Powering East and Northeast India’s clean energy future

While India’s average per capita electricity use reached 1,255 kWh in 2021–22, much of Eastern and North-Eastern India still consumes far less:

North-Eastern states: 317–426 kWh
Eastern states: 579–807 kWh

What’s Holding the Region Back?

Despite its promise, several barriers stand in the way. The Northeastern region’s hilly and forested terrain makes infrastructure development and maintenance challenging. Seasonal floods and cyclones worsen the situation. For instance, the 2020 Assam floods impacted over 5 million people and caused widespread damage to power infrastructure. Frequent cyclones also result in recurring outages and harm to transmission networks.

Eastern states such as Jharkhand, Odisha, and West Bengal remain heavily reliant on coal. These states are key coal producers and will play a role in India’s plan to raise coal-fired generation capacity from 235 GW to 260 GW by 2031–32. However, this continued dependence raises environmental and health concerns, limiting the transition to cleaner energy.

Private investment in renewable energy remains limited in both regions. Investors perceive high economic and regulatory risks, especially in remote and developing areas. Additionally, weak infrastructure, such as inadequate grid connectivity and limited evacuation capacity, discourages large-scale renewable energy projects.

Turning Challenges into Opportunities

With focused action, this region can emerge as a leader in India’s clean energy story: 

Renewable energy: Resources and projects

Solar and wind:
Odisha leads in solar (~25.78 GW) and wind (~12 GW) potential. Jharkhand has ~18 GW solar potential, including on reclaimed mine lands. Bihar and West Bengal, despite land constraints, are advancing distributed and rooftop solar. The Northeast holds ~63.7 GW solar potential, with major contributions from Assam, Manipur, and Mizoram. Arunachal Pradesh alone has over 50 GW of large hydro potential.

Utility-scale solar parks, floating solar, and rooftop systems are being developed across the region. Odisha plans 10 GW renewables by 2030. Tripura has proposed a 130 MW floating solar plant on Dumbur Lake. Odisha and Manipur are assessing large-scale floating solar on Hirakud and Loktak dams.

Rooftop solar:
States like West Bengal and Bihar have launched programmes such as “Har Ghar Solar.” West Bengal mandates solar on new government buildings. However, deployment is uneven—Assam leads with over 10,000 households served, while Arunachal Pradesh has reported no implementation.

Wind energy:
Eastern and Northeastern India have limited but site-specific wind potential. Odisha has approved its first 97.5 MW wind project. Wind-solar hybrid systems and low-speed turbines may improve feasibility in hilly areas.

Small hydro and biomass:
The Northeast holds ~3,261 MW small hydro potential, with only ~382 MW developed. Arunachal Pradesh and Sikkim are inviting private developers for mini/micro-hydro projects. Biomass projects are being explored in Bihar, West Bengal, and Assam, including rice husk gasifiers and cogeneration. Assam alone has ~322 MW biomass potential.

Energy storage: Pumped storage and BESS

Pumped Storage Projects (PSPs) are gaining ground due to hilly terrain and dam infrastructure. West Bengal has the 900 MW Purulia PSP, with a 1,000 MW Turga project under development. Odisha and states in the Northeast are assessing solar-plus-PSP options.

Battery Energy Storage Systems (BESS) are being piloted to improve grid reliability. West Bengal’s Damodar Valley Corporation (DVC) is installing a 250 MW/500 MWh BESS. Assam plans a similar 250 MW project. Jharkhand and Odisha are integrating storage with solar tenders. A Rs 37.6 billion national fund supports BESS deployment, with an estimated 236.22 GWh storage needed by 2032.

Smart grids and grid modernisation

Weak grid infrastructure has been a major barrier to renewable integration. Under the Revamped Distribution Sector Scheme (RDSS), Assam and Bihar lead in smart meter deployment, with 6.2 million and 3.1 million meters respectively. Most meters in Assam are deployed in rural areas.

West Bengal is expanding SCADA systems. POWERGRID is investing Rs 158 billion under the North Eastern Region Power System Improvement Project (NERPSIP) to strengthen sub-transmission systems in seven states and Sikkim.

Pilot projects are testing demand-side management, battery use at substations, and grid-responsive EV chargers in cities like Bhubaneswar and Kolkata. These initiatives aim to build a digital, responsive grid by 2047.

Green hydrogen: Industrial decarbonisation

Eastern India’s industrial clusters make it a key candidate for green hydrogen. The National Green Hydrogen Mission targets 5 million tonnes per annum by 2030.

In Odisha, JSPL aims to produce 4,500 tonnes of green hydrogen annually by 2025. Tata Steel and SAIL are testing hydrogen in plants at Jamshedpur, Bokaro, and Durgapur. Refineries in Assam and Bihar are exploring on-site hydrogen production. Oil India has commissioned a high-purity green hydrogen pilot in Jorhat. Fertilizer plants in Assam and Jharkhand may adopt green ammonia production. Paradip port offers export potential.

Inclusive energy access

Despite progress in electrification, parts of the Northeast still face unreliable or no grid supply. Decentralised systems are bridging the gap.

Solar micro-grids:
States like Meghalaya, Arunachal Pradesh, and Nagaland are deploying solar micro-grids with battery backup. Over 200 villages in Arunachal could benefit by 2030.

Home systems and nano-grids:
Solar home systems are being distributed in Assam, Jharkhand, and Odisha to replace kerosene use. Advanced DC nano-grids are also under testing.

