India’s Power Sector Achieves Historic Milestones in FY 2025‑26

India’s power sector marked a landmark year in 2025, with unprecedented progress across generation, transmission, and distribution. From meeting a record peak demand to reducing national energy shortages to almost negligible levels, the sector showcased resilience, efficiency, and a strong commitment to clean energy.

Record Power Supply & Demand Management

• Peak Demand Met: India successfully met a maximum power demand of 242.49 GW during FY 2025‑26.
• Sharp Reduction in Energy Shortages: National-level shortages fell to 0.03%, a significant improvement from 4.2% in FY 2013‑14.
• Rising Per Capita Consumption: Electricity consumption per person reached 1,460 kWh in 2024‑25, up 52.6% from 957 kWh in 2013‑14.
• Enhanced Availability: Rural power supply increased from 12.5 hours in 2014 to 22.6 hours, while urban supply rose to 23.4 hours.

Generation Milestones

• Installed Capacity Expansion: India’s total generation capacity surged by 104.4%, from 249 GW in 2014 to 509.743 GW as of November 2025, with 55.57 GW added during January–November 2025.
• Renewable Energy Growth: A total of 178 GW of renewable capacity has been added since 2014, including 130 GW solar, 33 GW wind, 3.4 GW biomass, 1.35 GW small hydro, and 9.9 GW large hydro.
• Thermal Power Expansion: 13.32 GW of coal-based projects were awarded and 7.21 GW commissioned in FY 2025‑26. Total coal and lignite capacity now stands at 226.23 GW, with an additional 40.35 GW under construction.
• Coal Stock Position: Domestic coal stock for power plants stood at 51.7 MT in December 2025, targeted to rise to 66 MT by March 2026, ensuring uninterrupted peak demand supply.
• Revised SHAKTI Policy: The May 2025 update simplified coal allocation, reduced import dependency, and enhanced operational flexibility.
• Hydro & Pump Storage Projects: Key projects include the Tato-II Hydro (700 MW) and full commissioning of Parbati-II Hydro (800 MW). Pumped storage potential is 258 GW, with 7 GW developed and 12 GW under construction.
• Battery Energy Storage: Under the VGF scheme, 43,220 MWh of BESS capacity is targeted for addition.

Transmission & Grid Development

• National Electricity Plan 2023–2032: Transmission network to expand from 4.98 lakh ckm (2025) to 6.48 lakh ckm by 2032, with transformation capacity rising from 1,398 GVA to 2,345 GVA. Inter-regional transfer capacity will grow from 120 GW to 168 GW.
• New Approvals & Additions: 25.8 GW of RE-linked inter-state transmission approved, with 6,511 ckm of lines and 1,00,368 MVA transformation capacity added in 2025.
• Right of Way Guidelines: Revised RoW compensation ensures timely development of transmission corridors for 500 GW renewable integration by 2030.

Distribution & Consumer Empowerment

• Revamped Distribution Sector Scheme (RDSS): Over 19.79 crore prepaid smart meters and 52.52 lakh DT meters sanctioned. As a result, AT&C losses dropped to 16.16%, and the ACS-ARR gap reduced to Rs. 0.11/kWh.
• Rural Electrification: 13.65 lakh households from vulnerable tribal groups now have on-grid electricity under RDSS, along with public infrastructure electrification initiatives.

Energy Conservation & Efficiency

• Indian Carbon Market: Launched carbon credit trading to incentivize emission reductions in industry, covering compliance and voluntary offset mechanisms.
• Standards & Labelling Program: Now covers 41 appliances, including voluntary EV charger labelling introduced in 2025‑26.
• Energy Efficiency in MSMEs: ADEETIE program launched with ₹1,000 crore outlay to promote efficient technology adoption across 60 clusters.

Reforms & Regulatory Initiatives

• Payment Discipline: Electricity (Late Payment Surcharge) Rules amended in 2025, reducing legacy dues from Rs. 1,39,947 crore in 2022 to Rs. 8,005 crore.
• Consumer Energy Storage: Electricity (Amendment) Rules 2025 allow integration of consumer-owned energy storage, boosting flexibility and renewable energy utilization.
• Hydro Project Capex Revision: Capital expenditure limit for hydro schemes revised to ₹3,000 crore, with exemptions for off-stream pumped storage projects.

Energy Transition & Climate Commitment

• India achieved its NDC target of 50% non-fossil capacity nearly five years ahead of schedule. Non-fossil share rose from 32% in 2014 to 51% by October 2025, reflecting the country’s accelerated clean energy transition.