Minister of Power and Renewable Energy, R.K. Singh, has applauded the growth trajectory recorded for power demand and laid down plans to achieve renewable goals while addressing a conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The minister stated that 205 gigawatt (GW) would be the new baseline for electricity demand and it would not fall below 160 GW levels. He also emphasised that the growth rate remains a vital driving factor for the economy and would not be compromised.
It is important to note that India’s installed power capacity currently stood at 401 GW at the end of Apr, 2022. This indicates that the country has surplus electricity generation capacity against the present demand.
The main reason for idling of the plants is lack of power purchase agreement as there is an inadequate market for power which is gradually rising but at a slower pace.
Fuelled by the revival in economic activities post-Covid-induced lockdowns, the demand for power has increased at a staggering pace this fiscal.
Highest power demand met rose to 207.11 GW on 29 April, 2022. The demand was comparatively low in May, but it again peaked to a new high of 211.856 GW on 10 Jun, 2022.
The momentum is likely to continue in tandem with the thrust on electrification in railways, introduction of electronic vehicles and other initiatives promoting electricity usage would keep the demand elevated.
Need for energy transition
The government delegates, participating in the event, informed that the prime motive of India’s energy transition is to reduce import dependency for coal, and thus it was necessary to diversify energy resources.
Nevertheless, negating any threat to the future of coal, the delegates iterated that coal would be backbone for energy generation for the next 20 years and there is need to further open up coal and mining sector.
Speaking on the development of renewables, the minister said target is to achieve 500 GW capacity by 2030, plus higher capacity can be attained with the inclusion of hydrogen and green ammonia.
It was also informed that the ministry is planning to bring down power storage cost and further add new facilities.
In addition, the government is mulling to bring amendments to the Electricity Act in the monsoon session of parliament. This will have 2-3 added provisions which includes increasing the penalties on the renewable purchase obligations.
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