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A framework for equitable state-level renewable energy target allocation in India

Journal Article

1 October 2026

Hand reaching towards India Gate with green infographic on renewable energy targets.
Image by Aditya Prakash via Unsplash

Abstract

India’s renewable-energy (RE) transition is hindered by large inter-state disparities that make uniform targets inefficient and inequitable. To address this gap, this study develops an integrated framework for equitable, least-cost transition pathways by introducing a novel dual-dimensional index that distinguishes generation readiness (technical, infrastructural, and institutional capacity to deploy renewable supply) from consumption readiness (economic, social, and system-performance capacity to integrate and sustain higher renewable uptake). Base-year evidence links generation readiness to system flexibility, while consumption readiness is closely tied to economic capacity, and readiness frequently diverges from RE integration outcomes. Projecting readiness to 2030 under a business-as-usual pathway and a convergence-oriented pathway shows that an equity-centred transition shifts the determinants of readiness from resource endowments toward grid health. In this framing, equity implies that high-readiness states shoulder a larger share of RE integration, while convergence policies raise the ability of low-readiness states to take on higher obligations over time, avoiding a persistent technology divide. A capacity-expansion and dispatch model (15-min granularity) for the Western and Southern regions in India evaluates four coordination modes. Relative to state-siloed operations, full inter-regional coordination with combined compliance lowers total system cost by ∼20% and reduces required installed capacity by about 30 GW at a 36.33% RE uptake target. Notably, some states fail to meet allocations in isolation; regional dispatch offsets these shortfalls, achieving the regional target. Overall, readiness-aligned allocation paired with coordinated operation offers a more equitable and economically efficient pathway to achieving India’s 2030 RE goals, as compared to uniform mandates.

Summary

• Novel dual readiness indices differentiate generation and consumption capacity.

• Readiness-based targets offer an equitable alternative to uniform national mandates.

• Equity-focused scenario leads to more balanced state RE obligations.

• Full interstate coordination can reduce 2030 system costs by over 20%.

• Flexible compliance unlocks regional comparative advantages for least-cost deployment.

Authors

Nikhil Thejesh Venkataramana, Tejal Kanitkar, Venkatasailanathan Ramadesigan, Rangan Banerjee

Presented At/Published In

Energy

Country

India

Tags

Climate ambitionClimate policyDecarbonizationDemand responseElectricity transitionEnergy transitionPower sector planningRenewable energySubnational analysis

Citation

Venkataramana NT, Kanitkar T, Ramadesigan V, Banerjee R. A framework for equitable state-level renewable energy target allocation in India. Energy. 2026;361:141921. doi:10.1016/j.energy.2026.141921

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