Weak transmission and distribution networks, high population density and poor financial health of discoms are reasons why States like Bihar, Jharkhand, Chhattisgarh, West Bengal and Delhi are trailing in the setting up of renewable energy projects, say experts. Of the total installed electricity generation capacity in these States, the pie of renewable energy is less than 20 per cent.

As of November 2024, India’s renewable energy based electricity generation capacity was 205 GW which is 46 per cent of the country’s total installed capacity. However, in States like Bihar, the percentage of renewable energy is just seven per cent (or 587 MW) of the total installed power generation capacity of 7871 MW. In Jharkhand and Chattisgarh the renewable energy pie is just 13 per cent of the total installed capacity, while it is 16 per cent in Delhi, 20 per cent for West Bengal and 28 per cent for Uttar Pradesh.

“The underperformance of these States in renewable energy adoption stems from several factors. Firstly, they have limited renewable energy potential due to lower solar irradiance and weaker wind regimes compared to States like Rajasthan, Gujarat, and Tamil Nadu. Additionally, high population density and competing land use, particularly in Delhi, restrict the availability of land for solar parks and wind farms. In Bihar, Jharkhand, and West Bengal, weak transmission and distribution infrastructure further hampers the integration and evacuation of renewable energy into the grid. This issue is compounded by the poor financial health of discoms, particularly in Bihar, which further limits investments in renewable energy projects. Moreover, inconsistent and weak renewable energy policies, along with delays in regulatory approvals, discourage private sector participation,” says Atanu Mukherjee, CEO of Dastur Energy, an entity that conceptualises, designs and develops clean energy transition and carbon management solutions.

The National Electricity Policy (NEP) requires that by 2030, each State in India meet a minimum of 43 per cent of its power demand from renewable energy sources. The Government of India has also set a target to achieve 50 per cent of the country’s total installed electric power capacity from non-fossil fuel-based energy sources by 2030. 

“Mandating a uniform 43 per cent penetration of intermittent renewables across all States—irrespective of their varying grid capacities and transmission infrastructure—poses significant risks to grid stability. This could undermine the reliability of power supply, increase retail electricity prices, and paradoxically result in curtailment of excess renewable generation. Instead, renewable energy targets should be tailored to each State or region, taking into account the load profiles, current grid capacity, required infrastructure upgrades, and the availability of complementary load-following generation. A phased, State or region specific approach would enable a smoother, more reliable, and economically sustainable transition to higher renewable energy penetration,” Mukherjee added.

There are some States that are performing better than the national average. Driven by hydropower, the percentage of renewable energy stands at a high 96 per cent for Himachal Pradesh. Of the total 4573 MW of installed capacity of the State, 4399 MW is renewable energy which consists of 3200 MW of hydropower and 1100 MW of other renewable energy sources like solar.

In neighbouring Uttarakhand, the renewable energy pie occupies 69 per cent of the total installed power generation capacity. Rajasthan (68 per cent), Karnataka (67 per cent), Tamil Nadu (58 per cent) and Gujarat (53 per cent) and Kerala (50 per cent) have larger renewable energy pie when compared to the total installed capacities in these respective States.

Prashant Mathur, CEO of Saatvik Green Energy Ltd points out that India’s energy demand is growing at 7-8 per cent annually and most of the demand will be satiated by renewable energy. “India’s energy demand is rising rapidly and is expected to grow by 7-8 per cent yearly. Most of the energy demand in future to be catered by renewable energy mediums and Solar will play a vital role in fulfilling the demand. With Government ambitious targets and support, solar energy will surely boost the growing demand of energy in India,” says Mathur.