Electricity sector in India
electricity generation and distribution in india.
India is the third-largest producer and consumer of electricity after China and the United States, with about 6-7% share of global electricity generation. The country generated 2059.3 TWh in FY 2024-25, of which 23% came from non-fossil sources.
Electricity in India is generated by both public and private sector utilities, transmitted through a unified national grid, and distributed primarily by state-owned distribution companies (DISCOMs).
The sector has undergone significant reforms since the Electricity Act of 2003, which introduced competition, open access, and independent regulation. Despite rapid growth in generation and transmission capacity, the distribution segment continues to face financial stress due to high technical and commercial losses.
The sector emitted 1234.2 million tonnes of CO2 in FY 2024-25. As part of its commitment to achieve net-zero emissions by 2070, India plans to install 500 GW of non-fossil fuel capacity by 2030 and 60% non-fossil capacity by 2035.
History
Electricity was first introduced in India during British rule in 1879 with the demonstration of electric light in Kolkata, followed by the country's first hydroelectric power station at Darjeeling in 1897 and first coal power plant at Kolkata in 1899. Electricity supply was largely developed by private companies serving urban centers and industries.
In 1902, British India had the most powerful transmission line of that time, a 92 miles long 30 kV connection from Shivanasamudram hydroelectric plant to the Kolar Gold Fields.
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