India is gearing up for a monumental shift in its energy landscape, aiming to achieve 24×7 power supply for all by 2025. This ambitious goal hinges on a multi-faceted strategy that includes bolstering coal-fired and hydro power plants, along with a significant ramp-up in transmission infrastructure. Minister of State for Power, Shripad Yesso Naik, expressed unwavering confidence in the government’s plans, asserting that with concerted efforts, the nation is on track to realize this vision.
The demand for electricity is set to soar, with peak power needs projected to reach 270 GW during the summer of 2025, a notable increase from the 250 GW recorded in May 2024. By 2035, expectations rise even higher, with demand estimated to hit 446 GW. To tackle this impending surge, the Ministry of Power and state governments are planning an additional 80 GW of capacity by 2031-32, alongside ongoing projects that include 14 GW of hydroelectric power and 6,050 MW of pumped storage. The nuclear sector is also in the mix, with 7,300 MW under construction and another 7,000 MW awaiting approval.
Renewable energy is not being sidelined; in fact, the government is eyeing a whopping 300 GW of renewable capacity to ensure that by 2030, 500 GW of non-fossil fuel-based power generation is operational. The investment needed to enhance transmission infrastructure is estimated at ₹9.16 lakh crore by 2032. This kind of financial commitment signals a clear intent to not just meet current demands but to future-proof the energy sector against the inevitable spikes in usage.
Industry experts are buzzing about the implications of these developments. Anil Sardana, Chairman of the CII National Power Committee, highlighted the strides being made in renewable energy integration and grid modernization. The expansion of transmission infrastructure is poised to unlock new avenues for efficient power distribution, which could catalyze economic growth and bolster energy resilience.
However, it’s not all smooth sailing. Challenges remain, particularly in the realm of project execution. Vikram V from ICRA noted that while the renewable sector has seen healthy growth, delays in signing power purchase agreements are a significant hurdle. The rooftop solar and commercial segments are expected to contribute meaningfully to capacity additions, but land acquisition and connectivity issues could throw a wrench in the works.
The electricity market is also grappling with volatility, especially between renewable and thermal power pricing. Salil Gupta from PHDCCI pointed out that the disparity in pricing, driven by the reliance on thermal energy during off-peak hours, creates an unsustainable dynamic that could stifle investment in renewable projects.
As India strides towards its 2025 goal, the interplay between coal, renewables, and the necessary infrastructure will dictate the pace of progress. The government’s commitment to reform and investment is commendable, but the real test will lie in overcoming the operational hurdles that threaten to derail ambitious plans. The energy sector is at a crossroads, and the decisions made today will shape not just the future of power supply in India, but also its economic trajectory.
