The Electricity Department is operating & maintaining power generation, transmission & distribution system and networks in these islands for providing electric power supply to general public and also implements various schemes under Plan and  Non-Plan  Programmes  for augmentation of the diesel generating capacity and establishment of new Power Houses and T&D systems.  This department also functions as a Nodal Agency for implementing Renewable Energy Programme of the Ministry of New & Renewable Energy Sources.  The Electricity Department is headed by a Superintending Engineer and assisted by 7 Executive Engineers and 38 Assistant Engineers.  The present total installed capacity is around 68.50 MW with a  peak demand of 37 MW.  The installed capacity of the Power Houses ranges between 6 KW to 12500 KW. One Hydro Electric Power Station having a capacity of 5.25 MW is functioning at  Kalpong River, North Andaman.  A 20 MW Diesel Power Station at Bambooflat, South Andaman is being operated by M/s SPCL on PPA basis.  South, Middle & North Andaman are well connected by VHF communication for better monitoring & fault rectification for improved services to the consumers.

                          The salient features about development of electric power supply in these islands during last 57 years is tabulated below :-

                       Power Generation in A & N Islands is largely through Diesel fuel, which accounts for 95% out of total generation, rest 5% being Hydel generation. In a diesel generation scenario the major cost of power generation is the fuel cost which works out to around 80% of the total cost. The illustrations given below give a detailing of the cost of HSD at various Islands and the specific fuel consumption of the various powers plants of a particular year. There are 41 Diesel Power Houses at different locations in these islands having DG capacity ranging from 6 KW to 5000 KW (including 20 MW IPP) and one Hydro Power Station having 5.25 MW capacity at Kalpong.  The aggregate installed capacity is 68.50 MW (2007-08).  The details of power scenario in major islands are tabulated below: