+
India Power Sector Enters Value Chain Reset Led By Transmission
POWER & RENEWABLE ENERGY

India Power Sector Enters Value Chain Reset Led By Transmission

Macquarie Equity Research said India’s electricity system is entering a synchronised reset across generation, transmission and distribution, with transmission capital expenditure and energy storage central to the coming decade. The brokerage expects installed capacity to rise from 538 gigawatt (GW) today to 900GW by FY32E, with coal anchoring baseload stability at plant load factors above 65 per cent while renewables supply most incremental capacity. It added that 74GW of storage will be needed by 2032 to manage intermittency and meet evening peaks.

Peak demand reached a record 271GW in May 2026 during a heatwave and the Central Electricity Authority (CEA) projects power demand to grow at six per cent compound annual growth rate to 2030. The International Energy Agency expects electricity consumption to rise at six point four per cent annually through 2030, driven by rising cooling demand that accounts for more than twenty per cent of incremental growth and by new high-load segments such as data centres and electrified transport. Industrial demand remains large.

The report highlights a transmission-led capex super-cycle and estimates India will need US$51 billion (bn) in transmission investment to evacuate 500GW of non-fossil capacity by 2030 and 900GW by 2035-36. Timing is a constraint because generation assets take 12 to 18 months to build while transmission corridors require 36 to 48 months, increasing curtailment risk without inter-regional development. The grid lost 2,300 gigawatt hour (GWh) between May and December 2025 when mid-day solar surges exceeded absorption capacity.

Under the Revamped Distribution Sector Scheme (RDSS) Rs2.83 trillion (tn) has been sanctioned and 203 million (mn) smart meters are planned, supporting a turnaround. Aggregate technical and commercial losses have eased to fifteen per cent from twenty-two per cent in FY2021 and distribution companies (DISCOMs) reported a Rs25 billion (bn) profit in FY2025, while overdue payables have fallen below Rs500 billion (bn). Regulatory reforms such as the Draft National Electricity Policy 2026 and the Electricity (Amendment) Bill 2026 aim to shift the sector to market-based systems, and the brokerage said the next phase will depend on how quickly transmission and storage keep pace with demand.

Macquarie Equity Research said India’s electricity system is entering a synchronised reset across generation, transmission and distribution, with transmission capital expenditure and energy storage central to the coming decade. The brokerage expects installed capacity to rise from 538 gigawatt (GW) today to 900GW by FY32E, with coal anchoring baseload stability at plant load factors above 65 per cent while renewables supply most incremental capacity. It added that 74GW of storage will be needed by 2032 to manage intermittency and meet evening peaks. Peak demand reached a record 271GW in May 2026 during a heatwave and the Central Electricity Authority (CEA) projects power demand to grow at six per cent compound annual growth rate to 2030. The International Energy Agency expects electricity consumption to rise at six point four per cent annually through 2030, driven by rising cooling demand that accounts for more than twenty per cent of incremental growth and by new high-load segments such as data centres and electrified transport. Industrial demand remains large. The report highlights a transmission-led capex super-cycle and estimates India will need US$51 billion (bn) in transmission investment to evacuate 500GW of non-fossil capacity by 2030 and 900GW by 2035-36. Timing is a constraint because generation assets take 12 to 18 months to build while transmission corridors require 36 to 48 months, increasing curtailment risk without inter-regional development. The grid lost 2,300 gigawatt hour (GWh) between May and December 2025 when mid-day solar surges exceeded absorption capacity. Under the Revamped Distribution Sector Scheme (RDSS) Rs2.83 trillion (tn) has been sanctioned and 203 million (mn) smart meters are planned, supporting a turnaround. Aggregate technical and commercial losses have eased to fifteen per cent from twenty-two per cent in FY2021 and distribution companies (DISCOMs) reported a Rs25 billion (bn) profit in FY2025, while overdue payables have fallen below Rs500 billion (bn). Regulatory reforms such as the Draft National Electricity Policy 2026 and the Electricity (Amendment) Bill 2026 aim to shift the sector to market-based systems, and the brokerage said the next phase will depend on how quickly transmission and storage keep pace with demand.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code