By: Lokesh Chandra (IAS), Chairman and Managing Director of Maharashtra State Electricity Distribution Company Limited (MSEDCL).
India has made remarkable progress over the past few years to become the world’s 4th largest economy thanks to accelerated pace of sustained growth momentum in a challenging global economic scenario. While manufacturing, mining, capital goods, and several new-age sectors have made significant strides in the country’s overall growth prospects, the impetus has certainly come from a sharp revival in the power sector, aided by a slew of reforms undertaken over the past few years that provided a major leg up to the industry.
Now, the world’s third largest producer and consumer of electricity after China and the US, India has reached a key milestone in 2025 with the total installed electricity capacity surpassing 500 gigawatts. With a major thrust on making India a key sustainable renewable player, the country also added a record-breaking 44.5 GW of green energy in just one year. Moreover, for the first time more than half of the country’s total power capacity has come from the non-fossil fuel-based resources.
This is not just a statistic but an indicator that the energy scenario of India is witnessing a paradigm shift. What was believed to be a distant climate reality is now making its presence felt in the country’s economy. Electricity, which was believed to be a bottleneck in the country’s economy, is now becoming a major strength to enhance the country’s competitiveness.
Maharashtra is one of the key states that is driving this change in the country. Being one of the most industrialised and urbanised states in India, it has a large role to play in the country’s manufacturing, finance, and infrastructure sectors. The State has set itself a very ambitious target of achieving a USD 1 trillion economy by 2030, and it has now realised that in order to achieve this, it needs a power sector that is reliable, affordable, and future-ready.
To power the economic expansion, the state aims to double its electricity generation capacity to 81-84GW over the next four years with focus mainly on renewables that could comprise over 50 per cent of the energy mix. The State’s Energy Transition plan entailing an investment of Rs 3.3 lakh crore will be spread across generation, transmission and distribution.
While the focus is on sustainable energy, increasing the usage of solar and wind energy, and adopting new technology such as green hydrogen can help the State reduce the cost of energy for industries, reduce pollution, and protect its economy from international fluctuations in energy prices. Availability of clean and affordable electricity is rapidly becoming a necessity for the State’s industrial centers like Mumbai, Pune, Nashik, Aurangabad, and Nagpur in order to remain competitive in the international market, which emphasises on reducing carbon footprints.
Also, the advantages of transitioning to clean energy sources are many as it provides several new opportunities for the economy such as spending on battery storage, efficient transmission, and smart grids that can help mitigate the highs and lows of renewable energy sources and keep the lights on.
It will also assist in making possible the manufacturing, digital tech, data centre, and urban sectors, that have come to be recognised as key drivers of development in the state of Maharashtra.
The energy transition is not just about lowering carbon emissions, but also about building a strong and future-proof economy in a world that is increasingly vulnerable to climate change, fuel price volatility, and the increasing stringency of global regulations. Renewable energy, with smarter grids, storage, and technology, provides India a more secure and less carbon-dependent energy future with fewer carbon costs and less dependence on imported fossil fuels. The focus on decentralised technologies like rooftop solar, solar pumps, agriculture feeder solarisation, and microgrids have played a major role in transforming the energy sector, particularly in rural and semi-urban areas. This move has led to more reliable energy access, which is cost-effective and low transmission losses, thereby helping farmers produce more, provide a boost to small businesses, and help bridge the gap. Sustainable energy is not just restricted to development, it is about taking everyone together in the development journey.
The job creation opportunities in this transition are also important. Clean energy projects create employment opportunities in the entire supply chain, right from manufacturing to installation and then to operation, maintenance, and research.
They also catalyse the surrounding industries such as electric mobility, energy storage, green hydrogen, and climate technology. As a result, Maharashtra’s strong industrial base and skilled workforce make it the perfect place to establish itself as a key destination for these forward-looking industries.
Most significantly, sustainability is rapidly emerging as a strong bet for investment. Increasingly, global investors are betting on markets that provide policy stability, size, and a long-term vision for renewable energy. Hence, the state of Maharashtra fits the bill here as it can offer opportunities for green bonds, ESG-linked loans, and climate-theme funds.”
With support of right policies in place, partnerships, and emphasis on building skills, sustainable energy can be a true economic facilitator to help drive productivity, innovation, and resilience. As India embarks on a journey to shift towards more sustainable sources of energy, the question of whether this transition will happen or not is no longer a challenge. The challenge is now how this transition will be managed. For Maharashtra, the challenge will be to integrate sustainable energy into its economic agenda.
In the years to come, clean, secure, and affordable energy will not only help Maharashtra’s economy but will also help define what this growth looks like.
Disclaimer: The views expressed are solely those of the author and do not necessarily reflect the official position of publication.
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