India Installed Power Capacity Reaches 520 GW: Govt

Ziraat Times News Desk

New Delhi, Mar 17: India has transitioned from a power-deficit to a power-sufficient nation, with total installed electricity generation capacity reaching 520.51 GW as of January 2026, the government informed Parliament on Monday.

In a written reply in the Rajya Sabha, Minister of State for Power Shripad Naik said the country has added 296.38 GW of generation capacity since April 2014, significantly strengthening the power sector.

Demand-Supply Gap Narrowed

The government said electricity supply has largely kept pace with demand over the past three years, with only a marginal shortfall attributed mainly to constraints in state-level transmission and distribution networks.

Data shared for recent years show a sharp reduction in unmet demand:

• 2022–23: 0.5% energy shortfall, 4% peak deficit

• 2023–24: 0.3% energy shortfall, 1.4% peak deficit

• 2024–25: 0.1% energy shortfall, near-zero peak deficit

• 2025–26 (till Feb): negligible gap in both energy and peak demand

Measures to Manage Peak Demand

The Centre outlined several steps taken to bridge demand-supply gaps during peak hours. These include optimised scheduling of hydro power to meet peak demand, minimising maintenance of plants during high-demand periods, and ensuring uninterrupted coal supply to thermal power stations.

Power generation companies, including independent power producers, have been directed to maintain full operational availability, while a robust national grid enables transfer of electricity from surplus to deficit regions.

Expansion Plans and Future Capacity

As per projections under the National Electricity Plan, India’s installed capacity is expected to reach 874 GW by 2031–32. States have prepared long-term Resource Adequacy Plans in coordination with the Central Electricity Authority to meet future demand.

The government is also pushing capacity addition across sectors:

• Thermal power: Additional 97,000 MW planned by 2034–35

• Hydropower: Over 12,700 MW under construction

• Nuclear: 6,600 MW under construction, 7,000 MW planned

• Renewables: Over 1,57,800 MW under construction

Focus on Renewable Energy and Storage

The government highlighted major initiatives to accelerate renewable energy deployment, including waiver of interstate transmission charges for solar and wind projects, promotion of green hydrogen, and expansion of solar parks.

Schemes such as PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, and the National Green Hydrogen Mission are being implemented to boost clean energy adoption.

Significant investments are also being made in energy storage systems, including pumped storage projects and battery energy storage systems, to support renewable integration.

Strengthening Transmission Infrastructure

To support growing demand, the government plans to add over 1.91 lakh circuit kilometres of transmission lines and 1,274 GVA transformation capacity by 2032.

Measures have also been introduced to address land acquisition challenges, including revised compensation guidelines for Right of Way (RoW) for transmission lines.

Market Reforms and Efficiency

The power sector has seen multiple market reforms, including the introduction of Real-Time Market (RTM), Green Day-Ahead Market (GDAM), and other trading mechanisms to improve efficiency and price discovery.

The government reiterated that it is continuously monitoring generation projects and strengthening infrastructure to ensure uninterrupted power supply across all sectors while meeting rising demand sustainably.