·The Hindu·15 marks·250–350 wordsEnvironment

Electricity being a Concurrent List subject creates structural barriers to India's renewable energy scale-up. Discuss with reference to recent Centre-State coordination challenges.

In this answer
  1. How concurrency creates structural barriers
  2. Where coordination is working

Electricity sits in Entry 38, List III (Seventh Schedule), so both Parliament and State legislatures legislate on it, while the Electricity Act, 2003 splits functions between Central and State regulators. India crossed 50% non-fossil installed capacity in June 2025, five years ahead of its NDC [1], but this concurrency now shapes whether capacity translates into delivered clean power.

How concurrency creates structural barriers

  • Fragmented RPO enforcement: Section 86(1)(e) empowers each State Electricity Regulatory Commission to fix Renewable Purchase Obligations, producing 28 divergent trajectories and uneven compliance instead of one national pathway [2].
  • Tariff federalism: SERCs revise tariffs only every few years and State subsidies to discoms are paid late, so discom losses reached ₹68,832 crore in 2022-23 — weak buyers cannot sign long-term renewable PPAs [3].
  • Open access friction: States levy varying cross-subsidy surcharges and additional surcharges, prompting the Centre's Green Energy Open Access Rules, 2022 to standardise consumer access to renewables [4].
  • Legislative stalemate: successive reform attempts, from the 2020 draft to the Draft Electricity (Amendment) Bill, 2025, have faced State resistance on distribution licensing and subsidy autonomy [5].

Where coordination is working

  • Cooperative planning: NITI Aayog's Inter-Ministerial Working Groups and the 2026 Scenarios Towards Viksit Bharat and Net Zero volumes give States a shared modelling base for power-sector pathways [6].
  • Central levers within concurrency: the Energy Conservation (Amendment) Act, 2022 created a national carbon credit trading scheme and widened BEE's mandate, setting uniform standards without displacing States [7].
  • Judicial reinforcement has extended RPO discipline to captive plants, narrowing evasion routes [2].

Concurrency is therefore a coordination cost, not a constitutional defect: it slows uniformity but embeds States as owners of the transition. The way forward lies in a harmonised national RPO trajectory, incentive-linked distribution reform, and a statutorily anchored Centre-State energy council — converting cooperative federalism into the delivery vehicle for Panchamrit and Net-Zero 2070.

Sources

  1. 1PIB — 2025 Marks Highest-Ever Renewable Energy Expansion in India's Energy Transition Journey50% non-fossil installed capacity achieved June 2025, five years ahead of NDC
  2. 2PIB — Supreme Court upholds applicability of Renewable Purchase Obligation on captive power plantsSection 86(1)(e), SERC-determined RPOs, extension to captive plants
  3. 3PRS Legislative Research — What is Fuelling Power Sector Losses?₹68,832 crore discom losses (2022-23), delayed State subsidies, multi-year tariff revision
  4. 4PIB — Ministry of Power notifies 'Green Energy Open Access' Rules to accelerate renewable energy programmesopen access surcharges and 2022 Rules
  5. 5PRS Legislative Research — The Draft Electricity (Amendment) Bill, 2025contested distribution and licensing reform
  6. 6NITI Aayog — Scenarios Towards Viksit Bharat and Net Zero: An Overview (Vol. 1), February 2026IMWG-based Net-Zero pathway modelling, power sector volume
  7. 7PRS Legislative Research — The Energy Conservation (Amendment) Act, 2022%20Act,%202022.pdf) — carbon credit trading scheme, expanded BEE governing council
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