India’s sub-national electricity transition shows uneven but broad-based progress, report says

CLEVELAND, Ohio, United States, 23 February 2026: The Institute for Energy Economics and Financial Analysis (IEEFA) said India’s electricity transition at the sub-national level is no longer marked by a few leading states but by broader, though uneven, progress across states. Making the announcement through a Press Release, IEEFA said the findings form part of a new joint report prepared with Ember, which it described as an independent energy think tank that aims to accelerate the clean energy transition with data and policy, assessing 21 states representing 95% of India’s power demand.

IEEFA said all 21 states assessed have progressed across multiple dimensions of the transition, adding that even states that had faced challenges earlier are now building momentum and presenting new opportunities for accelerated growth through targeted policies. The organisation said the uneven progress reflects differences in resources, development priorities and institutional capacities.

IEEFA said the third edition of its Indian States’ Electricity Transition report, developed jointly with Ember and based on a three-dimensional framework, shows that while some states continue to advance steadily in fiscal year 2025, others have built momentum and a strong foundation for rapid progress.

Vibhuti Garg, Director, South Asia, IEEFA and co-author of the report, said: “All the 21 states assessed have advanced on multiple fronts, even as the pace and areas of focus vary. Such divergence is inevitable at the sub-national level given the structural and historical factors, including differences in resource endowment, development legacies, states’ fiscal and economic conditions, rural-urban composition, and institutional capacity within the power sector. Going forward, understanding these state-level differences and gaps in progress is essential for designing targeted policies and interventions.”

Ruchita Shah, Energy Analyst, Ember and co-author of the report, said: “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.”

IEEFA said that despite a change in methodology for SET 2026, including a recalibrated mode of measurement for the capacity addition parameter and the inclusion of hydro capacity, Karnataka remains a top performer in the decarbonisation dimension of the report. IEEFA added that Himachal Pradesh and Kerala have also performed well in expanding renewable electricity and decoupling economic growth from emissions, while Tamil Nadu, Maharashtra and Rajasthan have improved their performance owing to energy efficiency interventions reflected in their State Energy Efficiency Index 2024 scores.

IEEFA said the readiness and performance of the power ecosystem dimension, which assesses distributed solar adoption, power supply reliability and DISCOM performance, incorporates stakeholder feedback to strengthen the assessment parameters. IEEFA added that even after incorporating these changes, New Delhi and Haryana continue to perform strongly, supported by robust distributed solar adoption, reliable power supply and relatively sound DISCOM performance.

IEEFA said Chhattisgarh recorded a negligible power supply shortage of 0.07% in FY2025, while Bihar recorded the highest progress in smart meter deployment at 78% of its sanctioned meters under the Revamped Distribution Sector Scheme as of March 2025. The organisation added that Assam completed installation of 46% of its sanctioned smart meters under the same scheme.

Saloni Sachdeva Michael, Clean Energy Specialist, IEEFA and co-author of the report, said: “For states with potential to improve on this dimension, targeted reforms could unlock faster progress. Strengthening DISCOM finances, ensuring timely subsidies, adopting cost-reflective tariffs, and enhancing billing and collection through digitisation and smart metering will help reduce risk perception and enable DISCOMs to scale renewable energy procurement effectively.”

IEEFA said the final dimension, market enablers, examines state initiatives supporting adoption of electric vehicles and green hydrogen, as well as measures such as green tariffs and energy storage. IEEFA added that following parameter changes compared to SET 2024, Andhra Pradesh, Uttar Pradesh and Rajasthan have emerged as the strongest performers in this dimension, supported by updated renewable energy policies, adoption of green tariffs and solar-hour-aligned time-of-day tariffs.

IEEFA said Uttar Pradesh has demonstrated strong momentum in EV deployment, while Andhra Pradesh and Rajasthan have made moderate progress. IEEFA added that New Delhi recorded the highest EV adoption rate at 11.6%, followed by Assam at 11% in FY2025, adding that Assam also has an active renewable energy policy and solar-hour-aligned time-of-day tariffs.

IEEFA said Bihar has introduced a green tariff provision for FY2026 and created a policy environment targeting around 24 gigawatts of renewable energy by FY2030 and 8.2% EV adoption in FY2025. The organisation added that Bihar has offered a time-of-day tariff mechanism and undertaken auctions to integrate storage into its portfolio, adding that it could build further momentum by utilising more of its renewable potential and increasing clean power procurement.

Ruchita Shah added: “States such as Maharashtra and Rajasthan need to strengthen DISCOM operations, boost short-term market participation, expand distributed solar and smart meters deployment to better prepare their power ecosystem for the transition. On the other hand, Haryana and Himachal Pradesh need to accelerate mobility transitions, deploy energy storage capacities and strengthen ToD tariff and green tariff mechanisms to progress on their transition journeys.”

IEEFA said West Bengal, Telangana and Jharkhand remain in the early stages of transition.

Tanya Rana, Energy Analyst, IEEFA and co-author of the report, said: “These states face structural barriers and will require foundational interventions, like institutional capacity building, improved DISCOM finances, updated planning frameworks and clear, and long-term policy signals, to transition effectively.”