Readiness and performance of the power ecosystem

Delhi, Haryana, and Assam stand out as high performers

Delhi remained a strong performer across majority of parameters under this dimension except in smart metering. It made significant strides in distributed solar adoption, with 303MW of distributed solar capacity installed as of March 2025, accounting for nearly 97% of its total installed solar capacity and 76% of its total renewable energy capacity. Delhi actively encouraged rooftop solar uptake, with over 5,500 connections installed in North Delhi alone. In addition to the Pradhan Mantri Surya Ghar Muft Bijli Yojana, Delhi’s Solar Energy Policy offers a ceiling limit of USD334 (INR30,000) for 3kW solar plants in capital subsidies and generation-based incentives, strengthening the economics of rooftop systems. The registration fees for rooftop solar installation for domestic consumers up to 10 kilowatts (kW) is waived off.

Delhi experienced no energy shortages and met its requirement of 38,287MU in FY2025. Moreover, all three DISCOMs in Delhi, Tata Power Delhi Distribution Limited (TPDDL), BSES Yamuna Power Limited (BYPL), and BSES Rajdhani Power Limited (BRPL), with power purchase shares of 34%, 23%, and 43% of the territory’s total DISCOM power procurement, respectively, performed moderately and received a B- rating in the PFC 13th Annual Integrated Rating and Ranking of Power Distribution Utilities (PFC 13^th DISCOM rating report). Although, Delhi’s short-term market participation (sales + purchases) in FY2024 accounted for 28%, its total green day ahead market (GDAM) transactions represented only 2% of its short-term electricity market transactions volume. As of March 2025, 3,521 smart meters have been sanctioned for Delhi under the Revamped Distribution Sector Scheme (RDSS), but no installations have been recorded.

Haryana also performed well, supported by a strong level of distributed solar capacity relative to its total renewable energy capacity base, sound DISCOM financial health and minimal energy shortages. Its distributed solar capacity of 1,798MW represents 87% of its total solar installed capacity as of March 2025, accounting for approximately 8% of the total distributed solar installed across 21 states. The two DISCOMs, Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) and Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), received an A+ rating in the PFC 13th DISCOM rating report. In addition, Haryana registered just 30MU of shortage in FY2025, equivalent to 0.04% of its energy requirement of 70,237MU. In FY2024, its short-term transactions stood at 15% of its total power procurement, while GDAM transactions represented a mere 0.31% of the short-term market volume, indicating considerable untapped potential in this area. As of March 2025, Haryana had zero sanctioned smart meters under RDSS.

Assam excelled in this dimension driven by its strong performance in DISCOM performance and limited power supply shortage. Assam experienced minimal energy shortages, with only 9MU or 0.07% of its total requirement of 12,837MU for FY2025. The state’s only DISCOM, Assam Power Distribution Company Limited (APDCL) scored an A rating in the PFC 13th DISCOM rating report. It also showed moderate performance under the smart metering parameter, with installation of 46% of the state’s sanctioned smart meters under RDSS as of March 2025.

Gujarat showed strong DISCOM performance and excellent power adequacy (0.001% energy shortage in FY2025), but its overall standing was constrained by low short-term market participation (only 8% of total power purchase in FY2024), with GDAM making up just 0.5%. The state installed only 5% of its sanctioned meters under RDSS as of March 2025. Its distributed solar uptake stood at 5GW, representing 16% of its total renewable energy capacity as of March 2025.

Punjab ensured a reliable power supply, with zero energy shortage in FY2025 and demonstrated solid DISCOM operations. However, its overall standing was constrained by lack of progress in smart meter deployment. As of March 2025, there were no communicating smart meters installed against a sanctioned 8,784,807 meters under RDSS. In addition, progress in distributed solar remained limited, with only 535MW installed, accounting for 16% of its total renewable energy capacity.

Himachal Pradesh excelled in short-term market participation, with short-term transactions representing 43% of its total power procurement and GDAM accounting for 1% of its short-term electricity transactions in FY2024, alongside sufficient power adequacy (0.04% energy shortage in FY2025). However, the near absence of distributed solar only 0.5% of its total renewable energy capacity as of March 2025 significantly constrained the state’s performance under this dimension. It also saw limited progress in smart metering infrastructure.

Odisha, despite limited power supply shortage and strong DISCOM performance, showed low short-term market participation and low distributed solar uptake. Under RDSS, data on smart meters is not available for Odisha. In terms of short-term market participation for FY2024, Odisha’s participation in bilateral short-term electricity transactions, power exchange, and DSM markets stood at 7.56% (~7,199MU) of its total electricity procurement, with 0.42% (~31MU) traded through GDAM.

