Power: The old is undermining the new amid rising electricity demand

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India's power sector faces a growing gap between rising electricity demand and investment in conventional generation and grid infrastructure, risking supply shortages during peak hours

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Capacity in the new sector has grown from 13 Gw in 2011 to more than 220 Gw and helped meet rising demand in this difficult year, especially during the daytime (Representative Image)

Abhishek Anand Praveen Ravi Navneeraj Sharma Arvind Subramanian

6 min read

Last Updated :

Oct 20 2026 | 11:04 PM

IST

In fifteen years, India has doubled power supply, virtually eliminating official shortages, which were once a tenth of peak demand. September 2026, with evening shortages and surging market prices, was an augury of the next challenge. It is tempting to treat this year as an outlier, the product of war, a weak monsoon and heat. That would be a mistake because the shocks exposed a structural problem: Under-investment in the old power sector.

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