The Indian power sector has been seeing noteworthy advances with expanding industrial and infrastructure improvement activities and growing urbanisation. The power sector is crucial to India’s economic growth and development. Electricity generation and consumption have gone up by 60% as compared to 2014-15. Currently, India is the third- largest producer and consumer of electricity worldwide.
As per data, the installed capacity of coal-based power has increased from 1,39,663 MW in March 2014 to 2,10,969 MW in June 2024. The installed capacity of the renewable sector has increased from 75,519 MW in March 2014 to 1,95,013 MW in June 2024. However, we have a long path to meet our energy goals.
There is required for India’s power sector to transition towards renewable sources for power generation to meet India’s set 500 GW renewable energy target. The Ministry of Power has already identified 81 thermal units that will replace coal with renewable energy generation by 2026. As the energy demands surge, it is ever important to ensure that these demands are met in a sustainable manner. There is a need for the private sector to partner in this journey and support the path of India becoming energy efficient.
The recently released BloombergNEF’s ‘New Energy Outlook 2024: India report stated that India must rapidly decarbonise its power sector, which is the largest emitter in the country, to stay on track, more than tripling its solar and wind capacity by 2030 to 494 GW in BNEF’s Net Zero Scenario.
One of the key issues facing the power sector is the dependency on coal and the delays in the adoption of new fuels. At Thermax, we help industries in their energy transition journey by bridging the gap between energy sustainability and energy availability. Our solutions with new-age fuels are an effort that will help in supporting India and the globe towards a cleaner and greener future.
Additionally, the existing power plants in India are old and often the inefficient plants lead to inadequacies in meeting the power generation goals. Retrofitting plants are a way forward in adopting a sustainable method for power generation. Digitisation and technology will be a key element to advance the power sector.
The government has also been making great strides in advancing the sector. Through the 2024 Union Budget the government’s power sector initiatives have been allocated funds that are 50% higher. Increased funds have been allocated to green hydrogen, solar power, and green-energy corridors. This showcases the government’s commitment to addressing the growing demands of the power sector and the support required to move towards renewable Energy.
The PM-Surya Ghar: Muft Bijli Yojana will increase the share of solar rooftop capacity empower residential households to generate their own electricity and take a step towards sustainable power generation. Additionally, schemes such as Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and the Integrated Power Development Scheme (IPDS) are expected to augment electrification across the country. Waiver of ISTS charges on transmission of electricity generated from solar, wind, pumped storage plants and battery energy storage systems further supports India’s power sector.
We are positive towards India achieving its energy goals with the public and private sector working together.
References:
- RK Singh: Electricity is as necessary as air or water
- Indian Power Industry Analysis Presenwtation
- India’s Decarbonization: A $12 Trillion Opportunity
- Press Release on Power Industry
Author:
Team Corporate Communications, Thermax Limited.
