
India has made significant progress in providing its population with access to electricity. In 2000, only about 60% of the population had access to electricity, but by 2021, this figure rose to 99.6%. Electrification in rural areas has seen a notable increase, growing from 39% in 1993 to 95% in 2021. Despite this progress, challenges remain, with about one-fifth of the poorest rural households still lacking access to electricity. The government's efforts, such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme, have contributed to increased electrification, and by 2019, 15 states achieved 100% household electrification. However, issues like billing irregularities, power cuts, and inconsistent supply persist in certain regions.
| Characteristics | Values |
|---|---|
| Year when all villages in India had access to electricity | 2018 |
| Number of villages in India | 600,000 |
| Definition of an electrified village | Electrification of at least 10% of households and electricity provided to public buildings |
| Number of states with 100% household electrification by 2019 | 15 |
| Number of households with electricity connections provided at subsidised rates or free of cost since September 2017 | 26.3 million |
| Year when the percentage of households with electricity connections rose above 95% | 2021 |
| Percentage of households with electricity connections in 2021 | 99.6% |
| Percentage of poorest households with electricity connections in 2021 | 85% |
| Percentage of poorest rural households without access to electricity in 2021 | 18% |
| Average electricity consumption per household per month | 97 kWh |
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What You'll Learn

Electrification efforts and progress
Electrification efforts in India have been extensive, and the country has made significant progress in providing electricity access to its citizens. In 2018, Prime Minister Narendra Modi announced that all of India's nearly 600,000 villages had been electrified. This was achieved through a $2.5 billion scheme launched in 2015, which aimed to provide electricity connections to all villages and households. By 2019, 15 states in India achieved 100% household electrification.
However, it is important to note that universal access to electricity is not solely dependent on connections. Factors such as billing issues, power outages, voltage fluctuations, and inconsistent supply can impact a household's ability to use electricity regularly and reliably. As of 2024, about 200 million people in India still lacked access to electricity, and billing irregularities and low collection efficiency continued to pose challenges.
To address these issues, the Government of India has implemented initiatives such as the India Residential Energy Consumption Survey (IRES). This survey assesses the quality and reliability of power supply and consumer satisfaction. It also evaluates the metering, billing, and payment collection processes of distribution companies. The survey proposes strategies to bridge the remaining gaps in achieving universal, affordable, and reliable electricity access.
The expansion of the electricity sector in India has led to a growing demand for trained personnel. To meet this demand, the Ministry of New and Renewable Energy is supporting the establishment of training programs related to renewable energy systems. These programs focus on installation, operation, maintenance, and repair, ensuring a skilled workforce for the expanding industry.
In addition to conventional electricity sources, India is exploring renewable energy options. The country has recognized the potential for solar power plants to replace fossil fuel energy requirements. The sale price of solar-generated power has decreased, making it a competitive and attractive option. India is also investing in hydroelectric power, with identified potential for small, mini, and micro-hydro generators, as well as pumped storage schemes. These diverse approaches to electrification showcase India's commitment to enhancing access to electricity for its citizens.
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Urban-rural divide in electricity access
India has witnessed a significant expansion in household access to electricity over the last two decades. In 2000, only about 60% of the population had access to electricity, but by 2021, this figure rose to 99.6%. Despite this impressive progress, disparities persist, and the urban-rural divide in electricity access remains a pressing issue.
The southern states of Goa, Telangana, Kerala, Andhra Pradesh, and Karnataka have made remarkable progress, with at least 99% of their population having access to electricity. Bihar has also shown significant improvement, increasing its electrification rate from 17% in 1993 to 96% in 2019-2021. However, several states, including Assam, Odisha, and West Bengal, still face challenges, with less than a third of their rural households electrified as of 2021.
The rural-urban differential in electricity access has narrowed in most states, except Meghalaya, Assam, and Gujarat. Urban areas across all surveyed states, except for Meghalaya and Bihar, have achieved near-universal access to electricity. In contrast, rural areas continue to lag, with many villages lacking electricity due to poverty, insufficient resources, political inaction, poor planning, and electricity theft.
