India Meets Record Power Demand of 250 GW in FY 2024-25, Boosts RE and Transmission Infrastructure

India’s power sector marked a transformative year in 2024, achieving significant milestones in electricity generation, transmission, and distribution.

As per the statement released by the Ministry of Power (MoP), the country has successfully met an all-time high power demand of 250 GW during FY 2024-25, reflecting robust growth and enhanced capacity to cater to increasing energy needs. With a sharp reduction in energy shortages to 0.1 percent, India solidified its position as a global leader in the power sector. Per capita electricity consumption surged to 1,395 kWh in 2023-24, a notable 45.8 percent increase from 957 kWh recorded in 2013-14. This rise highlights India's rapid economic development and growing electrification across urban and rural areas.

Further, the milestone of universal electrification was achieved, ensuring that villages and households nationwide have access to electricity. Average power availability in rural areas increased to 21.9 hours per day, up from 12.5 hours in 2014, while urban areas experienced 23.4 hours of daily supply.

MoP further revealed that India’s installed power generation capacity witnessed an 83.8 percent growth, climbing from 249 GW in March 2014 to 457 GW by November 2024. Renewable energy saw major expansions, with 129 GW added since April 2014. This includes 91 GW of solar, 27 GW of wind, 3.2 GW of biomass, and 1.3 GW of small hydro capacity. Large hydro projects contributed an additional 6.3 GW.

To address peak demand, the government awarded contracts for 19.2 GW of new coal-based thermal power capacity, bringing the total coal and lignite-based thermal capacity to 217.5 GW. Another 29.2 GW is under construction, with 13.4 GW slated for commissioning in FY 2024-25. Additionally, 36.3 GW of capacity is in planning and bidding stages.

The Central Government approved the Heo Hydro Electric Project (186 MW) in Arunachal Pradesh, with completion expected within 50 months at a cost of INR 1939 crore. A scheme to provide Central Financial Assistance (CFA) for hydroelectric projects in the North Eastern Region (NER) was launched, with INR 4136 crore allocated for equity participation by state governments through FY 2031-32.

A modification to the scheme supporting enabling infrastructure for hydroelectric projects (HEPs) was also approved, with a total outlay of INR 12,461 crore. This initiative aims to develop 31 GW of hydro capacity, including 15 GW of pumped storage projects (PSP).

India approved INR 60,676 crore worth of Inter State Transmission System (ISTS) projects, totalling 50.9 GW in capacity. This expansion will facilitate the integration of 280 GW of variable renewable energy (VRE) by 2030. Of the planned 335 GW transmission capacity, 42 GW has been completed, 85 GW is under construction, and 75 GW is under bidding.

Also, the National Electricity Plan (2023-2032) aims to expand transmission lines from 4.91 lakh circuit kilometres (ckm) in 2024 to 6.48 lakh ckm by 2032, with transformation capacity increasing from 1,290 GVA to 2,342 GVA. Nine High Voltage Direct Current (HVDC) lines with 33.25 GW capacity will be added, boosting inter-regional transfer capacity from 119 GW to 168 GW.

To expedite infrastructure projects, the Ministry of Power revised Right of Way (RoW) guidelines in June 2024, linking compensation to market land values. Compensation for tower base areas increased to 200 percent of land value, while RoW corridor compensation rose to 30 percent.

The Revamped Distribution Sector Scheme (RDSS) advanced efforts to modernise power distribution. A total of 19.79 crore prepaid smart meters, 52.5 lakh distribution transformer meters, and 2.1 lakh feeder meters were sanctioned at a cost of INR 1.3 lakh crore.

Loss reduction projects worth INR 1.46 lakh crore were approved, and INR 18,379 crore was disbursed. Aggregate Technical and Commercial (AT&C) losses decreased to 15.37 percent, with the ACS-ARR gap reduced to INR 0.45 per kWh.

Electrification of 9.61 lakh households, including those from Particularly Vulnerable Tribal Groups (PVTGs), is underway through RDSS, supported by INR 4,355 crore in funding.

India introduced revised building codes and EV charging guidelines to promote sustainability. The Energy Conservation and Sustainable Building Code (ECSBC) and Eco Niwas Samhita (ENS) were adopted to improve energy efficiency in commercial and residential buildings. EV charging stations are projected to increase from 34,000 to 1 lakh by 2030.

With these comprehensive reforms and ambitious targets, India’s power sector stands ready to meet future challenges while supporting the nation's economic growth and clean energy transition.