India’s power sector is undergoing a major transformation, marked by rapid capacity expansion, a shift towards renewable energy and increased grid modernisation. As of July 2025, the country’s total installed capacity stands at about 490 GW, with renewables steadily gaining ground against conventional sources. Transmission infrastructure continues to scale up to support rising power generation, while distribution networks are being upgraded to improve reliability and reduce losses. These trends reflect the sector’s transition towards cleaner, more efficient and future-ready operations.
Indian Infrastructure provides an overview of the power sector and its future outlook…
Segment-wise trends
Generation
India’s total installed capacity across all generation sources stand at about 490 GW as of July 2025. Coal- and lignite-based power account for the highest share (45.5 per cent) at nearly 223 GW, followed by renewables at 187.8 GW (38.3 per cent) and hydropower at 49.6 GW (10.1 per cent). Gas-based installed capacity stand at 20.1 GW (4.1 per cent) and nuclear at 8.7 GW (1.8 per cent), with diesel accounted for the remaining 0.1 per cent.
The installed capacity grew at a CAGR of 4.83 per cent between 2018-19 and 2024-25. Conventional power capacity has grown at a CAGR of 0.99 per cent over the past five years. In absolute terms, around 33,398.66 MW of net capacity was added in 2024-25, of which 3,875 MW was based on thermal power sources and 799.99 MW on large hydro.
Meanwhile, total generation (including renewable energy sources) stood at 1,829 BUs in 2024-25, marking a 5.2 per cent increase compared to 1,739 BUs in 2023-24. In terms of fuel sources, thermal power accounted for the largest share of the generation mix at 75 per cent, followed by renewable sources at 22 per cent and nuclear power at approximately 3 per cent. Between 2018-19 and 2024-25, total generation grew at a CAGR of 3.93 per cent, with thermal generation recording a 4.09 per cent CAGR. During 2025-26 (as of July 2025), total generation has been recorded at 532 BUs, a 4 per cent decline compared to 556 BUs in 2024-25.
On the operational performance front, the thermal plant load factor (PLF) declined to 69.45 per cent during 2024-25 from 68.74 in 2023-24. The thermal PLF decreased from 67.72 per cent in July 2024 to 62.69 per cent in July 2025. In July 2025, the PLF of gas-based plants stood at 17 per cent.
Transmission
As of July 2025, the total transmission line length (at the 220 kV and above levels) stood at 496,069 ckt km, while AC substation capacity was at 1,336,068 MVA. Voltage-wise, 42.82 per cent of line length is at the 220/230 kV level, 41.74 per cent at 400 kV and 11.54 per cent at 765 kV. At the high voltage direct current (HVDC) level, line length stood at 19,375 ckt km. The total transmission line capacity addition during 2024-25 was 8,830 ckt km, while total interregional capacity has reached 120,340 MW as of July 2025. Voltage-wise, of the total AC transformation capacity, 37.12 per cent is at the 220 kV level, 37.79 per cent at 400 kV and 25.09 per cent at 765 kV. As of July 2025, the total HVDC capacity stands at 33,500 MW. The total transformation capacity addition during 2024-25 was 86,433 MVA.
With significant renewable capacity additions, planned transmission expansion will be critical to evacuating green power and integrating it reliably into the grid.
Distribution
The distribution network has been expanding steadily in terms of line length and transformer capacity. As per the Central Electricity Authority, the country had 43,141 power substations at the 66/11 kV, 33/11 kV and 22/11 kV levels as of March 31, 2024, with a cumulative installed capacity of 519,211 MVA. The total number of feeders stood at 36,691 at 66 kV/33 kV/22 kV, and 250,812 at the 11 kV level, as of March 2024. Further, 15,162,441 distribution transformers (DTs) were in place as of March 2024.
As per NITI Aayog, total energy sales stood at 1,154.35 BUs in 2023-24. Of this, domestic consumers accounted for around 30.5 per cent, followed by industrial consumers at 31.9 per cent. In 2024-25, an uptrend was reported in energy supply. The energy requirement was 1,695 BUs, 4.18 per cent higher than the previous year.
Overall, aggregate technical and commercial (AT&C) losses for distribution utilities increased from 15.11 per cent in 2022-23 to 16.12 per cent in 2023-24. Among state sector utilities, Dakshin Gujarat Vij Company Limited registered the lowest AT&C losses at 1.31 per cent, while the Nagaland Power Department recorded the highest losses at 47.11 per cent. At the all-India level, billing efficiency declined from 86.98 per cent in 2022-23 to 86.91 per cent in 2023-24 while collection efficiency fell from 97.6 per cent in 2022-23 to 96.51 per cent in 2023-24.
As per the Revamped Distribution Sector Scheme (RDSS) portal (accessed on September 3, 2025), the total sanctioned cost under the RDSS stands at Rs 2,825.8 billion, with gross budgetary support (GBS) of Rs 1,215.47 billion, of which Rs 273.86 billion has been released so far. For smart metering projects under the scheme, the sanctioned cost is Rs 1,306.32 billion. The GBS sanctioned for these projects is Rs 241.23 billion, of which Rs 15.46 billion has been released. Meanwhile, for the loss reduction component of the RDSS, the sanctioned cost is Rs 1,494.79 billion, with GBS of Rs 961.74 billion, of which Rs 258.39 billion has been released.
Outlook
India’s power generation capacity is projected to reach 874 GW by 2031-32, with a target of adding at least 80,000 MW of thermal capacity. Of this, 28,020 MW is under construction, 19,200 MW has been awarded and 36,320 MW is in the planning stage. In addition, 13,997.5 MW of hydro and 8,000 MW of pumped storage projects (PSPs) are under construction, with another 24,225.5 MW of hydro and 50,760 MW of PSPs in the planning stage. Further, 7,300 MW of nuclear capacity is at construction and 7,000 MW is under various stages of planning and approval. In renewables, 147,160 MW is under construction and 79,270 MW is in the planning stage. Storage is also being scaled up, with 522.6 MW of battery energy storage systems under construction and 14,242.29 MW in the planning stages.
In line with capacity addition timelines, inter- and intra-state transmission systems are being planned and implemented. According to the National Electricity Plan (NEP), around 191,474 ckt km of transmission lines and 1,274 GVA of transformation capacity (at 220 kV and above) are proposed to be added during 2022-23 to 2031-32. In terms of investments, the plan estimates Rs 9 trillion in transmission infrastructure by 2032.
The country’s peak electricity demand is projected to reach 334,811 MW by 2029-30, with the total energy requirement estimated at 2,279,676 MUs. To meet this demand, substation capacity at the 66/11 kV, 33/11 kV and 22/11 kV levels is expected to expand to 624,332 MVA with the addition of about 52,157 substations. By 2030, the network is expected to include 54,639 feeders at 66/33/22 kV with a total length of nearly 777,994 ckt km, and 323,899 feeders at the 11 kV level, spanning 5,903,782 ckt km. Further, around 19.3 million DTs with a combined capacity of 927,656 MVA are projected by 2029-30. Meeting these targets will require an investment of about Rs 7.42 trillion in distribution infrastructure between 2022 and 2030.
With a long-term vision backed by the NEP, India is targeting around 900 GW of installed capacity by 2031-32, supported by significant investments in the generation, transmission and distribution segments. The development of solar and storage capacities, expansion of high-capacity transmission corridors and upgradation of the distribution network under schemes such as the RDSS underscore the country’s commitment to energy security and sustainability. India is well positioned to meet the growing demand while advancing its clean energy transition.
Akanksha Chandrakar