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India is currently the third-largest power market in the world, with a GDP growth rate of 7% and power demand rising by over 8% this year. Its energy need is expected to triple by 2050, making it an important place to invest.
As of June 30, 2024, India ranked third in the world both in terms of electricity production and consumption, with an installed power capacity of 446.18 GW.
Over half of India's basic energy needs are met by coal, making it a vital component of the country's energy basket. Approximately 75% of the power generated in India comes from coal, making it the primary source of power.
India had 203.19 GW of installed renewable energy capacity (including hydro) as of June 30, 2024, accounting for 45.5% of the country's total installed power capacity.
Solar energy accounted for 85.47 GW of total energy as of June 30, 2024. Wind power accounted for 46.65 GW, biomass for 10.35 GW, small hydropower for 5.00 GW, waste-to-energy for 0.59 GW, and hydropower for 46.93 GW.
The increase in non-hydro renewable energy capacity was 15.27 GW in FY23 compared to 14.07 GW in FY22.
Renewable energy is growing quickly; by 2030, over 200 GW of solar and wind power are anticipated.
India is now the world's second-biggest producer of solar modules.
India's power generation witnessed its highest growth rate in over 30 years in FY23. Power generation in India increased by 6.80% to 1,452.43 billion kilowatt-hours (kWh) as of January 2024.
According to data from the Ministry of Power, India's power consumption stood at 1,503.65 BU in April 2023.
The coal plants registered a PLF of 73.7% for the first nine-month period in FY23 compared to 68.5% in FY22 for the same period.
Between April 2000 and March 2024, the cumulative FDI investment into the electricity sector was US$ 18.28 billion.
In India, FDI equity investment in the renewable energy sector totalled US$ 6.1 billion between April 2020 and September 2023.
Foreign direct investment (FDI) in the solar energy sector has reached India totalling US$ 3.8 billion during the last three fiscal years and the current fiscal year that ends in September 2023.
At US$ 77.7 billion, India came in fourth place among nations that made large investments in renewable energy between 2015 and 2022.
In June 2024, the nation's peak power demand was 249.85 GW.
Thermal power plant load is estimated to improve by 63% in FY24, fuelled by strong demand growth along with subdued capacity addition in the sector.
Strengthen Distribution Networks: Distribution companies' (DISCOMs) financial situation needs to be improved to provide a consistent supply of power. Through the implementation of the UDAY system, the resolution of inefficiencies, the promotion of timely bill payments, and the implementation of reforms, DISCOMs have the potential to become more reliable suppliers of services and buyers.
Boost Renewable Energy: India must put in a lot of effort to accomplish its goals for renewable energy, particularly solar and wind energy. Investments in infrastructure, research, and technology will help reach the 2030 goal of 450 GW of renewable energy. With a planned capacity of 280 GW, solar energy will be important.
Encourage Decentralization and Energy Storage: Decentralized power generation—producing energy closer to places of consumption—is the way of the future. Microgrids, smart metering, and battery storage are some of the technologies that will enable improved energy management and higher efficiency.
Tackle Dependency on Fossil Fuels: In order to meet India's climate pledges, the percentage of energy derived from fossil fuels must be decreased, even though coal will continue to play a significant role in the country's energy mix. Emissions can be decreased and efficiency increased by implementing supercritical technology into outdated coal-fired power facilities.
Increasing Access to Energy in Rural Areas: Despite significant electrification projects, it is still challenging to provide rural people with dependable, high-quality energy. Expanding access to modern energy services for small businesses and agriculture is necessary to boost production and growth in rural areas.
Adapt to Sustainability and Climate Change Goals: India must align its energy policy with its commitments to combating climate change. A long-term strategy focusing on low-carbon technology, improving energy efficiency, and reducing greenhouse gas emissions will be needed to reach carbon neutrality by 2070.
Adapt to Sustainability and Climate Change Goals: India must align its energy policy with its commitments to combating climate change. It will be necessary to create a long-term strategy focused on cutting greenhouse gas emissions, improving energy efficiency, and creating low-carbon technology.
Government Initiatives in power sector
Sources:
https://powermin.gov.in/en/content/power-sector-glance-all-india
https://iced.niti.gov.in/energy
PRACTICE QUESTION Q.Examine the challenges faced by the power sector in India and discuss the steps needed to overcome these challenges.( 250 words) |
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