India aims to expand power generation and transmission infrastructure to achieve 24/7 electricity for all by 2025

New Delhi, Dec 29 (PTI) India will set up more coal and hydropower plants and expand transmission infrastructure to achieve 24×7 power for all by 2025 and also meet rising demand due to economic expansion.

To meet growing energy demand, the government has drawn up a comprehensive plan to expand power generation capacity and expand transmission infrastructure.

According to Shripad Yesso Naik, Minister of State for Power, with all the efforts of the ministry under the leadership of Prime Minister Narendra Modi, India can definitely achieve ’24×7′ power supply for all. “We can do it. “By 2025, we will have almost achieved round-the-clock electricity for everyone in the country,” Naik told PTI.

He also said that the government is ready to support the energy sector’s expansion plan given the increasing demand.

According to government estimates, peak electricity demand is expected to reach 270 GW in the 2025 summer season, up from the record high of 250 GW in May 2024 and 243 GW in September 2023. Peak electricity demand is expected to reach a level of 446 GW by 2035.

The Energy Department, together with the states, has planned about 80 GW by 2031-32. In addition, around 14 GW hydropower projects and 6,050 MW pumped storage projects (PSP) are under construction. About 24.22 GW hydropower projects and 50.76 GW MW PSP are in various stages of planning and are expected to be completed by 2031-32.

Approximately 7,300 MW of nuclear power capacity is under construction and 7,000 MW is in various stages of planning and approval.

In addition, the government will add about 300 GW of renewable energy capacity by 2030 to reach 500 GW of non-fossil fuel-based electricity generation.

In order to evacuate electricity from the additional power generation capacity, the government has planned an investment of ₹9.16 Lakh Crore for expansion of transmission infrastructure by 2032 to meet increasing power demand.

Anil Sardana, Chairman, CII National Power Committee and Managing Director, Adani Energy Solutions, said: “With significant progress in renewable energy integration, grid modernization and an unwavering commitment to carbon reduction, the sector has taken a big step towards achieving both national and national requirements.” global energy needs.”

“Looking ahead to 2025, India’s ambitious goal to expand its transmission infrastructure and achieve non-fossil capacity targets of 500 GW and approximately 800 GW of total utility capacity by 2030 represents both a major challenge and an opportunity.”

“As we face the task of balancing energy demand with sustainable growth, expanding our transmission network will open up new opportunities for efficient electricity distribution, drive economic growth and strengthen the country’s energy resilience,” he said.

Vikram V, Vice President and Joint Group Head – Corporate Ratings, ICRA, said the power sector witnessed healthy growth in renewable energy capacity additions in 2024, with 25 GW added in the first 11 months of fiscal 2024 (calendar year). were the large project pipeline and low module prices.

Tender activity continues to be good and is leading to a healthy pipeline for future expansions. He, however, added that delays in signing of PPAs/PSAs (power purchase agreements) by the central tendering agencies continued to be a problem for the sector.

In addition to the utility segment, the solar rooftop segment and the commercial and industrial (C&I) segment are also expected to contribute significantly to capacity expansion, he said.

Additionally, he noted that implementation challenges for the sector remain a concern, with delays in land acquisition and transmission connectivity, which, if sustained, could impact prospects for capacity expansion.

While the sector is likely to face connectivity challenges in the short term, continued progress in the various transmission projects is expected to ease connectivity challenges for the sector in the medium term.

Electricity demand growth slowed after August 2024 due to the negative impact of heavy rains across the country and slowdown in economic activity in the second quarter of fiscal 2025, it noted.

Still, he said demand growth is expected to recover in the remainder of the fiscal year.

While the political focus remains on renewable energy, electricity generation is still dominated by coal power, he emphasized.

While this share is expected to fall in the medium term, there are announcements of 27 GW of new coal-fired power projects expected to be completed by 2032 to meet growing demand, he said.

Salil Gupta, Chairman, Power Committee, PHDCCI, suggested that reforms were needed to reduce the financial burden on commercial companies.

On open access, Gupta said, “There is a massive gap between the thought process of the Center and the state. Locally, Open Access is still strongly discouraged, including Green Open Access.”

“The unreliability in terms of changing regulations even after projects have been established over 25 years represents a massive barrier for more and more industries to invest in renewable energy projects and instead opt for the group captive model, leading to further complications and leads legal disputes.”

He suggested that regulations/guidelines should provide confidence to stakeholders.

On the price difference between renewable energy and thermal energy, he explained that the high volatility between daytime market prices due to the high volume of solar energy during the day and the dependence on thermal energy in the evening and night hours leads to an unsustainable price gap.