Chhattisgarh, Uttarakhand and Bihar are on the rise

Chhattisgarh featured mid-table in this dimension, indicating considerable potential for improvement. The state recorded strong power adequacy with only 0.03% (58MU) of energy shortage in FY2025. DISCOM performance was moderate, with its only DISCOM, i.e. Chhattisgarh State Power Distribution Company Limited (CSPDCL), having a score of 54.4 in the 13^th PFC DISCOM rating report. Its overall performance was limited by low short-term market participation, accounting for only 1.35% of total power procurement and GDAM transactions, representing just 0.3% of these in FY2024. The state also saw limited uptake of distributed solar at 498MW. And although this represented 27% of its total renewable energy capacity as of March 2025, progress on smart metering remained limited with just 26% deployment under RDSS.

Uttarakhand, supported by hydropower, maintained limited power supply shortage (9MU) of just 0.05% of electricity requirement in FY2025. It also demonstrated good DISCOM performance, with Uttarakhand Power Corporation Limited (UPCL) rated B- in the 13^th PFC DISCOM rating report. However, weak uptake of distributed solar (6% of total renewable energy capacity as of March 2025), limited smart metering infrastructure (4% progress under smart meter deployment), and only moderate participation in short-term electricity markets has held the state back.

Bihar recorded the highest percentage of progress in smart meter deployment (78%) under RDSS as of March 2025. With moderate DISCOM performance, the state saw limited short-term market participation and distributed solar energy uptake (25% of total renewable energy installed capacity as of March 2025). It also faced a relatively high energy shortage at 0.4% (170MU) in FY2025, as compared to other states. Together, these limitations constrained its overall performance.

Uttar Pradesh, with only 0.1% of energy shortage in FY2025, faced similar challenges: Minimal distributed solar adoption (10% of total renewable installed capacity as of March 2025); low short-term electricity market participation as compared to total power procurement by the state in FY2024 (representing only 9% of the power procurement); and limited DISCOM performance. These factors restricted the state’s ability to achieve a higher standing.

West Bengal recorded zero energy shortages in FY2025. However, its average performance across other parameters affected its overall standing. West Bengal’s distributed solar capacity remained low at only 4% (80MW) of the total renewable energy installed capacity as of March 2025, indicating potential for expansion in decentralised solar adoption. It also exhibited modest DISCOM performance and had limited smart metering infrastructure (2% progress under smart meter deployment as of March 2025). Its participation in the short-term electricity market was low, with transactions accounting for only 15% of its total power procurement in FY2024 and GDAM transactions contributing just 0.19%.

Kerala was mid-tabled in this dimension despite its strong performance in dimension 1, indicating considerable potential for improvement. Kerala still has significant room to improve in distributed solar adoption, with 1,215MW of distributed solar installed as of March 2025, accounting for 79% (lower base effect) of its total solar capacity and 31% of its total renewable energy capacity. Kerala State Electricity Board Limited (KSEBL) showed moderate performance with a B rating, an improvement from B- in the previous year as per the PFC 13th DISCOM rating report. The state also has room to reduce energy shortages, which stood at 0.3% (80MU) against an energy requirement of 31,510MU for FY2025. In addition, Kerala showed moderate participation in the short-term electricity market, with short-term electricity transactions accounting for 18% of its total power procurement in FY2024, while GDAM represented only 2% of these transactions.

Madhya Pradesh clocked moderate power supply adequacy, with 0.1% (135 MU) shortage in FY2025, but modest DISCOM performance and limited distributed solar adoption at 6% (615MW) of total renewable capacity as of March 2025. Short-term electricity market participation remained moderate (13% of total procurement, with GDAM just 1% in FY2024), and the state saw only 13% progress under smart meter deployment under RDSS as of March 2025. While supply reliability is appreciable, smart meter deployment and distributed renewable uptake would be key to improving performance.

Andhra Pradesh, Maharashtra and Rajasthan have potential to accelerate

Andhra Pradesh, Karnataka, Tamil Nadu and Telangana are beginning to evolve beyond renewable capacity addition in their power-sector transition, exhibiting significant scope for improvement across multiple parameters under this dimension.

Andhra Pradesh showed moderate power supply shortage (0.25% (205MU) with energy shortage in meeting energy requirement of 79,115MU in FY2025. Short-term market transactions constituted 16.5% of total electricity procurement, while GDAM participation remained limited at 2%, indicating opportunities to deepen engagement in competitive markets. The state demonstrated subdued progress in distributed solar adoption and smart metering. Despite a sizeable total installed renewable energy capacity of 12,114MW as of March 2025, the state’s distributed solar base remained modest at 360MW, accounting for only 3% of its total renewable energy capacity. The state had achieved 21% progress under smart meter deployment as of March 2025 under RDSS.

Maharashtra demonstrated strong power adequacy (0.03%, 58MU) in FY2025. Its distributed solar capacity comprised 21% of the state’s total installed solar capacity, and the state itself accounted for a substantial 22% (4.7GW) of the total distributed solar capacity (21.4GW) among the 21 states as of March 2025. Maharashtra’s overall performance was affected by weak DISCOM operations, limited smart metering infrastructure (6% progress under smart meter deployment as of March 2025), and low short-term market participation (9% of total power procurement in FY2024), which resulted in an overall moderate ranking.

