Riyaz Bhat
Srinagar, Dec 22 (KNO): As the year 2025 nears its end, the power sector in Jammu and Kashmir experienced cycles of increased dependency on imports, seasonal uncertainty in generation, and “decaying infrastructure” - causing an unreliable power supply and public frustration.
However, the government has made an effort to reduce outages and improve the financial position of the power sector through different developments including the installation of smart meters and upgrading the infrastructure.
Previously, the authorities had promised of doubling the hydro electricity generation by 2026 that had provided a glimmer of hope for a future of an unrestricted power supply but the stories of 2025 provide a more realistic view of how long and difficult it will be to achieve that future.
In 2025, the news agency—Kashmir News Observer (KNO) published a series a stories, highlighting issues and developments that took place this year.
Power import dependency
Till the 3rd week of December, Jammu and Kashmir was importing over 95 percent of its electricity—a stark dependency that leaves the region vulnerable as it grapples with an 800 MW power deficit.
The officials had informed that the region was importing electricity ranging from 2900 MWs to 3100 MWs during the peak hours.
It also said that during other hours, the region is importing electricity ranging from 2400 MWs to 2800 MWs.
Another official said that the actual power demand for Kashmir region is around 2400-2500 MWs and in case of Jammu division, it varies from 1400-1500 MWs.
“As of now Jammu and Kashmir has a power deficiency of nearly 800 MWs. The total power availability as of now is 3100-3200 MWs,” he said.
’85% reliability on coal and solar power’
On February 20, KNO reported that Jammu and Kashmir was relying on over 85 percent of coal and solar power amid acute deficit of hydro power generation.
Officials of the Power Development Department claim that local hydro power generation from the local power plants have reduced by nearly 90 percent.
A top official had informed that at present Jammu and Kashmir is 85-90 percent dependent on coal and solar energy that is being procured from other states because as of now it don’t have a local power generation.
Procuring of electricity from power markets
In August-2025, with the minimal power generation availability, Jammu and Kashmir was procuring approximately 40-50 percent of electricity from the imported power markets during lean season.
Official documents accessed by KNO reveal that from the total imported power, it is seen that the power procurement by Jammu and Kashmir from the market is approximately 40-50 percent during lean season.
The documents further reveal that due to non-availability of internal generation during 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 4,200 MWs to 10,000 MWs in the next ten years.
“J&K and Ladakh are likely to witness energy deficit ranging from 4293 MWs to 9929 MWs in different years from 2024-25 to 2034-35 with the existing and planned capacity addition,” the official documents had revealed.
The official documents further reveal that a study was carried out considering existing capacity and planned capacity. “It was observed that the total unserved energy in the year 2034-35 is about 8730 MU,” it reads.
20% ToD surcharge proposal
The Power Development Department (PDD) had proposed an extra 20 percent charge on electricity consumption during morning and evening hours in the Valley.
The Kashmir Power Development Corporation Limited (KPDCL) has sought approval from Joint Electricity Regulatory Commission (JERC) to impose a 20 percent surcharge on all categories of consumers except for the agriculture sector during peak hours, when demand is at its highest due to the bone‑chilling cold in the Valley.
According to a petition filed before the JERC for J&K and Ladakh, KPDCL has proposed the surcharge for different consumer categories, including domestic households. The JERC, a quasi‑judicial body, is empowered to approve or reject tariff proposals.
Additional 4600 MW power requirement likely
Amid ‘unserved energy’ predictions in coming years, Jammu and Kashmir is likely to require more than 4600 Megawatts (MWs) of power other than the planned capacities to meet electricity demands.
The official figures revealed that Jammu and Kashmir will likely require 4625 MWs of power in the coming nine years amid the predictions of ‘unserved energy’.
“As J&K is likely to have unserved energy in coming years there is a need to contract non-fossil capacities for meeting energy requirements other than the planned capacities. The additional quantum of capacities required (other than already planned) to be contracted is about 2438 MW from Coal, 1200 MW from solar, 987 MW of DRE till 2034-35.”
50% surge in power demand likely
Jammu and Kashmir is likely to witness growth in power demand by nearly 50 percent in a decade.
The official documents revealed that the authorities have projected that Jammu and Kashmir will likely have an extra power demand by 49.42 percent by the year 2034-35.
They stated that the peak demand will be more than the average growth saying that the region may likely witness an increase in power demand by 6 percent each year from 2025-26 to 2034-2035.
‘Persistent unsatisfactory reporting‘
In 2025, Northern Regional Power Committee (NRPC) had found persistent unsatisfactory reporting status of Renewable energy (RE) from Jammu and Kashmir.
NRPC in a meeting had said that Northern Regional Load Despatch Center (NRLDC) representative has informed, “On the basis of status of July month, it is evident that reporting status of some of the constituents that is Renewable energy (RE) stations, SLDC-HR, SLDCPS, SLDC-J&K, SLDC-HP, SLDC-Delhi, NTPC, NHPC and RAPS are not satisfactory and need improvement.”
