India consumes 3.4% of global energy. The Indian power industry is growing at a rapid pace. The Annual demand is increasing by 3.6% over the last 30 years. There is surging demand from domestic and industrial sectors.
Industrial sector − 35.5% (2006-07)
Domestic sector − 25.87% (2006-07)

The State Electricity Boards (SEBs) are main agencies for the generation and supply of electricity. Private investments in the Power Sector have been allowed since 1991, and therefore there is increased participation of private and global players.

The different sources of Power in India are Coal, Gas, Hydroelectric, Wind, Solar. Coal is still the biggest source of Power. The installed capacity for power generation in India is 1,49,391.91 MW.

Though 82.4% of villages are electrified less than 60% of households consume electricity. Thus the per capita consumption of electricity is the lowest in India. Industry followed by Agriculture are the two main sectors that consume power. But the power sector in India faces many roadblocks like ineffecient distribution systems, low capacity utilization and poor maintenance.

By 2012, India will need another 60 to 70 GW of power, the demand would be 950,000 MW by 2030
For the Indian economy to grow at 9% annually, additional capacity of 60 GW must be added every five years. This requires approx. US$100 billion in investment every five years. The domestic sector will cross 29% by 2011-12, industrial sector will remain almost stagnant. The Government promise of 100% electricity to domestic users will push up consumption. Government policies and foreign investment in the sector will aim at bridging the huge gap between supply and demand of electricity in India.