India’s total installed power generation capacity surged by 83.8%, increasing from 249 GW as of March 31, 2014, to 457 GW as of November 30, 2024.
Here are the highlights of the power generation sector in 2024:
Renewable Energy Expansion Since April 2014, 129 GW of renewable energy capacity, including large hydro, has been added. This includes:
- 91 GW of solar power
- 27 GW of wind power
- 3.2 GW of biomass
- 1.3 GW of small hydro
- 6.3 GW of large hydro
Coal-Based Thermal Power
The government awarded 19.2 GW of new coal-based thermal capacity, raising the total installed capacity of coal and lignite-based thermal plants to 217.5 GW.
An additional 29.2 GW of capacity is under construction, with 13.4 GW expected to be commissioned in FY 2024-25. A further 36.3 GW is in various stages of planning, clearances, and bidding.
Coal Supply and Stock
Domestic Coal-Based (DCB) power plants held 47.8 MT of coal as of March 2024 and 41.4 MT as of December 2024, with a target to increase to 50 MT by March 2025.
Sustained coal supply during Q1 and Q2 of FY 2025 supported a peak demand of 250 GW in May 2024. Improved domestic coal availability allowed the Ministry of Power to discontinue its advisory for blending imported coal beyond October 15, 2024.
SHAKTI Policy Revision
The Government of India is reviewing the coal allocation policy to encourage private sector participation. The proposed policy includes:
- Window-I: Allocation of coal at “Notified Price” to Central Generating Companies and State Governments.
- Window-II: Allocation to all generating companies at a premium over the “Notified Price,” irrespective of ownership or type of Power Purchase Agreements (PPAs).
The revised policy aims to support the development of an additional 80 GW of thermal capacity.
Hydro Projects
The Central Government approved the Heo Hydro Electric Project (186 MW) in Arunachal Pradesh in November 2024, to be completed in 50 months at a cost of Rs 1.939 billion.
The Union Cabinet approved the “Central Financial Assistance (CFA) towards equity participation by State Governments for the development of Hydro Electric Projects (HEPs) in the North Eastern Region (NER).” Key details:
Equity funding capped at 24% of the total project equity, subject to a maximum of Rs 7.5 billion per project.
Total financial outlay: Rs 41.36 billion for FY 2024-25 to FY 2031-32.
The Cabinet also approved the modification of the “Scheme on Budgetary Support for the Cost of Enabling Infrastructure for HEPs” with a total outlay of Rs 124.61 billion for FY 2024-25 to FY 2031-32, supporting approximately 31 GW of hydro capacity, including 15 GW of Pump Storage Projects (PSP).
Pump Storage Projects (PSP)
India has a PSP potential of about 181 GW, with 5 GW (2.6%) developed so far. The government has set an ambitious target of adding 35 GW of PSP capacity by 2031-32, with 6 GW under construction and the rest under development.
Battery Energy Storage System (BESS): Under the Viability Gap Funding (VGF) Scheme, a capacity of 13,000 MWh of BESS is targeted for development.
Photo credit: National Power Portal (NPP); Source of information: Press Information Bureau (PIB)