Union Power Minister Envisions 400 GW Peak Demand and 65% Non-Fossil Capacity by 2030

The Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, emphasized the pivotal role of electricity as a fundamental infrastructure for development during his address at Moneycontrol’s Policy Next Summit in New Delhi. He highlighted that the power shortage in India has substantially decreased from around 4.5% in 2014 to less than 1% today, illustrating the significant strides made in the sector.

Shri Singh outlined the comprehensive measures taken to augment the power capacity and strengthen the electricity distribution system. The country witnessed an addition of approximately 194 GW of power capacity, with renewables contributing around 107 GW. The construction of 193,000 circuit km of transmission lines connected the entire nation into one grid, establishing the world’s largest integrated grid. Power transfer capacity increased from 36 GW to an impressive 117 GW, reflecting the nation’s commitment to universal electricity access.

The Minister reported a substantial improvement in rural and urban power availability, reaching approximately 21 hours and 23.8 hours, respectively. He underscored the government’s dedication to ensuring 24*7 power, with stringent penalties for gratuitous load shedding and compensation for consumers.

India’s prowess in renewable energy was a key focus of Shri Singh’s address. The country has emerged as a global leader in energy transition, with a renewable capacity of 187 GW. The initial goal of achieving 40% capacity from non-fossil fuels by 2030 has already been surpassed, standing at an impressive 44%. The revised target aims for 50% by 2030 and a remarkable 65% from non-fossil sources.

Highlighting the significant investments, the Minister stated that the power sector attracted about 17 lakh crores in the last nine years, with an additional 17.5 lakh crores worth of capacity under construction. The renewable energy sector is witnessing dynamic growth, with 99 GW under construction and 32 GW in the bidding stage.

Shri Singh assured that the nation is prepared to meet the escalating power demand, which is projected to surpass 400 GW by 2030. The ambitious plan includes crossing 500 GW of renewable capacity by 2030, accompanied by substantial green hydrogen manufacturing.

The Minister acknowledged India’s competitiveness in renewable energy, boasting the world’s cheapest renewable energy costs despite international subsidies and protectionist measures. The government is also focusing on energy storage, with plans for 35 GW of Pumped Storage Projects capacity and the introduction of a Production Linked Incentive Scheme for grid-scale storage.

Addressing manufacturing concerns, Shri Singh emphasized the need to domestically produce wind turbines of larger capacity and encouraged entrepreneurs to enter the field of HVDC Transmission lines. He stressed the importance of augmenting manufacturing capacity for thermal equipment like boilers and steam turbines.

India’s commitment to environmental sustainability was a central theme, with Shri Singh highlighting the nation’s leadership in achieving both Nationally Determined Contributions (NDCs) while maintaining per capita emissions at one third of the global average. The government’s energy-saving programs, including the Perform Achieve Trade scheme and LED initiatives, have contributed significantly to carbon emissions reduction.

In conclusion, Shri R. K. Singh emphasized that India’s power sector transformation is a testament to the nation’s commitment to sustainable and inclusive growth. The government’s proactive approach, coupled with innovative policies, positions India as a global leader in the energy transition.