Gujarat tops the list of states seeking additional power allocation from the Centre. It is followed by Rajasthan, Maharashtra, Tamil Nadu, Andhra Pradesh, West Bengal, Uttar Pradesh, and Chhattisgarh. Delhi has also sought additional electricity. Meanwhile, Punjab, Madhya Pradesh, Bihar, Kerala, Tamil Nadu, and Himachal Pradesh are undertaking tender processes to procure short-term coal-based power.

October is usually a time when temperatures begin to fall, but this year people are still experiencing unusually hotter weather.

With electricity consumption rising across industrial, agricultural, and residential sectors, several states have had to approach the Centre for additional power. Under these circumstances, the purchase of expensive electricity from private sources is putting sustained pressure on DISCOMs.

India’s power demand is expected to rise to 1,825-1,835 billion units this fiscal. It faced a record peak power demand of 270.8 GW in May.

Vinit Mishra, Partner, Consulting, Power and Utilities at EY, told The Secretariat, “India’s 2026 power deficit is a peak-demand and fuel-supply crisis rather than a generation-capacity shortage.”

Investment in renewable energy, solar, and wind power, as well as thermal power projects, has grown. Despite this expansion, questions have emerged over electricity availability in several states.

The impact of climate change has added to the challenge. Rain-related disruptions to coal logistics and critically low coal stocks at nearly half of thermal power plants have compounded the crisis. Mishra said El Niño has increased agricultural pumping and cooling loads while reducing hydropower output.

Surging Power Demand

State-wise electricity demand, actual shortages, and power procurement conditions change daily.

Industrial units in Punjab faced power cuts in September.

Heavy industries in Uttarakhand experienced supply disruptions, while Kerala issued instructions asking consumers to reduce electricity consumption during peak hours.

In response to signs of pressure on the power supply, Gujarat has appealed to consumers to reduce electricity consumption between 5 p.m. and 11 p.m. 

Increasing Installed Capacity

According to NITI Aayog’s India Climate & Energy Dashboard for September 2026, India had installed power generation capacity of 558.90 GW. The Centre aims to increase the installed power generation capacity to 874 GW by 2031-32.

But India's challenge is not merely to generate more electricity, but to deliver reliable and affordable power when it is needed.

Mishra noted that central power allocation is largely a zero-sum game, making states’ payment discipline crucial. He said, “Short-term power procurement, at around ₹6 per unit, offers a practical but costly solution. Gujarat and Tamil Nadu are pursuing such measures, indicating structural inadequacy in meeting peak demand.”

Gujarat Industry’s Concern

Rising temperatures, increased irrigation needs, and higher industrial activity ahead of Diwali have sharply pushed up Gujarat’s power demand. Considering the state’s projected requirements for 2031-32, it has sought an additional 5,000 MW of power from the Centre.

Supply constraints have worsened due to falling solar generation after sunset, lower hydropower, and wind power amid reduced rainfall and slower wind speeds, and limited coal availability.

Ashok Jirawala, President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), told The Secretariat that discussions were under way to prepare an action plan to deal with potential power cuts.

He said the festive season was approaching and textile manufacturers – Gujarat is one of India’s biggest textile hubs - had orders to fulfil. If power cuts are imposed, they may not be able to meet demand on time.

“We are not in favour of any kind of power cuts during the daytime. There is a discussion about eight hours of power cuts at night. We are even prepared for 10 hours of power cuts at night, but there should be no power cuts during the daytime,” he said.

Ajit Shah, President of the Sanand Industries Association, said discussions were under way about regulating electricity supply in phases. He said, “It appears that the government expects industries to voluntarily reduce operations to help meet electricity demand during peak hours.”

Gujarat Seeks 5,000 MW

Following representations from industry associations, the Gujarat Energy Department and GUVNL have withdrawn industrial power cuts to prevent production disruptions during the Diwali festive season.

Chief Minister Bhupendra Patel said 1,300 MW from central thermal power stations and 1,200 MW from hydropower stations would become available in phases from 2028-29.

Gujarat's Energy Planning Faces a Test

A senior official in Gujarat's Energy Department told The Secretariat that Gujarat is increasing investment in solar and wind energy, but a structural challenge remains. Solar power generation is higher during the day, while output falls after sunset.

At the same time, electricity demand from households, industries, commercial establishments, and agriculture may remain high. Therefore, Gujarat's policy priority cannot be limited to installing more solar panels. It must establish effective coordination between solar energy, wind power, thermal generation, battery storage, and inter-state power purchases.

Sourcing Power

According to information released by the Union Ministry of Power, approximately 208 GW, or nearly 55% of the capacity, came from non-fossil fuel sources, including solar, wind, hydropower, and nuclear energy.

Mishra recommended building coal stocks before the Rabi season, shifting agricultural pumping to solar hours and using power exchanges to meet peak demand.

States should also contract battery storage, pumped storage, and firm renewable power for evening peaks, mandate resource adequacy planning, adopt weather-linked demand forecasting and upgrade coal rail connectivity. “States must buy flexibility, not just megawatts,” he said.

The current situation is a test of energy planning. Alongside increased investment in solar and wind power, storage, thermal generation, fuel supplies and inter-state transmission must receive equal priority.