Karnataka and Gujarat are at the forefront of India’s shift towards clean energy, according to the latest joint report from the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember. The report, part of the ongoing Indian States’ Electricity Transition (SET) series, now in its second year, assesses the preparedness of states for the clean electricity transition.
This year, the report expanded i ts scope to include 21 states, accounting for approximately 95% of India’s annual power demand from financial years 2018 to 2024. It also refined its assessment parameters to better reflect the progress of states, integrating feedback from stakeholders and improving data availability.
Despite overall national progress, the report highlighted uneven advancements at the state level. While Karnataka and Gujarat demonstrated robust integration of renewable energy into their power sectors, states like Jharkhand, Bihar, West Bengal, and Uttar Pradesh lagged behind, mirroring findings from the previous year. The underperforming states were advised to enhance their renewable energy deployment and strengthen their power distribution companies.
The timing of the report coincides with rising temperatures across India, emphasizing the urgency of transitioning to renewable sources like solar power, especially as the Ministry of Power prepares for a peak power demand of 260 gigawatts.
Vibhuti Garg, Director – South Asia at IEEFA, noted that the increasing electricity demand due to cyclical weather conditions and rapid economic activity necessitates continuous monitoring at the state level to capture the nuanced progress in the electricity transition.
The report also outlined the disparities in readiness among states. Delhi was mentioned as well-prepared for decarbonization, whereas Odisha was recognized for having strong market enablers. However, both states were noted as needing to better align their capabilities with actual decarbonisation outcomes.
The analysis suggested that while some states like Kerala and Punjab need to improve their market enablers, others such as Andhra Pradesh and Maharashtra should focus on enhancing their power ecosystems’ readiness.
To accelerate the clean electricity transition, the report recommends strengthening the regulatory ecosystems at the state level to ensure compliance, promote growth, and facilitate a conducive environment for business. It stressed the importance of state-specific studies to fully grasp the unique challenges and necessary policy interventions for decarbonizing the power systems in different states.
Saloni Sachdeva Michael, an Energy Specialist with IEEFA, emphasized that although many states have made considerable progress, there remains a significant need for better implementation and transparency in policies to sustain momentum towards energy independence.
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