National energy shortages reduce to 0.1 pc

The progress in improving power supply has also led to an impressive surge in per capita electricity consumption, which reached 1,395 kWh in 2023-24. This marks a 45.8 percent increase from 957 kWh in 2013-14, a significant leap that reflects the country’s economic development and improved access to electricity.

The Indian power sector reached a historic milestone in 2024, with significant achievements in energy generation, transmission, distribution, and conservation. The country successfully met an all-time maximum power demand of 250 GW during FY 2024-25, demonstrating both the nation’s growing energy needs and the resilience of its energy infrastructure. Alongside this, India has made remarkable strides in reducing energy shortages, boosting per capita electricity consumption, and expanding renewable energy capacity.

Improvement in power supply and demand

One of the most impressive feats in India’s power sector was achieving an all-time maximum power demand of 250 GW in FY 2024-25. This record not only highlighted the nation’s increasing energy consumption, driven by economic growth, urbanisation, and industrialisation, but also demonstrated the country’s enhanced capacity to meet these demands. The power sector’s ability to meet this peak demand without significant disruptions is a testament to years of strategic investments in generation and transmission capacity.

Additionally, energy shortages at the national level have significantly reduced, from 4.2 percent in FY 2013-14 to a mere 0.1 percent in FY 2024-25. This sharp reduction in power shortages underscores the success of capacity expansions, operational improvements, and efficient management practices. The progress in improving power supply has also led to an impressive surge in per capita electricity consumption, which reached 1,395 kWh in 2023-24. This marks a 45.8 percent increase from 957 kWh in 2013-14, a significant leap that reflects the country’s economic development and improved access to electricity.

Universal electrification and enhanced power availability

In 2024, India achieved a landmark achievement in universal electrification, ensuring that villages and households across the country now have access to electricity. This milestone reflects the government’s dedication to reducing the energy access gap and enhancing the quality of life for millions of people. The increased availability of electricity, particularly in rural areas, is another notable improvement. In 2014, the average availability of electricity in rural areas was only 12.5 hours per day, but by 2024, this had increased to 21.9 hours. Urban areas, too, have seen a notable improvement, with electricity supply now available up to 23.4 hours per day. These advances in power availability have had a transformative impact on the country’s economy and its citizens’ well-being.

Growth in power generation capacity

The power generation capacity has grown substantially, particularly in renewable energy, reflecting the country’s strong commitment to clean energy. From 249 GW in March 2014, the total installed power generation capacity surged by 83.8 percent, reaching 457 GW by November 2024. This rapid growth was driven by significant additions in renewable energy, particularly solar and wind power. Since April 2014, India has added 129 GW of renewable energy capacity, including 91 GW of solar power, 27 GW of wind power, and 6.3 GW of large hydro generation capacity. These additions are part of India’s broader strategy to reduce its dependence on fossil fuels and transition to a cleaner, more sustainable energy mix.

In parallel, India has also focused on expanding its thermal generation capacity to meet peak demand, particularly from coal-based thermal plants. In response to the growing energy needs, the government has awarded 19.2 GW of new coal-based thermal capacity, with 29.2 GW of additional capacity under construction and 36.3 GW in various stages of planning and clearance. While renewable energy is at the forefront of India’s energy strategy, coal-based generation continues to play a vital role in ensuring energy security, particularly during periods of peak demand.

Hydro and pumped storage projects

Hydropower plays a significant role in the renewable energy mix, with several large-scale hydro projects under development. In November 2024, the government approved the Heo Hydro Electric Project (186 MW) in Arunachal Pradesh, which will be completed in 50 months at an estimated cost of ₹1,939 crore. Additionally, India is focusing on expanding pumped storage projects (PSPs), which provide essential grid stability by storing energy during periods of low demand for use during peak hours. India has the potential for approximately 181 GW of PSP capacity, with around 5 GW developed so far. The government has set an ambitious target of adding 35 GW of PSP capacity by 2031-32, with 6 GW currently under construction.

Transmission infrastructure development

A critical aspect of India’s power sector growth is the expansion of transmission infrastructure, which ensures that electricity can be efficiently delivered from generation sources to end consumers. The government has finalised a National Electricity Plan for 2023-2032, which envisions expanding the country’s transmission network from 4.91 lakh circuit kilometres (km) in 2024 to 6.48 lakh km by 2032. This plan also includes a significant increase in transformation capacity, from 1,290 GVA to 2,342 GVA, and new High Voltage Direct Current (HVDC) lines to enhance inter-regional transfer capacity.

Moreover, the government approved 50.9 GW of interstate transmission projects worth ₹60,676 crore to connect 280 GW of variable renewable energy (VRE) to the national grid by 2030. These efforts will ensure that the growing renewable energy capacity is effectively integrated into the grid, supporting the transition to a low-carbon economy.

Reforms in distribution and consumer empowerment

India has also made significant strides in reforming its distribution sector to improve operational efficiencies and financial sustainability. Under the Revamped Distribution Sector Scheme (RDSS), the government has sanctioned the installation of millions of smart meters, including prepaid smart meters, distribution transformer (DT) meters, and feeder meters. These efforts have contributed to reducing Aggregate Technical and Commercial (AT&C) losses to 15.37 percent and significantly improving the financial health of distribution companies (Discoms).

The government has also focused on consumer empowerment, particularly through the Rights of Consumers Rules, which were notified in February 2024. These rules guarantee consumers’ rights to timely access to services such as new connections, grievance redressal, and billing transparency. The rules also encourage the adoption of rooftop solar and integrating electric vehicles (EVs) into the grid.

The Indian power sector has made significant strides in recent years, achieving unprecedented energy generation, transmission, and distribution growth. The country’s commitment to renewable energy, energy conservation, and consumer empowerment positions it as a global leader in transitioning to a sustainable, low-carbon economy.