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					</table>Tamil Nadu plans to increase renewable energy to 50% of its power mix by 2031, backed by new solar and wind capacity, battery energy storage systems, pumped storage projects, transmission upgrades, and additional incentives for rooftop solar.
The state also aims to reduce carbon emissions by 70% by 2031 through clean energy projects, energy efficiency measures, and low-carbon technologies, according to the <a href="https://www.tn.gov.in/dept_profile.php?dep_id=Nw==" target="_blank" rel="noopener">Tamil Nadu Energy Department&#8217;s</a> latest policy.
As of July 1, 2026, Tamil Nadu had an installed power capacity of 46,846 MW, comprising 28,348 MW of renewable energy and 18,498 MW of conventional energy. Renewables, including hydro, accounted for about 60.5% of installed capacity.
Vision 2031
Under Vision 2031, the government proposes to promote renewable energy projects in southern Tamil Nadu, particularly in districts with high renewable potential.
The state also plans to establish 20,000 electric vehicle (EV) charging stations by 2031, focusing on corridors connecting major cities. It has proposed a 50% capital subsidy, capped at ₹50,000, for EV charging facilities in apartment complexes.
Tamil Nadu will <a href="https://www.mercomindia.com/tamil-nadu-announces-pm-surya-ghar-rooftop-solar-subsidy-of-up-to-%E2%82%B9100000" target="_blank" rel="noopener">provide</a> financial assistance over and above the central government subsidy under the PM Surya Ghar: Muft Bijli Yojana to accelerate residential rooftop solar adoption
Wind Power
As of July 1, 2026, the state had 11,686.21 MW of installed wind capacity, including capacity connected through the Central Transmission Utility, ranking second in India.
Repowering will be particularly important because several of Tamil Nadu&#8217;s wind sites contain older, lower-capacity turbines installed during the earlier phases of India&#8217;s wind market.
The Tamil Nadu Green Energy Corporation (TNGECL) owns four wind farm sites at Kayathar I, Kayathar II, Muppandal, and Puliyankulam. These sites have 110 wind energy generators with a combined installed capacity of only 17.355 MW. The government proposes replacing these aging machines and redeveloping the sites as a hybrid project comprising 18.75 MW of wind and 16 MW of solar capacity.
Solar Power
Solar has overtaken wind to become Tamil Nadu&#8217;s largest individual renewable technology by installed capacity. As of July 1, 2026, the state had 15,278.74 MW of solar capacity, including grid-connected rooftop systems and projects connected through the Central Transmission Utility.
The state is pursuing solar growth across utility-scale, distributed, residential, government-building, and solar-plus-storage segments.
Rooftop solar capacity across high-tension and low-tension consumers reached 1,746.59 MW as of July 1, 2026. The government proposes adding another 550 MW during FY 2026-27 through various initiatives, including PM Surya Ghar.
Residential consumers are eligible for net metering, while existing net feed-in residential consumers can migrate to net metering subject to the applicable regulations.
Battery Energy Storage Systems
Tamil Nadu is developing battery energy storage systems (BESS) as a key element of its strategy to accommodate rising solar and wind penetration.
TNGECL is implementing two major standalone BESS programs totaling 875 MW/2,500 MWh.
The first comprises 500 MW/1,000 MWh of two-hour standalone BESS under the state component of the Viability Gap Funding program. The projects will be developed on a build-own-operate basis at six Tamil Nadu Transmission Corporation substations: Thennampatty, Anuppankulam, Ottapidaram, Vellalaviduthi, Kayathar, and Karaikudi.
The six projects are scheduled to be commissioned by the end of December 2026.
The second program covers 375 MW/1,500 MWh of four-hour standalone BESS, supported by the Power System Development Fund. Eleven substations have been identified at Thappagundu, Thatchankurichi, Palladam, Alagarkoil, Kamudhi, Karamadai, Anaikadavu, Thiruvarur, Othakalmandapam, Thuvakudy, and N. Subbaiahpuram.
These projects are targeted for commissioning by September 2027.
TNGECL is implementing two projects in Karur and Thiruvarur, each comprising 15 MW of solar paired with a 15 MW/45 MWh BESS. Together, the projects will provide 30 MW of solar and 90 MWh of storage.
Together, the standalone and co-located projects represent 2,590 MWh of planned battery storage capacity.
Hydro and Pumped Storage
Hydropower is expected to complement the state&#8217;s large solar and wind portfolio by providing flexible generation during peak demand and periods of sudden reduction in variable renewable energy output.
TNGECL operates 47 hydroelectric stations with 107 generating units and a combined capacity of 2,325.9 MW. The portfolio includes 891.25 MW of irrigation-based hydro, 1,034.65 MW of non-irrigation hydro, and an existing 400 MW pumped storage power station.
Tamil Nadu has set a hydro generation target of 4,776 million units for FY 2026-27 and plans to maintain average plant availability above 80%.
The 500 MW Kundah pumped storage hydroelectric project in the Nilgiris is being developed at an estimated cost of ₹39.27 billion (~$410.83 million). The project will use the Porthimund reservoir as its upper reservoir and the Avalanche-Emerald reservoirs as its lower reservoir.
Biomass and Bagasse Cogeneration
Tamil Nadu is also expanding renewable generation from biomass resources, particularly bagasse produced by the sugar industry.
The government is implementing 12 cogeneration projects at 10 cooperative sugar mills and two public-sector sugar mills, with a combined capacity of 183 MW.
Renewable Purchase Obligations
Tamil Nadu&#8217;s Renewable Purchase Obligation for FY 2026-27 has been set at 35.95% of total electricity consumption.
The requirement comprises 1.97% wind renewable energy, 1.34% hydro renewable energy, 2.70% distributed renewable energy, and 29.94% other renewable energy.
Power Generation
Tamil Nadu&#8217;s conventional generation business is now housed under the Tamil Nadu Power Generation Corporation (TNPGCL) following the restructuring of the erstwhile Tamil Nadu Generation and Distribution Corporation.
The restructuring separated thermal and renewable generation into TNPGCL and TNGECL, respectively, while the distribution business was placed under the Tamil Nadu Power Distribution Corporation.
The state continues to add thermal capacity to provide firm generation alongside growing variable renewable resources. TNPGCL expects to commission the Udangudi and Ennore Special Economic Zone projects during FY 2027 to improve its revenue.
Transmission and Grid Integration
TANTRANSCO is expanding the state&#8217;s extra-high-voltage network to accommodate rising demand and integrate more wind and solar capacity. The transmission system is intended to provide bulk power transfer, grid balancing, renewable integration, and redundancy during outages.
Tamil Nadu has also implemented an intrastate Deviation Settlement Mechanism covering conventional and renewable generators. Wind and solar generators are subject to day-ahead and intraday scheduling requirements intended to improve grid stability.
The growing contribution from renewables is reflected in recent generation records. Tamil Nadu recorded an all-time high wind generation of 6,682 MW on August 1, 2026, with daily wind generation reaching 142.43 million units. Solar generation reached a record 7,919 MW on July 25, while daily solar generation peaked at 60.44 million units on July 6.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Tamil Nadu Targets 50% Renewables in Power Mix by 2031

