The growth of Indian economy has altered the demand-supply situation for power generation and also it has set the process of accelerated capacity addition and opening up of markets by regulatory interventions. In the backdrop of the expected growth rate of 9% envisaged for the Indian economy, power sector requires a capacity addition of 78,700 MW in the 11th Plan with the objective of 'power for all by 2012'. The ever growing energy shortage and peak shortage during peak demand indicate a strong need for effective energy management. In this paper an attempt has been made to explore several supply side approaches, which would compliment the capacity addition mission to deal with the power deficit scenario in the country.