The Indian government has made notable efforts to address this disparity. The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) initiative, implemented since September 2017, has provided 26.3 million households with grid electricity connections at subsidised rates or free of cost. Additionally, the Rural Electrification Corporation Limited was established to tackle electrification in villages. The government has set ambitious targets, including 175GW of installed renewable energy by 2022, and has invested in biogas, solar, and wind energy to accelerate progress.
Empirical studies have revealed an intriguing relationship between financial development and electricity access in rural and urban India. Interestingly, financial development has improved access to electricity in rural areas but has adversely affected urban areas. This dynamic underscores the complexity of the issue and highlights the need for tailored policy approaches to bridge the urban-rural divide in electricity access.
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Consumer satisfaction and billing
Electricity is essential to life in India, powering homes, industries, and businesses. India has made significant progress in providing access to electricity to its population. In 2000, only about 60% of the population had access to electricity. By 2021, this figure had risen to 99.6%, with around 300 million households consuming electricity for domestic purposes. This expansion in access to electricity has been accompanied by efforts to improve consumer satisfaction and billing processes.
The India Residential Energy Consumption Survey (IRES) is a nationally representative survey that assesses the quality and reliability of power supply and consumer satisfaction with electricity services. It covers a large number of households across various states and provides insights into the metering, billing, and payment collection processes of distribution companies. The survey has helped identify areas for improvement, such as billing irregularities and payment collection efficiencies, to achieve the goal of universal, affordable, and reliable electricity access.
Billing issues are more prevalent in rural areas due to high transaction costs and the lack of adequate billing mechanisms. States like Jharkhand, Bihar, Assam, Uttar Pradesh, and Madhya Pradesh have lower shares of grid users who receive regular bills. Additionally, rural households face challenges with electricity meters, as more than 10% do not have functional electricity meters. This can lead to inaccurate billing and further contribute to billing irregularities.
To address billing preferences, studies have been conducted in rural and urban communities in Uttar Pradesh. The studies found that a significant majority of respondents preferred consumption-based tariffs with lower base rates, especially those with more appliances and higher electricity usage. However, fixed-fee payment options are also considered, as they can help address issues of non-payment, high costs, and theft.
While consumer satisfaction with electricity services has generally improved, there are still gaps in electricity service that need to be addressed. Power outages, voltage fluctuations, and inconsistent supply can impact consumer satisfaction. States like Delhi, Odisha, Andhra Pradesh, Himachal Pradesh, Maharashtra, Punjab, and Gujarat have high satisfaction levels, with power outages typically lasting less than two hours per day.
In conclusion, India has made remarkable progress in providing access to electricity to its population, and efforts are ongoing to improve consumer satisfaction and billing processes. The IRES survey provides valuable insights to address remaining challenges and ensure universal, affordable, and reliable electricity access for all Indian households.
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Energy consumption and expenditure
India's energy consumption and expenditure have witnessed significant changes over the years, with electricity becoming a cornerstone of economic growth, social development, and improved quality of life. Here's an overview of the key aspects:
Energy Consumption Trends
India has made remarkable progress in expanding access to electricity for its households. As of 2021, 99.6% of the population has access to electricity, a substantial increase from 60% in 2000. This expansion has bridged the gap with the global average and even surpassed countries with similar socioeconomic contexts. The India Residential Energy Consumption Survey (IRES) in 2020 revealed that nearly 97% of Indian households were electrified, with 96.7% connected to the grid and 0.33% relying on off-grid sources.
Electricity Consumption Measurement
Electricity consumption in India is measured in kilowatt-hours (kWh), representing the quantity of energy supplied by one kilowatt of power for an hour. On average, an Indian household consumes 90-97 kWh of electricity monthly, powering basic appliances and lighting. However, there are disparities between urban and rural households. Over half of urban households consume more than 100 units per month, while fewer than a quarter of rural households reach this level.
