India Achieves Record Power Demand and Capacity Growth in FY 2025-26

India has achieved a remarkable peak power demand of 242.49 GW in FY 2025-26, reflecting significant advancements in electricity generation and transmission. The country has seen a dramatic increase in installed power capacity, with a notable reduction in energy shortages. Per capita electricity consumption has also surged, highlighting improvements in service reliability. The government is committed to expanding renewable energy sources and meeting future electricity demands through new coal-based thermal capacities and ambitious Pump Storage Projects. This article delves into the details of India's energy landscape and its commitment to sustainable growth.

By Narendra Chaudhary Jan 16, 2026, 14:59 IST

Significant Growth in Power Demand and Generation

New Delhi, Jan 16: India has successfully met a peak power demand of 242.49 GW during the fiscal year 2025-26, as reported by the government on Friday. This achievement is attributed to substantial enhancements in both generation and transmission capabilities, resulting in a national energy shortage of only 0.03 percent, a remarkable decrease from 4.2 percent in FY 2013-14.

The total installed power generation capacity in the country has seen a dramatic increase of 104.4 percent, rising from 249 GW on March 31, 2014, to 509.743 GW by November 30, 2025. The Ministry of Power noted that 55.57 GW of generation capacity was added between January and November 2025.

According to the ministry, per capita electricity consumption in India has risen to 1,460 kWh for 2024-25, reflecting a 52.6 percent increase (503 kWh) from 957 kWh in 2013-14.

Additionally, the average electricity availability in rural areas has improved from 12.5 hours in 2014 to 22.6 hours, while urban areas now receive up to 23.4 hours of power supply, compared to 22.1 hours in 2014. This indicates significant advancements in the reliability and accessibility of electricity services.

Since April 2014, the country has added 178 GW of renewable energy capacity, which includes large hydro projects.

This expansion comprises 130 GW of solar energy, 33 GW of wind energy, 3.4 GW of biomass, 1.35 GW of small hydro, and approximately 9.9 GW of large hydro generation capacity, showcasing India's dedication to clean energy, as stated by the government.

To accommodate the anticipated electricity demand from India's growing economy, 13.32 GW of new coal-based thermal capacity has been allocated in FY 2025-26 (up to November 30, 2025).

Furthermore, 7.21 GW of capacity has been commissioned in FY 2025-26 (up to November 30, 2025). The total installed capacity of coal and lignite-based thermal plants now stands at 226.23 GW, with an additional 40.35 GW currently under construction and 7.03 GW expected to be operational in FY 2025-26.

An additional 24.02 GW of capacity is in various stages of planning, clearance, and bidding, according to the government.

Moreover, India has the potential for Pump Storage Projects (PSPs) amounting to about 258 GW, with around 7 GW (2.7 percent) already developed. The government has set an ambitious goal of adding 57 GW of PSP capacity by 2031-32, of which 12 GW is under construction and the remainder is in the development phase.