While Gujarat accounts for the highest amount of electricity produced by the private sector in the country, in the last five years, states like Rajasthan, Odisha, and Chattisgarh have seen the biggest percentage rise in electricity supplied by private players.

Between 2019-20 and 2023-24, the highest growth in electricity supplied by private players was seen in Rajasthan, where the power supply from private entities grew by a massive 125 per cent. Compared to 28,225 MUs supplied in 2019-20, the share of power from the private sector in Rajasthan reached 63500 MUs in 2023-24,  data tabled in Rajya Sabha during the recently concluded winter session states. Similarly, the electricity supplied by the private sector grew by over 60 per cent in both Odisha and Chhattisgarh during these five years. While the private electricity production in Odisha rose by 63 per cent, Chattisgarh rose by almost 60 per cent during this five-year period.

Other states like Haryana (growth of 50 per cent), Tamil Nadu (44 per cent), and Uttar Pradesh (40 per cent) also saw significant rises in power supplied by private players. During this five-year period, there has been an average 29 per cent rise in the quantum of electricity produced by private players in the country. Compared to the 5.35 lakh MUs of power generated in 2019-20, the private players now generate 6.9 lakh MUs of power annually, the data states.

According to power sector experts, the share of the private sector in India’s power generation has been growing rapidly and has eclipsed the shares of the state and centre in electricity generation. For instance, between 2008-09 to 2023-24, the share of the state sector in the total installed generation capacity declined from 54 per cent to 24 per cent, and the share of the central sector declined from 31 percent to 24 percent, while the share of the private sector increased from 15 per cent to 52 per cent. Of the total 4,56,757 MW of installed power capacity in the country as of November 2024, the private sector accounts for more than 53 per cent or 243974 MW of installed capacity.

Atanu Mukherjee, CEO and President of Dastur Energy says the increase in private sector power supply in states like Rajasthan, Odisha, and Chhattisgarh between 2019 and 2024 can be attributed to targeted policy reforms, infrastructure advancements, and improved operational efficiency across these regions. “Odisha has witnessed a significant revival of its renewable energy policy since 2018, complemented by a growing emphasis on solar and wind energy. Together, these renewable sources now account for over 45 percent of the state’s energy mix. With relatively limited domestic demand, Odisha has surplus power available, allowing it to sell electricity to neighbouring states. This combination of renewable energy focus and efficient utilization of surplus capacity has contributed to the rise in private sector power supply. Similarly, Rajasthan’s strategic planning and its position as a hub for renewable energy have enabled private players to contribute meaningfully to its energy landscape,” Mukherjee said.

“Chhattisgarh’s focus on reducing transmission and distribution losses has been a game-changer. By addressing issues such as theft, auxiliary power consumption, and inefficiencies in billing, the state has improved the financial viability of its power sector. Additionally, streamlined grid connectivity and robust network planning have brought stability to its energy systems, enabling the state to ensure consistent power supply. These efforts have created an environment conducive for private sector participation and investment,” he added.

Among all the states in the country, Gujarat accounts for the highest quantum of electricity produced by private entities. During the year 2023-24, private entities in Gujarat produced 97,000 million units (MUs) of power, the highest among all states in the country. The electricity supplied by the private sector grew by four per cent compared to that in 2019-20. Close on the heels of Gujarat is Chattisgarh, which produced 85m000 MUs during 2023-24. This is much higher than that of more developed peers like Maharashtra and Karnataka, which, during the same year, produced 76,000 MUs and 40m588 MUs, respectively.