New Delhi: India’s power sector is going to require about Rs 14.54 lakh crore in investments until 2027 to meet growing electricity demand, Members of Parliament (MPs) were told. “The Meeting of the Parliamentary Consultative Committee of the Members of Parliament for the Ministry of Power was held in New Delhi last evening… The subject of the meeting was "National Electricity Plan - Generation”. Shri Ghanshyam Prasad, Chairman CEA gave a presentation on the subject,” said the Ministry of Power in a statement on Wednesday.
“During the meeting, Shri Manohar Lal highlighted that power is a critical component in achieving the goal of a developed India by 2047. He noted that with the rising demand for electricity, it is essential to simultaneously increase power generation. Emphasising India’s commitment to achieving carbon net-zero, he stated that the focus would remain on non-fossil-based energy sources. The Union Minister also stressed the importance of enhancing storage capacity to ensure affordable and reliable power for everyone. Shri Manohar Lal also emphasised that state and central government needs to work in coordination to achieve the targets,” the statement added.
As per the 20th EPS report published by the Central Electricity Authority (CEA), the peak demand and energy requirement is around 366 GW and 2,474 BU by 2031-32. The projected electrical energy requirement and peak electricity demand on all-India basis is estimated as 1908 BU and 277 GW for year 2026-27 respectively.
Energy Storage capacity is an important aspect in achieving the targets of NEP. Energy storage capacity of 16.13 GW/82.37 GWh with PSP based storage of 7.45 GW capacity and 47.65 GWh storage and BESS based storage of 8.68 GW/34.72 GWh is required by the year 2026-27. The projections of total capacity addition are in line with the target of the country to achieve a non-fossil based installed capacity of 500 GW by the year 2029-30, said the statement.
“The total fund requirement for the period 2022-2027 is estimated to be Rs 14,54,188 Crores, which also includes the likely expenditure during 2022-27 for advance action for the projects expected to get commissioned during 2027-32,” it added.
“The average emission factor is expected to reduce to 0.548 kg CO2/kWh in the year 2026-27 and to 0.430 kg CO2/kWh by the end of 2031-32. The share of non-fossil-based capacity is likely to increase to 57.4 percent by the end of 2026-27 and may likely to further increase to 68.4 percent by the end of 2031- 32 from around 46.5 percent as on October 2024,” said the statement.
“Members of Parliament provided several suggestions concerning various initiatives and schemes. They commended the plan for its ambitious green energy goals and achievements in electricity generation capacity. The meeting also included discussions on issues related to storage, renewable energy generation, and compensation for farmers. Shri Manohar Lal concluded the meeting by expressing gratitude to the participants for their valuable contributions. He further directed officials to take appropriate actions to incorporate the suggestions made by Members of Parliament and prioritise the welfare of the people,” said the ministry.
The installed generation capacity as on October 31 was 454.5 GW, comprising of 243.1 GW thermal, 8.2 GW nuclear, 203.2 renewables, including large hydro of 46.97 GW. The generation installed capacity achieved has grown at a CAGR of 5.97 percent since 2014-15.
The gross generation from all the sources during the year 2023-24 was 1,739 BU comprising of 1,326 BU (76 percent) from thermal, 48 BU (3 percent) from nuclear, 365 BU (21 percent) from RE sources which includes 169 (10.4 percent) from hydro.
“Due to concerted efforts of the government, the gross generation has increased from 1,033 BU during 2013-14 to 1739 BU in 2023- 24, which has grown at a CAGR of ~ 5.4 percent since 2013-14,” said the ministry. The country has observed the maximum peak demand of around 250 GW in the month of May 2024 during the current year (2024-25). The peak demand has grown at a CAGR of 16 percent from 2013-14 to 2023-24 while Energy Requirement has grown at a rate of 5 percent during 2013-14 to 2023-24. The peak not met and energy not supplied of the country is observed to be very minimal over last five years and was on account of factors other than lack of generation capacity in the country, the government told the MPs.
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