India stands at the cusp of a monumental achievement-ensuring 24×7 power for all its citizens by 2025. This ambitious goal signifies not only a step toward universal electrification but also a leap in the nation’s ability to sustain its economic expansion while addressing the diverse energy needs of a growing population. To achieve this, the Government has laid out an integrated plan involving capacity addition in power generation and a robust upgrade of the transmission infrastructure.
National energy demand has witnessed a steady rise, driven by industrial growth, urbanisation, and an expanding middle class. The peak power demand, which reached 243 GW in 2023, is projected to soar to 270 GW by 2025 and 446 GW by 2035. Meeting this demand requires a multi-pronged approach encompassing traditional, renewable, and nuclear energy sources. The Government has outlined an ambitious plan to significantly enhance the nation’s power capacity over the coming years. This includes substantial contributions from hydroelectric and pumped storage projects currently under development, alongside advancements in nuclear energy capacity. Additionally, the renewable energy sector is set to be a cornerstone of this strategy, with extensive expansion plans aiming to prioritise non-fossil fuel-based power generation and ensure a balanced and secure energy mix.
While augmenting generation capacity is critical, the ability to distribute electricity efficiently is equally important. The Government has announced a colossal investment of Rs 9.16 lakh crore to enhance transmission infrastructure by 2032. These upgrades are essential to evacuate power from new-generation facilities and ensure reliable supply across urban and rural areas. The grid modernisation efforts will also facilitate the integration of renewable energy sources, addressing intermittency challenges and enhancing grid stability.
Despite the promising roadmap, the journey toward achieving 24×7 power is fraught with challenges. Execution delays in land acquisition and transmission connectivity pose significant hurdles. The bottlenecks in signing Power Purchase Agreements and Power Supply Agreements further add to the uncertainty in the power sector. Furthermore, the slowdown in the growth of electricity demand after August 2024, due to heavy rains and a slowdown in economic activity, highlights the dynamic nature of energy planning. While such fluctuations are temporary, they necessitate flexible strategies to align supply with demand. The rooftop solar and commercial & industrial segments offer potential solutions, as they enable localised generation and reduce dependency on centralised infrastructure.
India’s commitment to renewable energy integration is commendable. The addition of 25 GW of renewable capacity in 2024 reflects the sector’s robust growth, driven by favourable policies and cost dynamics. However, achieving the ambitious target of 500 GW of non-fossil fuel-based capacity by 2030 requires sustained efforts in project execution, financing, and technological innovation. Hydropower and Pumped Storage Projects will be crucial in complementing renewable energy, offering the flexibility to manage peak loads and balance variability. Similarly, advancements in battery storage technologies will be critical to ensuring an uninterrupted power supply from renewable sources. Private sector participation is vital for achieving India’s energy aspirations. The synergy between public and private investments can accelerate infrastructure development, create jobs, and foster innovation. Policy support, including streamlined approvals and incentives for renewable energy adoption, will further bolster the sector.
Achieving round-the-clock power for all will transform India’s socio-economic fabric. A reliable electricity supply will boost industrial productivity, improve healthcare and education services, and enhance the quality of life for millions. Rural electrification, in particular, can spur entrepreneurship, reduce migration to urban centres, and contribute to inclusive growth. Moreover, the emphasis on renewable energy aligns with India’s global commitments to combat climate change. The transition to a low-carbon energy mix will reduce greenhouse gas emissions, improve air quality, and position India as a leader in sustainable development.
While challenges persist, the progress made so far inspires confidence. With continued policy support, robust execution, and collaborative efforts between the Government and private sector, India is poised to illuminate every corner of the nation-ushering in an era of unprecedented growth and prosperity.
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