India’s Power Sector at Crossroads: Regulatory Reforms Crucial for Sustainability Goals
Mumbai: A new report by Primus Partners, “The Intersection of Power Sector Regulation & Sustainability Goals in India,” highlights the need for regulatory reforms to achieve India’s ambitious 500 GW non-fossil fuel capacity target by 2030.
The report identifies several key areas that require attention, including strengthening discom finances, ensuring regulatory stability and contract enforcement, and addressing land and permit challenges. India’s discoms face accumulated losses of over ₹6.77 lakh crore (~$82 billion), requiring financial restructuring and tariff rationalization.
Additionally, inconsistent state policies and contract renegotiations have deterred investments, emphasizing the need for standardized open access rules and contract sanctity. Streamlining land acquisition and environmental clearances is also crucial for large renewable projects.
Nikhil Dhaka, Vice President at Primus Partners, stated, “India’s power sector transformation requires a multi-pronged approach. Strengthening discom finances, ensuring regulatory certainty, and expanding grid infrastructure will be key to unlocking the full potential of clean energy investments.”
Neetish Kumar, the report’s co-author, commented, “Achieving India’s ambitious 500 GW renewable energy target by 2030 will require policy commitments, sustained regulatory and financial reforms, and a stable investment climate.”
The report provides actionable recommendations for policy consistency, contract enforcement, and infrastructure development to ensure a seamless transition to renewable energy sources.
