India’s decentralized energy market is emerging as a major driver of clean power demand supported by open-access policies, growing commercial and industrial (C&I) demand, and new business models that make renewable energy adoption easier for consumers.

However, panelists at the Mercom India Renewables Summit 2026 said the next phase of consumer-led clean power growth will require stronger grid planning, more flexible regulations, and a shift from renewable electricity procurement to deeper industrial decarbonization.

During the session ‘Decentralized Energy: Unlocking Consumer-led Clean Power,’ speakers including Abhishek Ranjan, CEO, BRPL; Shri Venkatesh, Founding Partner at SKV Law Offices; and Vishal Jain, Managing Director at August Energy discussed the evolving role of consumers, DISCOMs, developers, and regulators in India’s clean energy transition. The session was moderated by Priya Sanjay, Managing Director at Mercom India.

Vishal Jain said India has made significant progress in helping C&I consumers reduce electricity-related emissions by procuring renewable energy.

“India has done a tremendous job of replacing the Scope 2 footprint through supportive policies around open access and focus on renewables,” Jain said. “Customers have, over the longer term replaced 40% to 50% of their Scope 2 footprint.”

However, he cautioned that replacing grid electricity with renewable power is only the first stage of corporate decarbonization.

“Energy transition, just by replacing the electrons, is a short-term approach. The focus has to move from electrons to molecules (fuels and thermal energy used directly in operations), wherein Scope 1 has to come into the picture to truly achieve a net-zero status for the longer term,” said Jain.

He said industrial consumers will need to explore process heat, industrial steam, and other fuel-based applications to move closer to net-zero operations.

“Process heat, industrial steam, waste heat recovery setups, and heat pumps can help achieve that status by replacing molecules,” Jain said.

The panelists said decentralized energy is no longer limited to rooftop solar or open access procurement. It is becoming a broader market involving storage, demand-side management, industrial electrification, behind-the-meter solutions, and flexible clean power models.

Abhishek Ranjan said DISCOMs will play a central role in managing this transition as more consumers become active participants in the power system. As distributed energy resources expand, utilities will need to balance consumer choice with grid reliability, system discipline, and cost-effective planning.

He said the future role of DISCOMs will likely evolve from conventional electricity distribution towards a more dynamic network management function, requiring new regulations for distributed resources, demand flexibility, smart appliances, and peer-to-peer energy transactions.

“The need for balancing reserves should be established through detailed studies, not by forcing solutions. The responsibility for grid balance should be shared based on a ‘polluter pays’ principle,” Ranjan added.

Shri Venkatesh said regulatory uncertainty remains a critical risk for decentralized energy projects. Sudden policy shifts, including changes to open access, banking, charges, and approval processes, can alter the economics of long-term renewable energy contracts.

He said standard contracts may not be sufficient in a market where policy and regulatory frameworks continue to evolve. Developers, consumers, and investors must design agreements that clearly allocate regulatory risks, anticipate potential changes, and account for market conditions throughout the project’s life.

Venkatesh also added that large C&I consumers and data centers should not be viewed through the same lens, as data centers require significantly higher levels of energy security and redundancy.

“In our experience, when it comes to large C&I consumers or data centers, execution risk is the most important factor because, in many ways, they are insulated from regulatory risk,” Venkatesh noted.

Vishal Jain said that innovative business models, such as energy-as-a-service, are helping C&I consumers adopt clean energy without taking on the full upfront capital burden. Under such models, solution providers can finance, build, operate, and maintain clean energy systems while customers benefit from lower-carbon energy and predictable costs.

Jain said faster deployment will require better coordination across government departments and approval agencies. Delays in permits, connectivity, and interdepartmental clearances can slow project.

“The industry must move beyond treating the grid as an ‘infinite battery’ and embrace energy storage,” Jain noted.

The session also highlighted the growing importance of storage and grid-balancing solutions. As renewable energy penetration rises, the need for flexibility will increase, but storage deployment should be guided by system needs, technical studies, and cost-benefit analysis rather than one-size-fits-all mandates, the panelists said.

The panelists also noted that large consumers such as data centers will require reliable, round-the-clock clean power. This will create new opportunities for hybrid renewable energy, storage-backed power, and structured power supply contracts. At the same time, such projects will need to manage risks related to transmission availability, power evacuation, approved module sourcing, and 24×7 supply obligations.