View source for Electricity sector in India

{{Short description|Power generation and distribution in India}}
{{Disputed|date=August 2023}}
{{Use Indian English|date=July 2014}}
{{Use dmy dates|date=November 2021}}
{{Infobox electricity sector
| country               = India
| image                 = 
| coverage              = 100% <ref>{{cite web|title=Steps taken to achieve 100 per cent electrification of all households in the country|url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=1983087}}</ref>
| continuity            =Urban- 23.4 hr; Rural- 22.6 hr (2023-24)
<ref>{{cite web|title=Average electricity supply in rural areas has increased from 12.5 hours in 2014 to 22.6 hours in 2025, and in urban areas to 23.4 hours in 2025|url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=2105394}}</ref> 
| production            = 1824 TWh (FY 2024-25)
<ref>{{cite web|title=Broad Overview of Monthly Renewable Energy Generation|url=https://cea.nic.in/wp-content/uploads/resd/2025/04/Broad_Overview_of_RE_Generation_March_2025.pdf}}</ref>
| fossilshare           = <!-- THIS IS ELECTRICITY GENERATION, NOT INSTALLED CAPACITY-->
| renewableshare        = <!-- THIS IS ELECTRICITY GENERATION, NOT INSTALLED CAPACITY-->
| greenhouse            = 1204.5 million tonne 
<ref>{{cite web|title=CO2 Baseline Database for the Indian Power Sector|url=https://cea.nic.in/wp-content/uploads/2021/03/User_Guide_Version_20.0.pdf}}</ref>
| greenhouseyear        = FY 2023-24
| use                   = 1,395 kWh per capita (FY 2023-24)
<ref>{{cite web|title=Major Highlights|url=https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/feb/doc2025221507201.pdf}}</ref>
| tdlosses              = 17.68% (FY 2022-23)<ref name=exmaa/>
| tdlossesyear          = 
| investment            = 
| selffinance           = 
| governmentfinance     = 
| privatefinance        = 
| privatetrans          = 
| privatedist           = 
| largeusers            = 
| residentialusers      = 
| providers             = 
| transmission          = 
| regulation            =Central Electricity Regulatory Commission 
| policy                = [[Ministry of Power (India)|Ministry of Power]]
| cdm                   = 
}}
India is the third-largest producer and consumer of electricity globally after [[Electricity sector in China|China]] and the [[Electricity sector of the United States|United States]]. In FY 2024-25, the country generated 1824 TWh of power, of which 25% came from non-fossil sources.<ref name=":4">https://cea.nic.in/wp-content/uploads/resd/2025/03/Monthly_RE_Generation_Report_March_2025.docx.pdf {{Bare URL PDF|date=November 2025}}</ref> 
India has achieved near-universal household electrification, though the quality and reliability of supply remain uneven across regions.<ref name="downtoearth.org.in">{{Cite news |date=Feb 2024 |title=Indian villages are 100% electrified, but what's next? |url=https://www.downtoearth.org.in/governance/indian-villages-are-100-electrified-but-what-s-next--94273}}</ref>

Electricity in India is generated by both public and private sector utilities, transmitted through a unified [[National Grid (India)|national grid]], and distributed primarily by state-owned distribution companies. The sector has undergone significant reforms since the [[The Electricity Act, 2003|Electricity Act of 2003]], which introduced competition, open access, and independent regulation. Despite rapid growth in generation and transmission capacity, the distribution segment continues to face financial stress due to high technical and commercial losses, tariff constraints, and subsidy burdens.

India has also emerged as a global leader in renewable energy deployment, with renewables accounting for 89% of capacity additions in FY 2024-25.<ref>{{cite web | last1=Authority | first1=Central Electricity | title=Installed Capacity Report - Central Electricity Authority | work=Central Electricity Authority | url=https://cea.nic.in/installed-capacity-report/?lang=en }}</ref> The country has set ambitious targets to achieve 500 GW of non-fossil fuel capacity by 2030<ref name="auto">{{Cite web|url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=1795071|title=India's Stand at COP-26|website=www.pib.gov.in}}</ref> as part of its transition toward a low-carbon energy system.

==History==
Electricity was first introduced in India in 1879 with the demonstration of electric light in [[Kolkata]],<ref>{{Cite web|url=https://www.cesc.co.in/history|title=History|website=www.cesc.co.in}}</ref> followed by the country's first hydroelectric power station at Darjeeling in 1897.<ref>{{Cite web|url=http://www.wbpower.nic.in/sidra.htm|title=Sidrapong Hydel Power Station|first=Shivaji|last=Mukherjee|website=www.wbpower.nic.in}}</ref> During the colonial period, electricity supply was largely developed by private companies serving urban centers and industries.

After independence in 1947, the Electricity (Supply) Act of 1948<ref>[https://cercind.gov.in/ElectSupplyAct1948.pdf]</ref> established the [[Central Electricity Authority (India)|Central Electricity Authority]] (CEA) for planning at central level and State Electricity Boards (SEBs) at state level. SEBs oversaw generation, transmission, and distribution within each state. The sector expanded rapidly through successive [[Five-Year Plans of India|Five-Year Plans]], with coal and large hydroelectric projects forming the backbone of India's power system.

However, not every state was rich in coal or hydro resources. This lead them to depend on diesel generators. In 1960s, regional grid was conceptualized to supplement power from neighboring states.

By the 1970s, [[REC Limited|REC]] was established to finance rural electrification. Generation was not able to keep up with growing demand. This, along with the [[1970s energy crisis|oil price shocks]] lead central government to nationalize coal mines<ref>{{cite web | title=History | url=https://archive.coalindia.in/en-us/company/history.aspx }}</ref> and establish [[Coal India|CIL]], [[NTPC Limited|NTPC]] and [[NHPC]].

In the 1980s, rural electrification accelerated. However, due to [[votebank]] politics by state governments, tariffs were kept low which strained their finances. In order to further develop the sector, [[Power Finance Corporation|PFC]] was established for financing needs.

By the 1990s, the idea of a national grid was conceptualized and lead to establishment of [[Power Grid Corporation of India|PGCIL]]. The [[Economic liberalisation in India|1991 economic liberalization]] led to policy reforms. It allowed private participation in generation (via licenses) and the [https://cercind.gov.in/electregucommiact1998.pdf Electricity Regulatory Commissions Act,1998] created independent regulators at central ([[Central Electricity Regulatory Commission|CERC]]) and state level ([[State electricity regulatory commission (India)|SERC]]).

In the 2000s, the [https://cercind.gov.in/Act-with-amendment.pdf Electricity Act, 2003] was enacted which consolidated prior legislation, mandated the unbundling of state utilities. Generation and distribution was de-licensed to encourage competition, and open access was introduced in transmission.

In the 2010s, all regional grids were fully synchronized to form a single national grid.<ref>https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=108690</ref> Large-scale electrification programmes such as [[Deen Dayal Upadhyaya Gram Jyoti Yojana|DDUGJY]] and [[Saubhagya scheme|Saubhagya]] extended electricity access to nearly all households.<ref name="static.pib.gov.in">https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/feb/doc2025221507201.pdf {{Bare URL PDF|date=November 2025}}</ref> India also pursued renewable energy deployment through [[National Solar Mission]], positioning itself as a global leader for renewables.

