Jammu Kashmir Power Sector in 2025: Rising Imports, Growing Deficits, Infrastructure Strain | Kashmir Life

   

SRINAGAR: As the year 2025 nears its end, the power sector in Jammu and Kashmir witnessed cycles of increased dependency on imports, seasonal uncertainty in generation and “decaying infrastructure”, resulting in unreliable power supply and growing public frustration.

However, the government made efforts to reduce outages and improve the financial position of the power sector through various measures, including the installation of smart meters and upgrading infrastructure.

Earlier, authorities had promised to double hydropower generation by 2026, raising hopes of an uninterrupted power supply in the future. However, developments in 2025 present a more realistic picture of how long and challenging that transition is likely to be.

Power import dependency

Till the third week of December, Jammu and Kashmir was importing over 95 per cent of its electricity, a stark dependency that leaves the region vulnerable as it grapples with an 800 MW power deficit.

Officials said the region was importing electricity ranging from 2900 MW to 3100 MW during peak hours.

During off-peak hours, the region was importing power ranging from 2400 MW to 2800 MW.

Another official said the actual power demand for the Kashmir region is around 2400 to 2500 MW, while in the Jammu division, it varies between 1400 and 1500 MW.

“As of now, Jammu and Kashmir has a power deficiency of nearly 800 MW. The total power availability currently stands at 3100 to 3200 MW,” he said.

‘85 per cent reliance on coal and solar power’

On February 20, it was reported that Jammu and Kashmir was relying on over 85 per cent coal and solar power amid an acute deficit in hydropower generation.

Officials of the Power Development Department claimed that local hydropower generation from existing plants had reduced by nearly 90 per cent.

A senior official said that at present the Jammu and Kashmir is 85 to 90 per cent dependent on coal and solar energy procured from other states, as local power generation remains minimal.

Procurement from power markets

In August 2025, amid minimal power generation, Jammu and Kashmir was procuring approximately 40 to 50 per cent of its electricity from power markets during the lean season.

Official documents reveal that power procurement from markets constituted around 40 to 50 per cent of total imported power during the lean season.

The documents further reveal that due to non-availability of internal generation during the winter months, Jammu and Kashmir imports power from the interstate network.

Power deficiency projections

Jammu and Kashmir and Ladakh are likely to witness an energy deficit ranging from over 4200 MW to nearly 10,000 MW in the next ten years.

“Jammu and Kashmir and Ladakh are likely to witness an energy deficit ranging from 4293 MW to 9929 MW in different years from 2024-25 to 2034-35 with existing and planned capacity addition,” official documents revealed.

The documents further said that the total unserved energy in 2034-35 is estimated at around 8730 MU.

20 per cent ToD surcharge proposal

The Power Development Department proposed an additional 20 per cent charge on electricity consumption during morning and evening hours in the Valley.

The Kashmir Power Development Corporation Limited sought approval from the Joint Electricity Regulatory Commission to impose the surcharge on all categories of consumers except agriculture during peak hours.

According to a petition filed before the JERC for Jammu and Kashmir and Ladakh, the surcharge was proposed across various consumer categories, including domestic households.

Additional 4600 MW power requirement likely

Amid projections of unserved energy in the coming years, Jammu and Kashmir is likely to require over 4600 MW of additional power beyond planned capacities.

Official figures indicate that the region will require around 4625 MW of additional power over the next nine years.

50 per cent surge in power demand likely

Jammu and Kashmir is projected to witness nearly a 50 per cent increase in power demand over the next decade.

Officials projected that power demand may rise by 49.42 per cent by 2034-35, with an average annual increase of around six per cent.

‘Persistent unsatisfactory reporting’

In 2025, the Northern Regional Power Committee found persistent unsatisfactory reporting of renewable energy data from Jammu and Kashmir.

NRPC highlighted that the reporting status of renewable energy stations and SLDC Jammu and Kashmir remained below satisfactory standards.

‘Shortage’ of power in 2034-35

A Government of India study revealed that with existing and planned power purchase agreements, Jammu and Kashmir may not be able to meet consumer demand over the next nine years.

The study observed high levels of unserved energy during winter months.

‘29 per cent unserved annual energy by 2034-35’

Jammu and Kashmir may face forced load shedding amounting to nearly 29 per cent of annual energy by 2034-35.

Authorities projected a compound annual growth rate of power demand exceeding four per cent over the next decade.

Four-hour power cuts in high-loss areas

In October, the government informed the Legislative Assembly that four-hour curtailments were imposed in areas with high technical and commercial losses.

The department said no unscheduled cuts were imposed last winter despite increased demand.

‘Unhealthy power factor’

Officials said Kashmir DISCOM lacks power capacitors to improve voltage quality and power factor.

The Ministry of Power recommended expedited installation of reactive power devices to address the issue.

‘Persistent low voltage issue’

Reports indicated that Jammu and Kashmir continued to face persistent low voltage issues in 2025, especially in the Kashmir Valley.

The issue has been repeatedly raised in NRPC and OCC meetings.

‘34 per cent power deficit likely’

Jammu and Kashmir and Ladakh were likely to face a power deficit of over 34 per cent in December 2025.

Official data showed availability of 2460 MW against a requirement of 3737 MW.

‘500 MW power deficit in December’

In early December, the Kashmir Valley faced a power shortage of nearly 500 MW, leading to extended outages.

Officials attributed outages largely to unauthorised power usage in flat-rate areas.

Over 41 percent AT and C losses

The Power Development Department continued to grapple with high aggregate technical and commercial losses, exceeding 41 per cent.

KPDCL recorded significantly higher losses compared to JPDCL.

250 per cent increase in revenue generation

The Power Development Department recorded nearly a 250 per cent increase in revenue generation over the past five financial years.

Between 2019-20 and the previous fiscal year, the department collected Rs 16,974 crore from consumers.

Power tariff share in non-tax revenue increased by 11 per cent over four years, rising from 56 per cent to 67 per cent since FY 22.

Over the past nine years, Jammu and Kashmir witnessed an average annual increase of 3.60 per cent in electric power purchases, while per capita growth stood at 2.45 per cent. (KNO)