From Karnataka to Bihar: States Take Diverging Paths In Energy Transition, Says IEEFA-EMBER Report

India’s electricity transition is advancing across states but at uneven speeds, with different regions leading in decarbonisation, power system readiness and policy support, according to a joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember.

The report assessed 21 states representing about 95% of India’s power demand and found that all have made progress on multiple aspects of the transition, though the pace varies due to differences in resources, policy priorities and institutional capacity.

Top Performing States 

Karnataka, Himachal Pradesh and Kerala ranked among the top states in decarbonising their electricity systems, supported by a higher share of renewable energy procurement and lower emissions intensity in the power sector.

Delhi and Haryana performed strongly in power ecosystem readiness, aided by distributed solar adoption, reliable electricity supply and relatively stable distribution utilities. Chhattisgarh also stood out, recording a power shortage of just 0.07% in fiscal year 2025.

Bihar has emerged as a policy-driven state with measures such as green tariffs, solar-aligned time-of-day tariffs, electric vehicle adoption and efforts to include energy storage in its portfolio, the report said.

Strongest Performers In Market Policies 

Andhra Pradesh, Uttar Pradesh and Rajasthan were among the strongest performers in market-enabling policies, supported by updated renewable energy frameworks, green tariffs and EV deployment. Rajasthan benefited from an established renewable policy landscape and low green tariff premiums.

The report described India’s electricity transition as increasingly “multi-speed”, with states leading in different areas rather than a single group dominating overall progress.

Some states including West Bengal, Telangana and Jharkhand remain at earlier stages of the transition and require reforms such as stronger power utilities, clearer policy signals and improved institutional capacity, the report said. The study is the third edition of the Indian States’ Electricity Transition report released by IEEFA and Ember.