INDIAN POWER SECTOR REBOOTS ITSELF

The power industry's future in India is bright, and sustained economic growth continues to drive electricity demand in India

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy.

India's power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. To meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

The total installed power capacity was 395 GW as on 31.01.2022, out of which 235.9 GW is fossil fuel based (Coal/gas etc.) and 159.1 GW is non-fossil fuel (Renewable Energy + Nuclear) based. The installed capacity is now close to double the peak demand and India is exporting power to Nepal, Bangladesh, and Myanmar. Indian power sector is undergoing a significant change that has redefined the industry outlook. The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country.

India is a major force in the global energy economy. Energy consumption has more than doubled since 2000, propelled upwards by a growing population – soon to be the world’s largest – and a period of rapid economic growth. Near-universal household access to electricity was achieved in 2019, meaning that over 900 million citizens have gained an electrical connection in less than two decades.

India’s continued industrialisation and urbanisation will make huge demands of its energy sector and its policy makers. Energy use on a per capita basis is well under half the global average, and there are widespread differences in energy use and the quality of service across states and between rural and urban areas. The affordability and reliability of energy supply are key concerns for India’s consumers.

Natural gas and modern renewable sources of energy have started to gain ground and were least affected by the effects of the Covid-19 pandemic in 2020. The rise of solar PV in particular has been spectacular; the

resource potential is huge, ambitions are high, and policy support and technology cost reductions have quickly made it the cheapest option for new power generation.

Universal access to affordable power in a sustainable manner has been the guiding principle for the Power sector. The sector is fully geared to address the challenges related to climate change through energy transition initiatives which aligns itself with the commitments made by the nation on the global stage.

Therefore, India has twin goals, to ensure 24x7 adequate and reliable energy access and simultaneously, accelerate clean energy transition by reducing the country’s reliance on fossil-based energy and shifting to cleaner and renewable energy sources.

Energy sector forms one of the critical elements of any nation's economic development. Ministry of Power, in past years had taken massive initiatives to transform the country from power deficit to power surplus nation, connecting the whole nation into one grid, strengthening the distribution system, and achieving universal household electrification. Its continued endeavour through implementation of energy efficiency programmes has resulted in reduction of energy intensity and avoidance of CO2 emission. The union government’s target is 24x7 power supply without interruption. All States and Union Territories (UTS) have signed Mous with the Central Government to ensure 24x7 power supply to all households, industrial & commercial consumers, and adequate supply of power to agricultural consumers. To achieve this, the country has installed more than adequate power generation capacity to meet peak demand as well as a robust National Grid enabling seamless transfer of power from resource centric regions to load centric regions. The distribution systems have been strengthened to ensure reliable and uninterrupted power supply. As a result, availability of power in rural areas which was about 12:30 hours in 2015 has gone up to 21:09 hours and in the urban areas it has gone up to 23:41 hours. This has also significantly reduced consumption of kerosene from 892 crore litres in 2014-15 to 204 crore litres in 2020-21. The world is increasingly concerned about the deteriorating environment, climate change and global warming.

All the countries have been gathering annually in the Conference of Parties to deliberate on the steps to be taken for reducing emissions and the resultant global warming and climate change.

In COP21 in Paris, India pledged as its NDC (Nationally Determined Contribution) that it will achieve 40 per cent of its installed power generation capacity from non-fossil fuel sources by 2030. It achieved this milestone in 2021- the first country to have achieved its NDC 9 years in advance. India’s non-fossil fuel installed capacity is now over 159 GW and further we have 78 GW under installation and 25GW under bid.

During the year 2021-22 (Upto January 2022), about 10,266 MW of Renewable Capacity, consisting of 9,068 MW from Solar, 854 MW from Wind, 55 MW from Small Hydro, 77 MW from Bio Power and 213 MW from Hydro based capacity has been added. India has a Solar City Scheme under which it plans to convert one city in each state into a Green City. Accordingly, 29 Cities from 24 states have been selected. Modhera in Gujarat has already been converted to a Green City.

Indian PM Narendra Modi has announced five ambitions in Conference of Parties (COP -26) at Glasgow last year: India's non-fossil energy capacity to reach 500 GW by 2030, India will meet 50 per cent of its energy requirements with renewable energy by 2030, India will reduce its total projected carbon emissions by one billion tonnes from now to 2030, by 2030, India will reduce the carbon intensity of its economy to less than 45 per cent and by 2070, India will achieve the target of net zero emissions.

INDIA’S CONTINUED AND INDUSTRIALISATION MAKE URBANISATION WILL DEMANDS OF ITS HUGE AND ITS ENERGY SECTOR POLICY MAKERS