==Generation==
{{See also|Energy in India|List of power stations in India}}
[[File:Electricity Production by Top 10 Countries 2022.png|thumb|Top 10 Electricity Producers 2022]]
India is the third-largest producer of electricity in the world. The nation's utilities produced 1824.2 TWh of power in FY 2024-25 with about 25% generated from non-fossil sources.<ref name=":4" /> Between FY 2014-15 and FY 2024-25, India’s electricity generation (utility only) had a [[Compound annual growth rate|CAGR]] of 5%.<ref>{{cite web | title=Annual Generation Report - Central Electricity Authority | work=Central Electricity Authority | url=https://cea.nic.in/annual-generation-report/?lang=en }}</ref>

Generation was de-licensed in the [[The Electricity Act, 2003|Electricity Act of 2003]], since then private participation has increased from 10% of overall share in FY 2003 to 37% in FY 2023.<ref>{{Cite web|url=https://cea.nic.in/pdm/growth-of-electricity-sector-in-india-1947-2021/?lang=en|title=Growth of Electricity Sector in India (1947-2024) - Central Electricity Authority|first=Central Electricity|last=Authority |work=Central Electricity Authority }}</ref>
[[File:India Electricity Generation- % share by source (FY 2024-25).svg|thumb|Generation Mix (FY 2024-25)]]
[[File:India - Electricity Generation Sector-wise (TWh).svg|thumb|Generation by sector (FY 2003-23)]]
{| class="wikitable"
|+Generation and capacity installed in India by source (utilities)
!Source
!Electricity generated (FY 2024-25)<ref name="plf" /><ref name=":5">https://cea.nic.in/wp-content/uploads/installed/2025/03/IC_March_2025_allocation_wise.pdf {{Bare URL PDF|date=November 2025}}</ref>
!Cumulative installed capacity (as of March 2025)<ref name=":5" />
|-
|Coal
|1331.6
|221.8
|-
|Oil
|0.4
|0.6
|-
|Gas
|31.4
|24.5
|-
|Nuclear
|56.7
|8.2
|-
|Hydro
|160.2
|52.8
|-
|Solar
|144.2
|105.6
|-
|Wind
|83.4
|50
|-
|Bio Energy
|15.9
|11.6
|-
|'''TOTAL'''
|'''1824.2 TWh'''
|'''475.2 GW'''
|}
{| class="wikitable defaultright col1left" style="text-align:right"
|+Electricity generation in India (TWh)
|-
! style="background:#ddf;" | Year
! style="background:#fdd;" | Total Fossil
! style="background:#fdd;" | Coal
! style="background:#fdd;" | Oil
! style="background:#fdd;" | Gas
! style="background:#ffd;" | Nuclear
! style="background:#dfd;" | Hydro
! style="background:#dfd;" | Small<br />Hydro
! style="background:#dfd;" | Solar
! style="background:#dfd;" | Wind
! style="background:#dfd;" | Others
! style="background:#dfd;" | Total Renewables
!Utility 
!Captive<ref>{{cite web | last1=Authority | first1=Central Electricity | title=General Review Report - Central Electricity Authority | work=Central Electricity Authority | url=https://cea.nic.in/general-review-report/?lang=en }}</ref>
!Total
Domestic
|-
!2011-12<ref name=":1">{{Cite web |date=May 2016 |title=Growth of Electricity Sector in India From 1947-2016 |url=http://www.cea.nic.in/reports/others/planning/pdm/growth_2016.pdf |archive-url=https://web.archive.org/web/20170217223547/http://www.cea.nic.in/reports/others/planning/pdm/growth_2016.pdf |archive-date=February 17, 2017}}</ref>
|708.4
|612.5 || 2.6 || 93.3 || 32.3 || 130.5 || colspan="4" style="text-align:center;"|51.2 ||181.7 || 922.5|| 134.4||1056.9
|-
!2012-13<ref name=":1" />
|760.5
| 691.3 || 2.4 || 66.7|| 32.9 || 113.7 || colspan="4" style="text-align:center;"|57.4 ||171.2 || 964.5|| 144.0||1108.5
|-
!2013-14<ref name=":1" />
|792.1
| 745.5 || 2.0 || 44.5 || 34.2 || 134.8 || colspan="4" style="text-align:center;" |65.5 ||200.4 || 1026.6|| 149.0|| 1175.6
|-
!2014-15<ref name=":1" /><ref name=":2">{{Cite web |date=March 2018 |title=Renewable Energy Overview |url=https://cea.nic.in/wp-content/uploads/2020/03/overview-03.pdf}}</ref>
|877.9
| 835.3 || 1.6 || 41.1 || 36.1 || 129.2 || 8.1|| 4.6 || 33.8 || 15.3||191.0 || align="right" | 1116.9|| 162.1 || align="right" |1279.0
|-
!2015-16<ref name=":1" /><ref name=":2" />
|943.8
| 896.3 || 0.4 || 47.1 || 37.4 || 121.4 || 8.4|| 7.4 ||  33.0 || 17.0||187.2 || 1168.4|| 168.4||1336.8
|-
!2016-17<ref name="exmaa" /><ref name=":2" />
|993.5
| 944.0 || 0.4 || 49.1 || 37.9 || 122.4 || 7.7 || 13.5 || 46.0 || 14.4||203.9 || 1235.4|| 172.0 || 1407.4
|-
!2017-18<ref name="exmaa" /><ref name=":2" />
|1037.1
| 986.6 || 0.3 || 50.2 || 38.3 || 126.1 || 7.7 || 25.9 || 52.7 || 15.6||228.0 || 1303.5 || 179.8 || 1483.3
|-
!2018-19<ref name="exmaa" /><ref>https://cea.nic.in/wp-content/uploads/2020/03/overview-03-1.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1072.3
| 1022.3 || 0.2 || 49.8 || 37.7 || 134.9 || 8.7 || 39.3 ||62.0 || 16.8||261.7 || 1371.8 || 213.1  || 1584.9
|-
!2019-20<ref name="exmaa" /><ref>https://cea.nic.in/wp-content/uploads/resd/2020/08/overview-03.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1042.8
| 994.2  || 0.2 ||48.4  || 46.5 || 155.8 || 9.5|| 50.1 ||64.6 || 14.1||294.1 || 1383.4 || 239.6  || 1623.0
|-
!2020-21<ref name="exmaa" /><ref>https://cea.nic.in/wp-content/uploads/resd/2021/03/Broad_overview_March.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1032.6
| 981.4  ||0.2  ||50.9 || 43.0 || 150.3||10.3 ||60.4  ||60.1 || 16.4|| 297.5|| 1373.2 ||224.8 || 1598.0
|-
!2021-22<ref name="exmaa" /><ref>https://cea.nic.in/wp-content/uploads/resd/2022/04/Broad_overview_March_2022.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1114.8
| 1078.6  ||0.2  ||36.0 || 47.1 || 151.6||10.5 ||73.4 ||68.6 || 18.3|| 322.5|| 1484.5|| 209.3 || 1693.8
|-
!2022-23<ref name="exmaa" /><ref name=":6">https://cea.nic.in/wp-content/uploads/resd/2023/03/Broad_overview_of_RE_Generation_March_2023-1.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1206.4
| 1182.1  ||0.4  ||23.9 || 45.9 || 162.1|| 11.2||102.0 ||71.8 || 18.6|| 365.7|| 1617.9||211.9|| 1829.8
|-
!2023-24<ref name="exmaa">{{cite web | last1=Authority | first1=Central Electricity |title=Growth of electricity sector in India, 1947-2024 | work=Central Electricity Authority |url=https://cea.nic.in/pdm/growth-of-electricity-sector-in-india-1947-2021/?lang=en |access-date=16 August 2024}}</ref><ref>https://cea.nic.in/wp-content/uploads/resd/2024/04/Broad_Overview_of_RE_Generation_March_2024.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1326.6
| 1294.9  ||0.4  ||31.3 || 47.9 || 134.1||9.5 ||116.0 ||83.4 ||17.0 || 359.9|| 1734.1|| ||
|-
!2024-25<ref name="plf">{{cite web |title=Fuel Wise Generation, 31-Mar-2025 daily report |url=https://npp.gov.in/public-reports/cea/daily/dgr/31-03-2025/dgr17-2025-03-31.pdf |access-date=2 April 2025}}</ref><ref name=":7">https://cea.nic.in/wp-content/uploads/resd/2025/04/Broad_Overview_of_RE_Generation_March_2025.pdf {{Bare URL PDF|date=November 2025}}</ref>
|1363.4
| 1331.6  ||0.4  ||31.3 || 56.6 || 148.6||11.6 ||144.2 ||83.3 ||15.9 ||403.6 || 1824.2|| ||
|}
[[File:India Electricity- Generation by Source (2014-24).svg|thumb|Generation by Source (FY 2014-24)]]
Notes:

