INDIALEAD

India’s electricity transition gains pace across states

New Delhi, Feb 24 (IANS) India’s electricity transition at the sub-national level is no longer marked by a few leading states, but rather wider, albeit uneven, progress across states, according to the findings of a new joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and 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 advance steadily in the fiscal year (FY) 2025, others have built momentum and a strong foundation for rapid progress. ​

The uneven progress is owing to differences in resources, development priorities, and institutional capacities.​

“All the 21 states assessed have advanced 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 decarbonising their electricity systems, with higher renewable energy shares 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.​

Co-author of the report, Ruchita Shah, Energy Analyst, Ember, 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.”​

–IANS

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