India Unveils Ambitious National Electricity Plan Aiming for 500 GW Renewable Energy by 2030

Team Finance Saathi

    16/Oct/2024

What's covered under the Article:

India targets 500 GW of renewable energy capacity by 2030 as part of its National Electricity Plan (Transmission).

The plan includes significant investments in battery energy storage and inter-regional transmission capacity.

Union Ministers emphasize the importance of clean energy technologies and the economic potential of transitioning to sustainable energy.

India has officially launched its National Electricity Plan (Transmission), setting an ambitious target of achieving 500 gigawatts (GW) of renewable energy capacity by 2030 and over 600 GW by 2032. Developed by the Central Electricity Authority (CEA), this comprehensive plan is designed to meet the rising energy demands of the nation while supporting its overarching goal of achieving net-zero emissions by 2070.

The plan not only focuses on increasing capacity but also aims to reimagine India’s energy landscape through innovative approaches. Union Minister of Power, Mr. Manohar Lal, emphasized the need for India to position itself as a leader in clean energy by 2047, promoting a sustainable energy mix that includes significant contributions from non-fossil energy sources. The goal is to achieve 500 GW of non-fossil energy by 2030, aligning with global trends towards cleaner energy solutions.

Key Elements of the Plan

A cornerstone of this initiative includes the addition of over 191,000 circuit kilometres (ckm) of transmission lines and an impressive 1,270 GVA of transformation capacity over the next decade. This expansion is crucial for integrating new energy sources into the existing grid infrastructure. The plan also highlights the integration of 47 GW of battery energy storage and 31 GW of pumped storage systems, facilitating the effective management of energy supply and demand.

The National Electricity Plan also promotes the establishment of green hydrogen and ammonia manufacturing hubs in coastal regions, capitalizing on India’s geographical advantages. By enhancing inter-regional transmission capacity from 119 GW to 143 GW by 2027, the plan aims to optimize energy distribution across the country. The estimated investment required for these initiatives is over US$ 108.92 billion (Rs. 9.15 lakh crore) by 2032, underscoring the financial commitment necessary to realize these goals.

Economic and Technological Implications

Mr. Subhrakant Panda of FICCI highlighted the immense economic potential of transitioning to clean energy, suggesting that this shift could create numerous opportunities across various sectors. The plan incorporates advanced technologies, including hybrid substations that will enhance efficiency and reliability within the grid. Additionally, there are plans to upgrade the operating voltage to 1,200 kV AC, which is critical for improving transmission efficiency.

Union Minister of New and Renewable Energy, Mr. Shripad Yesso Naik, emphasized the importance of significant investments in renewable technologies, energy storage, and grid modernization. These elements are crucial for achieving the proposed sustainable energy mix that can cater to India’s growing energy demands while mitigating environmental impacts.

The National Electricity Plan thus represents a comprehensive strategy that not only aims for substantial capacity growth but also seeks to transform the energy landscape of India into a sustainable, economically viable, and technologically advanced framework.

As India continues to develop its energy sector, stakeholders from various industries must collaborate to support these initiatives, ensuring that the country meets its ambitious targets and secures a leadership position in the global clean energy market.

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