New Delhi, February 24 – India's transition to renewable energy at the sub-national level is no longer dominated by a few leading states, but rather broader, though uneven, progress across states, according to the findings of a new joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and the independent think tank Ember.
The third edition of IEEFA and Ember's "Indian States' Electricity Transition (SET)" report, based on a three-dimensional framework, highlights that while some states are continuing to make steady progress in fiscal year 2025, others have built momentum and a strong foundation for rapid progress.
The uneven progress is due to differences in resources, development priorities, and institutional capacities.
"All 21 states assessed have made progress on multiple fronts, even as the pace and areas of focus vary," says Vibhuti Garg, Director – South Asia, IEEFA, and a co-author of the report.
Karnataka, Himachal Pradesh, and Kerala have made significant progress towards decarbonizing their electricity systems, with higher shares of renewable energy in their procurement mix and lower power-sector emissions intensity.
These states will gain more ground in their transition journey by addressing gaps in grid readiness, the health of distribution companies (DISCOMs), and market-enabling conditions, the report states.
Delhi and Haryana remain ahead in terms of power ecosystem readiness and performance, supported by robust distributed solar adoption, reliable power supply, and relatively sound DISCOM performance.
Chhattisgarh is also a notable performer, recording a minimal power shortage of 0.07 per cent in FY2025, supported by moderate DISCOM performance, the report further states.
Bihar's policy proactiveness, such as offering green tariffs, solar-hour-aligned time-of-day (ToD) tariffs, rising electric vehicle (EV) adoption, and various auctions to incorporate energy storage into its portfolio, has made it well prepared to accelerate its transition.
Focusing on tapping more of its renewable potential and increasing participation in short-term green markets offers significant gains, the report points out.
Andhra Pradesh, Uttar Pradesh, and Rajasthan also have strong policies in place. They are progressing on green hydrogen and have seen good EV adoption.
Rajasthan has particularly excelled, supported by its well-established renewable policy landscape and the lowest green tariff premium. These states should now focus on translating these into robust renewable shares and strong system-wide performance, the report added.
Ruchita Shah, Energy Analyst, Ember, and a co-author of the report, says, "India's electricity transition is maturing into a multi-speed transition, where instead of a single leader across all areas, we are witnessing new leaders in specific areas. This requires a more targeted approach to policies and interventions to ensure the momentum is evenly spread."
