Land constraints limit its scope for large-scale generation.

India’s Delhi will need more battery storage, rooftop solar, and demand-side flexibility to meet rising electricity demand and reduce reliance on fossil fuel-based power, according to  the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember.

The report, Delhi’s electricity transition challenges and opportunities: A SCOPE study, found that growing night-time demand peaks will require investment in battery energy storage, smarter electricity pricing, and demand-side flexibility to maintain grid reliability.

“Delhi requires a different transition pathway from that of most Indian states,” said Tanya Rana, Energy Analyst for South Asia at IEEFA, and lead author.

Rana said the city’s transition will depend on optimising clean power procurement, scaling rooftop solar and storage, improving energy efficiency, enabling demand-side flexibility, and leveraging power markets.

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The report said the capital has limited land availability and negligible scope to expand large-scale power generation. Delhi therefore relies on power allocated from central generating stations and electricity purchases from neighbouring states.

Delhi had around 7,544 megawatts (MW) of allocated generation capacity as of June 2026.

The city’s energy requirement reached 38,482 million units (MU) in financial year (FY) 2026, accounting for around 2.2% of India’s total energy requirement.

Domestic consumers accounted for more than half of total electricity consumption.

The study identified distributed renewable energy as a key opportunity for Delhi’s decarbonisation. Installed distributed solar capacity reached 446 megawatts (MW) by June 2026.

It said the city could expand rooftop solar by streamlining approval processes, expanding net-metering provisions, and continuing consumer incentives under the Delhi Solar Energy Policy and Pradhan Mantri Surya Ghar: Muft Bijli Yojana.

“Delhi has built strengths in distribution sector performance, power procurement planning, and distributed renewable energy,” said Ruchita Shah, Energy Analyst for Asia at Ember, and co-author of the study.

Shah said these strengths provide a strong foundation for the next phase of Delhi’s energy transition as electricity demand continues to grow, particularly during night-time hours.

Delhi has also introduced Green Energy Open Access regulations, approved a pilot for peer-to-peer rooftop solar electricity trading, and introduced an electric vehicle policy proposing stronger electrification targets and expanded charging infrastructure.

The study identified several opportunities, including accelerating the deployment of battery energy storage systems, improving building energy efficiency, and expanding smart meter installation.

It also highlighted introducing solar-hour-aligned time-of-day tariffs, increasing participation in green electricity market segments, and further developing peer-to-peer trading projects.

“The study has identified several opportunities to further strengthen Delhi’s transition readiness,” said Saloni Sachdeva Michael, Lead Energy Specialist for South Asia at IEEFA.