The year 2024 marked a historic period for India’s power sector, with major achievements in generation, transmission, distribution, and energy conservation. India successfully met its all-time maximum power demand of 250 GW during the financial year 2024-25, reflecting the strength and reliability of the nation’s electricity system. Energy shortages at the national level dropped sharply to just 0.1 percent, a significant improvement from 4.2 percent in 2013-14. This has been made possible due to the continuous expansion of generation and transmission capacities, as well as effective policy measures.
Per capita electricity consumption also saw a remarkable rise, reaching 1,395 kWh in 2023-24, up 45.8 percent from 957 kWh in 2013-14. Universal electrification has been achieved, with rural households and villages now connected to a reliable power supply. The average electricity availability has improved from 12.5 hours in rural areas in 2014 to 21.9 hours, while urban areas enjoy 23.4 hours of supply, highlighting significant progress in ensuring reliable electricity across the country.
India’s total installed power generation capacity has grown by 83.8 percent over the past decade, rising from 249 GW in 2014 to 457 GW as of November 2024. Renewable energy has been a key driver of this growth, with 129 GW of capacity added since 2014, including 91 GW of solar, 27 GW of wind, 3.2 GW of biomass, 1.3 GW of small hydro, and 6.3 GW of large hydro. To meet peak demand, 19.2 GW of coal-based thermal projects have been awarded, with 29.2 GW under construction and 36.3 GW in planning. Domestic coal stocks have remained adequate, allowing thermal plants to operate smoothly and meet peak demand, while the government revised the SHAKTI policy to encourage private sector participation in coal allocation.
Hydro projects have also received attention, with the approval of the 186 MW Heo Hydro Electric Project in Arunachal Pradesh and schemes providing central financial assistance to the North Eastern Region states for hydroelectric development. The government aims to develop 35 GW of pumped storage projects by 2031-32 to support grid stability and renewable integration. Battery energy storage systems are also being promoted under a viability gap funding scheme, targeting an addition of 13,000 MWh.
Transmission infrastructure has been expanded significantly, with the approval of 50.9 GW of interstate transmission projects costing Rs. 60,676 crore. The National Electricity Plan from 2023 to 2032 outlines the expansion of transmission lines and transformation capacity to meet a projected peak demand of 458 GW by 2032, integrating renewable energy and supporting green hydrogen projects. The Ministry of Power revised the Right of Way guidelines, linking compensation to market land value to facilitate faster development of transmission projects.
In the distribution sector, the revamped Distribution Sector Scheme has led to the installation of nearly 20 million smart meters, feeder meters, and DT meters, improving efficiency and reducing losses. Special initiatives have ensured electrification for households under vulnerable tribal groups, with funds sanctioned for nearly one million households. Energy conservation has progressed with EV charging guidelines, sustainable building codes, and the continued success of the UJALA and street lighting programs, resulting in substantial energy savings and reduction of greenhouse gas emissions.
Reforms have strengthened consumer rights, simplified rooftop solar installation, promoted EV adoption, and rationalized open access charges for large consumers. Cybersecurity measures have also been enhanced with the establishment of the Computer Security Incident Response Team – Power, preparing the sector to face emerging cyber threats effectively. Overall, 2024 has been a landmark year for India’s power sector, demonstrating strong growth, modernization, and commitment to sustainable, reliable, and clean energy.
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