Parliament Question: Power generation and demand-supply gap

GOVERNMENT OF INDIA MINISTRY OF POWER RAJYA SABHA UNSTARRED QUESTION NO.2704 ANSWERED ON 16.03.2026 POWER GENERATION AND DEMAND-SUPPLY GAP 2704 SHRI A. D. SINGH: Will the Minister of POWER be pleased to state: (a) the total power generation capacity in the country as on date; (b) whether there exists any gap between demand and supply of electricity during peak hours; and (c) the measures being taken by Government to bridge this gap and ensure uninterrupted power supply to all sectors? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK) (a): As on 31.01.2026, the total ‘installed power generation capacity’ in the country is 5,20,511 MW. (b) & (c): 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: - (i) Hydro based generation is being scheduled in a manner so as to conserve water for meeting demand during peak period. (ii) Planned maintenance of generating units is minimized during period of high demand. (iii) Steady supply of coal to all the thermal power plants is ensured to prevent fuel shortages (iv) 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. (v) 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.(vi) Proactive monitoring of generation projects under construction to facilitate commensurate capacity addition. (vii) 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. Further, the Government have taken the following steps to ensure uninterrupted power supply to all sectors: 1. Generation and Storage Planning: (i) As per National Electricity Plan (NEP), installed generation capacity in 2031-32 is likely to be 874 GW. With a view to ensure generation capacity remains ahead of projected peak demand, all the States, in consultation with CEA, have prepared their “Resource Adequacy Plans (RAPs)”, which are dynamic 10-year rolling plans and includes power generation as well as power procurement planning. (ii) All the States were advised to initiate process for creating/ contracting generation capacities; from all generation sources, as per their Resource Adequacy Plans. (iii) In order to augment the power generation capacity, the Government of India has initiated following capacity addition programme: (A) The projected thermal (coal and lignite) capacity requirement by the year 2034–35 is estimated at approximately 3,07,000 MW as against the 2,11,855 MW installed capacity as on 31.03.2023. To meet this requirement, Ministry of Power has envisaged to set up an additional minimum 97,000 MW coal and lignite based thermal capacity. 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. (B) 12,723.50 MW of Hydro Electric Projects are under construction. Further, 4,274 MW of Hydro Electric Projects are under various stage of planning and targeted to be completed by 2031-32. (C) 6,600 MW of Nuclear Capacity is under construction and targeted to be completed by 2029-30. 7,000 MW of Nuclear Capacity is under various stages of planning and approval. (D) 1,57,800 MW Renewable Capacity including 67,280 MW of Solar, 6,500 MW of Wind and 60,040 MW Hybrid power is under construction while 48,720 MW of Renewable Capacity including 35,440 MW of Solar and 11,480 MW Hybrid Power is at various stages of planning and targeted to be completed by 2029-30. (E) In energy storage systems, 11,620 MW/69,720 MWh Pumped Storage Projects (PSPs) are under construction. Further, a total of 6,580 MW/39,480 MWh capacity of Pumped Storage Projects (PSPs) are concurred and yet to be taken up for construction. Currently, 9,653.94 MW/ 26,729.32 MWh Battery Energy Storage System (BESS) capacity are under construction and 19,797.65 MW/ 61,013.40 MWh BESS capacity are under tendering stage.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: (i) 100% Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025 (with waiver tapering off 25% annually till June 2028), for co-located BESS projects commissioned by June 2028, for Hydro PSP projects where construction work awarded by June 2028, for Green Hydrogen Projects commissioned till December 2030 and for offshore wind projects commissioned till December 2032. (ii) Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) projects have been issued. (iii) Renewable Energy Implementing Agencies (REIAs) are regularly inviting bids for procurement of RE power. (iv) Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route. (v) To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2032. (vi) Laying of new intrastate transmission lines and creating new sub-station capacity has been supported under the Green Energy Corridor Scheme for evacuation of renewable power. (vii) Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented to provide land and transmission to RE developers for installation of RE projects at large scale. (viii) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM- KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched. (ix) To encourage RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is applicable to all designated consumers under the Energy Conservation Act, 2001 will attract penalties on non-compliance. (x) “Strategy for Establishment of Offshore Wind Energy Projects” has been issued.(xi) Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Energy Power through exchanges. (xii) Production Linked Incentive (PLI) scheme has been launched to achieve the objective of localization of supply chain for solar PV Modules. **********ANNEXURE ANNEXURE REFERRED IN REPLY TO PARTS (b) & (c) OF UNSTARRED QUESTION NO. 2704 ANSWERED IN THE RAJYA SABHA ON 16.03.2026 ************* 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): Energy Energy Energy not Peak Peak Demand not Requirement Supplied Supplied Demand Met Met Financial Year (MU) (MU) (MU) (%) (MW) (MW) (MW) (%) 15,13,497 15,05,914 7,583 0.5 2,15,888 2,07,231 8,657 4.0 2022-23 16,26,132 16,22,020 4,112 0.3 2,43,271 2,39,931 3,340 1.4 2023-24 16,93,959 16,92,369 1,590 0.1 2,49,856 2,49,854 2 0.0 2024-25 2025-26 (upto 15,59,936 15,59,482 454 0.0 2,45,444 2,45,416 28 0.0 February, 2026) **************