By Pankhudi Jha
India’s renewable energy journey cannot be measured by capacity additions alone. Every renewable energy project affects local communities – either positively or negatively. Thus, the energy transition must ensure that renewable energy is not only clean but also socially inclusive and empowers people. So far, discussions on a “just transition” in India have largely focused on coal-dependent regions and workers. However, renewable energy also needs its own just-transition approach. Solar parks require vast land, module cleaning requires water, pumped storage projects (PSPs) and hydro projects reshape landscapes and water systems, waste-to-energy (WtE) projects have their own environmental impacts and green hydrogen production from electrolysers too will rely heavily on water consumption.
Hence, community engagement has become key in each of these spheres. Early involvement of local communities helps reduce land conflicts, delays and financing risks, while strong stakeholder engagement has become an important indicator of environmental, social and governance (ESG) performance, and responsible project development.
Renewables’ uptake and community impact: Two sides of the same coin
Land remains the biggest social challenge for renewable energy. As highlighted in a guest article in Renewable Watch (April 2026) by researchers from the Chintan Research Foundation (CRF), utility-scale solar requires 4-8 acres per MW. Moreover, achieving India’s net zero targets could require 50,000-70,000 square km for solar and 1,500-2,000 square km for wind. While concerns for the vast scale of land use seem prudent, there is another side to this debate, that is, public acceptance. While compared to a solar plant a nuclear project will use much less land to generate the same amount of electricity; however, it can be said that communities will be more likely to accept a solar park in their backyard rather than a nuclear plant.
Biodiversity conservation is important too. Many solar parks are built on “wasteland”, but these areas often support grazing, seasonal farming and local livelihoods. Further, unlike coal mining, renewable projects currently have no mandatory land restoration requirements after decommissioning. In addition, the Supreme Court’s observations in the Great Indian Bustard case have reinforced the need to integrate biodiversity conservation into renewable energy planning, right from the outset.
Water is another major concern. According to the CRF article, more than half of India’s utility-scale solar capacity is located in arid and semi-arid regions, where conventional module cleaning consumes 7,000-20,000 litres of water per MW per cleaning cycle. This is driving the adoption of robotic, dry and semi-automatic cleaning methods. During a field visit in June 2025 by the Renewable Watch team to ENGIE’s Raghanesda Solar Park in Gujarat, it was shared that water shortages forced the company to procure water from external sources and switch to semi-automatic cleaning, reducing water use by 75-80 per cent, lowering diesel costs and soiling losses, thereby improving revenue.
Unlike wasteland, often PSPs have to be developed in large forest areas for reservoirs and dams, making forest clearances, environmental impacts and rehabilitation of affected communities major challenges. Balancing faster project approvals with biodiversity protection and early engagement with forest-dependent communities have become critical for sustainable project development in the country.
Hydropower projects provide clean and reliable electricity, while also supporting irrigation, flood control and water security, creating long-term benefits for surrounding communities. However, they have often faced local opposition in ecologically sensitive regions such as Kinnaur in Himachal Pradesh, where the “No Means No” campaign raised concerns over the cumulative impact of multiple projects on fragile ecosystems, landslide-prone terrain and local livelihoods. Communities may lose farmland, face changes in water availability, or be displaced. The Sardar Sarovar Dam also witnessed prolonged conflicts over displacement and rehabilitation, highlighting that compensation alone is not enough. These challenges can be addressed through inclusive planning, fair benefit-sharing, strong rehabilitation and resettlement policies and continuous engagement with the affected communities.
WtE projects too have both positive and negative impacts on local communities. They help reduce landfill waste, improve waste management, generate clean energy and create jobs. However, these projects can face opposition if emissions are not properly controlled. For example, the Okhla WtE plant in Delhi has seen protests from nearby residents over concerns about air pollution, foul odour and health impacts. Thus, strong emission control systems, regular monitoring and open communication with local communities are essential for the successful operation of WtE projects.
Microgrid projects clearly show how community engagement can drive both social and commercial benefits. Unlike utility-scale projects, they provide electricity directly to consumers, making reliability and trust essential. Although solar microgrids often cost more than grid electricity, they help businesses continue operating during frequent power cuts, extending working hours, thus improving productivity. Several companies including TP Renewable Microgrid Limited, Husk Power Systems and OMC Power are using solar microgrids to power micro, small, and medium enterprises across Uttar Pradesh, Bihar and Jharkhand, helping reduce diesel use and improve business productivity.
During a Renewable Watch field visit in June 2022 to OMC Power’s minigrids in Hardoi, Uttar Pradesh, it was observed that reliable electricity was supporting small businesses such as bakeries, pharmacies, banks, tailoring shops and hardware stores. The visit also highlighted how OMC’s Anchor-Business-Community model provides reliable power to households and local enterprises, creating new livelihood opportunities, especially for women and rural entrepreneurs.
Overall, experiences across renewable technologies show that projects succeed when community participation, environmental stewardship and economic development advance together.
Balancing community interests
Leading renewable energy companies are increasingly making community development a core part of their business strategy. Tata Power aims to positively impact 80 million lives by 2027, operates 21 mobile medical units serving over 500,000 people annually, and has trained more than 340,000 youth through the Tata Power Skill Development Institute. In FY 2025-26, the company invested Rs 1,005.4 million in corporate social responsibility initiatives, benefiting over 5.2 million people across more than 100 locations, including over 20 aspirational districts, while supporting over 3,000 community institutions.
Several other big corporates including ReNew and Adani Green Energy have also integrated watershed development, digital education, women’s self-help groups, biodiversity conservation, grievance redressal and skill development into their projects, strengthening community partnerships and long-term ESG performance.
However, community engagement remains closely linked to one of the sector’s biggest challenges, that is, land acquisition. Developers face growing land acquisition challenges as competing bids often inflate land prices and create unrealistic expectations among farmers. Speculative pricing and prolonged negotiations delay projects, increase costs and complicate land aggregation. Perhaps transparent consultation, local employment and effective grievance redressal across the project life cycle can help developers navigate this challenge. Annual leasing models, village infrastructure investment and, going forward, community development funds or revenue-sharing mechanisms can turn communities into genuine long-term stakeholders.
The way forward
India’s clean energy transition must now focus as much on communities as on capacity addition. Transparent land acquisition, fair rehabilitation, long-term community benefits and stronger environmental safeguards should become standard practices. Technologies such as agrivoltaics and robotic dry cleaning, can help reduce environmental impacts, while peer-to-peer energy trading can enable communities to generate, share and trade surplus renewable electricity, creating new local income streams and improving energy access.
Looking ahead, emerging sectors will bring new opportunities as well as social challenges. Ethanol blending can create additional income for farmers and generate rural employment, but it may also increase pressure on agricultural land, water resources and food crops. Green hydrogen projects can drive industrial growth and create skilled jobs, but large-scale electrolyser facilities may compete for scarce water resources, affecting communities in water-stressed regions. Ensuring that local communities benefit through employment, infrastructure development and transparent engagement will be essential for the long-term success of these emerging energy sectors.