* Coal includes lignite
* Other = Biomass, Bagasse, and Waste to Energy
Historical datasets can be retrieved from [https://cea.nic.in/wp-content/uploads/pdm/2024/08/Growth_Book_2024.pdf here].{{sort under}}{{Table alignment}}
[[File:India Electricity- Generation Share by Source Type (2011-24).svg|thumb|Generation Mix (FY 2011-24)]]

=== Sources ===
{{Chart
| chart = India electricity sources EIA.Area.chart
}}

==== Fossil fuels ====
{{main|Coal in India|Oil and gas industry in India}}

India has huge coal reserves and as such it has been the backbone of India's electricity generation, providing [[base-load]] power. The government has indicated that coal will remain significant in the near future, and will likely peak between 2030-35.<ref>{{Cite web |date=Dec 2022 |title=Coal Demand Likely to Peak Between 2030-2035 |url=https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1885381}}</ref>

Utilization of gas plants has been limited by constrained domestic supply and high prices of imported LNG.<ref>{{Cite web |date=March 2023 |title=20268.17 MU generated by Gas-based Power Stations during April-Jan in FY 2022-23 |url=https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1911550}}</ref> Oil-fired generation plays a negligible role, used mainly for [[Peaking power plant|peaking]] or emergency power.

==== Nuclear power ====
{{main|Nuclear power in India}}
India operates a fleet of [[pressurized heavy-water reactor]]s (PHWRs) managed by the [[Nuclear Power Corporation of India Limited|NPCIL]]. The government has set a target to install 100 GW of nuclear capacity by 2047 and has initiated steps to reach 22.5 GW by 2031-32. It is also aiming to develop at least five indigenously designed and operational [[small modular reactors]] (SMRs) by 2033.<ref>{{Cite web |date=Feb 2025 |title=Nuclear Power in Union Budget 2025-26 |url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244}}</ref>

==== Renewable energy ====
{{main|Renewable energy in India}}
Renewable energy generation has doubled from 181.7 TWh in FY 2011-12<ref name=":1" /> to 365.7 TWh in FY 2022-23.<ref name=":6" /> However its overall share in total generation has been around 20% for the time span. This share is likely to reach 40% by 2030,<ref name="cea.nic.in">https://cea.nic.in/wp-content/uploads/irp/2023/05/Optimal_mix_report__2029_30_Version_2.0__For_Uploading.pdf {{Bare URL PDF|date=November 2025}}</ref> due to the government's target of installing 500 GW of non-fossil capacity by then.<ref name="auto"/>

Large Hydro has historically contributed to the bulk of the renewable generation in the country, though solar – with its aggressive growth – has almost caught up with it as of FY 2024-25.<ref name=":7" /> Wind energy has seen a relatively calm but steady growth.

Bio Energy has maintained a somewhat static generation of about 16 TWh in the past decade. However, it might increase as the government has mandated 5% biomass co-firing in Thermal Power Plants from FY 2024-25. This obligation shall increase to 7% from FY 2025-26.<ref>{{Cite web|url=https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1945245|title=Revised Biomass Policy mandates 5% biomass co-firing in Thermal Power Plants from FY 2024-25: Union Minister for Power and New & Renewable Energy|website=www.pib.gov.in}}</ref>

== Storage ==
[[Energy storage|Energy storage systems]] (ESS) help in maintaining grid stability from intermittent and [[variable renewable energy]] sources and enabling round-the-clock supply of low-carbon electricity.
{| class="wikitable"
|+Energy Storage Capacity in India
!
!Cumulative Installed (Dec 2024)<ref>https://cea.nic.in/wp-content/uploads/notification/2025/02/Advisory_on_colocating_Energy_Storage_System_with_Solar_Power_Projects_to_enhance_grid_stability_and_cost_efficiency.pdf {{Bare URL PDF|date=November 2025}}</ref>
!Capacity Required (2026–27)<ref name=":10">https://cea.nic.in/wp-content/uploads/irp/2023/06/NEP_2022_32_FINAL_GAZETTE.pdf {{Bare URL PDF|date=November 2025}}</ref>
!Capacity Required (2031–32)<ref name=":10" />
|-
|[[Pumped-storage hydroelectricity|PSH]]
|4.8 GW
|7.5 GW / 47.7 GWh
|26.7 GW / 175.2 GWh
|-
|[[Battery energy storage system|BESS]]
|0.1 GW
|8.7 GW / 34.7 GWh
|47.2 GW / 236.2 GWh
|-
|Total
|4.9 GW
|16.1 GW / 82.4 GWh
|73.9 GW / 411.4 GWh
|}
Due to high import costs of battery systems, India is currently relying on pumped-storage hydroelectricity. India has identified a potential PSH of 214.6 GW<ref>https://cea.nic.in/wp-content/uploads/pumpedstorage/2025/09/PSP_Potential.pdf {{Bare URL PDF|date=November 2025}}</ref> and is planning to install at least 50 GW by FY 2030-31.<ref>https://cea.nic.in/wp-content/uploads/pumpedstorage/2025/09/PSP_Capacity_Addition_Plan.pdf {{Bare URL PDF|date=November 2025}}</ref> In 2020, power tariff from Solar PV clubbed with PSH have fallen below the coal plant tariffs in offering base load and peak load power supply.<ref>{{cite web |title=Energy Storage: Connecting India to Clean Power on Demand |url=https://ieefa.org/sites/default/files/2023-12/Energy%20Storage_Dec23.pdf |url-status=live |archive-url=https://web.archive.org/web/20231229035654/https://ieefa.org/sites/default/files/2023-12/Energy%20Storage_Dec23.pdf |archive-date=29 December 2023 |access-date=28 December 2023}}</ref><ref name="stp">{{cite web |title=Solar storage tariff spells trouble for coal |url=https://energy.economictimes.indiatimes.com/news/renewable/solar-storage-tariff-spells-trouble-for-coal/74054463 |url-status=live |archive-url=https://web.archive.org/web/20200213152934/https://energy.economictimes.indiatimes.com/news/renewable/solar-storage-tariff-spells-trouble-for-coal/74054463 |archive-date=13 February 2020 |access-date=10 February 2020}}</ref>

The government is supporting development of BESS through Viability Gap Funding. The scheme was announced in Sep 2023 and envisages development of 4 GWh of BESS projects by 2030-31.<ref>{{cite web | title=Cabinet approves the Scheme titled Viability Gap Funding for development of Battery Energy Storage Systems (BESS) | url=https://www.pib.gov.in/PressReleasePage.aspx?PRID=1955112 }}</ref> Due to declining battery prices, the target was later increased to 13.2 GWh.<ref>https://www.pib.gov.in/PressReleasePage.aspx?PRID=2118325</ref>

There has been renewed interest in [[Solar thermal energy|solar thermal]] because of its energy storage properties. As of 2025, India has an installed capacity of just 329.5 MW of solar thermal, out of which only 101 MW was operational.<ref>{{Cite news |date=Sep 2025 |title=Rethinking India's solar strategy: Why solar thermal deserves a second look |url=https://www.downtoearth.org.in/renewable-energy/rethinking-indias-solar-strategy-why-solar-thermal-deserves-a-second-look}}</ref>

Many storage technologies like [[Flywheel energy storage|Flywheel Energy Storage]], [[Compressed-air energy storage|Compressed Air Storage]], [[Green hydrogen|Green Hydrogen]], etc. are in nascent stages of development.