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					</table><a href="https://rajasthan.gov.in/" target="_blank" rel="noopener">Rajasthan</a>, India&#8217;s largest state by area, has  unveiled its draft for &#8220;Rajasthan Energy Policy 2050&#8221; seeking to transition the state towards a sustainable and eco-friendly economy.
2030 Targets: 90 GW of Solar and Wind Power
One of the policy&#8217;s targets is to deploy a combined 90 GW of solar and wind capacity by 2030. This leap in renewable energy capacity is expected to generate employment opportunities for approximately 110,000 individuals, spanning various skill sets required for business development, project design, construction, commissioning, and maintenance.
The state also plans to expand its rooftop solar capacity. Rajasthan holds untapped potential in residential rooftop solar, with just 835 MW installed as of September 2022, despite an economic potential of 5.5 GW.
Additionally, Rajasthan is committed to achieving 100% compliance with the National Renewable Purchase Obligation (RPO) trajectory and significantly reducing the Aggregate Technical and Commercial (AT&amp;C) loss levels of power distribution companies (DISCOMs) to just 12–15% by 2025-26, down from a troubling 26.23% in 2021.
2050 Vision: 70% Non-Fossil Energy Generation
Rajasthan&#8217;s long-term objectives include envisioning non-fossil energy sources accounting for 70% of electricity generation, from 20% recorded in 2020.
Simultaneously, Rajasthan aims to shrink AT&amp;C losses in the distribution sector to less than 10%, a substantial improvement from the 26.23% level in 2021.
Green Hydrogen 
One of the most notable aspects of the policy is its explicit focus on green hydrogen—a pivotal resource for decarbonizing various sectors. Rajasthan currently consumes about 250,000 metric tons of hydrogen. Rajasthan has committed an investment of ₹400 billion (~$4.8 billion) for green hydrogen production. The investment will facilitate the creation of 5 GW of green hydrogen capacity, primarily generated using solar power and advanced electrolysis techniques.
To drive this transformation, the state plans to formulate a comprehensive &#8216;Green Hydrogen Policy.&#8217;
Roadmap for Progress
The policy outlines two broad economy-wide and 14 specific sectoral goals to be achieved by 2050.
<ul>
<li>Achieve a 60% reduction in the energy intensity of the state&#8217;s economy compared to 2020 levels.</li>
<li>Reduce total projected carbon emissions by 700 million tonnes from 2020 to 2050.</li>
</ul>
While Rajasthan&#8217;s energy transition holds immense promise, it also faces several challenges. The state must meet growing electricity demand while reducing carbon emissions, enhance the financial health of DISCOMS, and promote consumer engagement to create a decentralized, energy-efficient sector.
Currently, over 70% of the state&#8217;s electricity comes from coal-powered generators, contributing to 54% of its total emissions in 2020. If no changes occur, by 2050, electricity demand is projected to surge by 325%, and the power sector&#8217;s emissions are expected to rise by 88% compared to 2020. To counter this, the state must aggressively expand renewable energy capacity beyond the current target of 37.5 GW by 2025, requiring substantial efforts to integrate variable renewable energy into the grid.
They will also foster an environment for increased biofuel production by promoting industry collaboration for advanced biofuel technology adoption and workforce development.
Transformation for a Cleaner Future
The policy aims to rapidly reduce industrial energy emissions by increasing grid electricity use, enhancing energy efficiency, and establishing green hydrogen hubs.
By 2030, the policy targets a 40% grid electricity use in industries, up from 32% in 2020. Furthermore, it seeks to achieve global energy efficiency standards in sectors like cement and textiles, establishing Rajasthan as a hub for India&#8217;s green hydrogen production.
The transport sector, accounting for a significant portion of carbon emissions and energy demand in Rajasthan, is also in focus. By 2030, the policy aims to achieve a modal share of at least 40% for non-motorized and public transport, with substantial penetration of electric vehicles (EVs). By 2050, it targets an 80% market penetration for EVs and universal electrification of passenger buses and taxi fleets.
By 2030, the policy aims to meet 45% of agricultural power demand with renewable sources, both grid-connected and off-grid. It also targets improved on-farm irrigation efficiency to 40%.
By 2050, the state strives for 75% of agricultural power demand to come from renewables, coupled with a commitment to enhance on-farm irrigation efficiency to 70%.
Rajasthan had the highest cumulative large-scale solar installations, boasting over 16 GW by the end of Q2 2023, representing approximately 29% of the cumulative utility-scale solar capacity, according to Mercom’s <a href="https://www.mercomindia.com/product/q2-2023-india-solar-market-update" target="_blank" rel="noopener">Q2 2023 India Solar Market Update</a>.
The Rajasthan Electricity Regulatory Commission recently <a href="https://mercomindia.com/rajasthan-renewable-purchase-obligation-fy30/" target="_blank" rel="noopener">notified</a> the new renewable purchase obligation for the state to include energy storage and move solar along with biomass into the other RPO category.

