India Achieves Power Sufficiency with Installed Capacity of 513.73 GW; Peak Demand Deficit Nearly Eliminated

India has successfully transformed from a power-deficit nation into a power-sufficient country, with the present installed electricity generation capacity reaching 513.73 GW. Since April 2014, the country has added 289.61 GW of fresh generation capacity, significantly strengthening national energy security and ensuring uninterrupted power supply.

The country also successfully met its highest-ever peak electricity demand of 250 GW during the last financial year, reflecting the robustness of India’s power infrastructure. According to official data, the gap between energy requirement and energy supplied has reduced from 0.5% in FY 2022-23 to nearly zero in FY 2025-26 (up to December 2025). Similarly, peak demand shortfall declined sharply from 4% to almost NIL during the same period.

Providing details of the All-India Power Supply Position, the government stated that energy supply has remained closely aligned with demand across the past three financial years and the ongoing fiscal year, ensuring stable electricity availability nationwide. Any marginal shortfall observed at the state level is primarily attributed to local transmission and distribution constraints, rather than generation shortages.

State-Level Performance and Grid Strengthening

State-wise data indicates that most regions across India have maintained near-zero energy deficits, demonstrating improved power planning and grid reliability. Electricity supply and distribution being a concurrent subject, the responsibility of ensuring 24×7 reliable power rests primarily with state governments and distribution utilities. The Central Government continues to supplement state efforts through capacity additions by Central Public Sector Undertakings (CPSUs) and national-level transmission expansion.

To manage rising electricity demand, especially during peak seasons, the government has adopted several proactive measures, including optimized hydro scheduling, minimization of planned maintenance outages, assured coal supply to thermal plants, dispatch of gas-based power plants, and real-time grid monitoring. A robust National Grid now facilitates seamless power transfer from surplus to deficit regions.

Massive Capacity Expansion Roadmap

Under the National Electricity Plan (NEP), India’s installed capacity is projected to reach 874 GW by 2031–32. States have formulated 10-year rolling Resource Adequacy Plans (RAPs) to ensure future generation capacity stays ahead of demand.

The government’s capacity expansion programme includes:

-97 GW of new coal and lignite-based thermal capacity planned by 2034–35.

-12.97 GW of hydro projects currently under construction and 4.27 GW under planning.

-6.6 GW of nuclear capacity under construction and 7 GW in planning stages.

-157.8 GW of renewable capacity under construction, including solar, wind, and hybrid projects, with an additional 48.7 GW under planning.

-Large-scale energy storage deployment, including pumped storage projects (PSPs) and battery energy storage systems (BESS), to strengthen grid stability.

Transmission Infrastructure and Market Reforms

Transmission planning has been aligned with generation growth, with 191,474 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity planned for addition by 2031–32. Market reforms such as Real-Time Market (RTM), Green Day-Ahead Market (GDAM), Green Term-Ahead Market (GTAM), High Price DAM, and the DEEP Portal have enhanced efficiency, price discovery, and flexibility in power procurement.

Renewable Energy Push and Grid Stability

The government continues to accelerate renewable energy deployment through waiver of interstate transmission charges, competitive bidding frameworks, solar park development, PLI schemes for solar manufacturing, and flagship initiatives such as PM-KUSUM and PM Surya Ghar Muft Bijli Yojana.

To maintain grid stability, Ancillary Services Regulations, 2022 have been implemented. As of March 2025, 76 power plants with 73.3 GW capacity have been integrated under Automatic Generation Control (AGC), enabling real-time frequency regulation.

Distribution Sector Reforms and Universal Electrification

Under schemes such as DDUGJY, SAUBHAGYA, and RDSS, India has achieved near-universal electrification. The government has sanctioned ₹2.84 lakh crore under RDSS to modernize distribution infrastructure, promote smart metering, and reduce Aggregate Technical & Commercial (AT&C) losses, which have declined from 21.91% in FY2021 to 15.04% in FY2025.