Progress has been made in the development of Power resources in the District. Most of the Villages have been electrified and provided power for the domestic as well as for agriculture/commercial use. out of Total 618 inhabited villages 585 villages has been provided with the Electricity. The total annual consumption of Electricity is approx. 1129.86 lakh unit.

The Two major Power Project in the District Udhampur is Salal Hydro Power Project -I & II located in Tehsil Reasi on the river Chenab with the generation capacity of 690 MWs operated by National Hydroelectric Power Corporation (NHPC). In addition to these two Power Project the State Electric Department has setup three minor Power Houses in the District Udhampur with installed capacity of 32.80 MW.