India’s Power Sector In FY 2024-25: Milestones, Reforms, And The Path To A Sustainable Future
Source：solarquarter
Representational image. Credit: Canva
India’s power sector has made remarkable strides in FY 2024-25, setting new records in energy generation, transmission, and distribution. These achievements highlight the government’s unwavering commitment to building a sustainable, reliable, and affordable energy system for the country. From record power demand to energy shortages almost being eliminated, India is positioning itself as a global leader in energy.
Record Power Demand and Improved Energy Security
In FY 2024-25, India achieved a historic milestone by meeting an all-time maximum power demand of 250 GW. This achievement comes as the country continues to see substantial growth in its energy needs due to industrialization, urbanization, and an increasing population. The power sector has responded effectively, with energy shortages reduced to a mere 0.1%, a significant improvement from 4.2% in FY 2013-14.
Per capita electricity consumption in India also saw an impressive rise, reaching 1,395 kWh in 2023-24, a 45.8% increase from 957 kWh in 2013-14. This growth reflects the country’s growing energy consumption as its economy expands and more people gain access to electricity.
Universal Electrification and Power Availability
India has successfully achieved universal electrification, bringing power to previously unconnected villages and households. The country has improved its power availability, especially in rural areas, where the average hours of electricity supply have increased from 12.5 hours in 2014 to 21.9 hours in 2024. Urban areas now experience up to 23.4 hours of electricity supply, ensuring greater reliability and access to power.
Growth in Power Generation Capacity
India’s total installed power generation capacity has surged by 83.8%, increasing from 249 GW in 2014 to 457 GW by November 2024. A major part of this expansion is attributed to renewable energy, with the country adding 129 GW of renewable energy capacity since 2014. This includes 91 GW of solar power, 27 GW of wind power, and 6.3 GW of large hydro, showcasing India’s commitment to clean energy.
The government has also focused on thermal energy to meet peak demand. In 2024, the government awarded 19.2 GW of new coal-based thermal capacity, bringing the total installed capacity to 217.5 GW. To meet future demand, an additional 36.3 GW of coal-based capacity is under planning.
Transmission and Infrastructure Development
The transmission network in India is undergoing significant expansion to meet the rising electricity demand and support the integration of renewable energy sources. The government has approved the development of 50.9 GW of inter-state transmission capacity, which will help connect 280 GW of variable renewable energy (VRE) by 2030. The National Electricity Plan from 2023 to 2032 aims to expand the transmission network to 6.48 lakh circuit kilometers by 2032, a 32% increase from the current network.
Additionally, the revision of Right of Way (RoW) compensation guidelines in 2024 will expedite the development of power transmission infrastructure. The new guidelines link compensation to the market value of land, ensuring that land acquisition for transmission lines is completed on time.
Reforms in Power Distribution
The revamped Distribution Sector Scheme (RDSS) has been instrumental in improving the operational efficiencies of power distribution companies (Discoms). As of 2024, the scheme has sanctioned the installation of nearly 20 million smart meters and the replacement of inefficient streetlights with energy-efficient LED streetlights. These efforts have resulted in a significant reduction in power losses, with the Aggregate Technical and Commercial (AT&C) losses down to 15.37%.
Furthermore, India has successfully electrified nearly 1 million households, including those from particularly vulnerable tribal groups, under the PM-JANMAN initiative.
Energy Conservation and Sustainable Practices
India has introduced several measures to promote energy conservation and sustainability. The country has adopted new building codes to reduce electricity consumption in commercial and residential buildings by 18%. In addition, the UJALA program, which promotes the distribution of energy-efficient LED bulbs and fans, has resulted in energy savings of 48.41 billion kWh per year.
The government has also made strides in promoting electric vehicles (EVs) by issuing EV Charging Guidelines. These guidelines aim to establish a connected and interoperable EV charging infrastructure across the country, with a target of 1 lakh charging stations by 2030. This will support the growing EV market while also enhancing the grid’s ability to handle the increased load.
Looking Ahead
India’s power sector is poised for further growth and transformation in the coming years. The government’s focus on renewable energy, infrastructure development, and energy efficiency, combined with policy reforms, will ensure that the country continues to meet its rising energy demands while also reducing its carbon footprint. With ambitious goals like achieving 500 GW of renewable energy capacity by 2030 and integrating 280 GW of variable renewable energy into the grid, India is well on its way to becoming a global energy leader.
As the country continues to modernize its power sector, it remains committed to ensuring reliable, affordable, and sustainable energy for all its citizens, paving the way for a greener future.