India’s electricity transition at the sub-national level is progressing widely across states, as per a joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and independent think tank Ember. The report highlights that various states are advancing steadily, while others are building momentum for rapid progress. Differences in resources, development priorities, and institutional capacities contribute to the uneven progress observed.
All 21 states assessed have shown progress on multiple fronts, with Karnataka, Himachal Pradesh, and Kerala leading in decarbonizing their electricity systems. These states are focusing on increasing renewable energy shares and reducing power-sector emissions intensity to further their transition journey.
Delhi and Haryana are ahead in terms of power ecosystem readiness and performance, driven by distributed solar adoption, reliable power supply, and strong DISCOM performance. Chhattisgarh has also performed well, with minimal power shortage in FY2025, supported by moderate DISCOM performance. Bihar’s proactive policies, such as green tariffs and EV adoption, position it well to accelerate its transition by tapping into more renewable potential.
States like Andhra Pradesh, Uttar Pradesh, and Rajasthan have robust policies in place, especially in green hydrogen and EV adoption. Rajasthan, in particular, excels with a well-established renewable policy landscape and low green tariff premium. The report emphasizes the need for these states to translate policies into tangible renewable shares and strong system-wide performance.
The transition in India’s electricity sector is evolving into a multi-speed process, with new leaders emerging in specific areas. This shift calls for targeted policies and interventions to ensure balanced progress across different regions.
