Foundation of Power sector was laid on 27th May 1927 with the commissioning of first Micro Hydel project at Ranikhola near Gangtok with the installed capacity of 50 KW. During this era, activities under power sector in Sikkim were not at all significant. Till the year 1954, operation and maintenance of power supply system were managed with the help of a foreman and an electrician, under the supervision of Sikkim Public Works Department.
In the year 1957, keeping in view of growing demand for electricity and as a standby measure, a Diesel power house was established and commissioned at Gangtok with a capacity of 257 KW. Following this development one more 150 KW SKODA Diesel generating set was added in this Diesel Power House. The year 1974 witnessed an important historical event in Sikkim. Following a Political upheaval Sikkim joined the mainstream of the Indian Union on May 16th 1975 as the 22nd state of India. Ever since Sikkim became a part of India there has been all round development in the state. Since then the sector has achieved the tremendous mileage in terms of installed capacity coupled with the Transmission & Distribution networks virtually connecting the every household in Sikkim. Sikkim with its picturesque landscape and amazing terrain has some of swiftest rivulets system has a huge power potential.