Meanwhile, Rajasthan’s moderate DISCOM performance was offset by gaps in other parameters, constraining its overall improvement. The state recorded 0.3% (330MU) energy shortage in FY2025. In FY2024, the state’s short-term electricity transactions accounted for 12% of total power procurement with only 1% executed through GDAM. In addition, Rajasthan had 2,321MW of distributed solar installed, representing 7% of its total renewable energy installed capacity as of March 2025, and had achieved only 3% progress under smart meter deployment under RDSS.

Karnataka exhibited a mixed performance profile. The state’s strong performance under dimension 1 was in contrast with its weaker outcomes under dimension 2, largely due to its limited smart meter deployment and low distributed solar capacity in its total renewable energy capacity mix. As of March 2025, Karnataka’s distributed solar capacity of 736MW represents 8% of its total solar capacity and 3% of total renewable energy capacity (second lowest among the 21 states assessed). The state also does not have any smart meters sanctioned and installed under RDSS since it was one of the few states that missed out on RDSS due to electricity supply companies being owed over USD0.94 billion (INR8,500 crore) from various government departments at the time. The state’s short-term market participation represented only 11% of total power procurement (including DISCOM purchases and captive generation) in FY2024. The state experienced a 0.27% (250MU) energy shortage against its requirement of 92,880MU in FY2025. Karnataka’s distributed solar capacity of 736MW as of March 2025 represents 8% of its total solar capacity and 3% of total renewable energy capacity.

Tamil Nadu, Jharkhand and Telangana showed limited progress across this dimension. Tamil Nadu’s minimal smart metering infrastructure, low distributed solar uptake (only 4% of its total renewable capacity as of March 2025), along with limited short-term market participation and weak DISCOM performance slowed its advancement, even though it recorded only a 0.2% energy shortage in FY2025. Jharkhand’s performance was subdued across most parameters, with energy shortages (0.5%, or 69MU in FY2025), minimal participation in short-term markets, and evolving DISCOM outcomes. However, it had a comparatively higher distributed solar share (41% of its renewable capacity). Telangana reported the most constrained performance in this dimension, driven by zero smart metering infrastructure under RDSS as of March 2025, limited distributed solar energy uptake and weak DISCOM performance.

Noticeable shifts have occurred in the performance of several states under this dimension for this assessment year compared with the previous assessment period (SET 2024) due to revised parameters. Bihar, Chhattisgarh, Odisha, Uttarakhand, and Uttar Pradesh showed significant improvement in overall performance. In contrast, the performance of states like Telangana, Karnataka and Rajasthan declined considerably. Chhattisgarh showed the most significant upward trajectory, driven by better DISCOM performance and short-term market participation, along with the removal of the electricity intensity parameter and the inclusion of smart metering as compared with the SET 2024 analysis. Bihar also advanced due to improved DISCOM performance and higher distributed solar uptake, supported by the addition of the smart metering parameter and the removal of the MNRE state-level renewable energy target achievement parameter.

Uttarakhand improved due to stronger power adequacy in FY2025, while Odisha moved up on the back of robust power adequacy and DISCOM performance. Uttar Pradesh’s overall performance was positively impacted due to slight improvement in DISCOM performance and distributed solar uptake.

Conversely, Telangana witnessed the steepest decline. This was largely driven by the removal of the MNRE state-level renewable energy target achieved parameter and compounded by a deterioration in power adequacy, with energy shortage rising from 0.001% (1MU) in FY2023 to 0.3% (227MU) in FY2025. The fall in its performance was also due to the newly added parameter on smart metering. The state had zero smart meters sanctioned and installed as of March 2025.

Karnataka also experienced a considerable decline, primarily due to deteriorating power adequacy. The state’s energy shortage increased from 0.01% in FY2023 to 0.3% FY2025. The state’s decline was further affected by the correction of previously inflated rooftop solar data reported by MNRE, with installed capacity revised from 1,562MW in February 2024 to 696MW in March 2025, underscoring the significant impact of accurate data on overall performance. Its GDAM share of total short-term electricity transaction volume declined from 12% in FY2023 to 3% in FY2024. Karnataka’s performance was also affected by the introduction of the smart metering parameter in the SET 2026 analysis as the state was not included in RDSS as of March 2025.

Rajasthan’s energy shortage decreased as compared to other states (from 1.6% in FY2023 to 0.3% in FY2025) constraining its overall performance. Its performance was also constrained by limited smart metering infrastructure in the SET 2026 analysis. Kerala’s performance also declined due to power supply inadequacy, the removal of the electricity intensity of GDP parameter, and the absence of any communicating smart meters as of March 2025.