In the last nine years, India’s power sector has evolved from a state of deficit to a position of surplus, according to Union Minister R K Singh. Speaking at a conference reviewing the accomplishments of his ministry, the Power and New and Renewable Energy Minister remarked that the country has added over 185 gigawatts (GW) of generation capacity, transitioning from a power deficit to a surplus. The total installed power generation capacity now stands at 417.67 GW.
The current installed capacity is nearly double the peak demand, enabling India to export power to neighboring nations. The minister emphasized how the global community has observed India’s power sector transformation over the past nine years. The highest demand recorded to date has been 221 GW.
In terms of power transmission, an additional 1.97 lakh circuit kilometers (ckm) of transmission lines have been integrated, unifying the entire country into a single grid operating at one frequency, capable of transferring 1.12 lakh MW from one corner of the country to another. India’s grid has grown to be one of the largest unified grids worldwide. Distribution companies (Discoms) now have the ability to purchase power at the most affordable rates from any generator across the country, leading to lower electricity tariffs for consumers.
Notably, the aggregate technical and commercial (AT&C) losses of Discoms have markedly reduced from 22 percent in FY 2021 to 16.44 percent in FY2022. The gap between the average cost of supply (ACS) and average realizable revenue (ARR) also declined from Rs. 0.69/kWh in FY2021 to Rs 0.15/kWh in FY2022.
In regards to outstanding dues of Rs 1,39,747 crores as of June 3, 2022, the minister disclosed that 13 states/ UTs have paid installments totaling Rs 64,196 crores. Minister Singh also highlighted India’s rapid growth in the renewable energy sector among all large economies.
The latest capital expenditure data reveals a broad spectrum of investments across various types of power generation, balancing traditional sources with hydropower and unconventional or renewable sources.
Investment statistics of Projects Today (as of 15 June 2023) indicate a growing interest in both conventional and non-conventional power sectors. The Hydel power sector had 647 projects amounting to Rs 10,16,655 crore. Thermal-based power accounted for 441 projects with an investment of Rs 14,39,938 crore. The Nuclear power sector, although having the fewest projects (21), attracted an investment of Rs 2,05,217 crore. Lastly, the Non-Conventional power sector, including renewable sources like wind, solar, and biogas, had 1,148 projects with an investment of Rs 7,16,421 crore.
