Low-cost renewable energy available at scale has the potential to address, at least partially, the tension between development and environment. India has an opportunity to reimagine the electricity policy-regulatory landscape to not only deliver a clean and reliable electricity system but also enhance the direct developmental benefits of energy transition to all people. Both will need a strong focus on building institutional capacity. The paper is part of the special Economic and Political Weekly issue, ‘Review of Environment and Development’, edited by Sharachchandra Lele & Geetanjoy Sahu.