New Delhi, January 16
The country's power sector achieved historic milestones in energy generation, transmission, and distribution in 2025. According to a Ministry of Power press release, India successfully met a record maximum power demand of 242.49 GW during the 2025-26 fiscal year while reducing national energy shortages to 0.03 per cent. This marked a significant drop from the 4.2 per cent shortage recorded in the 2013-14 period. The sector demonstrated growth through infrastructure development and a focus on sustainable energy availability for both rural and urban consumers.
The official data showed that India's total installed power generation capacity reached 509.743 GW as of November 30, 2025, representing a 104.4 per cent increase since 2014. Non-fossil fuel sources accounted for 51 per cent of this capacity by October 2025, helping the country meet its Nationally Determined Contribution target five years ahead of the 2030 schedule.
Since April 2014, approximately 178 GW of renewable energy capacity was added to the grid, including 130 GW of solar and 33 GW of wind power. Per capita electricity consumption also saw a sharp rise, reaching 1460 kWh in 2024-25, which indicated a 52.6 per cent increase from previous decade levels.
To support the expanding economy, the government awarded 13.32 GW of new coal-based thermal capacity in the 2025-26 fiscal year. Coal stock positions at domestic power plants stood at 51.7 million tonnes as of late December 2025, with a target to reach 66 million tonnes by March 2026.
The Ministry also streamlined coal allocation through the Revised SHAKTI Policy approved in May 2025, which reduced linkage mechanisms to only two windows to enhance ease of doing business. Significant progress occurred in the hydro sector with the commissioning of the 800 MW Parbati-II project and the approval of the 700 MW Tato-II project in Arunachal Pradesh.
Infrastructure expansion remains a core focus under the National Electricity Plan 2023-2032, which aims to meet a peak demand of 458 GW. The plan projects an expansion of the transmission network from 4.98 lakh circuit kilometres to 6.48 lakh circuit kilometres by 2032.
During 2025, the ministry added 6,511 circuit kilometres of transmission lines and approved inter-state transmission projects costing Rs 38,849 crore. Revised Right of Way guidelines also increased compensation for land value to 200 per cent for tower bases to expedite project development.
The distribution sector saw improvements through the Revamped Distribution Sector Scheme, which helped reduce aggregate technical and commercial losses to 16.16 per cent. Over 19 crore prepaid smart meters were sanctioned, and power availability in rural areas increased to an average of 22.6 hours.
The government also prioritized tribal electrification, sanctioning Rs 6,522 crore for households under initiatives like PM-JANMAN. On the conservation front, the Ministry notified the Carbon Credit Trading Scheme and launched the ADEETIE program with a Rs 1,000 crore outlay to assist MSMEs in adopting energy-efficient technologies.
- ANI
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