India's Power Generation Capacity Soars 80% in a Decade, Reaching 4.46 GW

Team Finance Saathi

    30/Jul/2024

Key Points

Significant Increase in Installed Power Capacity: India's total installed power generation capacity has increased by 80% from March 2014 to June 2024.

Growth in Coal-Based and Renewable Energy: Coal-based power capacity rose from 1,39,663 MW to 2,10,969 MW, while renewable energy capacity surged from 75,519 MW to 1,95,013 MW in the same period.

Unified National Grid: India has developed one of the world's largest unified grids, enhancing power distribution efficiency and lowering electricity tariffs nationwide.

India has witnessed a remarkable transformation in its power generation capacity over the past decade. According to information provided to Parliament, the country's total installed power generation capacity has soared by approximately 80%, reaching an impressive 4,46,190 MW (4.46 GW) in June 2024. This substantial increase reflects the government's ongoing efforts to boost the nation's energy infrastructure and diversify its energy mix.

Growth in Installed Power Capacity

In March 2014, India's installed power capacity stood at 2,48,554 MW. Over the next decade, this figure grew significantly, culminating in a total installed capacity of 4,46,190 MW by June 2024. This growth is a testament to the country's commitment to expanding its energy capabilities to meet the rising demand for electricity.

Coal-Based Power Expansion

A significant portion of this growth can be attributed to the coal-based power sector. In March 2014, the installed capacity of coal-based power was 1,39,663 MW. By June 2024, this capacity had increased to 2,10,969 MW, marking a substantial rise. This increase underscores the ongoing reliance on coal as a key energy source, despite global shifts towards cleaner energy alternatives.

The Government of India has plans to further expand coal-based power capacity, with an additional minimum of 80 GW expected to be established by 2031-32. This expansion is aimed at ensuring energy security and meeting the growing electricity needs of the country's population and industries.

Surge in Renewable Energy

The renewable energy sector has also seen remarkable growth over the past decade. In March 2014, the installed capacity for renewable energy was 75,519 MW. By June 2024, this capacity had surged to 1,95,013 MW. This significant increase highlights India's dedication to harnessing cleaner and more sustainable energy sources.

The rise in renewable energy capacity is in line with global trends and India's commitment to reducing its carbon footprint. The expansion of solar, wind, and other renewable energy sources has positioned India as a leader in the global shift towards sustainable energy solutions.

Unified National Grid

One of the most noteworthy achievements in India's power sector is the development of a unified national grid. Over the past decade, the country has added 1,95,181 circuit kilometres (ckm) of transmission lines, 7,30,794 MVA of transformation capacity, and 82,790 MW of inter-regional capacity. This development has connected the entire country into one grid running on a single frequency.

The unified grid allows for the efficient transfer of electricity, with the capability to move 1,18,740 MW from one corner of the country to another. As a result, distribution companies (discoms) can purchase power at the cheapest available rates from any generator across the nation. This has led to lower electricity tariffs for consumers, benefiting both residential and industrial users.

India's grid has emerged as one of the largest unified grids in the world, transforming the country into a unified power market. This achievement has not only improved the efficiency of power distribution but has also enhanced the reliability and stability of the electricity supply across the nation.

Enhanced Power Availability

The improvements in India's power infrastructure have led to significant enhancements in power availability, particularly in rural areas. In 2015, rural areas had an average power availability of 12.5 hours per day. By 2024, this figure had increased to 21.9 hours per day, reflecting the impact of the expanded and upgraded power infrastructure.

In urban areas, power availability has reached an impressive 23.4 hours per day. The increase in power availability in both rural and urban areas underscores the success of the government's initiatives to improve the nation's energy infrastructure and ensure reliable electricity supply for all citizens.

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Infrastructure Developments

The government has also made significant strides in upgrading and expanding the power infrastructure. Over the past decade, 2,927 new substations have been added, and 3,965 existing substations have been upgraded. Additionally, 8.5 lakh ckm of high-tension and low-tension lines have been added or upgraded, further enhancing the capacity and reliability of the power distribution network.

These infrastructure developments have played a crucial role in supporting the growth of the installed power capacity and ensuring that the increased generation capacity is effectively transmitted and distributed across the country.

Conclusion

India's power generation capacity has undergone a significant transformation over the past decade, with an 80% increase in installed capacity reaching 4.46 GW in June 2024. The growth in both coal-based and renewable energy sectors highlights the country's balanced approach to energy security and sustainability. The development of a unified national grid and improvements in power availability have further strengthened India's position as a leading power market.

The ongoing expansion and upgrading of the power infrastructure demonstrate the government's commitment to ensuring reliable and affordable electricity supply for all citizens. As India continues to enhance its energy capabilities, it is well-positioned to meet the growing demand for electricity and support the nation's economic growth and development.

India's journey towards a robust and sustainable power sector serves as a model for other developing nations, showcasing the importance of strategic planning, infrastructure development, and diversification of energy sources in achieving energy security and sustainability.

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