India’s Electro State Shift: EVs, AI, Renewables Drive Energy Transition

India is urged to transition from a “petro state” to an “electro state” to meet rising electricity demand driven by electric vehicles (EVs), artificial intelligence (AI), and data centers, necessitating a greater reliance on renewable and nuclear energy. The nation has already achieved over 300 GW of non-fossil fuel capacity and targets 500 GW by 2030.

Driving the Electro State Shift

During the ET World Leaders Forum, speakers outlined several critical requirements for India’s energy transition. These necessities will help the country meet the accelerating push for cleaner power generation.

• Increasing renewable capacity to provide round-the-clock power.

• Securing long-term capital, ideally for 30 years or more, for significant investments.

• Strengthening transmission infrastructure to support increased capacity.

• Encouraging greater private sector participation in nuclear energy development.

Santosh Kumar Sarangi, the renewable energy secretary, emphasized the need for both behavioral changes and enhanced supply-side capabilities. He specifically cited electric vehicles, induction cooking systems, and home appliances as areas where demand shifting would bolster economic resilience and reduce import dependence.

Ambitious Renewable Targets and Financing Challenges

Girish Tanti, co-founder of Suzlon Group, advocated for raising India’s renewable energy ambitions, noting the strong foundation built over the last decade. He projected a potential fivefold increase in India’s power capacity by 2050, with renewables contributing a substantial share.

Despite immense solar and wind potential, only a fraction of it is currently utilized. Scaling up this capacity requires long-term financing, which contrasts sharply with the predominantly shorter-term capital presently available in India.

Paul Procee, World Bank India country director, explained the institution’s evolving role in this landscape. The World Bank is shifting from direct financing of renewable generation to de-risking investments in crucial areas like grids, smart grids, battery storage, manufacturing, and skills, thereby leveraging private capital.

Nuclear’s Complementary Role

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, has opened the nuclear sector to private involvement. This legislative change creates opportunities to expand India’s nuclear capacity, technology, and talent base.

Sunita Kumar of Bajaj Energy clarified that nuclear power serves as a vital complement to renewable energy. It contributes significantly to India’s overall energy mix by providing a consistent, non-intermittent power source.

A Game-Changing Tender

A recent tender from the Solar Energy Corporation of India (SECI) for round-the-clock power is considered a potential game-changer. This tender integrates solar, wind, and battery storage at a competitive tariff of ₹5.25/unit.

This development directly addresses the critical challenge of providing firm, reliable renewable power, signaling a fundamental shift in the sector and potentially revolutionizing future electricity supply.