Powering ahead

Could you take us through the renewable energy journey?

Karnataka is often discussed today as a leader in renewable energy, particularly solar. But the state’s engagement with renewable energy is not a recent development. It began generating electricity from renewables as early as 1902, when the first utility-scale hydroelectric power plant was established at Shivanasamudra. At the time, electricity was transmitted at voltage levels not yet achieved even in Europe or the USA. By 1905, electricity had reached Bangalore. For several decades afterwards, the state experienced surplus power generation and invited industries to set up operations.

What did Karnataka do to continue thriving in this evolving landscape?

Heavy reliance on a single source, ie hydroelectric power, due to Karnataka’s natural resources, eventually led to power shortages. This reinforced the need to diversify within the renewable energy sector. At the time of independence, India’s total installed capacity was 1,362 MW, of which Karnataka accounted for about 40 MW. By 2008, Karnataka had emerged as a policy leader, introducing dynamic state policies to promote renewable energy, and was the first state to install a utility-scale 3 MW solar plant near Bangalore. These policy directions remained consistent across successive governments. The renewable energy policy for 2009-2014, which was the first of its kind in the state, laid the foundation for further proliferation of renewables.

As technology advanced, the solar policy for 2014-2020 set a target of adding about 6,000 MW of solar capacity, aligning with the central government’s national solar mission. Between 2013 and 2018, Karnataka announced plans for a solar park near Pavagada. Spread across 53 sq km, the Pavagada Solar Park eventually reached about 2,050 MW of installed capacity, making it one of the state’s most significant renewable projects. Around 200 MW is transmitted to Uttar Pradesh under an interstate power-sharing arrangement, allocating roughly 10 per cent of the generation to other states. By the early 2020s, Karnataka had firmly established itself as a renewable energy leader. Up to 2021, it ranked first in renewable energy capacity and continues to lead mini-hydro generation with around 940 MW installed. Overall, renewable capacity in the state now exceeds 20,000 MW.

While large solar parks have played an important role, attention in recent years has increasingly shifted towards rooftop solar. What potential does rooftop solar hold in Karnataka?

As large-scale projects progressed steadily to build a strong base of installed capacity, attention shifted to rooftop solar, which also holds enormous potential in Karnataka due to high solar irradiation. It is the natural next step in expanding renewable energy adoption. Against this backdrop, Karnataka began exploring new models of energy usage and distribution, specifically peer-to-peer (P2P) energy trading. The idea is simple but transformative: a person who installs a rooftop solar system is not only able to use the electricity generated for personal consumption but also able to sell excess energy directly to neighbours and other consumers. In effect, energy becomes a tradable commodity, allowing solar owners to recover their investment more efficiently and often earn better tariffs than those offered by traditional utility mechanisms.

Interestingly, Karnataka has been at the forefront of implementing P2P energy trading. Could you explain how the regulatory framework for this model came into place and how the concept moved from policy discussion to actual implementation?

Karnataka has taken the lead in P2P energy trading by introducing policies and regulations to enable it. No other state has yet implemented a similarly robust mechanism for P2P energy transactions. The regulations attracted the attention of industry innovator Hygge Energy, which, by engaging with KERC and Karnataka’s DISCOMs, enabled this P2P concept to evolve from policy to practice, and very encouraging and successful pilot projects followed. Looking ahead, the model is already influencing other states. Uttar Pradesh has started its own pilot, while West Bengal and Kerala have announced similar policies. Karnataka currently has over 700 MW of rooftop solar installed. With policy support and companies like Hygge Energy helping operationalise these ideas, the state is now shaping what could become a model for the rest of the country, and potentially for the world.