The Power of States in Driving Climate Action

India aims to install 500 GW of renewable energy by 2030 and achieve net zero emissions by 2070, making it the country where renewable electricity is growing at a faster rate than any other major economy. India’s updated Nationally Determined Contributions state the target to achieve 50 percent cumulative installed power capacity from non-fossil fuel sources by 2030. The power sector, comprising the bulk of carbon emissions in India, will play a critical role in shaping India’s net zero future. NRDC, along with the Administrative Staff College of India (ASCI) aims to create a platform for knowledge exchange and capacity building for state-level decisionmakers in the power sector in India. 

This summer, REC Limited and ASCI organized an Exchange Program on International Best Practices in Energy Transition in the United States from July 31 to August 4, 2023, and NRDC was proud to host the delegation at its Washington D.C. and San Francisco offices. The delegation comprised the seniormost officials in the energy and power sectors from 17 Indian states: Assam, Delhi, Gujarat, Haryana, Himachal Pradesh, Kerala, Maharashtra, Manipur, Meghalaya, Odisha, Punjab, Sikkim, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal. The high-level delegation met with NRDC President and Chief Executive Officer, Manish Bapna, for a policy dialogue on decarbonizing utilities for a net zero future. They attended expert sessions with NRDC’s Dr. David B. Goldstein and Mohit Chhabra, and representatives from PG&E – one of the largest natural gas and electric utilities in the United States. 

Key takeaways from the interactions are summarized below: 

Subnational actors are driving climate action: Indian states, which are at the forefront of innovation and implementation in the energy and power sectors, have an essential role to play in the realization of India’s climate ambition and targets. 

State net zero goals spur climate action: The strategies, challenges and achievements in California serve to illustrate the complexities of sustainable energy transition for utilities and policymakers in the power sector. A key lesson is that California’s goal of zero carbon by 2045 has been a major catalyst in spurring renewable energy deployment, including energy storage deployment. 

Utilities can be agents of decarbonization: Utilities will serve as a large component of any net zero strategy at the subnational level. PG&E’s Climate Strategy offered insights into how utilities are moving towards climate action by increasing the share of renewable energy in the resource mix, as well as helping customers reduce their carbon footprint by encouraging uptake of electric vehicles and energy efficiency measures around the house.

Renewable energy integration is key for a net zero power sector: Indian states can benefit from the experiences of California and some other U.S. states on both supply and demand side actions to manage renewable integration in the overall energy mix. Experts underscored the importance of clear and stable policy conditions at the subnational level for financial viability of large-scale renewable energy projects. 

Energy efficiency as a powerful tool for decarbonization: Energy efficiency is the single largest measure to avoid energy demand in net zero scenarios. Utilities across North America are increasingly focusing on energy efficiency measures. There are lessons for utilities in various Indian states to coordinate with other existing energy efficiency programs, such as building energy codes and cool roofs. 

The week-long program provided a unique opportunity for senior Indian state-level officials in the power sector to learn from the experiences of their counterparts in the United States. This program was the first in a series of planned interactions between subnational actors in the U.S. and India, and aims to deepen the sharing of knowledge and best practices in one of the most important sectors driving forward climate action.