In 2008, India generated 813TWh of electricity, 5.2% of which came from new renewables, compared to 66% from coal, 14% from large hydro, and 3% from nuclear. However, the country faces an electricity shortfall of 16% at peak demand and the grid infrastructure is woefully overloaded. The power sector is faced with increasing demand from both growing industry and the rapidly developing middle class, as well as trying to connect several hundred million Indians who do not have access to electricity.
India added nearly 3GW of grid-connected renewable energy in 2008, 2GW of which came from the wind sector. The government is under intense pressure to increase electricity production and has put strong incentives in place to spur investment into renewable energy from both domestic and foreign investors. The Indian government has set targets for each clean energy sector in its 11th Five Year Plan, to be met by 2012.