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Context

Indian cities are emerging as critical players in driving national clean energy transition, as highlighted by the World Resources Institute (WRI) India’s 2025 report titled “How Cities Can Support India’s Energy Transition”, released at the Connect Karo conference.

Role of Indian Cities in Clean Energy Transition

Economic and Energy Epicenters: Cities house one-third of India’s population and drive 60% of GDP. With urbanization projected to add 270 million people by 2040, urban energy demand in residential, commercial, and transport sectors is rising rapidly.

• This creates opportunities for large-scale adoption of rooftop solar, electric mobility, and district cooling.

Contribution to National Goals: India’s Nationally Determined Contributions (NDCs) target 500 GW of non-fossil fuel capacity by 2030.

• WRI India report estimates cities can contribute 200 GW through solar photovoltaic systems on government, residential, and commercial rooftops.
• Municipalities, with control over building codes and land use, can accelerate this transition.

Infrastructure as a Catalyst: Schemes like AMRUT and Smart Cities Mission integrate energy efficiency into urban planning through LED streetlighting, smart grids, and energy-efficient building codes.

• Cities like Pune and Bengaluru have established urban energy cells to institutionalize clean energy governance, reducing emissions and operational costs.

With India aiming for net-zero emissions by 2070, urban centers are key in achieving these goals due to their economic significance, energy demand, and innovative potential.

City-Level Innovations Driving Clean Energy

Digital Governance for Energy Efficiency: Surat’s Energy Efficiency Cell uses digital tools to monitor real-time electricity usage in streetlights, water pumps, and municipal buildings.

• This aligns with the Smart Cities Mission, enabling data-driven decisions to cut energy costs and emissions.

Carbon Market Leadership: Indore has launched a carbon market consultancy through its Smart City Special-Purpose Vehicle, training municipal staff and stakeholders on emissions profiling and carbon credits.

• This positions Indore to leverage the Indian Carbon Market Scheme and fosters climate-conscious urban planning.

Electrified Public Transport: Kochi’s electric bus services, supported by the FAME-II scheme, and its public-private charging infrastructure network showcase integrated urban transport reform.

• Transit-oriented development policies promote low-emission mobility corridors.

Community-Driven Initiatives: Cities like Bhubaneswar and Rajkot run citizen awareness campaigns and energy audits to promote rooftop solar in schools, hospitals, and government buildings.

• These efforts promote inclusivity and behavioral changes, accelerating clean energy adoption.

What challenges Indian cities face in expanding clean energy initiatives?

Fragmented Governance: Urban local bodies (ULBs) lack clear mandates and authority to drive energy transitions, as energy planning remains centralized with state utilities and regulatory commissions.

• Poor interdepartmental coordination within municipalities hampers integrated planning across transport, housing, and environment sectors.

Technical Capacity Gaps: Most ULBs, especially in Tier 2 and Tier 3 cities, lack skilled staff to manage advanced technologies like smart grids or battery storage.  

Financial Constraints: Limited municipal budgets and low creditworthiness deter private investment. Innovative financing models like green bonds and public-private partnerships (PPPs) remain underutilized due to regulatory gaps and risk perceptions.

Data Deficiencies: Reliable data on urban energy use, emissions, and infrastructure performance is scarce, restricting evidence-based planning.

• Most cities lack standardized protocols for data collection and reporting, limiting their ability to track progress or align with frameworks like the Climate Smart Cities Assessment Framework (CSCAF).

Way Forward to integrate clean energy into urban development?

Multi-Level Governance: Align municipal plans with state and national energy policies through vertical integration. ULBs need greater autonomy and technical support to embed renewable energy in urban planning.

Public-Private Partnerships (PPPs): Encourage private sector involvement in rooftop solar, smart grids, and electric mobility through streamlined procurement and risk-sharing models. Bengaluru and Ahmedabad’s PPPs for solar infrastructure serve as examples.

Community Engagement: Involve civil society organizations (CSOs) and resident welfare associations (RWAs) in energy audits and awareness campaigns to ensure inclusive, locally suitable solutions. Bhubaneswar’s participatory models demonstrate success in this approach.

Capacity Building: Invest in training municipal staff on clean energy technologies and carbon markets. Partnerships with technical institutes can bridge skill gaps, especially in smaller cities.

Integrated Urban Planning: Encourage clean energy in transport, buildings, waste, and water management plans to maximize co-benefits like reduced emissions and improved air quality. Kochi’s transit-oriented development is a replicable model.

Conclusion

Indian cities are transforming the country's energy landscape, but challenges like governance, technical and financial constraints, and data gaps need to be addressed. 

Source: DOWNTOEARTH