Otis Singleton
India's electricity generation is carbon-intensive, with coal accounting for three-quarters of generation in 2023. The country's electricity consumption per capita was approximately 1.3 kilowatt-hours in 2023, with the industrial sector dominating at 43.9%. India's electricity sector has come a long way since the first demonstration of electric light in Calcutta (now Kolkata) in 1879. The country now has a national grid, and its electricity generation is expected to increase by 600-1200 GW before 2050.
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What You'll Learn
- India's electricity generation is carbon-intensive, with coal accounting for most of it
- India's cleanest electricity sources are hydro, wind, and solar
- India's electricity demand is projected to increase
- India's electricity consumption is dominated by the industrial sector
- India's electricity history began in Calcutta in 1879
India's electricity generation is carbon-intensive, with coal accounting for most of it
India's electricity sector is dominated by coal-fired power plants, which are a significant source of carbon emissions. In 2023, coal accounted for three-quarters of India's electricity generation, with fossil fuels making up 78% of generation in 2024. India's electricity generation is carbon-intensive, with 713 grams of CO2 emitted per kWh, significantly higher than the global average of 480 gCO2/kWh.
Coal-fired power plants are a major contributor to India's carbon emissions, with the country being the world's second-largest coal user after China. In January 2024, coal-fired electricity generation hit a record high, and coal's share of India's electricity generation mix reached 80%. India's power sector is the largest emissions contributor, and emissions have been growing due to the expansion of coal generation. While coal's share in meeting new electricity demand is falling, it still met 64% of the demand growth in 2024.
India's coal-fired power plants are inefficient, and the government has plans to retire old plants that contribute excessive pollution. However, instead of shutting down these plants, there are arguments for retrofitting them to produce electricity from biomass, which could also increase profitability. The government has made cofiring of biomass with coal mandatory from October 2022 in all coal-fired plants.
India's electricity demand is growing, and the country is expected to add a significant amount of new power generation capacity before 2050. The government has recognized the need to increase investment in renewable energy sources. Under the 2023-2027 National Electricity Plan, India will not build any new fossil fuel power plants aside from those already under construction. Renewable energy sources like solar, wind, and hydropower are expected to play a larger role in India's electricity generation in the future, with the country aiming for 500 GW of installed renewables capacity by 2030.
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India's cleanest electricity sources are hydro, wind, and solar
India's electricity generation is carbon-intensive, with coal accounting for three-quarters of generation in 2023. However, India's cleanest electricity sources are hydro, wind, and solar.
India has been a dominant player in global hydroelectric power development since the first hydroelectric installation was installed near a tea estate at Sidrapong for the Darjeeling Municipality in 1897. The Koyna Hydroelectric Project is the largest completed hydroelectric power plant in India, with a power capacity of 1960 MW. India also imports surplus hydroelectric power from Bhutan. The public sector accounts for 92.5% of India's hydroelectric power production, with the National Hydroelectric Power Corporation (NHPC) and the Northeast Electric Power Company (NEEPCO) being the top producers. The private sector is also expected to grow with the development of hydroelectric energy in the Himalayan mountain ranges and in the northeast of India. India has established nearly 4,800 MW of pumped storage capacity with the installation of hydropower plants, and another 2780 MW capacity is under construction as of December 2023.
Solar power in India is an essential source of renewable energy and electricity generation. India has increased its solar power significantly since the early 2000s with the help of government initiatives and awareness about the importance of renewable energy. India has established nearly 70 solar parks to make land available to solar plant promoters. India's largest solar park is the Bhadla Solar Park in Rajasthan, generating 2,245 MW of solar power. India's solar power installed capacity was 119.02 GWAC as of 31 July 2025. Rooftop solar power accounted for 2.1 GW in 2018, of which 70% was industrial or commercial.
Wind power accounts for nearly 10% of India's total installed utility power generation capacity and generated 80.27 TWh in the fiscal year 2024-25. India has the fourth-largest installed wind power capacity in the world. The total installed wind power capacity was 50.00 GW as of 31 March 2025. The potential for wind farms in the country was first assessed in 2011 to be more than 2,000 GW by Prof. Jami Hossain of TERI University, New Delhi. The Ministry of New and Renewable Energy (MNRE) then set up a committee to reassess the potential, and through the National Institute of Wind Energy (NIWE), a revised estimation of the potential wind resource in India was announced.
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India's electricity demand is projected to increase
The International Energy Agency (IEA) predicts that India's electricity demand will continue to grow at an average annual rate of 6.3% over the next three years, outpacing the global electricity demand growth rate of 4%. This surge in electricity demand is fuelled by rapid industrial expansion, agricultural development, increased electricity access, and greater use of household appliances.
India's agricultural sector is also undergoing a transformation in electricity consumption due to various government intervention programs, subsidies, and policies. For instance, the PM-KUSUM Scheme launched in 2019 subsidizes solar pump installations and promotes large-scale solar PV installations, shifting agricultural electricity consumption to daytime hours.