Inclusive business models:
Community-led models involving women, youth, and public-private partnerships are helping scale decentralised solutions. These initiatives are linking energy access with livelihoods and clean cooking.

Policy Recommendations

To bridge the gap between vision and reality, a coordinated strategy is essential:

1. Accelerate renewable energy deployment
   States in Eastern and North-Eastern India should develop clear renewable energy roadmaps with targets for solar, wind, hydro, and biomass, aligned with India’s 2030 goal of 500 GW non-fossil capacity. In the North-East, where large-scale ground-mounted solar is limited, greater emphasis should be placed on rooftop deployment under schemes like PM Suryaghar. High-potential zones—such as solar in Odisha, Jharkhand, and Bihar; hydro in Arunachal Pradesh and Sikkim; and biomass in Assam, West Bengal, and Bihar—should be prioritised. Floating solar installations on reservoirs like Hirakud and Dumbur Lake, along with mandatory rooftop solar on public buildings, can further expand capacity without large land requirements.
2. Strengthen grid infrastructure and digital systems
   Grid reliability remains a critical challenge. Modernising transmission and distribution networks through ongoing schemes like the North Eastern Region Power System Improvement Project (NERPSIP) is essential to reduce technical losses and improve supply quality. Expanding smart meter deployment and upgrading SCADA systems in states such as Assam and Bihar can support real-time monitoring, remote billing, and demand-side management. Given the region’s vulnerability to natural disasters, grid infrastructure must be climate-resilient, especially in flood- and cyclone-prone areas.
3. Expand energy storage capacity
   Integrating variable renewables requires robust storage systems. Pumped storage projects like Turga in West Bengal should be expedited, and additional sites explored—particularly downstream of existing hydropower plants and in abandoned coal mines, which can serve as closed-loop systems. In parallel, battery energy storage systems should be deployed in urban centres, solar parks, and remote villages to support decentralised grids and evening peak management.
4. Support green hydrogen and industrial decarbonisation
   Eastern India’s industrial clusters are well-positioned to lead in green hydrogen adoption. Hydrogen hubs should be established near steel plants in Odisha and Jharkhand, refineries in Assam, and fertiliser units in Bihar. Policy incentives such as land access, tax exemptions, and long-term offtake guarantees will be necessary to attract private investment in hydrogen and ammonia production. These efforts can decarbonise core industries while building a regional green energy economy.
5. Ensure inclusive and decentralised energy access
   Many remote communities in the region continue to lack reliable electricity. Solar micro-grids with battery storage can bring power to villages in Arunachal Pradesh, Meghalaya, and Nagaland where grid extension is unviable. At the household level, expanding solar home system schemes like PMSGMY can reduce dependence on kerosene and improve living conditions. Community-led energy models—especially those led by women and youth—should be supported to generate employment and link clean energy with rural development.
6. Enhance policy coordination and capacity
   To align efforts across states, an East & North-East Energy Transition Council should be created. This body can coordinate renewable deployment, resolve inter-state issues, and ensure that regional plans support national goals. States should also enable private participation in generation, transmission, and storage through clear frameworks for public-private partnerships. Strengthening local technical capacity is equally important—training programmes for solar installers, grid technicians, and energy entrepreneurs will ensure a skilled workforce to support the transition.
7. Mobilise green finance and innovation
   The region requires substantial investment in early-stage clean energy projects. Innovative financing tools such as green bonds, ESG-linked capital, and blended finance mechanisms can help de-risk these investments and draw in private capital. At the same time, targeted public funding should support pilot projects and R&D in emerging technologies like hydrogen, digital grids, and advanced bioenergy, with regional innovation hubs serving as platforms for testing and scaling solutions.

A vision for 2047: Clean, inclusive, resilient

The TERI report lays out a phased implementation roadmap tied to India’s 2047 goals:

Phase I (2025–2030): Laying the foundation

• Release state RE roadmaps and form the regional council
• Add 10–15 GW clean capacity (solar, wind, hydro, import from Bhutan)
• Launch solar parks, PSPs, BESS (50–100 MWh), and green hydrogen pilots
• Upgrade sub-transmission and distribution systems
• Milestone by 2030: 25 GW clean energy, basic grid reliability, plateauing emissions intensity

Phase II (2030–2040): Scale and innovate

• Deploy 5–10 GW hybrid projects and distributed energy systems
• Expand BESS and PSPs; integrate EVs and smart grid systems
• Phase out inefficient coal plants
• Explore new technologies (e.g., small modular reactors), expand cross-border trade
• Milestone by 2040: high clean energy share, widespread e-mobility, significant emissions drop

Phase III (2040–2047): Consolidate and prepare for net-zero

• Complete coal exit in inefficient segments
• Implement seasonal and hydrogen-based energy storage
• Ensure universal access to affordable, clean energy
• Create green industry hubs for manufacturing batteries, hydrogen, and solar systems
• Milestone by 2047: resilient, cyber-secure, equitable energy system aligned with SDG 7

Conclusion

Eastern and North-Eastern India hold vast untapped potential across solar, hydro, wind, and emerging technologies. With a phased, regionally grounded, and inclusive approach—as outlined in TERI’s knowledge paper—the region can become a national model for just energy transitions. By 2047, it can anchor India’s clean energy ambitions and demonstrate scalable pathways for other parts of the Global South.

Featured photograph is from Northeast India and is used for representational purposes.