During the Eleventh Five Year Plan (FY 2007-12), nearly 55 000 MW was created against target of adding 78 700 MW. In the Tenth Plan period (FY 2002-07), capacity added was 21 100 MW against target of 41 100 MW. Additional 100 000 MW is required by 2012 for which approximately ₹ 800 000 crore investment is required

Demand and supply outlook: 

Despite, these additions, there continues to be an overall energy deficit of 8.7% and peak shortage of 9%. The energy deficit in FY 2009-10 was 10.1% and the peak deficit was 13.3%. The power sector is witnessing acute shortage of electricity over the past few years. The gap between demand and supply is not decreasing substantially, leading to persistent power shortage.

In recent years, India's energy demand has been increasing very fast due to the population growth and economic development. The increase in installed power generation capacity has however not kept pace with the increased demand for power, thus leading to power shortage. Yet, despite the overall increase in energy demand, per capita energy consumption in India, at 704 kW⋅h, is still very low compared to other developing countries.

Resources currently allocated to energy supply are not sufficient for narrowing the energy deficit. Indeed, this may widen as the economy moves to a higher growth. India's success in resolving energy bottlenecks therefore remains one of the key challenges in achieving the projected growth outcomes. Further, India's excessive reliance on imported crude oil makes it imperative to have an optimal energy mix for sustainable development.

The total electricity generated in India during FY 2009-10 was 771.2 TW⋅h, which is 6.8 % higher than FY 2008-09. The growth in subsequent years is: FY 2010-11 at 5.7 %, FY 2011-12 at 8.1 %.