To meet this rising demand, India has made significant strides in renewable energy adoption. It became the world's third-largest producer of electricity from wind and solar in 2024 and has achieved 200 GW of installed renewables capacity as of October 2024, targeting 500 GW by 2030. However, the country faces the challenge of ensuring that its clean energy generation can keep up with the rising demand.
India's electricity generation remains carbon-intensive, with coal accounting for a large share of generation. However, coal's share in meeting new electricity demand is falling, and the government has committed to increasing investment in renewable energy. The International Energy Agency estimates that India will add between 600 GW to 1,200 GW of additional new power generation capacity before 2050, which could significantly impact global resource usage and environmental impacts.
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India's electricity consumption is dominated by the industrial sector
India's electricity sector is one of the most diversified in the world. In 2021, electricity consumption in India was dominated by the industrial sector, which accounted for 43.9% of the country's total electricity consumption. The residential sector used 25.3%, agriculture and forestry 19.0%, commercial and public services 6.6%, and transport had the lowest share at 1.6%. India's power sector employs a wide range of fuel sources, including conventional sources such as coal, oil, and gas, as well as environmentally sustainable sources like solar, wind, biomass, industrial waste, and hydro power plants.
India's electricity consumption pattern reflects the country's economic structure and growth. With a population of over 1.4 billion and one of the fastest-growing major economies in the world, India's energy demand is rapidly increasing. The industrial sector, which includes manufacturing, construction, and other energy-intensive industries, is a major driver of the country's economic growth and, consequently, its electricity consumption.
The industrial sector's high electricity consumption in India can also be attributed to the country's focus on industrialization and infrastructure development. The Indian government has identified the power sector as a key area to promote sustained industrial growth, and has launched various initiatives to boost power generation and supply. These initiatives include the National Electricity Plan 2022-2027, which aims to increase renewable energy capacity and reduce the country's reliance on fossil fuels.
While India's electricity consumption is dominated by the industrial sector, it is important to note that the country also has a significant portion of its population without access to electricity. According to estimates, nearly 0.07% of Indian households, or about 0.2 million homes, do not have access to electricity. This disparity in access to electricity between the industrial sector and households is a challenge that the Indian government is working to address through initiatives like the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) program, which aims to provide round-the-clock power to rural areas.
India's electricity sector is undergoing a transition, with a growing focus on renewable energy sources. The country has ambitious goals to increase the share of renewable and nuclear energy in its energy mix. India has committed to installing 275,000 MW of renewable energy capacity by 2027 and is one of only ten countries planning to triple its renewable generation capacity by 2030. This shift towards renewable energy is driven by the need to reduce greenhouse gas emissions and dependence on fossil fuels, as well as to meet the growing energy demands of the country's industrialization and urbanization.
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India's electricity history began in Calcutta in 1879
India's electricity history began in Calcutta (now Kolkata) on 24 July 1879, when P.W. Fleury & Co. conducted the first demonstration of electric light in the region. This was followed by another demonstration by Dey Sil & Co. on 30 June 1881, where 36 electric lights illuminated the Mackinnon & Mackenzie Company's Garden Reach Cotton Mills. At the time, Calcutta was the capital of India and the second city of the British Empire.
The introduction of electricity in Calcutta was a success, and it soon spread to other major administrative centres, towns, and ports. In 1897, the Calcutta Electric Lighting Act was passed, and Kilburn & Co. secured the Calcutta electric lighting license as agents of the Indian Electric Co., which was registered in London. The company was then renamed the Calcutta Electric Supply Corporation. The following year, in 1898, electricity was supplied to the Bank of Bengal (now the State Bank of India), the Bengal Club, and several private residences. The electrification of Calcutta took place 17 years after New York and 11 years after London.
The first generating station in Calcutta was erected at Emambagh Lane, near Princep Street, and was commissioned on 17 April 1899, marking the beginning of thermal power generation in India. The plant had a capacity of 500 horsepower and could be extended to 800 horsepower if needed. It included eight dynamos and a storage battery, and its chimney was 40 feet higher than the nearby waterworks chimney. The first thermal power plant of the Calcutta Electric Supply Corporation Limited was also commissioned in 1899.
In 1905, the Bombay Electric Supply & Tramways Company (BEST) set up a generating station to provide electricity for the tramway in what is now known as Mumbai. The first hydroelectric installation in India was installed near a tea estate at Sidrapong for the Darjeeling Municipality in 1897. India's electricity sector has continued to develop over the years, with the introduction of grid management in the 1960s, the development of nuclear power plants in the 1960s and 1970s, and a growing focus on renewable energy sources such as hydro, wind, and solar power.
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Frequently asked questions
India's electricity comes from conventional sources such as thermal, nuclear, and hydro, as well as renewable sources like wind, solar, and biomass.
India's major source of electricity is coal, which is a thermal power plant, accounting for around 75% of total power generation.
India's largest source of clean electricity is hydropower, which accounts for 9% of the country's electricity.
India achieved near-universal household access to electricity in 2019, with only 0.07% of households (0.2 million) lacking access to electricity.