==Transmission and distribution==
{{main|National Grid (India)}}After electricity is generated at [[Power station|power plants]], it is stepped up to high voltages (765 kV, 400 kV, 230 / 220 kV) for transmission over long distances with minimal loss. And then stepped down to lower voltages, closer to demand areas for power distribution to end consumers.

The national grid - which was synchronized in 2013 - consists of Inter-State (ISTS) and Intra-state Transmission System (Intra-STS) of 220 kV and above. ISTS is largely managed by Central Transmission Utility (wholly owned by [[Power Grid Corporation of India|PowerGrid]]), with private participation through Tariff Based Competitive Bidding route, with a few exceptions.<ref name=":9">https://cea.nic.in/wp-content/uploads/annual_reports/2024/Final_Approved_Annual_Report_2023_24_05032025_1.pdf {{Bare URL PDF|date=November 2025}}</ref> Intra-STS is managed by State Transmission Utility of each state. Projects are developed by State Government through competitive bidding process for projects costing above a threshold limit which are decided by the [[State electricity regulatory commission (India)|SERCs]].<ref name=":9" />

In order to increase transmission capabilities in a cost effective way, the government often converts existing lines and substations to higher voltages.<ref>{{cite web | title=Power System &#124; Government of India &#124; Ministry of Power | url=https://powermin.gov.in/en/content/power-system }}</ref> Further, transmission planning has been aligned with renewable energy targets and is planned to evacuate around 613 GW of renewable capacity by 2032, including large zones in Rajasthan, Gujarat, and Andhra Pradesh.<ref name=":8" />
{| class="wikitable"
|+Transmission Network Expansion<ref name=":8">https://powermin.gov.in/sites/default/files/uploads/National_Electricity_Plan_Volume_II_Transmission.pdf {{Bare URL PDF|date=November 2025}}</ref>
!
!2017-22 Results
!2022-27 Targets
!2027-32 Plans
|-
|Transmission Lines (circuit km)
|4,56,716
|5,71,403
|6,48,190
|-
|Transformation capacity of substations (GVA) incl HVDC
|1104.5
|1881.8
|2345.1
|}

Electricity distribution remains the most financially stressed part of the sector. Most distribution companies (DISCOMs) are state-owned, with private licensees operating in few areas such as Delhi and Odisha.<ref>{{Cite news |date=May 2025 |title=Power distribution privatisation: The why comes first, the how comes later |url=https://energy.economictimes.indiatimes.com/news/power/power-distribution-privatisation-the-why-comes-first-the-how-comes-later/120918651}}</ref> The distribution segment is characterized by high aggregate technical and commercial (AT&C) losses (excess of 30% in early 2000s,<ref>{{Cite news |date=Dec 2022 |title=Why the central government should stop funding the power distribution sector |url=https://indianexpress.com/article/opinion/columns/power-distribution-discoms-somit-dasgupta-8320907/}}</ref> 22.6% in FY 2013-14<ref>https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2036993</ref>) and a gap between average cost of supply (ACS) and average revenue realized (ARR).

Technical losses stem from transformation losses, line losses, poor [[Power factor|Power Factor]] due to insufficient reactive compensation. Commercial losses are caused by theft, inaccurate / faulty meters, billing inefficiencies (error in billing process), and collection inefficiencies.

Govt has launched several initiatives (IPDS, [[Ujwal DISCOM Assurance Yojana|UDAY]], RDSS, etc) to improve the financial health and operational efficiency of DISCOMs. While there have been improvements, chronic issues like high losses, unsustainable tariffs, subsidy dependence, and regional disparities continue to affect the overall performance of the sector.
{| class="wikitable"
|+Overview of DISCOMs Performance<ref>https://pfcindia.co.in/ensite/DocumentRepository/ckfinder/files/GoI_Initiatives/Annual_Integrated_Ratings_of_State_DISCOMs/13th_IR_Report_Final_9_Jul_2025.pdf {{Bare URL PDF|date=November 2025}}</ref>
!
!FY 2022-23
!FY 2023-24
!FY 2024-25
|-
|Net Energy Sales (TWh)
|1022
|1128
|1214
|-
|Billing Efficiency (%)
|85.9
|86.8
|86.9
|-
|Collection Efficiency (%)
|97.4
|97.6
|96.5
|-
|AT&C Loss (%)
|16.4
|15.4
|16.1
|-
|ACS-ARR Gap (INR/kWh)
|0.4
|0.6
|0.4
|-
|Outstanding Debt (INR Cr.)
|7,59,741
|6,72,282
|7,52,677
|-
|Accumulated Losses (INR Cr.)
|6,06,277
|6,59,340
|6,92,269
|}

==Consumption==
{{See also|States of India by installed power capacity}}
[[File:India - Per capita electricity consumption.svg|thumb|Per capita consumption (2011-22) <ref>https://web.archive.org/web/20170217223547/http://www.cea.nic.in/reports/others/planning/pdm/growth_2016.pdf {{Bare URL PDF|date=November 2025}}</ref><ref name="auto1">https://cea.nic.in/wp-content/uploads/pdm/2024/08/Growth_Book_2024.pdf {{Bare URL PDF|date=November 2025}}</ref>]]
India consumed a total electrical energy of 1622 TWh in FY 2023-24, with an estimated figure of 1694 TWh for FY 2024-25.<ref name=":3" />

Per capita consumption reached 1395 kWh for FY 2023-24, with an estimated figure of 1538 TWh for FY 2024-25 (as of Jan 2025).<ref name=":3">{{Cite news |date=June 2025 |title=Electricity use surges to all-time high in India |url=https://energy.economictimes.indiatimes.com/news/power/record-surge-in-indias-electricity-consumption-reaches-1538-kwh-per-capita/121756148}}</ref><ref name="static.pib.gov.in"/> This figure is relatively low compared to the global average of 3486 kWh for 2022.<ref name="auto1" />
The nation achieved 100% household electrification as reported by its states as on March 31, 2021. Electricity connection was provided to all willing un-electrified households in rural areas and all willing poor un-electrified households in urban areas.<ref>{{Cite web |title=Steps taken to achieve 100 per cent electrification of all households in the country |url=https://pib.gov.in/PressReleasePage.aspx?PRID=1983087 |archive-url=http://web.archive.org/web/20250430020228/https://pib.gov.in/PressReleasePage.aspx?PRID=1983087 |archive-date=2025-04-30 |access-date=2025-12-09 |website=www.pib.gov.in}}</ref>
[[File:India Electricity Consumption Sector-wise (FY 2022-23).svg|thumb|Consumption by Sector (FY 2022-23)]]
Between FY 2013-14 and FY 2024-25 (till Jan 2025), power availability has increased from 12.5 hrs to 22.6 hrs in rural areas and from 22.1 hours to 23.4 hrs in urban.<ref>{{Cite web |title=Average electricity supply in rural areas has increased from 12.5 hours in 2014 to 22.6 hours in 2025, and in urban areas to 23.4 hours in 2025: Shri Manohar Lal |url=https://pib.gov.in/PressReleasePage.aspx?PRID=2105394 |archive-url=http://web.archive.org/web/20250222093639/https://pib.gov.in/PressReleasePage.aspx?PRID=2105394 |archive-date=2025-02-22 |access-date=2025-12-09 |website=www.pib.gov.in}}</ref><ref>{{Cite web |title=HOUSEHOLDS ELECTRIFIED UNDER SAUBHAGYA |url=https://pib.gov.in/PressReleasePage.aspx?PRID=2078460 |archive-url=http://web.archive.org/web/20250312155657/https://pib.gov.in/PressReleasePage.aspx?PRID=2078460 |archive-date=2025-03-12 |access-date=2025-12-09 |website=www.pib.gov.in}}</ref>
{| class="wikitable"
|+Estimated consumption in FY 2026-27<ref name=":0">https://cea.nic.in/wp-content/uploads/ps___lf/2023/02/Volume_I_Report_of_20th_Electric_Power_Survey.pdf {{Bare URL PDF|date=November 2025}}</ref>
!Regions
!Consumption (TWh)
|-
|Northern
|491.3
|-
|Western
|502.2
|-
|Southern
|403.1
|-
|Eastern
|193.7
|-
|North Eastern
|19.8
|-
|Total
|1610.1
|}
'''Note''': Energy requirement (accounting for losses) would be 1907.8 TWh.<ref name=":0" /> Further, these estimates were made in 2020 and were based on "Optimistic" scenario where the government achieves its targets for various planned initiatives having potential to impact power demand of the country such as National Hydrogen Mission.[[File:Trend of Energy Consumption - Category-wise.svg|thumb|Consumption by Sector (2011-22)<ref name="auto1" />]]

