Private Sector Controls 52% of 446GW Installed Power Capacity

26 Jul 2024 CW Team

Parliament was informed that the private sector owns over 52 per cent of the country's total installed power generation capacity, which stands at 446 GW. In a written response to the Lok Sabha, Minister of State for Power Shripad Naik noted that the private sector plays a crucial role in India's power generation. He explained that power generation is a de-licensed activity according to the Electricity Act of 2003 and that 100 per cent Foreign Direct Investment (FDI) is allowed in the Indian power sector for generation from all sources except atomic energy.

As of June 30, 2024, the total installed capacity in the country was 446,190 MW, with the private sector contributing approximately 234,065 MW, or 52.5 per cent. The Minister also mentioned that most of the renewable energy projects in India are being developed by private sector players selected through a transparent bidding process.

In another response to the House, the Minister indicated that the rapid expansion and growth of the Indian economy are driving unprecedented increases in electricity demand. He reported that electricity demand in India grew by about 9 per cent during the years 2021-22 and 2022-23.

He further stated that total emissions have risen in line with the increase in electricity generation. However, he also pointed out that the growing share of renewable energy is reducing the carbon intensity of the grid. There has been a significant decrease of approximately 9 per cent in the average carbon emission factor of grid electricity in India from 2013-14 to 2022-23.

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