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Addressing Power Sector Bottlenecks Crucial to Meeting India’s Climate Goals: TERI & We Mean Business

India must urgently address persistent power sector challenges to meet its climate goals under the Nationally Determined Contributions (NDC), according to a policy brief released by The Energy and Resources Institute (TERI) and the We Mean Business Coalition. Despite progress toward adding 500 GW of non-fossil capacity by 2030, issues such as delays in signing power purchase agreements (PPAs), tender cancellations, and inadequate transmission infrastructure are hampering utility-scale renewable energy (RE) growth, which slowed to just 16% year-on-year.

The report emphasizes that solutions like energy storage, smart grids, and demand response remain underdeveloped, limiting RE integration. It also highlights inconsistent implementation of Green Energy Open Access (GEOA) rules across states, deterring adoption—especially among MSMEs.

Recommendations include rationalizing open access charges, strengthening banking mechanisms for RE, incentivizing behind-the-meter battery storage to replace diesel gensets, and introducing uniform guidelines for virtual PPAs and group net metering. The brief also advocates fast-tracking transmission infrastructure as outlined in the National Electricity Plan, and implementing smart grid and storage investments.

In the transport sector, the report recommends setting zero-emission vehicle sales targets, especially in segments already trending toward electrification. Enhanced policy clarity and public-private coordination are seen as key to mobilizing investment and scaling climate action.