Dimension 3
Market enablers
The “market enablers” dimension assesses a critical aspect of the electricity transition by examining initiatives that accelerate renewable energy adoption. It captures both demand side drivers such as electric vehicles (EVs) and green hydrogen and supply side measures that encourage consumers to procure more renewable power through mechanisms like green tariffs and green energy open access. It also considers the broader policy landscape and the integration of variable renewable energy (VRE) into the grid through energy storage capacity deployment and solar hour specific time-of-day tariffs.
Viewed through the market enablers lens, electricity transition readiness varies sharply across states. Performance shows a concentration effect, with only a limited number of states scoring highly on specific enablers such as green open access adoption or emerging green hydrogen uptake. However, these strengths are rarely aligned within the same state. Several states perform well on policy and regulatory instruments but lag on physical enablers such as storage capacity deployment or EV ecosystem development, and vice-versa. Importantly, no state emerges as a comprehensive leader across all market enablers parameters, with leadership fragmenting across different parameters. This fragmented landscape suggests while enabling elements are present across the system, they remain partial and unevenly distributed rather than integrated into a cohesive, state-wide electricity transition ecosystem.
Andhra Pradesh, Uttar Pradesh and Rajasthan stand out as high performers
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. Andhra Pradesh has adopted the Green Energy Open Access Rules, 2022 (GEOA Rules) with limited waivers on open access charges such as cross subsidy surcharge, state distribution and transmission charges; the latest green tariff premium stands at USD0.0083/kilowatt-hour (kWh), or INR0.75/kWh. The state performed moderately in EV ecosystem development with a 6.2% adoption rate in FY2025 across all vehicle categories as per the Ministry of Road Transport and Highways‘s (MoRTH) Vahan dashboard. Andhra Pradesh has 1,440MW of pumped hydro storage capacity that is operational or under construction, demonstrating progress in energy storage capacity deployment, which is critical for integrating VRE. This diversified progress has attracted significant investments across energy storage, green hydrogen production and exports, and renewable energy projects.
Uttar Pradesh has maintained momentum in EV deployment, with an adoption rate of 10% in FY2025. The state has a renewable energy policy which targets 22GW of solar capacity installed by FY2027. Its green tariff premium for FY2026, at USD0.0041/kWh (INR0.34/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 metric tonnes (MMT) by 2028. The state has introduced a solar-hour-aligned ToD tariff mechanism. It could benefit from accelerating its efforts to install storage capacity to facilitate reliability of renewable energy sources.
Building on its renewable energy leadership, Rajasthan continued to excel with a well-established renewable policy landscape and with the lowest green tariff premium of USD0.0006/kWh (INR0.05/kWh). Rajasthan performed moderately in transport sector decarbonisation with an EV adoption rate of 6.6% in FY2025. 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. Rajasthan only has 25MW 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 other high-achieving states in this dimension, Gujarat and Maharashtra, also have a renewable energy policy in place. The two states continued strengthening their clean electricity transition by adopting the GEOA Rules, green energy tariffs and solar-hour-aligned ToD tariffs. However, both states provide limited exemption on open access charges to green open access consumers. Gujarat also houses one of the three major ports recognised as a green hydrogen hub and, along with Maharashtra, made notable progress on this front. EV adoption rate in Gujarat remained below moderate (3.6% in FY2025) whereas Maharashtra’s performance was promising (8.3% in FY2025). Similarly, on the energy storage front, capacity addition was modest both in Gujarat and Maharashtra.
Assam and Madhya Pradesh released their renewable energy policies in Q12025 with significant renewable energy deployment targets. Assam performed remarkably in the deployment of the EV ecosystem with a high EV adoption rate of 11% in FY2025. The state is now gearing up to implement the solar-hour-aligned ToD tariff. Madhya Pradesh performed moderately in EV adoption (6.4% in FY2025). Both states made moderate progress in green hydrogen uptake. However, Assam’s green tariff premium at USD0.012/kWh (INR1.00/kWh) was significantly higher than that of Madhya Pradesh at USD0.0064/kWh (INR0.53/kWh).