Rajasthan Aims to Install 90 GW Renewable Energy Capacity by 2030

The Uttarakhand Renewable Energy Development Agency (UREDA) has floated a new tender for setting up 200 MW of grid-connected solar power projects under Uttarakhand Solar Energy Policy-2013 (Amended -2018).
The last date for the submission of bids is March 15, 2019.
The amount of money required for participating in the bidding process is ₹50,000(~$708.25) per 100 kW.
Uttarakhand, a small hilly state that was carved out of Uttar Pradesh, has begun making efforts to include solar power in its energy mix in order to meet its increasing energy requirements in a sustainable and intelligent way.
<a href="https://mercomindia.com/uttarakhand-invites-proposals-40-84-mw-of-solar-projects/" target="_blank" rel="noopener">Recently,</a> the Uttarakhand Irrigation Department also issued a Request for Proposal for the installation of 40.84 MW of solar PV projects on the periphery of Tumaria and Haripura dams under BOOT (build, own, operate) model. These dams are located in Udhamsinghnagar district of Uttarakhand. Out of the tendered 40.84 MW capacity, 27.34 MW is slated to be installed at Haripura Jalasay while the remaining 13.50 MW will be installed at Tumariya Jalasaya.
<a href="https://mercomindia.com/uttarakhand-invites-proposals-40-84-mw-of-solar-projects/" target="_blank" rel="noopener">In December 2018,</a> the Uttarakhand Electricity Regulatory Commission issued a draft order regarding the review of benchmark capital cost for solar PV, solar thermal, grid-interactive rooftop, and small solar PV projects to be applicable for the financial year 2019-20. <a href="https://mercomindia.com/uttarakhand-open-acess-cross-subsidy-surcharge/" target="_blank" rel="noopener">Recently</a> the UERC also introduced a cross-subsidy surcharge for open access consumers in the state.
<a href="https://mercomindia.com/uttarakhand-draft-tariff-regulations-rpo/" target="_blank" rel="noopener">Back in April 2018</a>, the commission also released draft tariff regulations for the supply of electricity from renewable energy sources and non-fossil fuel based co-generating stations for the year 2018.
<a href="https://mercomindia.com/uttarakhand-gb-pant-university-rooftop-tender/" target="_blank" rel="noopener">Earlier</a>, Govind Ballabh Pant University of Agriculture and Technology in Uttarakhand’s Pantnagar town, had tendered a 5 MW grid-connected rooftop solar project.
<a href="https://mercomindia.com/110-mw-solar-projects-commissioned-uttarakhand/" target="_blank" rel="noopener">In April 2017,</a> solar projects aggregating 110 MW were commissioned in the state of Uttarakhand. <a href="https://mercomindia.com/abengoa-commissions-5-mw-solar-project-enerparc-energy-uttarakhand/" target="_blank" rel="noopener">In the same month</a>, Abengoa, a Spanish renewable energy company commissioned a 5 MW solar PV power project in India. The project was developed at Roorkee, Uttarakhand.

Tender Announced for 200 MW of Solar Power Projects in Uttarakhand

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