A massive solar energy plant in Karnataka's Pavagada has helped the state take lead (Representational)

Karnataka has overtaken Tamil Nadu to become a leader in renewable energy capacity. This has been highlighted in a new report from the Institute for Energy Economics and Financial Analysis or IEEFA.

"Karnataka in the last 12 months has become the top state in India in development of renewables; wind and solar both play a major role. Karnataka has reached 46 per cent of total capacity in renewables in the last 12 months. I think it's a huge achievement for the state of Karnataka," Tim Buckley, director of energy finance studies at IEEFA, told NDTV.

Renewable energy capacity in Karnataka is 12.3 gigawatts (GW), the highest in India. The southern state's renewable energy capacity now exceeds its coal power capacity by 2.5 GW.

By March this year, Karnataka had a total solar capacity of 5 GW, wind capacity of 4.7 GW, and a small hydro, biomass and heat and power cogeneration portfolio of 2.6 GW.

A massive solar energy plant in Karnataka's Pavagada has helped the state take the lead in renewable energy. So much so that the Institute believes the power-deficit state could actually start sending power from renewable energy to other states.

"I think Karnataka is on the right track of its electricity sector transformation. Currently, 48 per cent of Karnataka's electricity generation capacity comes from renewable energy. So, I think Karnataka should look to building more export grid capacity to help the neighbouring states," said Kashish Shah, energy research associate at the IEEFA.

Power from coal has got a bad reputation when it comes to the environment and the institute has suggested that the state and the country as well move away from coal and fossil fuels. Not just for environmental reasons, but considering the cost factor too.

"India has over the last decade built a significant level of exposure to import of fossil fuels, be it oil, diesel and LNG. It's worth keeping in mind that in Karnataka it gets very problematic because the cost of import of coal has doubled in the last two years," Tim Buckley said.

He said even if India increases domestic coal production, which would mean reduction of expose to import of coal, the trouble for southern states like Karnataka is that coal is coming from 1,800 km away.

"So, that is very expensive. It makes sense for Karnataka to expand its renewable energy industry, and that opens up a major opportunity for interstate export revenue for the state of Karnataka," Mr Buckley added.