India’s power demand to grow by 15 GW annually

India’s power demand is set to increase at a rate of 15 GW per year over the next six years, up from 11 GW per year over the past decade, according to Srikant Nagulapalli, Additional Secretary for Power. Speaking at an Industry Conclave organized by IEEMA, Nagulapalli highlighted that by 2030, an additional 85 GW of demand will be added during solar hours, with more than 90 GW added to peak demand during non-solar hours.

To meet this growing demand, India is planning substantial expansion in coal capacity alongside significant investments in solar, wind, and storage technologies. Approximately 40 GW of the increased demand will be met through storage solutions, including long-duration batteries to supply peak demand during non-solar hours.

Nagulapalli stated that India has set a target of achieving 500 GW of capacity from non-fossil fuel sources by 2030. Currently, the country has surpassed 200 GW in renewable energy capacity, with plans to add 300 GW over the next six years. Of this, nearly 225 GW will come from solar and wind energy, focusing on renewable energy zones in states like Rajasthan, Gujarat, Karnataka, and Madhya Pradesh.

Plans also include developing offshore wind farms near the coasts of Gujarat and Tamil Nadu and boosting green hydrogen capacity, particularly in coastal areas like Odisha, Gujarat, and Tamil Nadu. Nagulapalli noted that the rising demand from electric vehicles (EVs) and data centers, along with the broader electrification of the economy, will drive this growth in power demand.

India’s integrated grid system, capable of transferring 170 GW across the country, ensures even remote regions such as Arunachal and Ladakh are connected. The government is also promoting storage solutions through pumped hydro storage projects (PSPs) and battery energy storage systems (BESS). The aim is to achieve 40 GW of BESS and 19 GW of PSP capacity in the next six years. A new PSP policy is expected to be announced to accelerate these projects, with the government approving around 4 GWh of BESS through viability gap funding (VGF). Additionally, a policy framework is being developed to expand battery energy storage systems significantly in the short term.