Telangana, Chhattisgarh and Bihar on the rise
Telangana performed moderately in this dimension. The state updated its renewable energy policy in 2025 with targets to install 20GW solar, 2.5GW wind and 4.3GW distributed renewable energy by 2030. Telangana also offers green tariff and ToD tariff mechanism; however, the ToD tariff is not aligned with solar hours and is not available across all consumer categories. Storage capacity remained limited beyond pumped hydro projects, while green hydrogen efforts remained at an early stage with one announced production facility. Telangana’s EV adoption was low at 4%, but with a 100% exemption on road tax and registration fees for EVs announced in November 2024, this adoption rate is expected to climb significantly.
Chhattisgarh’s performance was average with a moderate EV adoption rate of 6.6% and an announced green hydrogen facility. This state, too, provides green tariffs at a premium of USD0.0056/kWh (INR0.50/kWh) and solar-hour-aligned ToD tariffs. The state’s renewable energy policy was released in 2017 and expires in 2027. It could leverage the next update to set clear capacity installation targets.59 It also needs to integrate storage capacity, which at present is minimal.
Bihar introduced a green tariff provision for the first time in FY2026, at a premium of USD0.0047/kWh (INR0.42/kWh). It created a conducive policy environment for both renewable energy (targeting around 24GW by FY2030) and for EV adoption (8.2% in FY2025). It also offered ToD tariff mechanism. While Bihar does not yet have operational energy storage capacity, it has made efforts through various auctions to integrate energy storage into its portfolio. It also has scope to build momentum on its draft green hydrogen policy.
Both Tamil Nadu and Odisha performed moderately, with EV adoption rates at 7.1% and 8.1%, respectively. Both states adopted ToD tariffs for non-agricultural consumers above 10kW and have aligned off-peak hours with solar hours. Both states have considerable potential for integrating energy storage capacity. Odisha’s green tariff is attractive at a premium of USD0.0024/kWh (INR0.20/kWh), while Tamil Nadu’s green tariff premium is linked to category-specific energy charges and is trending upward.
Uttarakhand’s performance in this dimension was highly influenced by its highest energy storage capacity to peak demand ratio, which demonstrates the state’s capability to meet peak demand. The state has also created a conducive environment for policy, and adopted green tariffs and GEOA Rules, with limited exemptions on open access charges. The state also provides ToD tariffs for select consumer categories and is yet to align off-peak hours with solar hours. From an EV adoption perspective, its performance remained moderate at a rate of 6.9%.
Karnataka, despite being a leader in decarbonisation efforts with a conducive renewable energy policy environment, demonstrated average performance under this dimension. The EV adoption rate stood at 9.4% with muted progress in green hydrogen uptake. Karnataka has adopted the GEOA Rules and provides limited exemption on open access charges. The state has also introduced green tariffs. Karnataka’s performance under the time-of-day tariff mechanism remained muted due to the non-alignment of off-peak hours with solar hours and the non-availability of this mechanism across all consumer categories.
West Bengal, Delhi and Kerala show high improvement potential
Although both Delhi and West Bengal showed muted overall performance, the underlying reasons differ across key aspects of electricity transition. Delhi developed a strong EV ecosystem, recording an adoption rate of 11.6%, the highest among the assessed states, while West Bengal’s adoption remained modest at 4.4%. Delhi’s renewable energy policy, released in 2023, outlines a cumulative target of 4.5GW by FY2027, whereas West Bengal continues to operate under a dated 2012 policy. Delhi’s performance was affected by the unavailability of the latest tariff orders, leaving the green tariff and ToD tariff details unreported. West Bengal offers green tariffs at a premium of USD0.0056/kWh (INR0.50/kWh). On green hydrogen uptake, both underperformed, but for Delhi, establishing a large-scale production facility seems unlikely due to constraints like limited land and water availability, and of abundant renewable energy needed for the production process, as well as limited proximity to major green hydrogen centres (industries). In contrast, West Bengal has substantial room to advance its efforts.
Kerala showed the highest improvement potential across most parameters. Kerala had a remarkable EV adoption rate of 10.5% in FY2025, adopted the ToD tariff mechanism, and aligned off-peak hours with solar hours. However, its green tariff premium, significantly higher than most states, stands at USD0.0086/kWh (INR0.77/kWh). Kerala’s progress stalled in energy storage capacity deployment and policy implementation, with both its policies for renewable energy and green hydrogen still in the draft stage.
