All markets


With a cumulative score of 2.44, India ranks number 1 among emerging markets and number 10 in the global ranking.

  • Emerging markets
  • Asia-Pacific

2.57 / 5

Power score

2.12 / 5

Transport score


Buildings score

Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.


Low-carbon strategy

Net-zero goal and strategy

India announced at the COP26 climate summit in November 2021 that it would seek to reach net-zero emissions by 2070. However, this target has yet to be formalized and may be conditional on receipt of international climate finance. The country has previously argued that pushing developing countries with low per capita emissions to commit to a net-zero goal will undermine their right to economic development.

Nationally Determined Contributions (NDC)

The national cabinet approved India’s revised Nationally Determined Contribution (NDC) – its plan to achieve the goals set out in the Paris Agreement – in August 2022. The updated NDC includes a target to reduce the emissions intensity of its GDP by 45% by 2030 versus 2005 levels, and an objective for about 50% of cumulative installed power generation capacity to be non-fossil-fuel-based energy resources by the end of the decade. This is more ambitious than India’s previous NDC, which sought to lower the emissions intensity of GDP by 33-35% by 2030 from 2005 levels. The revised NDC has not laid out any sector-specific mitigation targets.

Fossil fuel phase-out policy

India does not have an official fossil-fuel phase-out policy. The increasing economic attractiveness of renewables and focus on reducing air pollution could act as triggers for the early retirement of coal-fired power plants.


Power policy

India is the world’s largest market for renewables auctions. The transparent mechanism and ambitious government targets have attracted many domestic and foreign players, helping drive down the cost of clean power in the country.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Residential and agricultural users typically pay less than the cost of supply for their electricity in India. These segments are cross-subsidized by commercial and industrial users.

Reforms are currently underway to increase private participation in the power distribution sector and allow users to buy electricity from different suppliers.

Fossil-fuel-derived power gets paid a two-part tariff, comprising a fixed price component for availability and a variable price component for dispatch. Renewables have one fixed tariff for 25 years with no indexation to inflation.


Power market

India’s power market has private participation in generation, transmission and distribution. Most of the power supplied is based on bilateral contracts, with a smaller volume transacted in the spot market. Power generators sign standardized power purchase agreements in the local currency, following the guidelines issued by the government.

Installed Capacity (in MW)

201220142016201820200100K200K300K400K MW

Electricity Generation (in GWh)

201220142016201820200500K1M1.5M GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

The Indian government's priority is expanding the grid network to supply 24/7 power. The integration of renewables is being aided by building out interstate transmission grids. There have been no payment defaults by offtakers, but the dues to power producers from distribution companies are rising because of late payments. In response, federal agencies have taken the lead in signing offtake contracts and have a good payment track record.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

Battery-electric two- and three-wheeler sales in India have accelerated in the past few years, driven by attractive economics compared to internal combustion engine models. There is room for further growth as the share of battery-powered two wheelers and passenger electric vehicles in annual sales remains below 5%.

India adopted the equivalent of Euro 6 emissions standards for vehicles in 2020, and does not subsidize diesel or gasoline.

EV policy

India has a federal support program for electric mobility – Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME) – which gives incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes. Many states also have their own policies to encourage EV adoption that offer purchase subsidies and other financial exemptions.

To encourage supply-side stakeholders, the government has introduced two programs (the ‘production-linked incentive’ schemes, or PLI) that will subsidize the domestic production of electric and fuel-cell vehicles, and advanced cell chemistry batteries.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

India has an Energy Conservation Building Code. This is applicable to buildings or building complexes that have a connected load of 100 kilowatts or greater, or a contract demand of 120 kilovolt-amperes or greater, and are intended to be used for commercial purposes. Buildings designed for private residential purposes only are not covered.

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

Heating in buildings is not common in India. Where it is needed, traditional biomass or electricity is typically used. The focus of efficiency has been on cooling and lighting loads.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

Additional insights
from BNEF

Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.

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This marks the 11th anniversary of Climatescope, BNEF’s annual assessment of energy transition opportunities. The project has been expanded to include activity not just in clean power but in the decarbonization of the transportation and buildings sectors.

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