India has a population of 1.1 billion people (1/6th of the world population) and accounts for less than 5% of the global primary energy consumption. India's power sector had an installed capacity of 159,650 MW  as on 30th April, 2010. The share of installed capacity from different sources is shown in Fig. 4.1.
The annual generation was 724 Billion units during 2008–2009 with an average electricity use of 704 kWh/person/year. Most states have peak and energy deficits. The average energy deficit is about 8.2% for energy and 12.6% for peak . About 96,000 villages are unelectrified (16% of total villages in India) and a large proportion of the households do not have access to electricity.
India's development strategy is to provide access to energy to all households. Official projections indicate the need to add another 100,000 MW within the next decade. The scarcity of fossil fuels and the global warming and climate change problem has resulted in an increased emphasis on renewable energy sources. India has a dedicated ministry focussing on renewables (Ministry of New and Renewable Energy, MNRE). The installed capacity of grid connected renewables is more than 15,000 MW. The main sources of renewable energy in the present supply mix are wind, small hydro- and biomass-based power and cogeneration. In 2010, India has launched the Jawaharlal Nehru Solar Mission (JNSM) as a part of its climate change mission with an aim to develop cost-effective solar power solutions.