Source: The post India must simplify regulations to boost renewable energy growth has been created, based on the article “For energy security, a redesign” published in “Indian Express” on 4th August 2025. India must simplify regulations to boost renewable energy growth.
UPSC Syllabus Topic: GS Paper 3-Infrastructure- energy
Context: India’s energy security, once focused solely on fossil fuel access and affordability, now demands a broader approach. The country is navigating a dual-track transition—balancing fossil fuel dependency with its renewable energy ambitions—while targeting net zero carbon emissions by 2070.
For detailed information on India’s Energy Strategy read this article here
India’s Traditional Energy Strategy
- Diversified Oil Imports: India has diversified its crude oil import sources. It notably resisted Western pressure by importing more Russian oil, reducing costs despite global crises like the Ukraine war and Gaza conflict.
- Managing Fossil Fuel Demand: By focusing on demand management and energy efficiency, India has reduced the intensity of fossil fuel use per unit of GDP, improving overall energy sustainability.
- Cost Benefits of Russian Crude: Between 2021–22 and 2024–25, Russian crude oil’s share grew from 2.1% to 35.1%, lowering the average import cost by at least $2 per barrel.
Progress and Challenges in Renewable Energy
- Rapid Capacity Expansion: India’s renewable energy capacity rose impressively from 19% to 49% of total electricity capacity (234 GW) in just five years. However, growth has recently slowed.
- Transmission and Distribution Gaps: While generation has surged, the development of supporting infrastructure—like interstate transmission, storage systems, and distribution networks—lags behind.
- The “Usable” Capacity Challenge: Generation capacity is not enough. Usability requires seamless grid integration, balanced distribution, and clear standards—highlighted by Spain’s blackout caused by interconnectivity faults.
Regulatory Hurdles and Compliance Burden
- Excessive Compliance Requirements: A TeamLease RegTech study cited by economist Swaminathan Aiyar notes 2,735 compliance obligations across 35 governments and 30 departments. Many relate to labour, land, environment, and safety.
- Manual Processes and Bureaucratic Delays: Sixty percent of compliance requires manual form-filling and physical visits. Even a 1 MW solar plant may need over 100 clearances with frequent inspections, renewals, and certifications.
- Comparison with Past Experiences: A past Shell fuel retail project in Mumbai needed 58 approvals and took 12 months—highlighting persistent red tape. Such delays risk derailing India’s 2035 target of 500 GW usable renewable energy.
Structural Advantages of Renewable Sources
- Unlimited Natural Inputs: Unlike fossil fuels tied to geology, renewable resources like sun and wind are abundant and accessible without structural constraints.
- Viable Technology and Investor Interest: Solar and wind technologies are mature and economically viable, with strong investor interest. Regulatory streamlining is the main barrier to scaling up.
Need for Systemic Regulatory Reform
- Fragmented Authority and Lack of Accountability: Multiple agencies and regulators operate without a central executive authority, leading to inefficiency and lack of coherence in the sector.
- Scope for Rationalisation: The government can consolidate oversight, standardise technical norms, ease land acquisition, digitise processes, and improve transparency in tariffs and dispute resolution.
- Overcoming Vested Interests: While legacy interests pose challenges, determined political will can drive the simplification needed for energy self-reliance and sustainable growth.
Question for practice:
Discuss how regulatory complexities are affecting the growth of renewable energy in India.
