IEEFA Report Highlights Need for Policy Refinements and Strategic Investments
Despite being pioneers in India’s renewable energy revolution, Rajasthan and Gujarat must intensify their efforts to maintain their leadership position, according to a new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA).
The report acknowledges the states’ significant strides in renewable energy deployment, largely attributed to their progressive policies. However, it emphasizes the need for further policy refinements to sustain this momentum and drive India’s energy transition.
Key recommendations from the IEEFA report include:
- Implementing a Green Tariff: Rajasthan, in particular, should consider introducing a green tariff to incentivize renewable energy consumption and attract investments.
- Refining Regulatory Frameworks: Gujarat should fine-tune its regulatory framework to ensure its green tariff doesn’t deter potential consumers.
- Integrating Green Budgeting: Both states should prioritize renewable energy and green technologies in their fiscal planning.
- Promoting Distributed Renewable Energy (DRE): Rajasthan and Gujarat should leverage their untapped potential in DRE to reduce pollution and create jobs.
- Establishing Dedicated Infrastructure Funds: Setting up dedicated funds can facilitate large-scale investments in renewable energy projects.
“While these states have made substantial progress, they must continue to evolve their strategies to address emerging challenges and capitalize on new opportunities,” said Vibhuti Garg, Director – South Asia at IEEFA. “By taking bold steps, Rajasthan and Gujarat can solidify their position as global leaders in the clean energy transition.”
The IEEFA report underscores the critical role of states in India’s energy transition. By adopting a comprehensive approach that combines policy innovation, financial incentives, and technological advancements, Rajasthan and Gujarat can not only achieve their renewable energy goals but also contribute to a more sustainable and resilient energy future for India.