Karnataka's power sector: Caught between reforms and resistance

Karnataka recently won the National Energy Conservation Award for renewable power generation.
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BENGALURU: As in previous years, the state government continued to grapple with ensuring uninterrupted, round-the-clock power supply to consumers during the year.

The energy department faced criticism from multiple stakeholders over the rollout of smart metres, priced at Rs 4,998 each, and its push for the implementation of the Sharavathi Pumped Storage Project in the ecologically sensitive Western Ghats.

The government found itself on the defensive for its inability to replicate smart metre models implemented in other states, as recommended by the Union government. Officials attributed this to pending dues owed to the energy supply companies (ESCOMs) by various government departments, particularly the rural development and panchayat raj (RDPR). “We decided to adopt a middle path by introducing smart metres only for new and temporary connections at a cost of Rs 4,998 each,” an official said.

The state government also repeatedly defended the proposed 2,000 MW Sharavathi Pumped Storage Project in Shivamogga district, citing the need for additional power generation and grid stability in the context of a unified national power grid. Stakeholders, however, demanded greater transparency and regulatory clearances, while environmentalists and forest department officials continued to oppose the project, which is proposed within the Lion-Tailed Macaque Reserve.

At the same time, the state’s power sector achieved notable milestones in renewable energy. Karnataka recently won the National Energy Conservation Award for renewable power generation.

The state also topped the national rankings in the installation of electric vehicle (EV) charging stations. During 2025, a detailed plan was drawn up in coordination with national and state highway authorities to install solar-powered EV charging stations with battery storage along major highways. Discussions were also held with residential apartments and commercial and industrial establishments to expand charging infrastructure and facilitate access to subsidy schemes.

The official inauguration of the Bidadi waste-to-energy plant was postponed following the death of contract labourers. Although the plant continues to generate power using waste from Bengaluru, production levels have not yet been scaled up.

Progress in expanding solar power generation, however, remained limited. While the government worked with farmers to acquire land in and around Bidadi to expand the existing solar park, similar efforts in other districts faced hurdles in land acquisition and agreement finalisation. Adoption of rooftop solar panels by individual establishments also remained low. Agencies such as KPCL, KPTCL and BESCOM continued discussions with farmers to implement the Kusum-B and Kusum-C schemes.

The state also lagged behind Union government targets under the PM-Surya Ghar Muft Bijli Yojana. Officials cited unattractive loan and subsidy provisions, while consumers pointed out that installing rooftop solar panels would result in exclusion from the state’s Gruha Jyothi scheme, which provides free electricity up to 200 units.

During the year, ESCOMs made multiple submissions to the Karnataka Electricity Regulatory Commission (KERC) seeking revisions in power tariffs and other charges to address financial losses. Consumers, particularly from the industrial sector, urged the KERC and the state government to focus instead on reducing transmission and distribution losses.

The year also marked the introduction of the open access scheme, allowing consumers to procure power from sources other than ESCOMs.

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