Power Supply

India's power deficit has been consistently improving since 2014.

Published annually by Central Electricity Authority under Ministry of Power. Updated till fiscal year 2017-18 (Published in June, 2018).

Note1: Peak met- It is the highest electric power available against the peak demand during a specific period of time. For more information please click here.

Note2: The years in the graph represent the fiscal year, for instance, the year 2013 represents the period April 2012-March 2013

Recent Data Trend

Since FY14 India's power supply position has improved significantly. The energy deficit declined to 0.7% in FY18 from 8.7% in FY13 and peak deficit to 2% in FY18 from 9% in FY13. The Higher growth in installed generation capacity due to increased private participation and availability of adequate coal stock are the major factors behind India's improved power supply position.

With 344 GW of installed capacity against 169 GW of peak demand as on March 31, 2018, the country has more than sufficient generation capacity. This allowed India to become a net exporter of power in FY17. Even though both electricity generation and installed capacity grew in recent years, the country still faces a marginal demand-supply gap both in terms of energy and peak demand. This is primarily due to inefficiency in the transmission and distribution sector.

The state-owned distribution companies are reluctant to buy power due to their poor financial health. The average cost of supply (ACS) of electricity is higher than the average revenue realized (ARR) on it, making them financially unviable. With lower tariffs set to serve poor domestic and agricultural sector, there is no incentive present for them to serve these sectors. This makes them resort to load shedding. They also have high aggregate technical and commercial losses (AT&C), that is, losses due to electricity theft and deficiencies in billing and revenue collection. A high AT&C means lower operational efficiency and higher cost of doing business. As on April 1, 2019, AT&C stood at 19.73%.

The high Transmission and Distribution (T&D) losses arising from poor maintenance of transmission networks are another reason for the power deficit in India.

The Central Electricity Authority’s (CEA) load generation balance report (FY2019) projected that India will have an energy surplus and peak surplus of 4.6% and 2.5% in FY2019. But this seems highly unlikely given the bottlenecks present in the transmission and distribution sector.

Brief Overview

The power sector in India has made massive addition to generation, transmission and distribution capacity since Independence. Despite this, the country has always been lagging behind in meeting its electricity demand. In the last 5 years, the shortages have reduced substantially, and in fact, at present, we have unutilised generating capacity. However, the country continues to face long hours of power cut due to the constraints in the transmission and distribution system.

Power supply position is expressed in terms of energy deficit (energy availability – energy requirement) and peak deficit (Peak met – Peak demand). Energy deficit is generally measured in terms of units (1 unit= 1 kilowatt-hour (kWh)) and peak deficit in terms of GigaWatts (GW). We have extracted the data from the booklet "Growth of Electricity sector in India" published annually by Central Electricity Authority.

For further information, please visit the official government website.

Next Release Date: To be decided.

Installed Generating Capacity-Annual

Note: The years in the graph represent the fiscal year, for instance, the year 2013 represents the period April 2012-March 2013. The above data has been sourced from the  Energy Statistics, MOSPI. To know more about this, visit the official government website.

Electricity Generation-Annual

Note1: From 1996 onwards, Thermal generation also includes power generation from Renewables Energy Sources.  The above data has been sourced from the Energy Statistics, MOSPI. To know more about this, visit the official government website.

Note2: Utilities- Undertakings whose essential purpose is the production, transmission, and distribution of electric energy. These may be private companies, nationalised undertakings or governmental organisations. Non-Utilities- An independent power producer which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users.

Note3: The years in the graph represent the fiscal year, for instance, the year 2013 represents the period April 2012-March 2013

Transmission and Distribution Losses- Annual

Note 1: PFC- Power Finance Corporation Ltd. The aggregate losses and average revenue realised are on subsidy received basis. 1 Unit= 1 kilowatt-hour (kWh) To know more please visit the official government website.

Note 2: The years in the graph represent the fiscal year, for instance, the year 2013 represents the period April 2012-March 2013.