Contracts for Difference, etc.
4. There is an urgent need to increase the availability and transparency of data on clean energy transition at the state levels. The states should work in tandem with the centre to make this data available at the national portals. This will help in tracking the progress of the states and also of India as a whole regarding INDCs.
5. The states should proactively implement clean energy transition policies like green manufacturing, direct benefit transfers, green energy open access, etc. There can be knowledge exchange between the frontrunners and the states that are lagging behind in this aspect.

Clean Energy in India: IEEFA & Ember Report:- Download PDF Here