India’s power sector will require an estimated ₹14.54 lakh crore in investments by 2027 to meet the growing electricity demand, the government informed Members of Parliament during a recent consultative meeting. Held in New Delhi, the meeting focused on the “National Electricity Plan – Generation,” where Central Electricity Authority (CEA) Chairman Ghanshyam Prasad highlighted the projected needs and strategies. The peak electricity demand is expected to rise to 277 GW by 2026-27 and 366 GW by 2031-32, with an energy requirement of 1,908 BU by 2026-27. To meet these demands, the plan emphasizes renewable energy and storage solutions, targeting 500 GW of non-fossil-based installed capacity by 2029-30, with the share of renewables in capacity rising to 57.4% by 2026-27 and 68.4% by 2031-32.
Energy storage is a critical component of this plan, requiring 16.13 GW/82.37 GWh of capacity by 2026-27. This includes 7.45 GW from Pumped Storage Projects (PSP) and 8.68 GW from Battery Energy Storage Systems (BESS). These measures align with India’s environmental goals, including reducing the average emission factor to 0.548 kg CO2/kWh by 2026-27 and further to 0.430 kg CO2/kWh by 2031-32. Union Minister Shri Manohar Lal emphasized the sector’s role in achieving India’s developmental goals by 2047 and highlighted the need for collaboration between state and central governments to enhance storage capacity, ensure reliable power, and achieve the country’s net-zero commitment.
India’s installed power capacity as of October 2024 stands at 454.5 GW, with thermal energy contributing 243.1 GW, renewables (including large hydro) accounting for 203.2 GW, and nuclear power providing 8.2 GW. Gross electricity generation has grown from 1,033 BU in 2013-14 to 1,739 BU in 2023-24, reflecting a CAGR of approximately 5.4%. MPs who attended the meeting commended the government’s ambitious green energy goals and provided suggestions on renewable integration, energy storage, and farmer compensation.
