Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Uttar Pradesh Steps Up Grid Expansion and Solar City Plan with Rs 2.66 Lakh Crore Energy Outlay

Uttar Pradesh has significantly strengthened its energy roadmap in the FY25 budget, earmarking Rs 2,65,926 crore for the sector—an 8% increase over the previous year. The state has more than doubled funding for additional energy sources to Rs 2,104 crore, underscoring a sharper focus on renewable energy and grid modernization while keeping the fiscal deficit capped at 3%.

State Finance Minister Suresh Kumar Khanna said the budget reflects a clear shift toward infrastructure-led energy transition, prioritizing network expansion and system readiness over headline-driven capacity targets. According to him, strengthening physical infrastructure is essential to support rising electricity demand and renewable integration.

Over the past three years, the state has undertaken extensive grid reinforcement. Between April 2022 and December 2025, Uttar Pradesh constructed or upgraded 2,410 new 33/11 kV substations, installed over 20,900 distribution transformers, and enhanced the capacity of more than 85,000 transformers. These upgrades have improved electricity availability to nearly 19 hours daily in rural areas, close to 22 hours at tehsil headquarters, and uninterrupted 24-hour supply at district headquarters.

The strengthened grid is expected to support growing demand from agriculture, industry, and emerging segments such as data centres. On the renewable front, the increased Rs 2,104 crore allocation will accelerate decentralized solar deployment. Key religious and urban centres including Ayodhya and Mathura, along with 17 municipal corporations, are being developed as solar cities. Rooftop solar installations, rural solar street lighting, and distributed renewable systems are being scaled up across districts to broaden clean energy access.

Separately, the state presented a Rs 9.13 lakh crore budget for FY26–27, marking a 12.29% increase over the previous year. The fiscal deficit ceiling of 3%, in line with the 16th Finance Commission’s recommendations, will remain in place through 2030–31, reinforcing the government’s emphasis on fiscal discipline alongside infrastructure growth.