=== Residential ===
Residential sector primarily includes use of household appliances such as air conditioners, refrigerators, fans, and other appliances. Rapid urbanization and rural electrification efforts have driven consumption. With rising global temperatures, residential demand will likely be driven by cooling needs. Steps taken by government to shape consumption includes [https://beeindia.gov.in/standards-labeling.php Standards & Labeling] (to help consumers identify energy-efficient products), [http://ujala.gov.in/ UJALA] (LED bulbs), and [https://evyatra.beeindia.gov.in/go-electric-launch/ Go Electric Campaign] (to promote [https://beeindia.gov.in/electric-mobility.php electric mobility] and [[Induction cooking|electric cooking]]).

=== Industrial ===
Industrial sector encompasses manufacturing (automobiles, textiles, steel, cement), chemicals, mining, and construction. Energy-intensive industries like steel, aluminum, and cement contribute significantly to the demand. As India seeks to become a major manufacturing hub through [[Make in India]] and [https://mnre.gov.in/en/national-green-hydrogen-mission/ National Green Hydrogen Mission], the demand will likely increase in the future. [https://beeindia.gov.in/perform-achieve-and-trade-pat.php Perform, Achieve and Trade scheme] is the major government step to improve energy efficiency in the sector.

=== Commercial ===
The commercial sector includes areas like offices, retail establishments, malls, hotels, and restaurants. With increasing urbanization and the growth of the services sector, demand for electricity in this sector is steadily rising. Adoption of energy-efficient technologies and [https://beeindia.gov.in/ernergy-conservation-building-code-ecbc.php sustainable building practices] is helping manage consumption growth.

=== Agriculture ===
Irrigation pumps are the main source of consumption in this sector. In many states, electricity for agriculture is either subsidized or provided for free, which has led to inefficiencies and high consumption levels.<ref>{{Cite news |date=July 2023 |title=Greening the green revolution - A model for India's clean energy programme for agriculture |url=https://energy.economictimes.indiatimes.com/news/renewable/greening-the-green-revolution-a-model-for-indias-clean-energy-programme-for-agriculture/101578213}}</ref> The government has been working to reduce energy wastage in this sector by promoting solar-powered irrigation systems ([https://www.india.gov.in/spotlight/pm-kusum-pradhan-mantri-kisan-urja-suraksha-evam-utthaan-mahabhiyan-scheme PM-KUSUM]) and more energy-efficient pumps (part of [https://beeindia.gov.in/agricultural-demand-side-management-programmeagdsm.php AgDSM]), which are expected to help curb future demand.

=== Others ===
This includes municipal sector which encompasses public lighting, water works and sewage. [https://beeindia.gov.in/municipal-demand-side-management-programmemudsm.php MuDSM] was launched to reduce energy consumption.

Government's efforts on improving energy efficiency across the sectors, resulted in a net energy savings of 210 TWh between FY 2011-12 and 2020-21. For FY 2020-21, 56% of overall yearly savings came from industrial sector, and 40% from residential.<ref name=":10"/>

==Foreign electricity trade==
{{anchor|Foreign}}
India's [[National Grid (India)|National Grid]] is synchronously interconnected to Bhutan, and asynchronously linked with [[Bangladesh]], [[Myanmar]] and [[Nepal]].<ref name="CERC">{{cite web|title=Grid Security – Need For Tightening of Frequency Band & Other Measures|url=http://www.cercind.gov.in/2011/Whats-New/AGENDA_NOTE_FOR_15TH_CAC_MEETINGHI.pdf|website=Central Electricity Regulatory Commission|access-date=2 December 2016|archive-date=21 September 2018|archive-url=https://web.archive.org/web/20180921103332/http://www.cercind.gov.in/2011/Whats-New/AGENDA_NOTE_FOR_15TH_CAC_MEETINGHI.pdf|url-status=live}}</ref> An [[undersea interconnector]] to [[Electricity sector in Sri Lanka|Sri Lanka]] ([[India–Sri Lanka HVDC Interconnection]]) have been proposed.<ref>{{cite web|last1=Bhaskar|first1=Utpal|title=India is now one nation, one grid|url=http://www.livemint.com/Politics/jIOljqqvinQqqngk7BYLZP/Southern-transmission-line-connected-to-National-Grid.html|website=Livemint|access-date=2 December 2016|date=1 January 2014|archive-date=2 December 2016|archive-url=https://web.archive.org/web/20161202234639/http://www.livemint.com/Politics/jIOljqqvinQqqngk7BYLZP/Southern-transmission-line-connected-to-National-Grid.html|url-status=live}}</ref> Singapore and UAE are interested to import electricity from India by establishing undersea cable link to reduce carbon emissions as imported electricity would not contribute to carbon emissions upon its use whether it is generated from renewable resources or not in the exporting country.<ref>{{cite news |title=Talks on to set up grid interconnection with Singapore and UAE: Minister R K Singh |newspaper=The Economic Times |date=16 August 2023 |url=https://economictimes.indiatimes.com/industry/energy/power/talks-on-to-set-up-grid-interconnection-with-singapore-and-uae-minister-r-k-singh/articleshow/102777993.cms |access-date=19 August 2023 |archive-date=19 August 2023 |archive-url=https://web.archive.org/web/20230819030516/https://economictimes.indiatimes.com/industry/energy/power/talks-on-to-set-up-grid-interconnection-with-singapore-and-uae-minister-r-k-singh/articleshow/102777993.cms |url-status=live }}</ref>

