Power Sector in India

The electricity generation target (Including RE) for 2023-24 has been fixed as 1,750 billion unit (BU), i.e. growth of around 7.2% over actual generation of 1,624.158 BU for the previous year (2022-23).

Advantage India

Growing
Demand

* India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 442.85 GW as of April 30, 2024.

*Growing population along with increasing electrification and per-capita usage will provide further impetus. Power consumption in India in FY23 logged a 9.5% growth to 1,503.65 billion units (BU).

Attractive
Opportunities

*In the Budget for 2024, the government's power sector initiatives have been allocated funds that are 50% higher. Increased funds have been allocated to green hydrogen, solar power, and green-energy corridors.

* 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.​

* Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in One Crore households.

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 Rs. 111 lakh crore (US$ 1.4 trillion).​

* Total FDI inflows in the power sector reached US$ 18.28 billion between April 2000-March 2024.​

Last updated: Jul, 2024

Top Power Producing States in India

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