Gujarat, Goa and Chandigarh Top Climate Performers: NITI Aayog

NITI Aayog has recently released a report called the State Energy and Climate Index (SECI) declaring Gujarat, Goa and Chandigarh as top performing states in the category of larger states, smaller states and UTs respectively on the basis of the performance by the states during 2019-20 across several parameters and mea­sures for mitigating climate change.

Gujarat was followed by Kerala and Punjab at second and third position respectively in the category of larger states. Similarly, Goa was followed by Tripura and Manipur at second and third position respectively in the smaller states category. Chan­digarh was followed by Delhi, and Dadra & Na­gar Haveli and Daman & Diu (D&D and D&N) at second position and third position in the category of the Union Territories.

The main parameters on which the performance of the states was calculated included

1. access, affordability and reliability
2. clean energy initiatives
3. energy efficiency
4. environmental sustainability
5. new initiatives

Besides, performance of a discom was factored into calculation.

The first of its kind, the SECI sought to improve en­er­gy access, and safeguard the environ­me­nt by ranking the states down the order. The agenda of aff­or­dable, accessible, efficient and clean energy transition needs a sustained drive at the state level and healthy competition among the states. While discom performance has been assigned the highest weightage (40 per cent) in the overall index, access, aff­or­dability and reliability of energy; and clean energy initiatives have been given a weightage of 15 per cent each. Envi­ro­n­mental sustainability and new initiatives have been assigned 12 per cent we­i­ghtage each and energy efficiency has been given 6 per cent weightage.

Among the top performing UTs included Lakshadweep, Delhi and Puducherry as the front runners, while Jammu & Kashmir, Andaman & Nicobar Islands, and Lakshadweep fall in the aspirants’ category.

The evaluation of discom performance consists of nine indicators: debt-equity ratio, ag­g­regate technical and commercial (AT&C) losses, average cost of supply (ACS)-average revenue realised (ARR) gap, transmission and distribution (T&D) losses, time-of-day/time-of-use tariffs for consumers, direct benefit transfer (DBT), open access surcharge, regulatory assets and complexity of tariffs.

Among the larger states, Punjab has performed the best of all states for in­dicators such as debt-equity ratio, regulatory assets, open access surcharge and complexity of tariff. Rajas­than has scored zero for its debt-equity ratio and high AT&C and T&D losses.

The SECI has recommended a number of initiatives to improve the performance of discoms. Currently, sub-15 per cent AT&C losses have been recorded in only a few states such as Punjab, Gujarat, Goa and Kerala. Likewise, only a few states/UTs, such as Gujarat, Haryana, Chhattisgarh, Assam, Chandigarh, and D&D and D&N, have a favourable ACS-ARR gap. There is, moreover, an urgent need to reduce regulatory assets across states, particularly in Ma­harashtra, Uttar Pradesh, West Ben­gal, Karnataka and Delhi, and simplify tariff structures.