State-wise Consumption
All Indian states have shown an increase in residential electricity consumption. Between 2004 and 2015, states with initially low household electrification, such as Assam, Bihar, Chhattisgarh, and Jharkhand, exhibited high growth rates of 11%-16%. Meanwhile, states with higher electrification like Delhi, Punjab, Haryana, and Tamil Nadu grew at lower but still substantial rates of 6%-8%. Delhi stands out with an average monthly consumption of 250-270 kWh, comparable to electrified households in Germany. This is influenced by the high ownership of air-conditioners and air-coolers, as well as tariff subsidies.
Energy Sources
India's electricity generation is predominantly coal-based, contributing to its carbon-intensive nature. The country's electricity generation emits 713 grams of CO2 per kWh, higher than the global average of 480 grams. However, India has declared its commitment to increasing investment in renewable energy sources. The solar energy sector, in particular, offers enormous potential, with India being the third-largest producer of solar power globally. While solar power plants require similar land areas as coal-fired power plants, they have the potential to replace all of India's fossil fuel energy requirements.
Future Goals
India's government has implemented initiatives like the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) to provide subsidized or free grid electricity connections to millions of households. As of March 31, 2019, all 'willing' households in India were electrified. The National Electricity Plan for 2023-2027 includes a commitment to refrain from building new fossil fuel power plants in the utility sector, focusing instead on renewable energy sources. Additionally, the India Residential Energy Consumption Survey (IRES) aims to assess the quality and reliability of power supply, consumer satisfaction, and strategies for universal, affordable, and reliable electricity access.
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India's electricity sector: challenges and future
India has made significant progress in providing its population with access to electricity. In 2000, only about 60% of the population had access to electricity, but by 2021, this figure had risen to 99.6%. This expansion has been driven by the Indian government's efforts to achieve universal household electrification, with initiatives such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) providing 26.3 million households with grid electricity connections at subsidised rates or free of cost. As a result, all 'willing' households in India had access to electricity as of March 2019.
However, challenges remain. While electrification rates have increased, frequent power cuts, voltage fluctuations, and inconsistent supply continue to disrupt electricity access for some households. Additionally, billing irregularities are prevalent, especially in rural areas due to high transaction costs and inadequate billing mechanisms. There is also a notable difference in electricity consumption between urban and rural households, with wealthier urban households generally having better access. Despite these issues, consumer satisfaction among grid users is high, with 70-97% expressing satisfaction with their electricity service, depending on the state.
Looking to the future, India aims to ensure reliable access to sufficient electricity for all while transitioning to renewable energy sources. The country has set a target of generating 40 GW of power through solar rooftop projects by 2022 and plans to establish 21 new nuclear power reactors with a total capacity of 15,700 MW by 2031. India is also working to replace coal with renewable energy generation in 81 thermal units by 2026 to meet its 500 GW renewable energy target. However, challenges such as the poor financial health of electricity generation companies, inefficient coal linkages, and the need for skilled workers in the renewable energy sector must be addressed to achieve these goals.
The Indian electricity sector is expected to undergo a significant transformation in the coming years, with demand growth, an evolving energy mix, and changing market operations. India's power consumption has been increasing, and the country's power requirement is estimated to reach 817 GW by 2030. To meet this growing demand, massive additions to installed generating capacity are required. The shift towards renewable energy sources, such as wind and solar, is evident in the increasing share of renewable energy in the country's energy mix. However, the inflexibility of coal thermal power plants, which make up a significant portion of India's generation capacity, has resulted in decreasing plant load factors and affected the revenue generation capabilities of power-generating companies.
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Frequently asked questions
As of 2021, 99.6% of the population of India has access to electricity, up from 60% in 2000. However, about one in five of the poorest rural households still do not have access to electricity.
Around 300 million households in India use electricity for domestic purposes.
Kerala became the first Indian state to fully electrify all its households in 2017.












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