POWER GENERATION AND DEMAND-SUPPLY GAP
POWER GENERATION AND DEMAND-SUPPLY GAP
As on 31.01.2026, the total ‘installed power generation capacity’ in the country is 5,20,511 MW.
There is adequate availability of power in the country. Present installed generation capacity of the country is 520.51 GW (as on January, 2026). Government of India has addressed the critical issue of power deficiency by adding 296.388 GW of fresh generation capacity since April, 2014 transforming the country from power deficit to power sufficient.
The ‘Power Supply Position’ for last three financial years and the current financial year i.e. 2025-26 (up to February, 2026) is given at Annexure. The ‘Energy Supplied’ has been commensurate to the ‘Energy Requirement’ with only a marginal gap which is generally on account of constraints in the State transmission / distribution network.
The following steps have been taken to to bridge the gap during peak hours: –
Further, the Government have taken the following steps to ensure uninterrupted power supply to all sectors:
To meet this requirement, several initiatives have already been undertaken. Thermal capacities of around 18,160 MW have already been commissioned since April 2023 till 31.01.2026. In addition, 38,745 MW of thermal capacity (including 4,845 MW of stressed thermal power projects) is currently under construction. The contracts of 22,920 MW have been awarded and are due for construction. Further, 24,020 MW of coal and lignite-based candidate capacity has been identified which is at various stages of planning in the country.
2. Transmission Planning: Inter and Intra-State Transmission System has been planned and implementation of the same is taken up in matching time frame of generation capacity addition. As per the National Electricity Plan, about 1,91,474 ckm of transmission lines and 1,274 GVA of transformation capacity is planned to be added (at 220 kV and above voltage level) during the ten-year period from 2022-23 to 2031-32.
In addition to the above, the Ministry of Power has issued guidelines dated 14.06.2024, 21.03.2025 and 15.12.2025 regarding the payment of compensation for Right of Way (RoW) for transmission lines, wherein the land rate has been linked to the prevailing market rate. These guidelines address the key challenges of RoW arising from landowners demanding higher compensation than the rates determined by the State Government.
3. Promotion of Renewable Energy Generation:
ANNEXURE
The details of actual Power Supply Position of the country for last three financial years and the current financial year i.e. 2025-26 (upto February, 2026):
Financial Year
Energy Requirement
Energy Supplied
Energy not Supplied
Peak Demand
Peak Met
Demand not Met
(MU)
(MU)
(MU)
(%)
(MW)
(MW)
(MW)
(%)
2022-23
15,13,497
15,05,914
7,583
0.5
2,15,888
2,07,231
8,657
4.0
2023-24
16,26,132
16,22,020
4,112
0.3
2,43,271
2,39,931
3,340
1.4
2024-25
16,93,959
16,92,369
1,590
0.1
2,49,856
2,49,854
2
0.0
2025-26 (upto February, 2026)
15,59,936
15,59,482
454
0.0
2,45,444
2,45,416
28
0.0
This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha today.
- Hydro based generation is being scheduled in a manner so as to conserve water for meeting demand during peak period.
- Planned maintenance of generating units is minimized during period of high demand.
- Steady supply of coal to all the thermal power plants is ensured to prevent fuel shortages
- All the GENCOs including IPPs and Central generating stations have been advised to generate and maintain full availability on daily basis excluding the period of planned maintenance or forced outage.
- A robust national grid has been established to facilitate the transfer of power from power surplus regions to power deficit regions. The capacity of National Grid is being expanded on a continuous basis commensurate with the growth in electricity generation and electricity demand.
- Proactive monitoring of generation projects under construction to facilitate commensurate capacity addition.
- The Electricity market has been reformed by adding the Real Time Market (RTM), Green Day Ahead Market (GDAM), Green Term Ahead Market (GTAM), High Price Day Ahead Market (HP-DAM) in Power Exchanges. Also, DEEP Portal (Discovery of Efficient Electricity Price) for e-Bidding and e-Reverse for procurement of short-term power by DISCOMs was introduced.