The Jammu and Kashmir Economic Survey tabled in the J&K Assembly Thursday points out that only 23.81 percent of J&K’s estimated hydropower potential has been harnessed so far.
Meanwhile, tariff from electric power is the second highest revenue resource which has witnessed a substantial increase, Rs 4,908 crore in 2024-25, with the implementation of the Prime Minister’s Development Package (PMDP) and Revamped Distribution Sector Scheme (RDSS), under which smart metering and arial bunched cabling are progressing quickly. “The quality and continuity of power supply have improved in 2025-26” the survey reports. “The estimated hydropower potential of J&K is 18,000 MW, of which over 14000 MW has been identified. Out of this identified potential, only 23.81%, has been harnessed so far,” the report states.
This includes 1,197 MW in the state sector, 2,250 MW in the central sector and 92.75 MW under the Independent Power Producer (IPP) mode.
In addition, 5.25 lakh smart meters have been installed against a target of 14.07 lakh, as on 14 January 2026.
“Under the Prime Minister’s Development Package (PMDP), 6.46 lakh smart meters have been installed against a revised target of 6.86 lakh. In addition, under the Revamped Distribution Sector Scheme (RDSS), 5.25 lakh smart meters have been installed against a target of 14.07 lakh, as on 14 January 2026,” it shows.
While the National Hydroelectric Power Corporation Limited (NHPC) manages six projects with a total installed capacity of 2,250 MW, the J&K Power Development Corporation oversees 13 projects with an installed capacity of 1,197 MW, while Independent Power Producers (JKSPDC and JAKEDA) operate 12 projects with a combined capacity of 92.75 MW. Altogether, 31 hydropower projects are operational in the region with a total installed capacity of 3,540.15 MW.
Transmission and distribution capacity of 34,839 MVA and an electric line length of 1,76,601 circuit kilometres (CKm) was established until November last year. The report also notes that the transmission and distribution capacity has increased by 44 percent since 2020. T&D losses have been a major concern of the government in realising the effort to provide 24-hour electricity to the residents of the UT.
As of November 2025, there are approximately 24.59 lakh electricity connections/consumers across various categories in J&K being supplied with electric power.
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“The government aims to provide a reliable, safe, and affordable 24×7 power supply, with a focus on optimising power generation and strengthening transmission and distribution infrastructure. This will not only meet local demand but also enable the export of surplus power to generate additional revenue,” the survey states.
Additionally, it says that J&K is in the process of doubling its hydropower generation capacity through the development of four major projects with a combined capacity of 3,014 MW, namely 1,000 MW Pakal Dul, 850 MW Rattle-II HEP, 624 MW Kiru, and 540 MW Kwar which are likely to be completed by 2028, doubling the power generation capacity of the UT.
Per capita electricity consumption in J&K recorded a Compound Annual Growth Rate (CAGR) of 2.15 per cent during the last nine years (from 1171 KWh to 1488 KWh). Total purchased/ consumption units increased from 15225 million units to 20830 million units over the same period in line with rising demand.
The renewable energy sector in J&K is making “significant progress”, with a growing focus on solar energy and small hydropower projects. JAKEDA has allotted 56 Mini Hydel Projects (MHPs) with an aggregate capacity of 147.00 MW under the IPP mode, out of which seven projects with a cumulative capacity of 35.25 MW have been successfully commissioned.
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With limited generation in the winter months from hydel projects, under PM Surya Ghar Bijli, 7125 Government buildings have been successfully solarised against a target of 22,494 and 16,799 households have been solarised against a target of 83,550. These initiatives have contributed an additional 131 MW to the region’s renewable energy capacity, according to the report.
