India to boost power generation, transmission infrastructure to achieve 24×7 power for all by 2025

New Delhi Dec 29 (PTI) India will set up more coal and hydro power plants and step up transport infrastructure to achieve non-stop ‘Power for All’ by 2025, besides meeting rising demand fueled by economic expansion.

To meet the growing demand for energy, the government has devised a major plan to increase power generation capacity and expand transportation infrastructure.

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

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

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

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

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

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

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

CII National Energy Committee Chairman and Managing Director, Adani Energy Solutions, Anil Sardana, said: “With significant progress in renewable energy integration, grid modernization and an unwavering commitment to decarbonisation, the sector has taken a giant step towards meeting both domestic and global energy demands”.

“As we look to 2025, India’s ambitious goal of expanding its transmission infrastructure and achieving its targets of 500 GW of non-fossil capacity and around 800 GW of aggregate supply capacity by 2030 presents both a significant challenge , as well as an opportunity.”

“While we face the task of balancing energy demand with sustainable growth, expanding our transmission network will unlock new possibilities for efficient energy distribution, spurring economic growth and enhancing the nation’s energy resilience,” he said.

Vikram V, Vice President and Group Co-Head – Corporate Ratings, ICRA said the power sector has seen healthy growth in capacity additions in the renewable energy sector in 2024, with 25 GW added in the first 11 months of CY2024 (calendar year). driven by large project pipelines and favorable module prices.

Auction activity has remained healthy, leading to a healthy pipeline for future additions, he said, adding that, however, delays in signing PPAs/PSAs (power purchase agreements) by central auction agencies remain a concern for the sector.

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

He further pointed out that execution challenges remain an area of ​​concern for the sector, with delays in land acquisition and transport connectivity, which if sustained, could hamper capacity growth prospects.

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

Power demand growth slowed after August 2024 amid the negative impact of heavy rains across the country and a slowdown in economic activity in Q2 FY2025, he noted.

However, he said demand growth is expected to pick up in the remainder of the fiscal year.

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

While that share is expected to reduce in the medium term, there are new announcements of 27 GW of coal-fired power projects, with completion expected by 2032, to meet growing demand, he said.

Salil Gupta, Chairman, Power Committee, PHDCCI suggested that reforms are needed to reduce financial stress on commercial companies.

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

“Uncertainty about changing regulations even after 25 years of projects have been in place creates a massive disincentive for more industries to turn to and invest in RE projects and instead opt for the Group Captive model, which leads to further complications and legal disputes.”

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

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