Indian States’ Electricity Transition (SET) 2026

The Indian States’ Electricity Transition (SET) 2026 report evaluates 21 Indian states across three dimensions: decarbonisation, power ecosystem readiness and performance, and market enablers. It finds that progress is fragmented, with no single state demonstrating consistently strong performance across all three areas, highlighting the need for coordinated, dimension-specific interventions to achieve a system-wide transition.

• Karnataka, Himachal Pradesh, and Kerala are the top performers in the decarbonisation dimension, which measures shifts to renewable electricity, energy efficiency, and the decoupling of growth from emissions. Karnataka's leadership is supported by a renewable energy share of approximately 37% in its power procurement mix, while Himachal Pradesh recorded the highest renewable share at around 65% and the lowest emissions intensity.
• Delhi and Haryana are high performers in power ecosystem readiness and performance, characterized by reliable power supply, sound DISCOM performance, and high distributed solar adoption. In Delhi, distributed solar capacity reached 303MW as of March 2025, representing nearly 97% of its total solar capacity.
• Andhra Pradesh, Uttar Pradesh, and Rajasthan lead in market enablers, utilizing regulatory tools like green tariffs, green open access mechanisms, and solar-hour-aligned time-of-day (ToD) tariffs. Andhra Pradesh specifically stands out with 1,440MW of pumped hydro storage capacity and an integrated clean energy policy released in October 2024.
• Several states are 'two-dimensional leaders,' performing strongly in two of the three categories but facing specific structural gaps. Maharashtra and Rajasthan excel in decarbonisation and market enablers but struggle with DISCOM performance and distributed solar uptake. Gujarat and Assam perform well in ecosystem readiness and market enablers but have moderate decarbonisation scores due to low renewable potential utilisation.
• West Bengal, Telangana, and Jharkhand are in the early stages of transition, consistently ranking in the bottom seven across two or more dimensions. West Bengal's renewable share in procurement was only approximately 7% in FY2024, and Jharkhand's renewable potential utilisation was only 2% by FY2025.
• India achieved 50% of its installed power capacity from non-fossil sources by October 2025, meeting its original 2030 target five years early. Total installed renewable capacity reached 251GW by that date, with 29GW of renewable capacity added in FY2025, primarily driven by 24GW of solar.
• The report identifies a critical need for energy storage to support the transition, noting that the National Electricity Plan estimates India requires 73.9GW of energy storage capacity by 2031-32, comprising 26.7GW of pumped hydro and 47.2GW of battery energy storage systems.

APA

Shah, R. (2026). Indian States’ Electricity Transition (SET) 2026. Ember. https://ember-energy.org/app/uploads/2026/02/Indian-States-Electricity-Transition-SET-2026.pdf

Chicago

Shah, Ruchita. Indian States’ Electricity Transition (SET) 2026. Ember, 2026. https://ember-energy.org/app/uploads/2026/02/Indian-States-Electricity-Transition-SET-2026.pdf.

Wikipedia

{{cite report |last1=Shah |first1=Ruchita |title=Indian States’ Electricity Transition (SET) 2026 |publisher=Ember |date=2026 |url=https://ember-energy.org/app/uploads/2026/02/Indian-States-Electricity-Transition-SET-2026.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shah2026indian, author = {Shah, Ruchita}, title = {{Indian States’ Electricity Transition (SET) 2026}}, institution = {Ember}, year = {2026}, url = {https://ember-energy.org/app/uploads/2026/02/Indian-States-Electricity-Transition-SET-2026.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }