The power sector is gearing up and readying capacities to meet India‘s growing electricity demand propelled by the surge in economic growth, power and new and renewable energy minister RK Singh said at the ET Now Global Business Summit.
“Our peak demand was 136,000 MW in 2014 and today it is 234,000 MW, and it is growing at 9%,” he said. About 190,000 MW capacity has been added in this government’s period, he added.
After the Covid-19 pandemic, our economy has taken off and the capacities added are “just about sufficient” for meeting the demand, he said. “So, I am racing to add capacity. By 2030, I will have added 90,000 MW in thermal capacities,” he said.
In thermal power, there is 27,000 MW of thermal capacity under construction, about 12,000 MW bid out, and another 19,000 MW under various stages of clearances.
In renewable energy, 130,000 MW capacity is under construction and about 71,000 MW under bidding and an installed capacity of 181,000 MW, he said.
“The power sector is where we are evolving, where the demand is going to grow, and where we are doing new things,” he said.
Electricity generation and consumption has gone up by 60% today as compared to 2014-15. “This sector will reward you. Because for the next three decades, the demand is actually going to be slightly more than the supply,” Singh said while talking about the investment in the sector. The challenge is to make sure that supply keeps pace with demand, he said.
“We will have 65% of our electricity coming from non-fossil fuel capacity by 2030,” he said.
Speaking about the performance of power sector PSUs, the minister said their share prices have gone up by 2.5-3 times in recent years and that they will keep growing, since the power sector is where the demand is growing and where we are doing new things and evolving.
Singh emphasised India’s commitment to generating round-the-clock renewable power. The government has decided to invite bids for 50 GW of renewable energy capacity annually for five years starting the current financial year.
India has committed to achieving 50% non-fossil fuel-based installed electricity capacity by 2030. So far, a total of 187 GW capacity from non-fossil fuel-based energy resources has been installed in the country. The government is targeting another 80 GW of thermal capacity by FY32 to meet rising demand.
