India Sets New Benchmark in Power Demand, Adds Record 34 GW Capacity in FY25

Strategic Insights -

The Indian power sector achieved a historic milestone on June 9, meeting a peak power demand of 241 GW with zero shortage for the first time in the country's history. The Minister of Power, Manohar Lal, highlighted this achievement, stating that India added a record 34 GW of power generation capacity in FY25, the highest ever in a single year. This achievement marks a significant milestone in India's journey towards meeting its growing energy needs, with the country's total installed capacity now standing at 472.5 GW, almost double from 249 GW in 2014.

Key Takeaways:

  • India met a peak power demand of 241 GW on June 9 with zero shortage for the first time in the country's history.
  • The Minister of Power, Manohar Lal, announced that India added a record 34 GW of power generation capacity in FY25, the highest ever in a single year.
  • India's total installed capacity now stands at 472.5 GW, almost double from 249 GW in 2014, with renewable energy sources contributing 29.5 GW.
  • The government has cleared a Rs 5,400 crore scheme for Battery Energy Storage Systems (BESS) to support renewable energy, with the aim of attracting Rs 33,000 crore in investment by 2028.
  • The Inter-State Transmission System (ISTS) charges waiver for storage projects has been extended until June 30, 2028.
  • The government has announced plans to roll out an Ultra High Voltage Alternating Current (UHV AC) Transmission System, with an estimated investment of Rs 53,000 crore, to transform the grid by 2034.
  • Landowners will now receive up to 200% compensation for power towers, under new guidelines issued on March 21, 2025.
  • The government has extended the Late Payment Surcharge (LPS) Rules to include Intra-State Transmission Systems, to encourage private investment and financial discipline in the power sector.
  • Power stocks have surged in recent sessions, with key sector stocks such as Reliance Power, JSW Energy, and SJVN experiencing significant gains.

Statistics:

  • India's peak power demand reached 241 GW on June 9.
  • India added a record 34 GW of power generation capacity in FY25.
  • India's total installed capacity now stands at 472.5 GW.
  • Renewable energy sources contributed 29.5 GW to India's installed capacity.
  • The government has cleared a Rs 5,400 crore scheme for Battery Energy Storage Systems (BESS).
  • The Inter-State Transmission System (ISTS) charges waiver for storage projects has been extended until June 30, 2028.
  • The estimated investment for the Ultra High Voltage Alternating Current (UHV AC) Transmission System is Rs 53,000 crore.
  • Landowners will receive up to 200% compensation for power towers under new guidelines.

Sources:

  • FE Business India
  • IE Online Media Services Pvt. Ltd. (distributed by Contify.com)