India’s Power Sector
India is the third-largest producer and consumer of electricity globally, with an installed power capacity of 411.64 GW as of January 31, 2023.
Renewable energy capacity in India, including hydro, reached 168.4 GW as of January 31, 2023, accounting for 40.9% of the total installed power capacity.
This includes 63.3 GW from solar energy, 41.9 GW from wind power, 10.2 GW from biomass, 4.92 GW from small hydropower, 0.52 GW from waste to energy, and 46.85 GW from hydropower.
Achievements
The Saubhagya scheme achieved approximately 97% household electrification by 2020.
India saw a five-fold increase in renewable energy (RE) capacity, making it the fourth-largest globally.
Power distribution companies (discoms) reduced aggregate losses to about 15% in 2022-23, a 40% drop.
Challenges
Annual electricity demand has increased by 7-9% since the COVID-19 pandemic, with peak demand rising even faster.
Extreme weather events exacerbate challenges, leading to power outages and increased demand surges.
Despite efforts, renewables contribute only 13% to India's power generation mix.
India’s renewable capacity (144 GW) lags behind rapid additions by other countries, such as China and the EU.
Low trading volume in power exchanges leads to price volatility and limits integration of renewables.
Over 40 GW of coal capacity was frequently unavailable in FY24 due to maintenance and faults.
Only 11 million smart meters are installed, falling short of the 250 million target, affecting demand forecasting and network planning.
Way Forward
Set ambitious goals for renewable energy and storage, aiming for more than 500 GW by 2030.
Accelerate installation of diverse clean energy sources and improve grid connectivity and land acquisition.
Innovate bid designs and establish long-term contracts to boost liquidity and reliability in power exchanges.
Revise norms for coal plant maintenance and invest in flexible coal technologies to ensure availability during non-solar hours.
Fast-track the installation of smart meters to better forecast demand, improve network planning, and integrate renewables effectively.
Develop smart grid infrastructure and safeguard against cyber threats while ensuring consumer privacy to support discoms and enhance energy transition.
COMMENTS