With some US$100bn of existing and proposed thermal power plants in financial distress, and low cost but variable renewable energy capacity best able to meet the ambitious targets set by government, India has an opportune moment to transform its electricity sector by introducing time-of-day pricing for both producers and consumers.

In 2015, under the United Nations Framework Convention on Climate Change’s Paris Agreement, governments committed to keeping global temperature increases to 2°C and to pursue efforts towards a more ambitious 1.5°C target.

Uttar Pradesh, India’s most populous state, is home to the country’s largest number of people without electricity access: as of late 2017, 14.6 million households—49 per cent of the state’s total—are yet to be electrified.

China and India, the world’s most populous countries, also match each other on the scale and severity of urban air pollution. Addressing this pollution requires that governments reorient policies away from fossil fuel combustion.

This report examines the performance of the electricity sector in Rajasthan by applying a Financial Sustainability Electricity Sector (FSES) approach based on the analytical framework developed by the Global Subsidies Initiative.