India’s Power Sector

India’s power sector has undergone changes over the last decade. From facing chronic shortages, the country has achieved a surplus capacity of 462,065 MW as of early 2025. Despite this progress, there are persistent challenges that threaten the sustainability and reliability of power supply across various regions.

Current Capacity and Demand

India’s installed power capacity has increased by 230,050 MW since 2014. Despite a total energy requirement of 16,26,132 MU in FY 2023-24, the supply was only slightly above this figure, leading to a minor deficit of 0.3 per cent. Some states like Gujarat have consistently met their energy demands, while others such as Uttar Pradesh and Jharkhand continue to face shortages.

Regional Disparities

The power supply landscape is marked by stark regional disparities. States like Gujarat enjoy consistent energy availability, while others like Jharkhand have experienced deficits as high as 7.5 per cent. These disparities highlight the need for improved transmission infrastructure to ensure equitable distribution of power across the country.

Capacity Expansion Plans

India is planning to expand its power mix . Thermal power remains the backbone, with an additional 80,000 MW expected by 2031-32. However, ongoing fuel shortages and environmental concerns pose challenges. Hydropower projects are in the pipeline but face cost overruns and ecological opposition. Nuclear power development is slow, with only 7,300 MW under construction against a target of 100 GW by 2047.

Renewable Energy Integration

Renewables are crucial for India’s energy transition. However, challenges in grid integration and storage persist. The ambitious goal of integrating 500 GW of renewable capacity by 2030 is threatened by delays in necessary infrastructure, particularly the Green Energy Corridor. Additionally, regulatory inconsistencies and payment delays deter potential investors, hampering growth.

Transmission and Distribution Challenges

The transmission network is bottleneck. Plans to add 1,91,474 circuit kilometres of transmission lines are underway. However, slow implementation risks the efficiency of power flow. Distribution companies face high technical and commercial losses, which the Revamped Distribution Sector Scheme aims to reduce. Political interference further complicates necessary reforms.

Rural Electrification Efforts

The Saubhagya Scheme has successfully electrified millions of households. However, the quality of supply remains inconsistent across states. While some states provide over 23 hours of daily power, others struggle to meet even 20 hours. Bridging these gaps is essential for achieving equitable energy access.

Future Outlook

To achieve long-term energy security, India must address structural inefficiencies. This includes improving transmission infrastructure, stabilising DISCOM finances, and enhancing renewable energy integration. With focused policy reforms and investments, India can work towards a reliable and affordable power future for all.

Questions for UPSC:

1. Estimate the impact of regional disparities on India’s power supply stability.
2. Critically discuss the challenges faced by India’s renewable energy sector in achieving its ambitious targets.
3. Examine the role of transmission infrastructure in enhancing power distribution efficiency in India.
4. Point out the implications of inconsistent rural electrification on socio-economic development in India.

Answer Hints:

1. Estimate the impact of regional disparities on India’s power supply stability.

1. Regional disparities lead to inconsistent power availability, affecting economic growth in less developed states.
2. States like Gujarat consistently meet energy demands, while others like Jharkhand face deficits.
3. Localized shortages undermine the overall surplus capacity, creating reliability issues for consumers.
4. Weak transmission networks exacerbate imbalances, hindering equitable power distribution.
5. Addressing these disparities is crucial for national energy security and sustainable development.

2. Critically discuss the challenges faced by India’s renewable energy sector in achieving its ambitious targets.

1. Grid integration issues hinder the efficient use of renewable energy sources.
2. Delays in infrastructure projects, particularly the Green Energy Corridor, impede capacity utilization.
3. Regulatory inconsistencies and payment delays deter investment in renewable projects.
4. Domestic solar manufacturing relies heavily on imports, exposing the sector to supply chain vulnerabilities.
5. Without robust frameworks and swift execution, ambitious renewable targets risk being unmet.

3. Examine the role of transmission infrastructure in enhancing power distribution efficiency in India.

1. Transmission infrastructure is vital for the efficient flow of electricity across regions.
2. Plans to add circuit kilometres aim to alleviate bottlenecks in power distribution.
3. Weak infrastructure contributes to high technical and commercial losses faced by distribution companies.
4. Improved transmission networks can help balance supply and demand across different states.
5. Investment in smart metering and technology can further enhance distribution efficiency.

4. Point out the implications of inconsistent rural electrification on socio-economic development in India.

1. Inconsistent electrification limits access to essential services, hindering education and healthcare.
2. States with unreliable power supply face challenges in industrial growth and job creation.
3. Rural areas struggle with subpar living conditions, affecting overall quality of life.
4. Equitable energy access is crucial for reducing regional inequalities and promoting inclusive growth.
5. Bridging electrification gaps can empower communities and stimulate local economies.