Power Secretary Forecasts India's Power Demand to Exceed 400 GW by 2031-32

03 Jul 2024 CW Team

India's Power secretary, Pankaj Agarwal, disclosed that India's peak power demand is anticipated to exceed 400 gigawatts (GW) by the 2031-32 period, surpassing the earlier estimate of 384 GW. Agarwal made these projections while addressing attendees at the CII-Smart Metering Conference, noting a significant rise in power demand across various states over the past two years, suggesting that the initial forecast of 384 GW might have been conservative.

According to Agarwal, "The peak demand we recorded this year at 250 GW is expected to climb to 384 GW by 2031-32. Given current trends, it's likely this estimate will be surpassed."

To meet this escalating demand, India will need a total installed capacity of 900 GW by 2031-32. This requirement underscores the recent decline in power demand following the monsoon season, where demand fell to 206 GW from an anticipated peak of 260 GW by September this year.

These projections align with recent developments in India's power sector, emphasizing the necessity for expanded capacity. The government's target of achieving 500 GW of installed renewable energy capacity by 2030, with substantial contributions from solar and wind energy, underscores its commitment to promoting renewable energy and enhancing energy efficiency nationwide.

As of May, India's total installed power generation capacity stood at 444.7 GW, with a significant shift towards non-fossil fuel sources including 242.9 GW of cumulative thermal capacity, 193.6 GW of renewables, and 8.1 GW of nuclear capacity. This transition has been supported by substantial foreign direct investments amounting to US$ 18.17 billion in the power sector through December 2023, fostering growth and innovation within the industry.

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