India has been exporting electricity to Bangladesh, Myanmar and Nepal and importing excess electricity from Bhutan.<ref>{{cite web | title=Page 37, Monthly operation report, July 2022 | url=https://posoco.in/download/monthly_report_jul_2022/?wpdmdl=46989 | publisher=POSOCO, Govt. of India | date=July 2022 | access-date=1 September 2022 | archive-date=1 September 2022 | archive-url=https://web.archive.org/web/20220901072201/https://posoco.in/download/monthly_report_jul_2022/?wpdmdl=46989 | url-status=live }}</ref><ref>{{cite web| title=India To Export Another 500 MW Power To Bangladesh In Next 12 Months: NLDC| url=http://www.business-standard.com/article/news-cm/india-to-export-another-500-mw-power-to-bangladesh-in-next-12-months-nldc-115071400538_1.html| access-date=15 July 2015| archive-date=22 July 2015| archive-url=https://web.archive.org/web/20150722014252/http://www.business-standard.com/article/news-cm/india-to-export-another-500-mw-power-to-bangladesh-in-next-12-months-nldc-115071400538_1.html| url-status=live}}</ref> Since 2016–17, India has been a net exporter of electricity with 9,232 Gwh exports and 7,597 Gwh imports, mainly from Bhutan, in 2021–22.<ref name="esi">{{cite web |title=Energy statistics India 2023 |url=http://www.indiaenvironmentportal.org.in/files/file/EnergyStatisticsIndia2023.pdf |url-status=live |archive-url=https://web.archive.org/web/20230314070146/http://www.indiaenvironmentportal.org.in/files/file/EnergyStatisticsIndia2023.pdf |archive-date=14 March 2023 |access-date=14 March 2023 |publisher=CSO, GoI}}</ref><ref>{{Cite web |url=https://brage.bibsys.no/xmlui/bitstream/id/419902/14083_FULLTEXT.pdf |title=Archived copy |access-date=2 December 2016 |archive-date=2 December 2016 |archive-url=https://web.archive.org/web/20161202234856/https://brage.bibsys.no/xmlui/bitstream/id/419902/14083_FULLTEXT.pdf |url-status=dead }}</ref><ref>{{Cite web |url=http://southasiajournal.net/prospect-of-a-saarc-power-grid/ |title=Prospect of a SAARC Power Grid – South Asia Journal |access-date=2 December 2016 |archive-date=18 September 2016 |archive-url=https://web.archive.org/web/20160918202944/http://southasiajournal.net/prospect-of-a-saarc-power-grid/ |url-status=dead }}</ref> In 2018, Bangladesh proposed importing 10,000 MW power from India.<ref>{{cite web |url= https://energy.economictimes.indiatimes.com/news/power/bangladesh-looks-to-increase-power-import-from-india/65441365 |title= Bangladesh looks to increase power import from India |access-date= 17 August 2018 |archive-date= 17 August 2018 |archive-url= https://web.archive.org/web/20180817195255/https://energy.economictimes.indiatimes.com/news/power/bangladesh-looks-to-increase-power-import-from-india/65441365 |url-status= dead }}</ref>

{| class="wikitable"
|+Electricity (Million kWh) Trade by India.
! Fiscal year  !! Bhutan !! Nepal !!Bangladesh!! Myanmar !!Total
|-
| 2023-24<ref>{{cite web|title=Operational Performance Report for the month of March, 2024|publisher=POSOCO, India|url=https://posoco.in/download/monthly_report_mar_2024/?wpdmdl=57092|access-date=25 April 2024}}</ref>   ||align="right"|+3,763 || style="text-align:right;"|-154|| style="text-align:right;"|-8,413|| style="text-align:right;"|-8|| style="text-align:right;"|-4,812
|-
| 2024-25<ref>{{cite web|title=Operational Performance Report for the month of March, 2025|publisher=POSOCO, India|url=https://posoco.in/en/download/monthly_report_mar_2025/?wpdmdl=61154|access-date=25 April 2025}}</ref>   ||align="right"|+4,466 || style="text-align:right;"|+497|| style="text-align:right;"|-8,118|| style="text-align:right;"|-9|| style="text-align:right;"|-3,164
|}
Net exports (-) and Net imports (+). The above exports to Bangladesh are excluding the exports from the 1600 MW [[Godda Thermal Power Station]] which is located in India but not connected to Indian electric grid.

To encourage the carbon neutral solar power generation, plans are made to transform the Indian national grid into a transnational grid expanding up to [[Vietnam]] towards east and [[Saudi Arabia]] towards west spanning nearly 7,000&nbsp;km wide.<ref>{{Cite web|title=Explainer: All about the One Sun One World One Grid initiative|date=14 November 2021|url=https://www.thehindubusinessline.com/blexplainer/bl-explainer-all-about-the-one-sun-one-world-one-grid-initiative/article37486937.ece|access-date=24 December 2022|archive-date=24 December 2022|archive-url=https://web.archive.org/web/20221224034031/https://www.thehindubusinessline.com/blexplainer/bl-explainer-all-about-the-one-sun-one-world-one-grid-initiative/article37486937.ece|url-status=live}}</ref><ref>{{Cite web|title=Saudi Arabia, India to lay 1,600 km long underwater cable|date=23 October 2022 |url=https://www.oilandgasmiddleeast.com/partnership-0/saudi-arabia-india-to-lay-1600-km-long-underwater-cable|access-date=23 March 2023|archive-date=22 March 2023|archive-url=https://web.archive.org/web/20230322224304/https://www.oilandgasmiddleeast.com/partnership-0/saudi-arabia-india-to-lay-1600-km-long-underwater-cable|url-status=live}}</ref> Being at the central location of the widened grid, India will be able to import the excess solar power available outside its territory at cheaper prices to meet the morning and evening peak load power demands without much costly energy storage.<ref>{{cite web|title=US backs India-UK led solar Green Grids Initiative launched by PM at COP26|url=https://www.business-standard.com/article/current-affairs/us-backs-india-uk-led-solar-green-grids-initiative-launched-by-pm-at-cop26-121110700470_1.html|access-date=24 December 2022|date=May 2020|archive-date=17 December 2022|archive-url=https://web.archive.org/web/20221217112215/https://www.business-standard.com/article/current-affairs/us-backs-india-uk-led-solar-green-grids-initiative-launched-by-pm-at-cop26-121110700470_1.html|url-status=live}}</ref>

== Governance and regulatory framework ==
Electricity is a concurrent subject matter in the [[Constitution of India]]. As such, central and state governments can both legislate on the Indian power sector. The sector is primarily governed under the [[The Electricity Act, 2003|Electricity Act, 2003]] and the [https://www.indiacode.nic.in/bitstream/123456789/2003/1/A2001-52.pdf Energy Conservation Act, 2001], which together lay out the regulatory and policy foundations for generation, transmission, distribution, and energy efficiency.

=== Central level ===
[[Ministry of Power (India)|Ministry of Power]] is the nodal ministry which oversees the development of the electricity sector in India. It is responsible for planning, policy formulation, processing of projects for investment decisions, monitoring project implementation, training and manpower development, and the administration and enactment of legislation related to thermal and hydro power, as well as the transmission and distribution network. It is also responsible for the administration of India's Electricity Act (2003), the Energy Conservation Act (2001).<ref>{{cite web |title=India loses $86 billion annually to power sector distortions: World Bank |url=https://energy.economictimes.indiatimes.com/news/power/india-loses-4-1-of-gdp-annually-to-power-sector-distortions-world-bank/67127352 |url-status=live |archive-url=https://web.archive.org/web/20181217202244/https://energy.economictimes.indiatimes.com/news/power/india-loses-4-1-of-gdp-annually-to-power-sector-distortions-world-bank/67127352 |archive-date=17 December 2018 |access-date=17 December 2018}}</ref>

[[Central Electricity Authority (India)|Central Electricity Authority]] (CEA) is the technical advisory body to the Ministry, which is also responsible for data collection and dissemination, through its National Electricity Plan for a 5 year period.<ref>{{cite web | title=Functions - Central Electricity Authority | work=Central Electricity Authority | url=https://cea.nic.in/functions/?lang=en }}</ref>

