Delhi and Haryana remain ahead in terms of power ecosystem readiness and performance, supported by robust distributed solar adoption, reliable power supply, and relatively sound Discom performance.
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REUTERS/ANUSHREE FADNAVIS
To increase the adoption of electric vehicles (EVs) and green hydrogen, States like Uttar Pradesh, Andhra Pradesh and Rajasthan undertook regulatory initiatives such as adoption of green tariffs, green open access mechanism, and made progress on solar-hour-aligned time-of-day (ToD) tariffs.
The States’ Electricity Transition (SET) report, a joint study by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember, analysed 21 States, which represent 95 per cent of India’s power demand.
Besides these three States, Karnataka, Himachal Pradesh, and Kerala have progressed well to decarbonise their electricity systems with higher renewable energy (RE) share in their procurement mix and lower power sector emissions intensity.
Similarly, Delhi and Haryana remain ahead in terms of power ecosystem readiness and performance, supported by robust distributed solar adoption, reliable power supply, and relatively sound Discom performance.
Top performers
The dimension — Market Enablers — examines State initiatives supporting adoption of EVs and green hydrogen, and measures like green tariffs and energy storage that help to accelerate the transition to RE, the study explained.
“Andhra Pradesh, Uttar Pradesh and Rajasthan are now the strongest performers in this dimension. Their performance was supported by updated RE policies, adoption of green tariffs and solar-hour-aligned time-of-day (ToD) tariffs,” it pointed out.
Uttar Pradesh demonstrated strong momentum in EV deployment, while Andhra Pradesh and Rajasthan made moderate progress in this area, the study noted.
It added that Uttar Pradesh maintained the momentum in EV deployment, with an adoption rate of 10 per cent in FY25. It has a RE policy, which targets 22 gigawatt (GW) of solar capacity installed by FY27.
The State’s green tariff premium for FY26, at $0.0041 per kWh (₹0.34/kWh), reflects a reduction compared to the previous year. Uttar Pradesh is also advancing in green hydrogen uptake and has a target of 1 million tonnes (MT) by 2028.
It has also introduced a solar-hour-aligned ToD tariff mechanism. The State could benefit from accelerating its efforts to install storage capacity to facilitate reliability of RE sources.
Andhra and smart meters
On the other hand, Andhra Pradesh emerged as a high performer, driven by its integrated renewable energy policy released in October 2024 and advancements in green hydrogen uptake.
With the deployment of smart meters, Andhra Pradesh is actively moving forward to implement the solar-hour-aligned time-of-day (ToD) tariff mechanism. It has adopted the Green Energy Open Access Rules, 2022 with limited waivers on open access charges such as cross subsidy surcharge, state distribution and transmission charges.
Andhra Pradesh’s latest green tariff premium stands at $0.0083 per kilowatt-hour (kWh), or ₹0.75 per kWh.
It performed moderately in EV ecosystem development with a 6.2 per cent adoption rate in FY25 across all vehicle categories. Andhra Pradesh has 1,440 megawatt (MW) of pumped hydro storage capacity that is operational or under construction, demonstrating progress in energy storage capacity deployment, which is critical for integrating Variable RE.
This diversified progress has attracted significant investments across energy storage, green hydrogen production and exports, and RE projects, the study noted.
Building on its RE leadership, Rajasthan continued to excel with a well-established renewable policy landscape and with the lowest green tariff premium of $0.0006 per kWh (₹0.05/kWh).
Rajasthan performed moderately in transport sector decarbonisation with an EV adoption rate of 6.6 per cent in FY25. However, despite advancing in ToD tariff mechanism adoption, Rajasthan fell behind in the deployment of smart meters and hence, in operationalising the ToD tariff mechanism.
The State only has 25 MW of storage capacity, indicating significant scope to expand its storage capacity to meet peak demand and support the integration of more variable renewable energy, the joint study added.
Published on February 23, 2026