Raksan Transformers Limited: Power Shortage Falls to 0.03%, 242.49 GW

Raksan Transformers Limited reports that India met peak power demand of 242.49 gigawatts (GW) in FY 2025-26 while its power shortage fell to 0.03% through December 2025, from 4.2% in FY 2013-14. The improvement reflects supply additions and grid measures, while transmission and last-mile delivery remain necessary to sustain it.

How did India’s power shortage fall to 0.03%?

India’s power shortage fell as generation and transmission additions, planning and grid management narrowed the gap between available supply and demand. Raksan Transformers reports a shortage of 0.03% until December 2025, compared with 4.2% in FY 2013-14, while peak demand reached 242.49 GW in FY 2025-26. The 0.03% result covers a period ending in December 2025 rather than a completed fiscal year.

Demand growth explains why the supply-demand balance requires continuing investment. India consumed 1,622.97 billion units (BU) of electricity in FY25, 32% more than in FY21, representing a five-year compound annual growth rate (CAGR) of 7.17%. Raksan Transformers cites an expected 277 GW peak demand in FY26 and energy-demand growth of 6% to 6.5% annually over the next five years.

What generation base supported the 242.49 GW peak?

India’s installed generation capacity was 523.79 GW in December 2025, exceeding the 242.49 GW peak demand reported for FY 2025-26. India generated 1,829.70 BU in FY25, up 5.21% year on year. National Load Dispatch Centre data cited by Raksan Transformers show electricity demand of 241,213 megawatts (MW) and supply of 241,201 MW in December 2025.

Coal remained a major component of installed capacity, with 219.61 GW in December 2025, equal to about 41.9% of the 523.79 GW total. Coal production reached 1,047.68 million tonnes. The cited capacity mix also included 135.81 GW of solar, 54.51 GW of wind, 50.91 GW of hydropower and 8.78 GW of nuclear capacity, indicating that available supply draws on several generation sources.

Renewable additions have expanded the generation base but require grid capability to carry electricity from generation sites to demand centres. India added 37.91 GW of renewable capacity between April and December 2025. Renewables met 51.5% of a 203 GW electricity-demand level in July 2025, compared with 6% in FY15, according to the material cited by Raksan Transformers.

Why are transmission and last-mile upgrades central after the power shortage decline?

Transmission and last-mile upgrades are central because generation capacity alone does not deliver electricity to homes, farms and enterprises. Raksan Transformers defines transmission as the link between generation sources and distribution systems, with distribution networks making the final connection to consumers. A 0.03% shortage measure through December 2025 therefore does not remove the requirement for lines, substations, transformers and metering.

The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS), both launched in December 2014, addressed distribution infrastructure. DDUGJY covered village networks, feeder and distribution-transformer metering, and augmentation of existing systems. IPDS focused on urban sub-transmission and distribution upgrades, consumer and feeder metering, smart meters, gas-insulated substations and real-time data acquisition systems.

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or Saubhagya, focused on last-mile household connections. Raksan Transformers cites combined investment of about Rs 1.85 lakh crore across the initiatives, electrification of more than 18,374 villages, and connections for about 2.86 crore households during the Saubhagya period from October 2017 to March 2022. These programmes show that improved access depended on network equipment and household connectivity as well as generation.

What evidence shows that electricity access and use have improved?

Electricity access improved most markedly in rural average supply hours. Rural daily average supply rose to 22.6 hours in FY25 from 12.5 hours in FY14, an increase of 10.1 hours. Urban daily average supply increased to 23.4 hours in FY25 from 22.1 hours in FY14, an increase of 1.3 hours.

Per-capita electricity consumption reached 1,460 kilowatt-hours in 2024-25, up 503 kilowatt-hours, or about 52.6%, from 957 kilowatt-hours in 2013-14. FY25 consumption of 1,622.97 BU was led by industry at 41.8%, followed by households at 24.3%, agriculture at 17% and commercial users at 8.3%. The mix makes distribution performance relevant to industrial, residential and farm demand.

The increase in rural supply hours was larger than the urban increase over FY14 to FY25. This difference is consistent with the stated focus of DDUGJY on village infrastructure and Saubhagya on households without electricity connections. It does not establish that all locations receive the same quality or duration of supply, because the cited figures are national daily averages.

What must happen for the low power shortage level to persist?

The low shortage level will depend on generation availability and network additions keeping pace with demand. Raksan Transformers reports 7.17% CAGR in electricity consumption between FY21 and FY25, while FY25 power generation increased 5.21% year on year to 1,829.70 BU. Fuel availability, transmission capability, distribution delivery and peak-period grid management must remain sufficient for the reported shortage level to continue.

The National Electricity Plan for transmission identifies projected demand and generation additions as drivers of augmentation. For 2022-27, it provides for 114,687 circuit kilometres of transmission lines and 776,330 megavolt-amperes (MVA) of transformation capacity at 220 kilovolts and above. The plan would take total transmission-line length at those voltage levels to 571,403 circuit kilometres and substation transformation capacity to 1,847,280 MVA by March 2027.

The plan cites a revised draft projection of 296 GW peak electricity demand in 2026-27, above the 277 GW FY26 peak forecast cited elsewhere by Raksan Transformers. It also estimates Rs 4.25 lakh crore of expenditure for additional transmission systems, including lines, substations and reactive compensation, during 2022-27. The differing demand figures relate to different cited forecasts and periods, but both indicate that network expansion remains linked to maintaining supply adequacy.

Conclusion

India’s reported decline in power shortage from 4.2% in FY14 to 0.03% through December 2025, alongside a 242.49 GW peak, indicates a substantial reduction in the supply gap. Higher rural supply hours, more household connections and rising per-capita consumption show that generation, grid management and distribution initiatives have contributed to the outcome.

The next measure to watch is demand against the disclosed peak forecasts of 277 GW in FY26 and 296 GW in 2026-27. The National Electricity Plan’s 2022-27 transmission additions and estimated Rs 4.25 lakh crore expenditure provide the disclosed framework for whether grid and last-mile systems can keep pace with additional generation and consumption.