India's renewable energy leaders, Rajasthan and Gujarat, need to implement additional policy measures to maintain their momentum in the energy transition, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report urges both states to adopt green tariffs, green budgeting, and infrastructure funds to stay ahead in the renewable energy sector.

"Even frontrunners like Rajasthan and Gujarat must take corrective actions to avoid losing pace," said Vibhuti Garg, Director-South Asia at IEEFA. The briefing noted that while Gujarat has one of the highest green tariffs in India, Rajasthan lacks such incentives, limiting renewable energy demand.

Additionally, the report recommends integrating green budgeting into fiscal planning to prioritize renewable investments. Despite their leadership in distributed solar energy, Rajasthan’s and Gujarat’s solar capacities still account for only 7% and 15% of total energy, respectively.

To support large-scale green energy investments, IEEFA also suggested establishing dedicated infrastructure funds. The report emphasizes a multi-faceted approach, combining financial resources, market enhancements, and governance support to help the states meet ambitious renewable energy goals.