Ziraat Times News Desk
New Delhi, March 18: India’s installed power generation capacity has reached 520.51 GW, while electricity shortages have sharply declined to just 0.03% in 2025–26, marking a major turnaround in the country’s power sector, according to the government.
The update, released by the Ministry of Power, highlights a decade of reforms, infrastructure expansion, and improved financial performance across the electricity value chain.
Record Capacity Addition, Renewable Push
India added a record 52,537 MW of power capacity in 2025–26 (till January), the highest ever in a single year. Of this, 39,657 MW came from renewable sources, including solar and wind energy.
The country now ranks among the global leaders in renewable energy, with solar capacity rising from just 3 GW in 2014 to 140 GW in January 2026, while wind capacity has reached 54.65 GW.
Power Shortage Nearly Eliminated
Electricity shortages have declined significantly from 4.2% in 2013–14 to 0.03% till December 2025. India also successfully met a peak power demand of 242.49 GW during the current financial year.
The government said improved generation capacity, better grid management, and expanded transmission networks have helped bridge the demand-supply gap.
Universal Electrification Achieved
Major electrification drives have ensured near-universal access to electricity:
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Over 18,374 villages electrified
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Around 2.86 crore households connected
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₹1.85 lakh crore invested in rural and urban power infrastructure
Daily power supply in rural areas increased from 12.5 hours in FY14 to 22.6 hours in FY25, while urban supply rose to 23.4 hours.
DISCOMs Return to Profit
Power distribution companies (DISCOMs) have shown a financial turnaround:
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Reported ₹2,701 crore profit in FY25 (from ₹67,962 crore loss in FY14)
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Outstanding dues reduced from ₹1.4 lakh crore in June 2022 to ₹4,109 crore by February 2026
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AT&C losses declined from 22.62% to 15.04%
The gap between cost and revenue has also narrowed significantly, improving financial sustainability.
Smart Metering and Digital Push
The government is pushing digital reforms in the sector through smart metering. Over 5.62 crore smart meters have been installed nationwide, enabling real-time consumption tracking and better billing efficiency.
Major Reforms and Investments
Key reforms driving the sector include:
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Revamped Distribution Sector Scheme (₹3.03 lakh crore outlay)
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Late Payment Surcharge Rules, 2022 to improve financial discipline
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National Electricity Plan (2023–2032) with ₹9.15 lakh crore investment
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Proposed Electricity (Amendment) Bill, 2026 to reform tariffs and improve competitiveness
