India has been the third largest producer and third largest consumer of electricity in the world with installed power capacity reaching 370.49 gigawatts (GW) as of May 2020. Electricity production reached 1,252.61 billion units (BU) in FY20. India was ranked fourth in wind power, fifth in solar power and fifth in renewable power installed capacity in 2018. India’s rank jumped to 22 in 2019 from 137 in 2014 on World Bank’s Ease of Doing Business - "Getting Electricity" rankings.
Renewable energy is fast emerging as a major source of power in India. The Government of India has set a target to achieve 175 GW installed capacity of renewable energy by FY22. As of June 2019, the Government launched US$ 5 billion of transmission-line tenders in phases and has set a target of 175 GW by 2022.
In FY20, total thermal installed capacity in the country stood at 230.81 GW, while renewable, hydro, and nuclear energy installed capacity totalled to 86.76 GW, 45.70 GW and 6.78 GW, respectively. The Government plans to double the share of installed electricity generation capacity of renewable energy to 40 per cent by 2030. India has also raised the solar power generation capacity addition target by five times to 100 GW by 2022. The Government is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022. The peak power demand in the country stood at 180.80 GW in FY20(P).
All the states and union territories were on board to fulfil the Government’s vision of ensuring 24x7 affordable and quality power for all by March 2019. India achieved 100 per cent household electrification by March 31, 2019, as envisaged under the Saubhagya scheme. More than 26.2 million households have been electrified under Saubhagya scheme. Under Union Budget 2019-20, the Government allocated Rs 5 crore (US$ 0.73 million) to increase capacity of Green Energy Corridor Project along with Rs 920 crore (US$ 130 million) for wind and Rs 3,005 crore (US$ 440 million) for solar power projects.
In the Union Budget 2020-21, Rs 15,875 crore (US$ 2.27 billion) has been allocated to the Ministry of Power, while Rs 5,500 crore (US$ 786.95 million) has been allocated towards Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY).
In June 2020, Government launched pan-India Real Time Market in electricity.
The Cabinet Committee on Economic Affairs (CCEA) has approved commercial coal mining for private sector and the methodology of allocating coal mines via auction and allotment, thereby prioritising transparency, ease of doing business and ensuring the use of natural resources for national development.
Total FDI inflow in the power sector reached US$ 14.98 billion between April 2000 to March 2020, accounting for three per cent of the total FDI inflow in India.