India’s power demand surges as leaders push grid expansion and clean energy transition
In tandem with India’s economic growth, demand for electricity is rising, prompting the country to assess all available energy sources while strengthening and expanding the required infrastructure, Indian delegates said while participating in a leadership panel titled “The era of the electrostate: electrification, grid expansion and electrotech pathways to robust, accessible and clean final energy”.
“Our energy demand continues to grow at an impressive pace of 5%, while our GDP is growing at 7% to 8%. We also have huge potential to use all the energy sources we are endowed with,” said Suman Chandra, Director, Ministry of New and Renewable Energy.
India’s total installed electricity capacity crossed 500 GW last October, reaching 500.89 GW according to government data. Of the total capacity, 51% came from non-fossil-fuel sources, while the remaining 49% came from fossil fuels. Various agencies have projected electricity demand growth of 4% to 4.5% for the current fiscal year.
“Fortunately, we have coal, although it comes with emissions that we will have to bring down. We are also fortunate to have large solar capacity that can be harnessed to drive economic growth, and we now have battery storage at cost parity. There is also significant discussion around nuclear energy,” Chandra said.
India has proposed setting up 100 GW of nuclear power capacity by 2047.
Also participating in the panel, Prince Dhawan, Executive Director at REC Ltd., detailed the transformation of India’s power distribution sector through initiatives under the Revamped Distribution Sector Scheme (RDSS). He noted that results-linked investments, smart metering, and governance reforms are strengthening the operational and financial health of distribution companies, enabling smarter and more resilient grids. REC is an Indian state-owned non-banking financial company established to finance and develop power projects in the country.
Naveen Srivastava, Director (Operations) at Power Grid Corporation of India Ltd. (POWERGRID), said the state-owned enterprise has outlined major investment plans to strengthen its transmission network. POWERGRID is India’s largest power transmission utility and invested over $2.8 billion in the last fiscal year, which is expected to rise to about $3 billion in the current fiscal year and further to about $3.8 billion in the next fiscal year to fund its expansion plans. The investment could reach $4.8 billion by FY28.
The panel explored the central role of electricity in India’s economic growth, energy security, and decarbonisation efforts, highlighting electrification, grid expansion, and digitalisation as critical enablers of a clean and resilient energy system. The session also featured His Excellency Eng. Ahmed Al Kaabi, Assistant Undersecretary for Electricity, Water, and Future Energy Sector in the UAE, who outlined the plans and innovations currently underway in the country.
“Energy transition in the UAE is nothing new. It started a long time ago, but we are now focused on what is new and how we can be more creative and innovative in addressing the challenges we face. We began in the 1960s with oil, moved to gas in the 1970s, and in 2006, entered renewable energy through our international company, Masdar. In 2024, we fully commissioned a 5.6 GW nuclear plant. Wind power started at around 100 MW in 2023 and will double in the coming years. In addition, we have hydropower of around 250 megawatts coming soon. This forms the energy mix we have today. Currently, we have around 7.2 GW of solar power, and this capacity will be tripled by 2030.” H.E. Al Kaabi also emphasised the importance of partnerships, innovation, and decentralised energy systems in enhancing grid resilience.
