THE DECENTRALIZED MODEL OF INDIA’S ENERGY POLICY AS A FACTOR OF ADAPTABILITY TO CONTEMPORARY ENERGY CHALLENGES

Abstract

The article examines the decentralized model of India’s energy policy as a key factor underpinning the adaptability of the national energy system in the context of contemporary energy challenges. The authors analyzed the institutional features of energy sector management, including the distribution of powers between the federal center (strategic coordination), industry departments (legal and institutional formalization of areas of activity) and state governments (implementation of projects and ensuring local energy security), which, in the absence of a regulatory strategy, allows the system to quickly adapt to changing external conditions. The structure of India’s energy system is explored with particular attention to regional specialization and the functional roles of individual energy segments. The Indian energy sector remains anchored by the coal industry, concentrated in the east of the country and powering its coal-fired generating capacity. Solar, wind, and hydroelectric potential is concentrated in the west and south of India, but developing these resources is hampered by climate, socioeconomic, and other conditions. The study further investigates how India’s energy system maintained stability during the 2021–2022 energy crisis. Granting states additional powers in the energy sector and creating a dual-loop system within the energy sector (coal and renewable energy) played a key role in overcoming the emerging challenges. The authors identified adaptation mechanisms at the regional, corporate, and federal levels that ensure stability in the Indian energy sector. They conclude that this decentralized governance model contributes to the creation of a system less susceptible to external shocks and prevents the emergence of crises in the Indian market.