The number of electricity consumers in India during the period 2015-16 was 239151562 (0.239 billion), which increased to 333384002 (0.333 billion) in 2022-23. Each of these consumers will likely have unique patterns of electricity consumption, based on their lifestyles, their needs, and their economies. Understanding these electricity consumption patterns is important to policymakers, and utilities, both to promote accessibility, affordability, sustainable growth and maintain energy security. Here are some key insights into electricity use in India.
Electricity Consumption
As per the latest report of the Central Electrical Authority (CEA) of India, the annual electricity consumption per square kilometer and per thousand population stood at 10,57,994 kWh and 4,44,530 kWh respectively in 2022-23. In specific, the electricity distribution to consumers in India comprises five regions namely the Northern region, the Western region, the Southern region, the Eastern region and the North Eastern region respectively. The table below depicts the status of electricity consumption region-wise over 2022-2023. The energy sold percentage for the five regions of India were 28.05%, 30.24%, 25.79%, 14.73%, and 1.18% respectively. Industrialized and urbanized states like Maharashtra, Gujarat, Karnataka and Tamilnadu have higher electricity consumption, while states in the northeast region and other less industrialized regions such as Bihar and Jharkhand, report lower consumption levels.
Table 1: Overview of electricity consumption in India | Data Source: CEA
Image 1: Region Wise electricity consumption in India | Data Source: CEA
Sector Wise Consumption
The cumulative electricity consumed across India during the year 2022-2023 was 1440040.82 GWH. It is 9.38% higher than the previous period of 2021-2022. The percentage of electricity consumed by different sectors such as industries, domestic, agriculture, commercial, public water works, traction, public lightings and miscellaneous sectors were 41.2%, 24.5%, 16.9%, 8.1%, 2.2%, 2.1%, 0.6%, and 4.4% respectively. Moreover, in the near future, due to the transition towards Electric Vehicles, electricity consumption is likely to increase in the mobility sector.
Image 2: Electricity consumption pattern in India, FY 2022-23 | Data Source: CEA
Image 3: Sectorwise electricity consumption in India, FY 2022-23 | Data Source: CEA
Per capita energy consumption in India
The per capita consumption of electricity of India was reported to be 1331 kWh in the year 2022-23, which was 6% higher than the per capita of 2021-2022 (1255 kWh). Further, The per capita electricity consumption increased from 672 kWh (2006-07) to 1331 kWh (2022-23), which was 98% more than the per capita consumption in the year 2006-2007. There is a slight dip in the year 2020 -21 in per capita consumption due to the COVID 19 lockdowns. . Apart from this dip, rapid industrialization and urbanization in the country have resulted in the per capita electricity consumption showing a consistent, linearly increasing trend.
Image 4: Trend of per capita electricity consumption in India Data Source: CEA
Gross electricity generation to meet the demand for electricity
In India the sources for electricity generation includes thermal, nuclear and renewable sources such as hydro, wind, biopower and solar. However, during the year 2022-23 the major portion of electricity supplied was from coal power plants in the country which is 73.06% , followed by renewable energy sources (12.58%), hydro (10.02%), nuclear (2.83%), gas (1.48%) and diesel (0.03%). As thermal power plants come with substantial concerns over health and environment, it is critical that the share of renewable energy sources is improved significantly for sustainable power generation.
Image 5: Electricity generation from different sources | Data Source: CEA
CO2 emission due to electricity generation in India
The CO2 emissions associated with electricity consumption in India can vary based on the carbon intensity of electricity generation in different regions of the country. The average carbon intensity for electricity generation in India was around 0.82 kilograms of CO2 per kilowatt-hour (kg CO2 / kWh). The formula used to estimate the CO2 from electricity consumption in India is CO2 emissions in kg = Electricity consumption (kWh) x Carbon intensity (kgCO2/kWh). The major contributors of CO2 emission are from thermal based power generation which includes coal, diesel and gas fuels. The gross amount of electricity generated through thermal power during the year 2022-23 was 1409343.61 GWh, the corresponding CO2 emission was estimated to be 1155.66 Mega tonnes.
Transition to renewable energy sources
With the increasing trend of electricity consumption, the impact on the environment should not be compromised. There is a gradual increase in the inclusion of renewable power within the Indian power sector since 2014-15, with a significant rise particularly in the last three years. Subsidization schemes like the PM Surya Ghar, and PM KUSUM have helped towards this. As per 31.12.2024 , the total installed capacity of installed renewable power was 209444.75 MW, which includes 46.7% of solar, 23% of wind, 22.4% of large hydro, 5.4% of bio power, and 2.4% of small hydro.
Image 6: Trend of renewable power installed | Data source: MNRE
Image 7: Installed capacity of renewable power Data source: MNRE
Other trends
As per the Ministry of Power’s year end review report 2024, India’s per capita electricity consumption has increased to 1395 kWh in 2023-24, marking a significant increase of about 45.8% from the year 2013-14. Moreover, due to improvements in generation and transmission capacities, power outages in the country have reduced from 4.2% in the year 2013-14 to 0.1% in the year 2024-25. Reducing power outages leads to uninterrupted power supply to consumers which also simultaneously increases the demand for electricity. Further, the government has approved 50.9 GW of Inter State transmission projects costing ₹ 60676 Crores, considering the increasing trend of electricity demand.
Conclusion
The nation's electricity consumption pattern indicates that the development is in specific states of the country such as Maharashtra, Gujarat, Karnataka and Tamil Nadu. However, for achieving uniform development across the country it is essential to understand and address the challenges that are crucial to providing reliable, affordable, and sustainable energy for every citizen in the country. Thus, by implementing effective policies and adapting clean energy for electricity generation, India has the potential to achieve energy fairness. Upgrading the grid infrastructure will boost efficient electricity transmission, reduce technical losses, and enable the integration of renewable energy. Educating consumers and businesses on the importance of energy efficient appliances and practices in industries will enable the way for efficient energy consumption. Further, adjusting the subsidies with stringent rules will make consumers more conscious in their usage, will enhance grid efficiency and alleviate the financial burden on utilities.
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