New Delhi: India handled its highest-ever power demand of about 271 GW in May 2026 and is now preparing to meet 300 GW of peak power demand next year, with consumption expected to climb a further 30 GW, Union Power Minister Manohar Lal Khattar said on Monday.
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Speaking at the inauguration of the fourth edition of the Vibrant Gujarat Regional Conference for central Gujarat in Vadodara, Khattar, who also holds the housing and urban affairs portfolio, said meeting the May peak was less a one-off technical feat than the payoff of strategic planning, investment and reforms carried out over the past 12 years under Prime Minister Narendra Modi.
The minister said the system had been kept ahead of the curve, with spare capacity built in to avoid shortages, and pointed to data centres as a key driver of the demand still to come.
"This year, India witnessed its highest-ever peak power demand since Independence, reaching about 271 GW (in May). We successfully met this demand. We had prepared for a capacity of 284 GW to ensure there were no shortages. Looking ahead, as power demand is projected to rise by another 30 GW due to the expansion of data centres and other sectors, we have already made preparations for a 300 GW capacity for the coming year," he stated.
Khattar contrasted the present with the position a decade ago, when supply lagged a far smaller load.
"In 2014, the country's peak power demand was 136 GW, yet even that could not be fully met. Today, that demand has doubled, yet India is reliably meeting the energy needs of its rapidly growing economy," he said.
Khattar said dependable power underpins a strong economy and is indispensable for every industry, MSME, data centre, metro rail network and emerging technology, with Gujarat a major contributor on this front. Industry confidence, he added, rests on stability, infrastructure, skilled manpower and a responsive administration — qualities he described as Gujarat's biggest advantage.
He said the country had held its footing through recent geopolitical turbulence, particularly the West Asia conflict, even as other economies were rattled.
"Today, India is advancing its energy sector based on the principle of 'One Nation, One Grid, One Frequency.' We have successfully maintained our energy security despite recent geopolitical events, particularly those in West Asia. While many nations experienced significant volatility, India has maintained its stability," he affirmed.
India's installed generation capacity has reached roughly 542 GW, the minister said. He added that the Centre's Saubhagya scheme, a 2017 initiative for universal household electrification, has connected three crore homes in recent years, while poor households have been covered through free-electricity schemes.
He also flagged a turnaround at the distribution end, where loss-making utilities had long been a drag on the sector.
"We have undertaken significant distribution reforms, improving the financial health of our DISCOMs (power distribution companies) which previously operated under constant losses, while simultaneously enabling better services for consumers and creating opportunities for future investment," he opined.
A power-surplus state, Gujarat is leading the national renewable energy effort with installed capacity of more than 50 GW, Khattar said, positioning it at the centre of the country's clean-manufacturing ambitions.
"Gujarat is playing a pivotal role in developing the necessary renewable energy, infrastructure, and industrial ecosystem for the Green Hydrogen Mission. As the world shifts towards low-carbon manufacturing, Gujarat is advancing rapidly to become a global hub for green manufacturing," he noted.
Linking his two portfolios, the minister said giving workers housing, transport and rounded urban services lifts industrial productivity, and that cleaner, more accessible and better-organised cities remain a priority for the Modi government.
Gujarat Chief Minister Bhupendra Patel told the gathering that the state's regional summits have so far channelled investment worth Rs 13.30 lakh crore across sectors. He used the occasion to inaugurate eight new smart industrial estates, and noted that regional 'Vibrant Gujarat' editions have also been held in Mehsana, Rajkot and Surat.
"Modiji often recalls a time when the central Gujarat region failed to attract even bicycle manufacturing investments. Today, it has emerged as a vital hub in the nation's manufacturing supply chain," Patel said.
"Thanks to the success of the Vibrant Summit (a biennial global investors' event), Gujarat has emerged as the country's growth engine. Central Gujarat serves as development heart of the state, contributing significantly to sectors such as manufacturing, engineering, pharmaceuticals, food processing, and MSMEs," he added.
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On the new Industrial Policy 2026, Patel said it folds in industry-friendly incentives for MSMEs, women entrepreneurs, start-ups and other segments, and carries a first-of-its-kind 'Choose Your Incentive' feature. Deputy Chief Minister Harsh Sanghavi was also present, along with other dignitaries.