Punjab and Haryana demonstrated modest EV adoption at 6.3% and 4.1%, respectively, and both states are yet to amend their ToD tariff mechanism to align off-peak hours with solar hours. Smart meter deployment was slow, neither state deployed energy storage capacity, and renewable energy policies in both states were dated. Their green hydrogen efforts also remained at a preliminary stage, with policies at the draft stage. However, Haryana announced two green hydrogen production facility.
Jharkhand’s performance under this dimension remained subdued, although the state has a renewable energy policy with a cumulative target of 4GW by FY2027. The state has also adopted the GEOA Rules but provides limited exemptions in open access charges. In terms of development of the EV ecosystem, the adoption rate stood at 4.6%. Jharkhand offers green tariffs at a premium of USD0.0067/kWh (INR0.60/kWh). The state offers ToD tariffs but is yet to align its off-peak hours with solar hours. In the context of energy storage capacity and green hydrogen uptake, Jharkhand has significant opportunities, given that it is a major industrial hub.
Himachal Pradesh remained the most constrained among 21 states, with limited movement in EV adoption rate (1.3% in FY2025). The state is also yet to adopt ToD tariffs but has made modest progress in deploying smart meters. While the state has a valid renewable energy policy and adopted the GEOA Rules, exemptions on open access charges remain limited. Storage capacity deployment and green hydrogen uptake emerged as potential opportunities for improvement.
Changes compared with SET 2024
Note: In this dimension, two new parameters have been added, and the mode of measurement has been updated for three parameters to better reflect emerging market enablers within the electricity transition landscape. One parameter was also removed: Codes/regulations for distribution system. The mode of measurement for assessing the development of the EV ecosystem, availability and attractiveness of green tariffs and adoption of GEOA Rules has been revised. A new parameter on the availability of ToD tariff mechanism has been introduced to capture progress in integrating solar generation. Additionally, green hydrogen uptake has been incorporated as a new parameter, recognising its growing relevance in driving industrial decarbonisation. The earlier parameter on distribution system codes and regulations has been removed.
Noticeable shifts have occurred in the performance of several states under this dimension for this assessment year compared to the previous assessment period (SET 2024). Uttar Pradesh, Bihar, Assam, Rajasthan and Andhra Pradesh have shown significant improvement in overall performance. In contrast, the performance of Karnataka, Jharkhand, Haryana and Odisha, Jharkhand and Haryana have declined considerably, reflecting the impact of introducing new parameters and recalibrated mode of measurement, along with the exclusion of codes/regulations for the distribution system parameter.
Assam, Bihar and Uttar Pradesh benefited from a change in the method used to measure EV ecosystem deployment. Further, Uttar Pradesh, Rajasthan, Bihar, Assam and Andhra Pradesh outperformed under the newly introduced parameter on ToD tariff mechanism. A comparatively lower green tariff premium positively influenced Uttar Pradesh and Rajasthan’s performance under this dimension. Additionally, Bihar introduced green tariffs for the first time. The inclusion of a parameter on green hydrogen uptake further strengthened the overall performance of Andhra Pradesh, Rajasthan and Uttar Pradesh.
Conversely, Karnataka and Haryana were negatively impacted by the change in the method of measuring EV ecosystem deployment. Similarly, given that Karnataka, Haryana and Jharkhand do not align off-peak hours with solar hours under ToD tariff mechanism, the introduction of this parameter negatively influenced their overall performance. Changes in the method of measurement for GEOA Rules affected the overall performance of Karnataka, Haryana, Odisha and Jharkhand. Karnataka, Odisha and Haryana’s decline was also driven by the removal of the earlier parameter on codes/regulations for distribution system where they had performed well, and the addition of green hydrogen uptake, where their performance was low to moderate.
The performance of Delhi, Gujarat, Maharashtra, Tamil Nadu, Telangana and Madhya Pradesh remained almost unchanged in comparison with the previous year’s assessment.
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