India to boost power generation, transmission infra to achieve 24X7 power for all in 2025

PTI, Dec 29, 2024, 11:13 AM IST

India will set up more coal-fired and hydro-power plants and ramp up transmission infrastructure to achieve round-the-clock ‘Power for All’ in 2025, besides meeting rising demand fueled by economic expansion.

To meet the growing energy demand, the government has devised a major plan for power generation capacity addition and the expansion of transmission infrastructure.

According to Minister of State for Power Shripad Yesso Naik, India can definitely achieve ‘24×7’ power for all with all the efforts in the ministry under the leadership of Prime Minister Narendra Modi. “We can do it. In 2025, we will be almost there to have 24X7 power for all in the country,” Naik told PTI.

He also said that the government is ready to support the expansion plan of the power sector in view of rising demand.

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

The Ministry of Power along with states, has planned about 80 GW by 2031-32. Besides about 14 GW of hydro projects and 6,050 MW Pumped Storage Projects (PSP) are under construction. About 24.22 GW of hydroelectric projects and 50.76GW MW of PSP are under various stages of planning and are targeted to be completed by 2031-32.

About 7,300 MW of Nuclear Capacity is under construction and 7,000 MW is under various stages of planning and approval.

Besides, the government will also add about 300 GW of renewable energy capacity to have 500 GW of non-fossil fuel-based power generation by 2030.

To evacuate electricity from the additional power generation capacity, the government has planned an investment of Rs 9.16 lakh crore to ramp up transmission infrastructure by 2032 to meet the rising demand for electricity.

Chairman, CII National Power Committee, and Managing Director, Adani Energy Solutions Anil Sardana said, “With significant strides in renewable energy integration, grid modernisation, and an unwavering commitment to carbon reduction, the sector has taken a giant leap towards meeting both domestic and global energy demands.” “As we look towards 2025, India’s ambitious goal to expand its transmission infrastructure and achieve non-fossil capacity targets of 500 GW and about 800 GW of aggregate supply capacity by 2030 presents both a significant challenge and an opportunity.” “While we face the task of balancing energy demand with sustainable growth, the expansion of our transmission grid will unlock new possibilities for efficient power distribution, driving economic growth and enhancing the nation’s energy resilience,” he said.

Vikram V, Vice President & Co-Group Head – Corporate Ratings, ICRA said that the power sector witnessed healthy growth in capacity addition in the renewable energy sector in 2024 with 25 GW added in the first 11 months of CY2024 (calendar year) driven by the large project pipeline and favourable module pricing.

The bidding activity remained healthy leading to a healthy pipeline for future addition, he said adding that however, delays in signing the PPAs / PSAs (power purchase agreements) by the central bidding agencies remains a concern for the sector.

Apart from the utility segment, the rooftop solar segment and the commercial & industrial (C&I) segment are expected to contribute in a significant manner to the capacity addition, he stated.

Further, he pointed out that the execution challenges remain an area of concern for the sector, with respect to delays in land acquisition and transmission connectivity, which if sustained could hamper the capacity addition prospects.

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

The electricity demand growth slowed down post-August 2024 amid the adverse impact of heavy rains across the country and a slowdown in economic activity in Q2 FY2025, he noted.

Nonetheless, he stated that the demand growth is expected to recover in the remaining period of the fiscal year.

While the policy focus remains on renewables, the electricity generation remains dominated by coal-based power, he pointed out.

While this share is expected to reduce over the medium term, there are new coal power project announcements of 27 GW with expected completion by 2032 to meet the growing demand, he opined.

Salil Gupta, Chair, Power Committee, PHDCCI suggested that reforms are required to reduce financial stress on trading companies.

About Open Access, Gupta said, “Massive gap between centre and state thought process. On ground, open access is still very discouraged including Green Open Access.

“Unreliability on regulations changing even after setting up of 25 years projects create a massive hindrance on more and more industries going and investing themselves in RE projects and instead going for Group Captive model which results in further complications and legal disputes.” He suggested that regulations/policies should provide confidence to the stakeholders.

On the price gap between RE and thermal power, he stated that high volatility between Time of Day market rates due to high volume of solar during the day and reliance on thermal in the evening and night hours creates an unsustainable gap in the prices.