India’s power sector has changed dramatically over the past decade. We have nearly doubled the country’s generation capacity since 2014, adding about 129 gigawatts of renewable energy and proving that when India pursues scale with seriousness, it can deliver. Solar parks came up in record time, wind corridors expanded, and green transmission grew from a concept to a reliable network. This has brought India well-deserved global attention.
The more important question now is not what we have achieved, but what stands between us and the next phase of the energy transition. The next decade will not be about chasing capacity numbers or designing the next set of incentives. It will be about reforming the harder policy oriented and changes in institutional foundations that may be lacklustre and devoid of rhetoric, yet determine whether India can achieve the targets it has set.. This shift from energy capacity to implementation and institutional capacity is the real test ahead.
Today, the challenges in India’s energy system are no longer national—they are overwhelmingly local. Land acquisition delays, delays in permissions,, struggling distribution companies and regulatory divergence across states now shape whether projects get built on time, at cost, and with investor confidence. In that sense, our energy challenge mirrors what economists have long observed across sectors: markets thrive when institutions are predictable, not when incentives are generous. Investors understand this better than anyone; they price predictability far higher than subsidies.
Research from IIT Kanpur’s Centre for Energy Regulation reinforces a point that is intuitive in theory but frequently ignored in policy debates: capital goes where rules do not change after investment is made. A state that clearly articulates its energy roadmap—with timelines, approval processes, tariff regimes, and long-term targets—reduces investor uncertainty far more effectively than by offering subsidies that may not survive fiscal pressures. The most competitive states are not those promising the largest incentives, but those with the most consistent governance.
Odisha’s own experience illustrates the importance of institutional clarity and continued consistency. The state’s pioneering power reforms of the 1990s—privatizing distribution, professionalizing utilities, enforcing financial discipline—were institutionally transformative. They allowed Odisha to move early, at a time when many states hesitated. Today, as Odisha
plans to raise the share of renewables from to nearly 55 percent of installed capacity, the lesson remains the same: ambition is credible only when backed by stable rules and capable institutions.
But State Governments face a far more complex balancing act than ever before. They must keep power reliable and affordable for households and industry. They must support economic growth without eroding ecological resilience. And they must use technology, financial innovation, and better governance to reconcile these competing demands. This is not an easy task, and there are no shortcuts. It is only fair to conclude that energy transitions fail not because of lack financing or technology, but because of lack the institutions to use both prudently
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The pathway therefore lies in strengthening Government and streamlining procedures. India already has adequate schemes; it needs more capacity to implement them and deliver with efficacy. Institutions that are mandated for execution need to be empowered with the analytical capability and reasonable autonomy to plan for the longer term. Distribution companies must be financially viable if we expect them to support a modern grid. Transmission planning must be forward-looking and coordinated across states. And most importantly, States must articulate their transition strategies within, in tandem with national frameworks. A strong Union depends on strong States that are collectively pursuing a common goal.
With this intent, the inaugural Global Energy Leaders’ Summit (GELS) 2025 hosted by Energy Department of Odisha arrives at the right moment. India’s federal structure is a strength, but only when states are able to learn from each other and pursue reform with both autonomy and responsibility. As GELS transforms from an event to a nationwide Community of Practice for Energy Leaders, it will provide a platform where states can compare ideas, test assumptions, address challenges and refine strategies. Its role will include sharpening transition plans, identifying bottlenecks, and enabling states to build investor-ready pipelines grounded in evidence rather than aspiration. By bringing together researchers and industry captains of the energy sector GELS broadens this collaboration.
Honourable Prime Minister’s vision and global climate leadership has positioned India as a responsible steward of sustainable growth. His leadership must now be complemented by robust state-level institutions that translate ambition into results. A cooperative, predictable, rules-based energy framework—driven by states, supported by the Centre—can unlock domestic and global capital at a scale that India needs.
India has already shown the world that it can build. The challenge now is to show that we can build credibly, predictably, and enduringly. The next decade of India’s energy transition will be defined not by how much capacity we add, but by how strong and sustainable are the institutions that are built along with it.
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