Steps taken to boost production capacity from 2014-15 to 2023-24

The Ministry of Power (MoP) detailed steps taken to increase the production capacity between 2014-15 to 2023-24 in a recent press release. Between 2014-15 and 2023-24, India increased its power production capacity significantly. The installed capacity rose from 248,554 MW in March 2014 to 446,190 MW in June 2024, with coal-based power growing from 139,663 MW to 210,969 MW, and renewable energy from 75,519 MW to 195,013 MW. The country added 195,181 ckm of transmission lines, 730,794 MVA of transformation capacity, and 82,790 MW of inter-regional capacity, resulting in one of the world’s largest unified power grids capable of transferring 118,740 MW across regions. This grid integration has created a unified power market, enabling cheaper electricity tariffs.

Efforts to enhance the power sector’s viability saw AT&C losses reduced from 22.62 per cent in 2013-14 to 15.40 per cent in 2022-23. Subsidy payments to Distribution Companies (DISCOMS) are current, and legacy dues to Generating Companies (Gencos) have decreased from Rs. 1.4 trillion to Rs. 351.19 billion. Government initiatives such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) have led to the electrification of 18,374 villages and 28.6 million households, achieving 100 per cent village electrification. These schemes also resulted in the addition of 2,927 new substations, the upgrade of 3,965 substations, and the addition/upgradation of 850,000 ckm of High Tension (HT) and Low Tension (LT) lines, increasing power availability in rural areas from 12.5 hours in 2015 to 21.9 hours in 2024, and in urban areas to 23.4 hours.

The government introduced several measures to reduce power generation costs and consumer electricity tariffs. These include the waiver of Inter-State Transmission System (ISTS) charges for renewable energy transmission, the promotion of hydropower, the introduction of various power markets such as Real Time Market (RTM), Green Day Ahead Market (GDAM), Green Term Ahead Market (GTAM), and High Price Day Ahead Market (HP-DAM), and the Discovery of Efficient Electricity Price (DEEP) portal for e-bidding and e-reverse auctions. The Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) policy ensured efficient coal allocation to thermal power plants, while the establishment of Ultra Mega Renewable Energy Parks facilitated large-scale renewable energy projects.

Further efforts include competitive procurement guidelines, the Revamped Distribution Sector Scheme (RDSS) aimed at reducing AT&C losses and the Average Cost of Supply per unit of power minus Average Revenue Realized (ACS-ARR) gap, and the National Merit Order Dispatch system, optimizing generation costs and lowering electricity tariffs.