Gujarat has recorded significant economic growth over the past decade. Gujarat leads the country in the per capita consumption of electricity. Going forward, Gujarat is planning huge investments so as to generate a much larger and stronger economic momentum. The projected industrialization levels coupled with increase in urbanization and income levels would lead to substantially higher demand for power. The energy units required by 2020 would be nearly two and half times the existing generation. Gujarat will need to secure its fuel requirement as most of it is imported. Gujarat also has a large untapped potential for energy generation through renewable sources and it needs to exploit the same.

The assumed availability of power at competitive tariffs can help in positioning Gujarat as a competitive destination for industries while providing a good quality of life for its citizens. This will lead the revival and development of rural industries and build economies there by reducing migration of citizens from rural to urban areas for employment.