Energy Transition Index 2025, India’s Rank and Key Highlights

Context: Recently,  the Energy Transition Index (ETI) was released by the World Economic Forum.

Energy Transition Index 2025: Key Highlights

Top 5 Countries

• Sweden
• Finland
• Denmark
• Norway
• Switzerland

Other top 10 countries include Austria, Latvia, the Netherlands, Germany, and Portugal.

Other Major Rankings

• China: 12th
• Brazil: 15th
• USA: 17th
• Pakistan: 101st
• Congo: Ranked lowest

India’s Performance in ETI 2025

• Rank: India fell to 71st rank among 118 countries in the ETI 2025, eight positions lower than its 63rd rank in 2024.
• Score: India’s overall ETI score is 53.3, system performance score being 60.4 and transition readiness score being 42.7.

Strengths (as identified by the report)

• Energy efficiency: Reduced energy intensity and methane emissions.
• Investment capacity: Enhanced regulatory environment and financial investments, specifically in clean and renewable energy industries.
• Equity: Substantial progress in expanding access to energy and clean cooking fuels, particularly in rural districts, in the last ten years.

Challenges (Areas for Improvement)

• Transition Readiness: India’s score here is well below leaders, reflecting systemic issues that may hold back long-term scalability and resilience.
• Reliance on foreign fuels.
• Infrastructure bottlenecks: Including delays in permits, labour shortages, and grid capacity, most notably for adding renewables.
• Grid flexibility and supply diversification.
• Clean energy deployment beyond the power sector.

About Energy Transition Index (ETI) 2025

The Energy Transition Index (ETI) 2025 is an all-encompassing benchmarking report published by the World Economic Forum (WEF) and Accenture. The index measures the performance of the energy systems in 118 nations against their achievement towards a secure, sustainable, and equitable energy transition. The “Fostering Effective Energy Transition 2025” report featuring the ETI was issued on June 18, 2025.

• Purpose: Assesses national energy systems and tracks progress in energy transition across 118 countries
• Final Score: Composite of two sub-indices:
  • System Performance (60%) – Measures equity, security, and sustainability
  • Transition Readiness (40%) – Includes:
    • Core Enablers: Regulation, political commitment, finance & investment
    • Enabling Factors: Innovation, infrastructure, education, and human capital

How ETI is Calculated

The ETI evaluates nations on two broad areas, using 43 indicators and rating nations from 0 to 100:

System Performance (60%)

Evaluates the performance of a nation’s existing energy system on three equally important priorities:

• Energy Security: Reliable and robust energy supply, source diversity, grid reliability.
• Energy Equity: Access to low-cost energy for all consumers and industries.
• Environmental Sustainability: Encouraging lower-carbon energy sources and lowering emissions.

Transition Readiness (40% weighting)

Examines the transition enabling environment, comprising five components:

• Political Commitment: Policy and regulatory support.
• Finance and Investment: Access to finance for clean energy projects.
• Innovation: R&D and deployment of new energy technologies.
• Infrastructure: Grid capacity, smart meters, and other enabling structures.
• Human Capital: Skills and public knowledge.

Challenges

The report points out that geopolitical fragmentation, inflation, and pressure on digital infrastructure (such as from AI-powered data centers) would spoil future gains if left unchecked. There is a large disconnect between capital flows and future energy demand, with more than 80% of energy demand growth being in emerging and developing economies and more than 90% of clean energy investment being in advanced economies and China.

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