As we progress towards renewable energy, one of its most distinct characteristics is its variability—it changes with time and season. This makes energy storage essential to ensure a consistent electricity supply at all times. With 43% of our total capacity now being renewable, which means intermittent energy, we are still lagging behind in meeting the growing demand for storage. This situation demands specific and immediate interventions. Currently, there are several storage solutions available. These include battery storage, pumped storage, and concentrated solar power (CSP), which can store energy for limited durations. However, the choice of storage solution must align with the specific requirements of each scenario. For instance, during peak electricity demand periods between 7 PM and 10 PM, a concentrated solar plant (CSP) storing energy in molten salt for 6-7 hours may be more suitable. On the other hand, for applications like electric cars and other motor vehicles, battery storage seems to be a better fit. However, for heavy vehicles, ships, and even airplanes, batteries might not be the ideal solution. This highlights the need for significant research and the development of diverse storage models tailored to various use cases. Identifying the most effective and efficient solutions for each situation is the key challenge today. Another critical point is the bundling of storage with generation, which has prevented the emergence of efficient storage pricing. It is imperative that storage is recognized as a separate value chain, alongside generation, transmission, and distribution. Until now, storage has not been prioritized, but as we expand renewable energy capacity, storage must become a central activity within the electricity value chain. For regulators and governments, defining storage as a distinct and vital element will allow for accurate cost evaluation and ensure its integration into the energy ecosystem efficiently. This step is essential for achieving the full potential of renewable energy integration.

Currently, our interventions in smart grid technologies have been primarily focused on smart metering, and we have made significant progress in this area. The country as a whole is gradually adopting smart metering, and there is growing acceptance of the technology. Importantly, it has been realized that smart metering does not negatively impact marginalized and poorer sections of society. Electricity is a necessity, and any new technology is often met with apprehension, especially among marginalized communities. However, we have successfully introduced smart metering across much of the country, demonstrating how modern technology and digitalization can be effectively implemented even in sensitive contexts. That said, our efforts so far have been largely limited to meters. The next step involves addressing broader aspects of the grid, such as optimizing the distribution network, enhancing generation efficiency, and reducing transmission losses. This is where advanced technologies like Artificial Intelligence (AI) and analytical software play a crucial role. By leveraging AI and predictive analytics, we can forecast and optimize generation patterns and implement solutions to minimize electricity losses during transmission. These measures will ensure a more efficient and equitable energy distribution system while integrating modern digital technologies for the benefit of all, including marginalized communities.

The involvement of the private sector is crucial for driving energy efficiency improvements and adopting clean technologies in India’s industrial sectors. In fact, apart from large industries, most industries in India, particularly Micro, Small, and Medium Enterprises (MSMEs), are in the private sector. These smaller industries need to transition to more efficient technologies and processes, as well as adopt sustainable energy practices. For this sector, a combination of mandates and hand-holding is essential. While larger and medium industries are already moving towards energy efficiency with minimal intervention beyond government mandates and policy support, smaller and micro industries require more focused assistance. Policy interventions tailored to MSMEs are critical, but the private sector itself also has a significant role to play. Many clean and efficient technologies are available today with payback periods of just two to three years. However, their adoption in small industries remains limited. These industries are often willing to invest in such solutions, but what they need are turnkey solutions and experts who can guide them through the process of technology adoption. The concept of Energy Service Companies (ESCOs) is particularly relevant here. While there are ESCOs providing energy efficiency solutions, their presence and activity in the country are not yet at the scale needed to drive widespread change. Strengthening the ESCO movement requires concerted efforts, including incentives and encouragement from the government. This can create a more robust ecosystem for implementing energy efficiency measures in smaller industries and ensure their active participation in India’s clean energy transition.

I have personal experience working with GTZ, now known as GIZ, and I can confidently say that energy efficiency efforts in India have been significantly spearheaded by this organization. For instance, the Energy Conservation Act, which was eventually formulated and passed by the Parliament, was developed in collaboration with German bilateral organizations. What this highlights is the critical role international collaborations can play in transferring regulatory and policy frameworks from countries like Germany to India. However, while such frameworks may be readily available, the process of adapting, legislating, and implementing them in India is complex. For example, while the Energy Conservation Act was passed in 2001, by 2010, many states in India still did not have dedicated state agencies for energy efficiency, as mandated by the Act. India is a vast country, and a centralized approach cannot address all needs effectively. Recognizing this, GTZ partnered with the Bureau of Energy Efficiency (BEE) to work closely with states. Together, we motivated state governments to establish State Designated Agencies (SDAs) for energy efficiency. This effort involved notifying states, organizing meetings to discuss their challenges, and building capacity at the state level. The hand-holding provided during the initial phases, when technical knowledge and experience were lacking, was invaluable. Organizations like GIZ and other bilateral and multilateral agencies play a vital role in such scenarios. Furthermore, these collaborations facilitate knowledge-sharing between countries and organizations. Through this exchange, we not only learn new approaches but also discover innovative ways to implement similar solutions in our unique context. This collaborative learning process during both planning and implementation phases is a significant takeaway from the Indo-German partnership. The most important lesson from this experience is the value of fostering partnerships that bring together expertise from different countries. Such collaborations provide critical support at all levels of governance and enable the sharing of best practices to accelerate India’s energy transition effectively.