“Further, persistent unsatisfactory reporting status of Punjab and J&K was also highlighted,” reads the NRPC document.
The NRPC has further anticipated that Jammu and Kashmir and Ladakh may face a shortfall of 2 percent of electricity in the ongoing month as per the revised peak demand.
The committee, however, said that the representative of J&K SLDC informed them that the shortfall in J&K would be met through Real time exchanges.
‘Shortage’ of power in 2034-35
With the present and other planned Power Purchase Agreements (PPAs) or a Transmission Service Agreement (TSA), Jammu and Kashmir is unlikely to meet and cater the power demand of consumers over the next nine years.
A study by the Government of India (GoI) reads, “The study has analysed the daily and monthly pattern of unserved energy in the year 2034-35, it can be seen that contracted capacity (present and planned) is unable to meet the demand.”
“It can be seen that during the high demand of winter months, the proportion of unserved energy is high,” reads the study.
Besides, the report further reveals that the surplus capacity is available with states due to RE availability, demand variation etc.
“The pattern of surplus capacities for J&K and Ladakh has been observed as below. This capacity can be shared with other states which might result in reduced fixed cost burden on the utilities resulting in further reduction in the cost for consumers,” it reads.
The report further suggests that J&K and Ladakh have likely surplus capacity available from April to September in the range of 230-740 MW for 2027-28 as shown below which can be shared with other states.
‘29% un-served annual energy by 2034-35’
In an awful revelation, Jammu and Kashmir may face 29 percent of ‘forced load shedding’ of annual power in the year 2034-35.
Besides, the authorities have further projected that in the coming ten years, the Compound Annual Growth Rate (CAGR) of power demand is likely to increase by more than four percent in Jammu and Kashmir and Ladakh.
Authorities in a report have projected that “Electrical energy demand for the UT of J&K and Ladakh is increasing with a CAGR of 4.2 percent from 2024-25 to 2034-35 as forecasted by 20th Electric Power Survey (EPS) of India.”
It has further said that the projections of J&K also indicate that electrical energy demand may increase with a CAGR of 4.07 percent from 2024-25 to 2034-35.
“For satisfying resource adequacy that is meeting the electricity demand reliably and at affordable cost, the UT needs to methodically plan its capacity expansion either by investing or by procuring power,” it reads.
4-hour power cuts in high-loss areas
The government in the last week of October had informed the Legislative Assembly that PDD was imposing a curtailment of four hours in those areas having highest technical and commercial losses on local feeders.
The department also said that there were no power outages and unscheduled cuts were imposed in Kashmir valley during the last winter.
“No unscheduled cuts were imposed in Kashmir valley during the last winter despite substantial increase in power demand on account of heating load at a time when the power availability from own generation sources remains limited,” the government had said.
About the power curtailment, PDD had informed that that detailed schedules of power curtailment indicating, feeder-wise, the maximum curtailment daily depending upon the loss level of the feeders were formulated and except for addressing urgent and accidental system requirements, no unscheduled distress curtailment was allowed or undertaken.
‘Unhealthy power factor’
In Kashmir valley, there is no power capacitor available for the local DISCOM to improve the quality in electrical systems by compensating for reactive power and improving power factor.
Officials revealed that the Ministry of Power for Government of India (GoI) has provided the capacitors to industrial consumers to keep healthy power factor.
“In the meeting, it was informed from the J&K side that presently no capacitors are available in Kashmir DISCOM although capacitors have been provided by industrial consumers to keep healthy power factor,” reads the documents of (MoP).
The documents further states that it was also discussed that TCC and NRPC had recently accorded approval from forum for installation of capacitors by Rajasthan, Uttarakhand DISCOMs.
“The proposals were then submitted by respective states to PSDF and PSDF also had positive views of providing funds for installation of capacitor banks. PSDF funds were frozen for some time but now PSDF has started approval for some of the schemes,” it reads.
‘Persistent low voltage issue’
Amid increasing power demand, Jammu and Kashmir in 2025 on contrary reeled under persistent low voltage issues, reveals the report.
The report reveals that “Low voltage related issues of J&K and Ladakh (UT) have been regularly shared by NRLDC with CEA and CTUIL in Grid-India’s quarterly operational feedback report as well.
“The issue has been continuously raised in NRPC as well as OCC meetings, still the issues of low voltage persist in J&K especially Kashmir valley,” it reads.
Besides, the report further states that power is being imported by J&K from 400KV Moga-Kishenpur D/C lines and 400KV Jalandhar-Samba D/C lines.
“It is being noticed that heavy power is being drawn by 400kV lines from Moga to Kishenpur during winter months whereas the power flow on 400kV Jalandhar-Samba is not that high,” it reads.
The Ministry of Power for Government of India (GoI) in the report further said that it has been discussed and suggested on numerous occasions earlier to J&K to plan and expedite commissioning of reactive power devices especially capacitors at lower voltage level to improve the voltage profile in valley area and also avoid large sums payable as reactive energy charges.
‘34% power deficit’ likely’
Amid persistent cold temperatures, Jammu and Kashmir and Ladakh are likely to witness a power deficit of over 34 percent in the month of December.