[[Ministry of New and Renewable Energy]] (MNRE) is the nodal ministry for the development and promotion of renewable energy technologies. MNRE facilitates research, design, development, manufacture, and deployment, setting technical standards, and aligning domestic renewable energy costs with global benchmarks.<ref>{{cite web | title=Introduction &#124; MINISTRY OF NEW AND RENEWABLE ENERGY &#124; India | url=https://mnre.gov.in/en/about-department/introduction/ }}</ref>

[[Central Electricity Regulatory Commission]] (CERC) is an autonomous statutory body responsible for regulating the electricity sector at the national level. It regulates the tariff of generating companies owned or controlled by the Central Government and regulates, issues licenses and determine tariff for inter-State transmission.<ref>{{cite web | title=::: Central Electricity Regulatory Commission ::: | url=https://cercind.gov.in/Function.html }}</ref>

=== State level ===
[[State electricity regulatory commission (India)|State Electricity Regulatory Commissions]] (SERCs) function as independent regulators at the state level, determining tariffs, issuing licenses, promoting competition, and ensuring consumer protection. They operate under the guidance of the Electricity Act, 2003, and coordinate with CERC for interstate issues.

== Power Market ==
In the [[electricity market]] in India, power can be traded between generators, distributors and large consumers through bilateral contracts or power exchanges. Bilateral contracts are negotiated between two parties and are often for long term, providing stable prices. Power exchanges allow electricity to be traded through collective transactions, where buy and sell bids are anonymously submitted and aggregated. The market is cleared based on supply-demand equilibrium, with the intersection of the demand and supply curves determining the Market Clearing Price (MCP) and Market Clearing Volume (MCV). Power exchanges helps supplement long term arrangements, while allowing discovery of efficient prices.

India has 3 power exchanges: [https://www.iexindia.com/ IEX], [https://powerexindia.in/ PXIL], [https://www.hpxindia.com/ HPX] which offer products like Day-Ahead Market, Real-Time Market, Term-Ahead Market, etc. These exchanges are regulated by [[Central Electricity Regulatory Commission|CERC]] and also allow trading of Renewable Energy Certificates. In FY 2024-25, out of 1692 TWh supplied, 143.7 TWh (about 8.5%) was transacted via Power Exchanges, with the balance being supplied under long-term or bilateral arrangements.<ref>https://cea.nic.in/wp-content/uploads/annual_reports/2024/AMMR_2024_25.pdf {{Bare URL PDF|date=November 2025}}</ref> 8.5% is relatively small compared to countries with liberalized markets where exchanges handle a much larger share.

Multiple power exchanges create fragmentation and lead to disparate price discovery. [[Central Electricity Regulatory Commission|CERC]] has ordered market coupling to create a single clearing price, simplifying procurement, improving cost predictability, and reducing administrative burdens for DISCOMs and industries while improving price discovery and system efficiency. The coupling would be implemented for Day-Ahead Market by Jan 2026 after a shadow pilot project was conducted which could lead to a savings of ₹1.4 crore per day.<ref>{{Cite news |date=July 2025 |title=Explained: What is market coupling in power sector, and how it will change electricity pricing in India |url=https://energy.economictimes.indiatimes.com/news/power/explained-what-is-market-coupling-in-power-sector-and-how-it-will-change-electricity-pricing-in-india/122893683}}</ref>

CERC would also couple other segments like Real-time Market and Term-Ahead Market after pilot runs and consultations.

== Environmental Concerns ==
{{See also|Climate change in India}}
[[File:India - CO2 emissions from electricity sector.svg|thumb|CO2 emissions from electricity sector (2013-23)<ref name=":16">https://cea.nic.in/wp-content/uploads/2021/03/User_Guide_Version_20.0.pdf {{Bare URL PDF|date=November 2025}}</ref>]]
The electricity sector in India has significant environmental implications, primarily due to the continued reliance on fossil fuels, especially coal. While renewable energy capacity is expanding rapidly, coal still dominates the generation mix, contributing to high levels of air and water pollution, land degradation, and greenhouse gas emissions.

=== Air Pollution ===
Prior to 2015, thermal power plants were only required to meet the norms for [[particulate matter]] (150&nbsp;mg/ Nm3 for 210 MW and above; 350&nbsp;mg/ Nm3 for less than 210 MW plant), with standards set for chimney height for proper emission dispersion (220m for less than 500 MW, 275m for above 500 MW).<ref>https://cpcb.nic.in/uploads/thermal_power_plant_overview.pdf {{Bare URL PDF|date=November 2025}}</ref>

In December 2015, [[Ministry of Environment, Forest and Climate Change|MoEFCC]] introduced following regulations for thermal power plants.
{| class="wikitable"
|+Emission norms (mg/Nm3)<ref name=":14">https://vindhyabachao.org/embeds/thermal/Thermal_Plant_Emission_Notification_Dec_2015.pdf {{Bare URL PDF|date=November 2025}}</ref>
!Installed Date
!PM
!SO2
!NOx
!Mercury
|-
| rowspan="2" |Before Jan 2004
| rowspan="2" |100
|600 (< 500 MW)
| rowspan="2" |600
| rowspan="2" |0.03 (≥ 500MW)
|-
|200 (≥ 500 MW)
|-
| rowspan="2" |Jan 2004 – Dec 2016
| rowspan="2" |50
|600 (<500 MW)
| rowspan="2" |Initially: 300
Revised: 450<ref>{{Cite news |date=Jul 2020 |title=Experts flag dilution of NOx emission limit for coal-fired power stations |url=https://www.downtoearth.org.in/pollution/experts-flag-dilution-of-nox-emission-limit-for-coal-fired-power-stations-72254}}</ref>
| rowspan="2" |0.03
|-
|200 (≥ 500 MW)
|-
|Jan 2017 onward
|30
|100
|100
|0.03
|}
The power plants were required to comply with these standards by Dec 2017. Due to techno-economic constraints, this timeline was later extended to 2022.<ref>https://cpcb.nic.in/uploads/direction/Part_6_21.12.2017.pdf {{Bare URL PDF|date=November 2025}}</ref> Due to persistent challenges related to SO2 emission compliance, in Mar 2021, [[Ministry of Environment, Forest and Climate Change|MoEFCC]] categorized thermal plants on the basis of location and specified timelines for each.
{| class="wikitable"
|+
!Categories
!Location Criteria
!Deadlines for non-retiring plants
!Retirement deadlines for compliance exemption
|-
|Category A
|Within 10&nbsp;km radius of [[National Capital Region (India)|NCR]] or cities having 10L+ population (as per 2011 census)
|Dec 2022
For SO2: Dec 2022; then Dec 2024;<ref name=":11">{{cite web | title=Insert title here | url=https://parivesh.nic.in/legal_repo/api/viewDocument?id=29964564 }}</ref> then Dec 2027<ref name=":12">https://images.assettype.com/downtoearth/2025-01-06/lddkaudd/tpp_amendment_2024__1_.pdf {{Bare URL PDF|date=November 2025}}</ref>
|Dec 2022
For SO2: Dec 2030
|-
|Category B
|Within 10&nbsp;km radius of critically polluted areas or non-attainment cities (as per [[Central Pollution Control Board|CPCB]])
|Dec 2023
For SO2: Dec 2023; then Dec 2025;<ref name=":11" /> then Dec 2028;<ref name=":12" /> then made discretionary<ref name=":13">{{Cite news |date=July 2025 |title=Environment Ministry exempts 78% of coal plants from installing key anti-polluting systems |url=https://www.thehindu.com/sci-tech/energy-and-environment/environment-ministry-exempts-78-of-coal-plants-from-installing-key-anti-polluting-systems/article69804518.ece}}</ref>
|Dec 2025
For SO2: Dec 2030
|-
|Category C
|Remaining plants
|Dec 2024
For SO2: Dec 2026;<ref name=":11" /> then Dec 2029;<ref name=":12" /> then exempted<ref name=":13" />
|Dec 2025
|}
In case of non-compliance after the stipulated deadlines, an Environmental Compensation of Rs. 0.2 / unit generated will be levied for up to 180 days, Rs 0.3 / unit for 180–365 days, and Rs 0.4 / unit for beyond 365 days.<ref name=":11" />

=== Water and land impacts ===
Coal mining, particularly [[Open-pit mining|open-cast mining]], leads to deforestation, land degradation, and displacement of communities in several parts of the country.

