Why India’s Clean Energy Transition Needs a Strong Legal Backbone: Akshay Jaitly Explains

The Ashoka Centre for a People-Centric Energy Transition (ACPET), an initiative by Ashoka University, has released the second episode of its podcast series, The Energy Transition Dialogues. This episode features an engaging conversation between ACPET Director Vaibhav Chowdhary and Akshay Jaitly of the leading Indian law firm Trilegal.

Akshay Jaitly highlights the often-overlooked role of law and regulation in India's energy journey. As discussions around clean energy tend to focus on technology and finance, he draws attention to to the need for a strong legal foundation to guide the transition.

He explains how sound legal frameworks are essential for managing the electricity grid, preventing market disruptions, and ensuring long-term stability. In a detailed exchange, Akshay Jaitly lays out why legal clarity and regulatory foresight are key to a smooth and equitable energy transition in India.

Why Legal Frameworks Matter

"Is it just a technology issue? A finance issue? No," Akshay Jaitly said. "Electricity, unlike other commodities, cannot be stored easily at scale. That meant everything produced had to be consumed in real time. If too many people supplied or drew from the grid at once, it risked collapse."

This, he noted, made grid balancing one of the most pressing technical challenges. "We needed laws to regulate who supplied electricity, who drew from it, and when," he added.

Moreover, electricity markets remained largely monopolistic. Unlike consumer goods, most regions did not have multiple competing providers. "That opened the door to potential monopolistic behavior," Akshay Jaitly pointed out. "That's where competition law and regulation came in."

The Need for Vision and Deregulation

Akshay Jaitly is a strong proponent of deregulation but argues that any reform must be driven by a clear vision. "The Electricity Act of 2003 was a landmark. It unbundled generation, transmission, and distribution to tackle rising debts of state electricity boards. But two decades later, we must ask: What is the long-term vision for the sector?"

According to him, if the end goal is a deregulated, market-driven sector, "then our steps today must align with that outcome."

He notes that while generation has seen significant deregulation, distribution-the link to the end consumer-remains heavily licensed and riddled with financial issues. "That's where the real pain lies," he added.

Electricity: Commodity or Social Service?

With elections often bringing in free electricity promises and subsidies, a bigger question looms-is electricity a commodity or a service?

Akshay Jaitly explains, "Everything in the economy, including electricity, requires inputs that must be paid for. Whether that cost is borne directly by consumers or through taxes, it's still a payment. Someone is footing the bill."

Using the analogy of roads, he says, "Highways may be tolled, but city roads are funded by taxes. The debate is whether electricity should be treated more like highways or like public infrastructure."

Role of Civil Society and Private Sector

The transition to cleaner energy cannot rely solely on government spending. "The majority of investment must come from the private sector," Akshay Jaitly said.

He also sees an important role for think tanks, civil society organizations, and non-profits in bringing transparency to policy-making. "I don't think there's any stakeholder that should be excluded," he said.

On Trilegal and TrustBridge

Celebrating 25 years, Trilegal has grown from a vision of merit-based legal practice to one of India's top firms by reputation and size. "We wanted a firm where achievement and hard work mattered, not legacy or family background," Akshay Jaitly said.

TrustBridge, his other initiative, aims to bridge gaps in law and policy, especially in sectors like energy and sustainability.

As India pushes toward a clean energy future, Akshay Jaitly advocates for principle-based lawmaking and a long-term vision that centers around deregulation, private investment, and efficient governance.

"We need to stop treating energy as a political giveaway and start treating it as what it is-a vital economic input that must be managed with care," he concluded.