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Gujarat and Karnataka Lead India's Electricity Transition, New Report Finds

Building upon the inaugural edition in 2023, which analyzed 16 Indian states, this year's report expands its scope to cover 21 states.

April 23, 2024. By Abha Rustagi

A recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember sheds light on India's evolving landscape of electricity transition, highlighting Gujarat and Karnataka as frontrunners in integrating renewable energy into their power sectors.

The 2024 Indian States’ Electricity Transition (SET) report highlights the effective integration of renewable energy in Gujarat and Karnataka, showcasing their readiness to further advance the electricity transition and their robust market enablers for facilitating clean electricity growth. These states have demonstrated consistent performance across various parameters, reaffirming their strength in driving the electricity transition agenda.

Building upon the inaugural edition in 2023, which analyzed 16 Indian states, this year's report expands its scope to cover 21 states. The refinement of assessment parameters reflects the evolving dynamics of states' electricity transition progress, stakeholder feedback, and data availability.

While states like Haryana, Andhra Pradesh, Punjab, and Rajasthan have made significant strides in certain aspects, progress has been uneven across all dimensions. Conversely, states such as Jharkhand, Bihar, West Bengal, and Uttar Pradesh continue to lag behind, emphasizing the need for comprehensive strategies and interventions to foster sustainable growth and transition in their power sectors.

India's burgeoning economy has spurred a surge in electricity demand, with projections indicating continued growth. As electricity generation remains a major contributor to carbon dioxide emissions, accelerating the transition to cleaner sources is imperative for India to meet both developmental and climate goals. While the central government has initiated policy measures, state-level action is crucial due to their substantial influence over regulations and policies.

Karnataka emerges as a standout performer, leading the pack in various parameters, particularly excelling in the State Energy Efficiency Index (SEEI). Despite a lower share of renewable energy consumption compared to hydro-dominant states, Karnataka's significant renewable energy consumption within the state and relatively low power sector emission intensity underscore its efficient utilization of electricity.

Other states like Kerala, Himachal Pradesh, Uttarakhand, Haryana, Punjab, Andhra Pradesh, and Rajasthan have also showcased commendable performances in different dimensions of the electricity transition, leveraging their unique strengths and renewable energy potentials.

However, challenges persist, particularly in states like Gujarat, Tamil Nadu, Telangana, Maharashtra, and Eastern states like Odisha, West Bengal, Jharkhand, and Bihar, which are in the nascent stages of their decarbonization journeys.

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