Indian Power Sector Analysis

India's power requirement is estimated to be 1,650.59 BUs in FY23, up from 1,275.53 BUs in FY21.

Advantage India

Growing
Demand

* India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 411.64 GW as of January 31, 2023.

* Growing population along with increasing electrification and per-capita usage will provide further impetus. Power consumption in India in December 2022 logged an 11% growth to 121.19 billion units

Attractive
Opportunities

* In Union Budget 2023-24, the government allocated US$ 885 million (Rs. 7,327 crore) for the solar power sector including grid, off-grid, and PM-KUSUM projects.

* To meet India’s 500 GW renewable energy target and tackle the annual issue of coal demand supply mismatch, the Ministry of Power has identified 81 thermal units which will replace coal with renewable energy generation by 2026.

Policy
Support

* 100% FDI allowed in the power sector has boosted FDI inflow in this sector.

* Schemes such as Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) are expected to augment electrification across the country.

Higher
investments

* As per the National Infrastructure Pipeline 2019-25, energy sector projects accounted for the highest share (24%) out of the total expected capital expenditure of US$ 1.4 trillion (Rs. 111 lakh crore).

* Total FDI inflow in the power sector reached US$ 16.57 billion between April December 2022.

Last updated: Dec, 2022

Top Power Producing States in India

  • Gujarat
  • Maharashtra
  • Tamil Nadu
  • Rajasthan
  • Karnataka
  • Uttar Pradesh
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