SRINAGAR: Jammu and Kashmir has seen fluctuating power generation levels by private sector entities over the past few years. According to data from the Ministry of Power, production figures for the region reveal a gradual decline, reflecting challenges in energy production in the Union Territory.
In the financial year 2019–20, private sector power generation in Jammu and Kashmir stood at 443 million units. This figure saw a marginal dip in 2020–21, with production reported at 439 million units. The downward trend continued in subsequent years, with 416 million units generated in 2021–22 and 393 million units in 2022–23. In 2023–24, production experienced a minor recovery to 409 million units, but this was still below 2019 levels. In the current fiscal year, up to October 2024, private sector generation has further dropped to 325 million units.
This decline highlights the region’s specific challenges, including geographical constraints and limited private sector investment in the energy sector. Comparatively, states like Gujarat and Rajasthan have seen significant growth in private sector power generation during the same period.
On a national level, private sector power generation has consistently increased, from 5,35,066 million units in 2019–20 to a peak of 6,90,159 million units in 2023–24, before moderating to 4,45,346 million units as of October 2024.
The rate at which private sector electricity is sold to state electricity boards has also varied. From 2019–20 to 2022–23, the weighted average rate of sale of power ranged from Rs 3.455 to Rs 4.038 per kilowatt-hour (kWh), reflecting changes in cost dynamics and regulatory adjustments.
To address pricing concerns, the government has outlined strict regulatory measures, ensuring tariffs are transparent and fair. Power tariffs are determined under regulatory oversight by State Electricity Regulatory Commissions and the Central Electricity Regulatory Commission. Furthermore, procurement through open competitive bidding and sale via power exchanges ensures market-driven pricing, protecting consumer interests and preventing unreasonable rates.
