Uttar Pradesh has been positioning itself as a key player in the renewable energy sector, with initiatives under way across segments to meet its growing energy demand. As of August 31, 2025, the state’s total installed power capacity stood at 34,726.30 MW, comprising 24,924.28 MW of thermal power and 370.45 MW of nuclear power capacity, according to the Central Electricity Authority (CEA). As per the Ministry of New and Renewable Energy’s data, the state’s installed renewable capacity reached 6,349.15 MW as of August 2025, increasing the share of renewables in the overall power mix to around 18 per cent. This underscores both the progress so far and the substantial potential for further expansion.
The state’s total installed renewable capacity comprises a diverse mix of 3,486.56 MW of solar, 2,310.39 MW of bio-power, 501.60 MW of large hydro and 50.60 MW of small-hydro projects. The state’s solar capacity is further segmented into 2,779.34 MW of ground-mounted solar, 382.5 MW of rooftop solar (including the PM Surya Ghar: Muft Bijli Yojana), and 324.72 MW of off-grid/Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM)components. The state’s bio-power capacity is further segmented into 1,985.50 MW of biomass power/bagasse cogeneration, 165.26 MW of biomass cogeneration (non-bagasse) and 159.63 MW of off-grid waste-to-energy projects.
The state’s growing reliance on renewable energy can also be attributed to its rising consumption levels. According to the CEA’s Energy Power Supply Position Report, India’s total energy requirement between April 2025 and August 2025 was 748,917 MUs, of which Uttar Pradesh accounted for nearly 10.58 per cent, making it the second largest energy-consuming state in the country. However, during the same period, the state’s energy requirement exceeded supply by 9 MUs, highlighting the need to strengthen power capacity to address future shortages.
Renewable Watch takes a look at the state’s renewable energy landscape, examining recent project developments, the challenges faced by developers and the road ahead…
Solar energy
With an installed capacity of over 3.4 GW, the sector is currently the largest contributor to the state’s renewable energy mix. However, progress across different segments has been uneven, underscoring the need for a more balanced and coordinated development strategy.
As per a Rajya Sabha response dated April 1, 2025, on the status of mega solar parks in the country, the state has set up several key projects. The solar park spread across the districts of Jalaun, Allahabad, Mirzapur and Kanpur Dehat has an installed capacity of 365 MW. Meanwhile, the Kalpi solar park has an installed capacity of 65 MW. Several other projects have been sanctioned, but are yet to be commissioned. These include the Jalaun solar park (1,200 MW), the Mirzapur solar park (100 MW), the Lalitpur solar park (600 MW), the Jhansi solar park (600 MW), the Chitrakoot solar park (800 MW), the Kanpur Dehat park (75 MW) and the Kanpur Nagar park (35 MW). Power generation from solar parks in Uttar Pradesh in 2024-25 (up to February 28, 2025) stood at 712.58 MUs.
In contrast, the uptake of the PM Surya Ghar: Muft Bijli Yojana in Uttar Pradesh has so far been modest. According to the scheme’s official website, as of October 3, 2025, the state has received 1,288,672 applications, but only 241,075 installations have been completed, reflecting a conversion rate of around 18.7 per cent. The total capacity installed under the scheme currently stands at 850.99 MW, and subsidies worth Rs 16.67 billion have been released so far.
Meanwhile, the state’s performance under the PM-KUSUM scheme has been mixed. As per the PM-KUSUM portal, under Component B, 107,266 pumps have been sanctioned, of which 66,498 have been installed. Under Component C, 12,000 pumps have been sanctioned, with 4,771 installations completed so far. However, progress under the feeder-level solarisation segment of Component C has been negligible. While as many as 3,70,000 pumps have been sanctioned under this category, installations are yet to begin.
Recognising the challenges of solar projects, particularly in terms of land availability, Uttar Pradesh is now exploring floating solar PV projects. In April 2025, the Uttar Pradesh government issued guidelines for the allocation of reservoirs and dams to set up floating solar plants under the state’s Solar Energy Policy 2022. In the first phase, six of the 35 identified water bodies will be allotted to developers for projects aggregating 440 MW. The reservoirs selected for the first phase include Barusagar, Dukma, and Pathrai dams in Jhansi, Gunta dam in Chitrakoot, and Upper Khajuri dam in Mirzapur.
