Uttar Pradesh: A State Critical for India’s Energy Transition

Uttar Pradesh is lagging behind other high-demand Indian states in renewable energy adoption, with only 30% of its 2022 capacity target achieved by October 2021. The state remains heavily dependent on coal, which accounts for approximately 90% of in-state generation, leaving it vulnerable to supply chain disruptions and high costs. IEEFA modelling suggests that if the state meets its 2030 target of 23.5GW of solar, solar power could meet the majority of future electricity demand growth. However, progress is hindered by the financial instability of state-owned distribution companies (Discoms), characterized by high AT&C losses and expensive long-term thermal power purchase agreements. The report recommends retiring old coal plants, expanding distributed solar, and utilizing open market platforms to improve the financial viability of the electricity sector.

• As of October 2021, Uttar Pradesh had achieved only 30% of its 14.1GW renewable energy capacity commissioning target for 2022, the lowest performance among the top six power demand states in India.
• The state's electricity sector is dominated by coal, which provides about 90% of in-state generation. This reliance creates vulnerability to external supply shocks, as seen in October 2021 when coal shortages forced the state to buy emergency power at Rs22/kWh.
• If Uttar Pradesh achieves its 2030 target of 23.5GW of solar capacity, solar power is estimated to provide approximately 88% of the state's electricity production growth (about 47 TWh) by FY2029/30.
• The financial health of Uttar Pradesh's distribution companies (Discoms) is severely impacted by high aggregate technical and commercial (AT&C) losses, which reached 37% in FY2020/21.
• The state's progress in solar energy is being undermined by the cancellation of previously awarded power purchase agreements (PPAs) by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) in an attempt to secure lower tariffs.
• The average cost of power from coal plants in Uttar Pradesh (Rs4.5/kWh) is significantly higher than current solar tariffs, which are below Rs2.5/kWh.

APA

Shah, K., & Lolla, A. (2021). Uttar Pradesh: A State Critical for India’s Energy Transition. Ember. https://ember-energy.org/app/uploads/2024/09/Uttar-Pradesh_A-State-Critical-for-Indias-Energy-Transition_December-2021.pdf

Chicago

Shah, Kashish, and Aditya Lolla. Uttar Pradesh: A State Critical for India’s Energy Transition. Ember, 2021. https://ember-energy.org/app/uploads/2024/09/Uttar-Pradesh_A-State-Critical-for-Indias-Energy-Transition_December-2021.pdf.

Wikipedia

{{cite report |last1=Shah |first1=Kashish |last2=Lolla |first2=Aditya |title=Uttar Pradesh: A State Critical for India’s Energy Transition |publisher=Ember |date=December 2021 |url=https://ember-energy.org/app/uploads/2024/09/Uttar-Pradesh_A-State-Critical-for-Indias-Energy-Transition_December-2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shah2021uttar, author = {Shah, Kashish and Lolla, Aditya}, title = {{Uttar Pradesh: A State Critical for India’s Energy Transition}}, institution = {Ember}, year = {2021}, month = dec, url = {https://ember-energy.org/app/uploads/2024/09/Uttar-Pradesh_A-State-Critical-for-Indias-Energy-Transition_December-2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }