A report by the Institute for Energy Economics and Financial Analysis (IEEFA) urges renewable energy leaders Rajasthan and Gujarat to bolster their policies to sustain growth and propel India’s energy transition. The report recommends implementing green tariffs, green budgeting, and dedicated infrastructure funds to maintain their leadership in renewable energy.

IEEFA Director for South Asia, Vibhuti Garg, emphasised the need for regular assessments to prevent momentum loss. Co-author Tanya Rana highlighted Rajasthan’s lack of a green tariff, contrasting with Gujarat's premium pricing. By establishing green tariffs, Rajasthan could drive renewable demand and investments, while Gujarat could enhance its regulatory framework to avoid deterring consumers.

The report advocates for green budgeting in fiscal planning, helping both states prioritise renewable investments. Despite leadership in distributed solar, it represents only 7% of Rajasthan's and 15% of Gujarat's total capacity. Expanding distributed renewable energy (DRE) would diversify energy sources, reduce dependence on central plants, and boost economic growth.

IEEFA also recommends dedicated infrastructure funds to attract large-scale green energy investments. This multifaceted strategy, combining financial and governance support, is essential for Gujarat and Rajasthan to meet ambitious renewable targets. (ET)