The development of Electric power generation and supply somehow could not receive due attention and priorities in the erstwhile integrated state of Bihar.  Inspite of being the second most populous state endowed with all natural resources, the state had the distinction of having the least capacity of power generation. The state had a paltry 1500 MW installed capacity i.e. a meagre 20 watts per capita against national average of 100 watts per capita.

After the reorganization of the state into two smaller states, Bihar and Jharkhand, the government of Jharkhand has decided and is determined to take quantum jumps in generating capacity addition from its present figure of about 1500 MW – its inheritance from the integrated state. The state of Jharkhand has taken up this as challenging opportunity and scope to develop.

Shortly after the formation of the Jharkhand state from erstwhile Bihar, Department of Energy and Department of Water Resources were functioning jointly.  Soon after, these were bifurcated, the Department of Energy started functioning independently.

The Department has under it different Corporations, Authorities and undertakings / projects such as :