Bioenergy
Bioenergy is steadily emerging as a key pillar of Uttar Pradesh’s clean energy transition. As one of India’s largest agricultural states, Uttar Pradesh is uniquely positioned to leverage its substantial bioenergy potential derived from crop residues, animal waste and other organic materials. According to data from the MNRE, as of August 2025, Uttar Pradesh has the second-highest installed bio-power capacity in the country. This accounts for nearly 20 per cent of its total installed bio-power capacity. Complementing this, the state has also taken a strong lead in compressed biogas (CBG) development. As per the GOBARdhan portal, as of October 3, 2025, Uttar Pradesh hosts the largest number of registered CBG plants in the country, totalling 255. Of these, 36 plants are currently operational, the highest among all Indian states. Furthermore, the state’s efforts in biogas adoption extend across its 75 districts. As per the portal, 137 biogas plants have been registered across these districts, of which 122 are already functional, highlighting a broad and balanced spread of deployment.
The state has stepped up efforts to promote the biomass and bio-CNG sectors. In May 2025, it approved CBG projects worth about Rs 60 billion to promote bioenergy and reduce fossil fuel dependence. Furthermore, the state launched the Gram-Urja Model in July 2025 to promote rural energy and sustainability. The programme aims to reduce LPG use, promote local biogas, link waste-to-energy with organic farming, and create rural jobs across construction, operations and biomass supply. The pilot is currently being implemented in Ayodhya, Varanasi, Gorakhpur and Gonda, where 2,250 household-level biogas units are being installed. If successful, it will expand to 0.25 million rural homes in four years. Each unit costs about Rs 39,300, with beneficiaries paying Rs 3,990 and the rest covered by subsidies and carbon credits.
With these moves, Uttar Pradesh is positioning bioenergy not only as a clean fuel alternative but also as a catalyst for circular economy practices.
Green hydrogen
Uttar Pradesh’s green hydrogen sector is gaining momentum, supported by its expanding renewable energy base and the launch of the Green Hydrogen Policy, 2024. It is one of the few states with a dedicated green hydrogen policy in place.
According to the policy, Uttar Pradesh’s current hydrogen demand stands at around 0.9 million metric tonnes per annum, primarily concentrated in the fertiliser and refinery industries. By promoting the local production of green hydrogen and green ammonia, the state aims to meet this demand while simultaneously creating a supporting industrial ecosystem.
This policy framework provides an impetus for the gradual growth of Uttar Pradesh’s green hydrogen sector. In August 2025, the Torrent Group inaugurated its first green hydrogen plant in the state in Gorakhpur. The facility is expected to achieve an annual production capacity of 72,000 tonnes, positioning Uttar Pradesh as an early mover in India’s green hydrogen space.
Overall, while green hydrogen remains at a nascent stage in India, Uttar Pradesh is making rapid strides in the segment. The state’s proactive policy framework and early initiatives are likely to lay the groundwork for many more such projects in the coming years.
Hydro and pumped storage
The Uttar Pradesh government is prioritising hydropower and pumped storage as critical components of its clean energy transition. By advancing new projects, the state aims to enhance grid flexibility, ensure round-the-clock renewable supply, and optimise the utilisation of both water and energy resources.
According to Uttar Pradesh Jal Vidyut Nigam Limited, the current operational hydroelectric power capacity stands at 524.9 MW. The largest contributor is the Rihand project with 300 MW, followed by Obra (99 MW) and Khara (72 MW). Other stations include Matatila (30.6 MW), Nirajni (5 MW), Chitaura (3 MW), Salawa (3 MW), Bhola (2.7 MW), Sheetla (3.6 MW), Belka (3 MW) and Babail (3 MW). The electricity generated by these plants is supplied to Uttar Pradesh Power Corporation Limited (UPPCL).
On the pumped storage project (PSP) front, the state has a significant project pipeline as reported by the CEA. Key projects include the Astha UP Off-Stream Closed Loop Project (640 MW), Chichilik (1,560 MW), Jhariya (1,620 MW) and Kandhaura (1,680 MW). Other notable developments in the pipeline are in Kalu Patti (1,000 MW), Musakhand (600 MW), Panaura (1,500 MW) and Sashnai (1,760 MW). In addition, large-scale projects such as at Shoma (2,400 MW), Sonbhadra (1,200 MW) and the UP01 PSP (3,660 MW) are also part of the upcoming pipeline.
Furthermore, in April 2025, Adani Green Energy Limited signed a power purchase agreement (PPA) with UPPCL to deliver 1,250 MW of energy storage capacity from pumped hydro storage projects. The PPA was executed between AGEL’s step-down arm Adani Hydro Energy Five and UPPCL.
For Uttar Pradesh to fully leverage its hydro and pumped storage potential, significant groundwork is still required in terms of planning, project execution, and integration with renewable generation. The current momentum is only an initial step, and sustained efforts will be crucial for translating these plans into operational capacity and achieving a balanced and flexible power mix.
Challenges and the way forward
Uttar Pradesh, despite being one of India’s largest power-consuming states, still lags behind its peers in renewable energy deployment. The state has an estimated clean energy potential of about 22,830 MW of solar, 7,726 MW of biopower and 13,440 MW of pumped storage capacity. Yet, the pace of capacity addition remains modest, primarily due to a complex mix of infrastructural, policy and implementation bottlenecks.
Land acquisition has been one of the most persistent challenges. In Uttar Pradesh, land is often fragmented and holds significant agricultural value. This creates tension between renewable infrastructure expansion and farmland preservation, slowing down the roll-out of utility-scale projects. In response, UPNEDA has started developing a land bank of government revenue land in Bundelkhand, aiming to ease project acquisition hurdles and attract large developers.
Equally critical is the issue of transmission infrastructure. Many renewable-rich locations in the state remain underserved by reliable grid connectivity. The Green Energy Corridor (GEC), which is under development in Bundelkhand, has a planned evacuation capacity of 4,000 MW (2,000 MW targeted for completion by 2026), will be a significant step towards addressing this gap. To further strengthen evacuation infrastructure, the Intra-State Transmission System GEC-II Scheme is being implemented by seven states, and Uttar Pradesh is one of them.
Another pressing challenge is the slow adoption of rooftop solar. Against a target of achieving 6,000 MW of rooftop solar capacity by 2026–27, only 382.5 MW has been installed as of August 2025, a shortfall of over 5,600 MW to be addressed within two years. The slow adoption reflects the need for simplified procedures and faster implementation.
Compounding these challenges is the state’s reliance on conventional power, which has delayed investment shifts toward renewables. With rising industrial and urban demand, balancing base load supply with new renewable capacity remains a key challenge.
At the distribution level, system inefficiencies and consumer-level gaps persist. While Uttar Pradesh’s discoms have made progress in reducing the average aggregate technical and commercial losses to around 15.3 per cent in 2023–24 and improving collection efficiency to over 99 per cent, the next leap depends on smart metering. According to the National Smart Grid Mission, as of now, nearly 31 million smart meters have been sanctioned, but only about 5 million have been installed, highlighting the lag in implementation. Without smart meters, billing errors and issues such as inflated or incorrect rooftop solar bills, which are reported in many districts of the state, will continue to undermine adoption and consumer trust.
Despite these challenges, there are clear signs of forward momentum. The state government’s focus on developing solar cities, promoting CBG projects and exploring pumped-storage capacity is diversifying the energy mix. Going forward, strengthening transmission and storage infrastructure will be critical for Uttar Pradesh’s renewable future. The timely completion of the GEC in Bundelkhand can unlock evacuation capacity for large-scale solar and biomass projects, while integrating battery energy storage systems will help stabilise supply and manage variability. In addition, prioritising firm and dispatchable renewable energy projects can ensure round-the-clock clean power availability, improving grid reliability and attracting long-term investors. Enhancing consumer and discom efficiency requires accelerating the roll-out of smart meters across the state. Smart metering will enable accurate billing, reduce losses and provide granular consumption data to optimise load management
By addressing these interlinked challenges through coordinated efforts, Uttar Pradesh can unlock its significant renewable energy potential and strengthen its energy security. With focused implementation and strong institutional support, the state can emerge as a model for balanced and sustainable renewable energy growth.
By Nidhi Dua