Coal-based power generation requires substantial water for cooling, which can stress local water resources, especially in water-scarce regions. Additionally, the discharge of heated water into rivers and lakes can lead to [[thermal pollution]], affecting aquatic ecosystems.  In December 2015, [[Ministry of Environment, Forest and Climate Change|MoEFCC]] introduced following regulations for thermal power plants with a deadline of Dec 2017. However, compliance remains uneven.<ref name=":15">{{Cite news |date=May 2023 |title=It is imperative to improve water efficiency in India's coal-fired thermal power plants |url=https://www.downtoearth.org.in/pollution/it-is-imperative-to-improve-water-efficiency-in-india-s-coal-fired-thermal-power-plants-89484}}</ref>
{| class="wikitable"
|+
!Installed Date
!Specific water consumption<ref name=":14" />
|-
|Before Jan 2017
|3.5 m3/MWh
|-
|Jan 2017 onward
|Initial: 2.5 m3/MWh
Revised: 3 m3/MWh<ref name=":15" />
|}

=== Greenhouse gas emissions ===
[[File:India - CO2 emissions per kWh generated.svg|thumb|CO2 emissions per kwh (2013-23)<ref name=":16" />]]
India emitted 2959 million tonnes of CO2 equivalent (excluding [[Land use, land-use change, and forestry|LULUCF]]) in FY 2020-21,<ref>https://unfccc.int/sites/default/files/resource/India%20BUR-4.pdf {{Bare URL PDF|date=November 2025}}</ref> with electricity sector emitting 928.1 MT CO2,<ref name=":16" /> contributing 31% to the total emissions.

The sector emitted 1204.5 MT CO2 in FY 2023-24, with a weighted average emission intensity of 0.703&nbsp;kg CO2 / kWh of electricity generated.<ref name=":16" />

In its latest [[Nationally determined contribution|NDC]] under [[Paris Agreement]], India aims to install 50% non-fossil fuel based generation capacity by 2030.<ref>https://unfccc.int/sites/default/files/NDC/2022-08/India%20Updated%20First%20Nationally%20Determined%20Contrib.pdf {{Bare URL PDF|date=November 2025}}</ref> Total emissions are estimated to reach 1114 MT CO2 in FY 2029-30, with an average emission factor of 0.477&nbsp;kg CO2 / kWh.<ref name="cea.nic.in"/>

==Challenges==
India's electricity sector faces many challenges, categorized across generation, transmission, distribution and consumption.

=== Generation ===
* '''Dependency on coal:''' Despite growth in renewables, coal remains dominant in generation, leading to [[Air pollution in India|air pollution]] and carbon emissions fueling [[Climate change in India|climate change]]. Air pollutants scatter and absorb solar radiation which reduces the amount of light reaching solar PV. Whereas, increased temperatures reduces solar PV efficiency.<ref>{{Cite news |date=March 2025 |title=Study projects losses in India's solar power potential due to air pollution, climate change |url=https://economictimes.indiatimes.com/industry/renewables/study-projects-losses-in-indias-solar-power-potential-due-to-air-pollution-climate-change/articleshow/119115885.cms?from=mdr}}</ref>

=== Transmission and distribution ===
* '''High''' '''technical losses:''' Despite improvements under various government schemes, T&D loss stands at 19.2% for FY 2023-24.<ref>{{Cite web |title=India Climate & Energy Dashboard {{!}} Niti Aayog {{!}} Vasudha Foundation |url=https://iced.niti.gov.in/energy/electricity/distribution/pages/operational-performance/ |access-date=2025-12-09 |website=iced.niti.gov.in}}</ref>
* '''High commercial losses:''' Poor billing efficiency (86.9% for FY 2023-24<ref>{{Cite web |title=India Climate & Energy Dashboard {{!}} Niti Aayog {{!}} Vasudha Foundation |url=https://iced.niti.gov.in/energy/electricity/distribution/pages/operational-performance/ |access-date=2025-12-09 |website=iced.niti.gov.in}}</ref>), poor collection efficiency (96.5% for FY 2203-24<ref>{{Cite web |title=India Climate & Energy Dashboard {{!}} Niti Aayog {{!}} Vasudha Foundation |url=https://iced.niti.gov.in/energy/electricity/distribution/pages/operational-performance/ |access-date=2025-12-09 |website=iced.niti.gov.in}}</ref>) and power theft leads to delays, cash flow problems, and loss of revenue for DISCOMs.
* '''Subsidies & political interference''': Free/under-priced electricity for certain sectors (like agriculture) burdens state finances.<ref>{{Cite news |date=April 2024 |title=Power Minister RK Singh warns of debt trap for using borrowed money to provide free electricity |url=https://economictimes.indiatimes.com/industry/energy/power/power-minister-rk-singh-warns-of-debt-trap-for-using-borrowed-money-to-provide-free-electricity/articleshow/109106100.cms}}</ref> Due to [[Votebank|vote-bank politics]], electricity prices for farmers are kept artificially low, which often leads to wasteful consumption.

=== Consumption ===
*'''Quality of supply''': While India has achieved 100% household electrification, most households, especially in rural areas, find the electricity supply intermittent and unreliable.<ref name="downtoearth.org.in"/>

==See also==
{{Portal|Energy}}
*{{anl|Energy in India}}
*{{anl|Energy policy of India}}
*{{anl|Oil and gas industry in India}}
*{{anl|Climate change in India}}
*{{anl|East West Gas Pipeline (India)|East West Gas Pipeline}}
*{{anl|List of electricity organisations in India}}
*{{anl|Central Electricity Authority (India)|Central Electricity Authority}}
*{{anl|List of power stations in India}}
*{{anl|Indian Rivers Inter-link}}
*{{anl|List of countries by electricity production}}

==References==
{{reflist}}

==External links==
*[https://web.archive.org/web/20140719233458/http://cea.nic.in/reports/powersystems/nep2012/nep13.pdf National electricity Plan – 2012, CEA, Government of India]
* [http://www.srpc.kar.nic.in/html/grid_map.html Electricity grid maps of the southern region] {{Webarchive|url=https://web.archive.org/web/20210731055227/http://www.srpc.kar.nic.in/html/grid_map.html |date=31 July 2021 }}
*[http://www.nbr.org/research/activity.aspx?id=181 India's Energy Policy and Electricity Production]
*[https://powermin.nic.in/en/content/power-sector-glance-all-india] {{Webarchive|url=https://web.archive.org/web/20190406205627/https://powermin.nic.in/en/content/power-sector-glance-all-india |date=6 April 2019 }}

{{Asia topic|Electricity sector in}}
{{Nuclear power in India}}
{{Energy Ministries and Departments of India}}
{{Economy of India}}
{{Electricity delivery |state=collapsed}}
{{World topic|Electricity sector in|noredlinks=yes}}

{{DEFAULTSORT:Electricity Sector in India}}
[[Category:Electric power in India| ]]
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