The officials said that in the anticipated power supply position in the northern region for December-2025, Jammu and Kashmir and Ladakh is likely to have a power shortage of 34.2 percent.
The official figures reveal that there is an availability of just 2460 Megawatts (MWs) against a requirement of 3737 MWs in Jammu and Kashmir and Ladakh. It also reveals that there is a shortage of 1277 MWs.
Variation of 700 MWs power during day time
In the last week of July, KNO reported that in the backdrop of low voltage issues during the day time, ‘Jammu and Kashmir is facing a variation of nearly 700 Megawatts (MWs) of power’ in comparison to other hours.
The official documents had revealed that in view of low voltage during the day hours from 9Am to 2Pm, Jammu and Kashmir State Power Development Corporation Limited has a Available Transfer Capability (ATC) and Total Transfer Capability (TTC) of 2700/2800 MWs of power.
However, during the other hours except for 9Am to 2Pm, there is an ATC and TTC capacity of 3400/3500 MWs of power—highlighting the need of improving the grid and other major infrastructures that can help in increasing the voltage during the day hours.
‘500 MW’ power deficit in December
The Power Development Department (PDD) in the first week of December was facing a ‘shortage of nearly 500 Megawatts (MWs) to meet the actual power demand’ in Kashmir valley— plunging residents into extended blackouts.
An official had informed that in the first week of December, “The actual peak power demand in Kashmir is at least 2400 MWs but the local Discom (Kashmir Power Distribution Corporation Limited (KPDCL) this year so far has been able to cater only 1900 MWs.”
About the unscheduled power cuts, the official had said that “The power outages are primarily because of the unauthorised use of power. People mostly in the flat rate areas are not using power judiciously and that is one of the main reasons for the power tripping. “As of now 60 percent of the areas in Kashmir are flat rated.”
Over 41% AT&C losses
Jammu and Kashmir Power Development Department this year was reeling under high Aggregate Technical and Commercial Losses (AT&C) with the figures suggesting the loss of more than 41 percent till the financial year 2023-24.
Among the both DISCOMs, Kashmir Power Development Corporation Limited (KPDCL) till March-2025 was facing extra 21 percent AT&C in comparison to the Jammu Power Development Corporation Limited (JPDCL).
In the year 2020-21, JPDCL was facing 30 percent of AT&C while the KPDCL was reeling under 65 percent of losses.
Similarly, in the financial year 2021-22, there were 37.5 percent AT&C losses in Jammu DISCOM and 63.26 percent in Kashmir DISCOM.
The official figures further reveal that in the year 2022-23, JPDCL was grappled with 35.4 percent of AT&C losses and KPDCL with 59.59 percent.
Likewise, in the previous fiscal there was a total of 41 percent AT&C losses across the DISCOMs with 31 percent in JPDCL and 51.98 percent in KPDCL.
250% increase in revenue generation
The Jammu and Kashmir Power Development Department (PDD) has recorded nearly 250 percent increase in revenue generation in the past five financial years.
Since 2019-20 till previous fiscal, PDD has collected Rs 16,974 Crore revenue from its consumers.
From the total revenue generated, the Kashmir Power Development Corporation Limited (KPDCL) sees 176 percent increase.
The official figures further reveal that Jammu Power Development Corporation Limited (JPDCL) 73.58 percent increase in revenue generation in past five financial years
It reveals that JPDCL has collected Rs 8906.31 Crores since 2019-20 till previous fiscal year while KPDCL has collected Rs 8068 Crores.
Non-tax power tariff revenue increases by 11%
In Jammu and Kashmir, power tariff share in non-tax revenue has increased by 11 percent in four years.
An official had informed KNO that “Power tariff's share in non-tax revenue grew from 56 percent to 67 percent since Financial Year-22.”
It further states that the power is a critical driver of economic development in Jammu and Kashmir, with the government focusing on optimizing power generation and enhancing infrastructure to ensure a reliable, 24 hours supply at affordable rates.
“Key initiatives include expanding hydel power plants, promoting rooftop solar panels for households, encouraging solar energy in agriculture, and upgrading transmission networks to support uninterrupted supply and export surplus power to other states for revenue generation,” the official said.
The official further said that the major contributors to own revenue resources are GST, power tariff, excise, sales tax, water user charges and taxes on vehicles.
“The proportion of these six revenue resources has increased from 86 percent in FY-22 to 93 percent in FY-25,” the official said.
3.60% annual increase in electric power purchases
In the past nine years, Jammu and Kashmir has witnessed an average annual increase of 3.60 percent in electric power purchases while the growth stands at only 2.45 percent.
An official had said, “Over the past years from 2016-17 to 2024-25, Jammu and Kashmir has experienced an average annual increase of 3.60 percent in electric power purchases, as per extrapolated data.”
“When considered on a per capita basis, the growth rate stands at 2.45 percent per year, reflecting the region's increasing energy demand. This growth is also in line with the region's population increase, which has been growing at an annual rate of 2.14 percent during the same period,” the official said—(KNO)