The BES 2026 panel, titled “Unified Power for a New India: Aligning centre-state strategies for energy transition and acceleration”, featured a discussion among Shripad Yesso Naik, Minister of State for Power and New and Renewable Energy, Government of India; R.M. Dhavalikar, Minister for Power, Government of Goa; Gaurav Gupta, IAS, Additional Chief Secretary, Energy Department, Government of Karnataka; Narendra Bhooshan, Additional Chief Secretary, Energy and Additional Resources of Energy Department, Government of Uttar Pradesh; Chowna Mein, Deputy Chief Minister, Arunachal Pradesh; Arun Goyal, Former Member, CERC and Former Secretary, Government of India; and Neville Dumasia, Partner and Leader, Industrials and Energy, EY India (moderator). Edited excerpts…
India’s power sector has undergone a remarkable transformation over the past decade, evolving from a system focused primarily on capacity addition to one increasingly defined by efficiency, resilience and sustainability. This shift has been marked by a steady expansion in generation capacity, significant strengthening of transmission and distribution infrastructure, and improved operational performance across the value chain.
Strengthening discoms
Beneath this progress, structural challenges persist, most notably in the distribution segment. The financial health of discoms continues to be a critical concern, with persistent inefficiencies such as high aggregate technical and commercial losses and a widening gap between the cost of supply and realised revenues. These issues not only undermine the financial viability of discoms but also create ripple effects across the sector, delaying payments, weakening investor confidence and constraining the pace of renewable energy integration.
Policy gaps
The importance of consistent and effective policy implementation at the state level has become increasingly evident. While the central government has laid out a strong policy framework, the translation of these ambitions into tangible outcomes depends heavily on state-level execution. Mechanisms such as renewable purchase obligations play a crucial role in driving clean energy adoption, yet their effectiveness hinges on robust enforcement and regulatory clarity. Given that electricity is a concurrent subject, stronger alignment between central directives and state-level actions is essential. This calls for improved institutional coordination, clearer regulatory frameworks and more consistent enforcement mechanisms to ensure that national targets are realised on the ground.
Energy transition
The next phase of India’s energy transition is set to be shaped by emerging technologies and new energy solutions. Energy storage systems, green hydrogen, electric mobility and distributed energy resources are poised to play an increasingly significant role in the evolving power landscape. Their successful integration, however, will depend on enabling policy support, investment-friendly frameworks and a continued emphasis on system reliability and flexibility. As renewable energy penetration increases, the need to manage variability has become more pronounced. States are responding by preparing their systems through a mix of large-scale and distributed solutions. Long-duration storage technologies, particularly pumped storage projects, are emerging as critical enablers of grid stability, offering the ability to provide multi-day balancing support. However, their development often faces challenges related to environmental and forest clearances. Policy direction at the national level continues to play a pivotal role in shaping the sector’s trajectory. Initiatives supporting solar, bioenergy and distributed energy solutions have created a clear pathway for states to build upon.
Future path
Looking ahead, greater private sector participation will be essential to meet India’s ambitious energy transition and capacity expansion goals. For this to materialise, a stable and predictable policy and regulatory environment is crucial. While strong policy direction has been established at the central level, ensuring regulatory alignment between the centre and states remains equally important particularly in areas such as grid operations and system management.
Ultimately, the future of India’s power sector will depend not just on expanding capacity, but on addressing foundational challenges in distribution, policy implementation and institutional coordination. Strengthening discom finances, deepening centre-state collaboration and enabling technology-driven innovation will be central to building a resilient, efficient and sustainable power system capable of supporting the country’s long-term growth ambitions.