Author: Power Peak Digest Team Pub Date: February 2, 2025
The Economic Survey 2024-25 argues against shutting down coal-based power plants, citing a lack of economic rationale. It states that India should focus on becoming a developed country by 2047 before targeting net-zero emissions by 2070.
India’s coal-fired power plants, mostly commissioned in the 2010s, still have substantial lifespans. Unlike the US and Europe, which can transition to natural gas, India relies on coal due to its reserves and limited gas availability. While India has pledged to reduce coal’s share in the energy mix, it remains the primary energy source. The Survey stresses that a hasty coal phase-out without reliable alternatives could disrupt energy security.
The report reiterates that pressuring developing nations to abandon coal while developed countries transition at their own pace is unjustified.
India’s total installed power capacity reached 456.7 GW in November 2024, with renewables at 209.4 GW (47% of total capacity), reflecting a 15.8% year-on-year growth. Non-fossil fuel capacity stood at 213.7 GW (46.8%), with a target of 50% by 2030.
Renewable energy expansion
The PM Surya Ghar: Muft Bijli Yojana has installed rooftop solar systems for over 700,000 households, with a target of 10 million installations by 2027. The PM-KUSUM scheme solarized 728,000 agricultural pumps, while the PM JANMAN initiative aims to provide off-grid solar systems to 100,000 unelectrified households. The Solar Parks and Ultra-Mega Solar Power Projects Scheme has sanctioned 55 solar parks totalling 39,900 MW, with 12,200 MW commissioned by December 2024.
A viability gap funding (VGF) scheme of Rs 74.53 billion supports 1,000 MW of offshore wind projects off Gujarat and Tamil Nadu. The National Bioenergy Programme promotes waste-to-energy, biomass, and biogas projects, with 9.8 GW of grid-connected biomass power and 5.1 million small biogas plants.
Power sector developments
Despite increased transformation capacity, transmission projects faced delays due to monsoons. Government schemes like DDUGJY, IPDS, and SAUBHAGYA electrified 18,374 villages and 29 million households with Rs 1.85 trillion in investments. The Revamped Distribution Sector Scheme, launched with Rs 3 trillion, has approved Rs 2.8 trillion in projects, improving power reliability. Urban power supply increased to 23.4 hours daily in FY 2023-24, while rural supply rose to 21.9 hours. The energy demand-supply gap fell from 4.2% in FY 2013-14 to 0.1% by December 2024.
The Green Energy Corridors (GEC) initiative expanded renewable integration, with GEC-I completing 9,136 circuit kilometres of transmission lines and GEC-II extending to seven more states.
Consumer-focused reforms
New measures aim to simplify rooftop solar, EV charging, and electricity connections. Rooftop solar approvals up to 10 kW no longer require feasibility studies, and connection timelines have been reduced.
Consumers can now obtain separate electricity connections for EV charging, while new electricity connections are processed within three to fifteen days, depending on location. Residents of group housing societies can choose between individual or single-point electricity connections. In case of billing disputes, a second meter must be installed within five days for verification.
The full Economic Survey 2024-25 can be accessed here.
Featured photograph is for representation only.