States advance unevenly in electricity transition: SET 2026 report

India’s 21 largest states are advancing toward clean electricity, but performance varies across key reform areas, according to the Indian States’ Electricity Transition (SET) 2026 report. The analysis finds no state leads across all three dimensions: decarbonisation, power system readiness, and market enablers.

The third edition of the report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember evaluates state performance during the 2024–2025 financial year (FY), covering states that account for about 95% of India’s annual power demand.

Karnataka remained the top performer in decarbonisation, supported by relatively low emissions intensity and a renewable share of about 37% in its procurement mix. Himachal Pradesh recorded the highest renewable share at roughly 65% but utilised about 22% of its renewable potential. Kerala ranked third, supported by low emissions intensity and steady renewable capacity growth. Tamil Nadu, Maharashtra, and Rajasthan also improved decarbonisation outcomes.

Delhi led in power system readiness, reporting zero power shortage in FY2025 and strong distributed solar deployment, with 304 MW installed as of March 2025. Haryana showed strong performance with 1,798 MW of distributed solar and A+ ratings for both DISCOMs. Assam also performed well, with minimal energy shortages and progress in smart meter deployment. Chhattisgarh and Bihar recorded improvement in DISCOM performance.

In market enablers, Andhra Pradesh ranked first, supported by its integrated clean energy policy released in October 2024 and 1,440 MW of pumped hydro storage capacity under operation or development. Uttar Pradesh recorded a 10% EV adoption rate in FY2025 and introduced solar-aligned time-of-day tariffs. Rajasthan performed strongly due to updated renewable policies and green tariff adoption, while Bihar and Assam improved EV ecosystems and policy frameworks.

Several states showed strong performance in two dimensions but gaps in another. Maharashtra combined renewable capacity additions and energy efficiency improvements but recorded moderate power system readiness. Gujarat and Assam performed strongly in readiness and market enablers but showed moderate decarbonisation progress. Punjab and Himachal Pradesh performed well in decarbonisation and readiness but lagged in market enablers.

West Bengal, Telangana, and Jharkhand remain at early stages of the transition. West Bengal’s renewable share stood at about 7% of procurement in FY2024. Telangana recorded a 14% renewable share and low utilisation of renewable potential. Jharkhand reported renewable penetration of about 8% alongside structural DISCOM challenges and slow EV adoption.

The report concludes that coordinated national and state-level action is required to address gaps across dimensions and accelerate India’s electricity transition.

The featured photograph is for representation only.