Saurabh Kumar, Vice President, Global Energy Alliance for People and Planet (GEAPP)
As the world grapples with the escalating impacts of climate change, India’s power sector faces its own formidable challenge – an unprecedented surge in electricity demand during the hottest year on record. In May 2024, amidst one of the most severe heat waves in the nation’s history, power demand soared to a record high of 250 GW. According to the International Energy Agency’s mid-year Electricity Market Report, demand growth in the first half of 2024 alone increased by 8.5 per cent and the annual growth for the entire year averaged 8.2 per cent. To meet the rising demand, the National Electricity Plan 2022-32 estimates that the power sector would require an investment of Rs 33 trillion.
While India is striving to accelerate the integration of renewables into the power grid, this sharp rise in electricity demand poses a significant challenge. The variability of renewable sources endangers grid stability, risking potential disruptions that delay the phase-out of traditional fuels. As we navigate this energy conundrum, finding a sustainable energy mix that allows the energy demand to be met by renewables will be crucial.
Current scenario
As the third largest producer and consumer of electricity, India’s power sector carries significant influence over global energy trends and climate action. In recent years, the government has introduced critical reforms to align the country’s economic growth with the 500 GW renewable energy target and derive 50 per cent of the installed capacity from renewables by 2030. These include setting up solar parks, offering production-linked incentive (PLI) schemes, strengthening the electric vehicle infrastructure and implementing decentralisation initiatives such as the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan and PM Surya Ghar Muft Bijli Yojana.
The demand-generation inconsistency
The substantial reliance on traditional fuels underscores the challenges faced by emerging economies in balancing their developmental goals with climate commitments. The variability of renewables becomes a roadblock in India’s drive towards electrification and industrial expansion in a climate-conscious way. For instance, the increased demand for cooling appliances in the event of prolonged heatwaves in India this summer resulted in increased load on the grid, power outages and low quality supply, thereby heightening reliance on traditional fuels. The Ministry of Power identified an energy shortage of 4,112 MUs and a peak shortage of 3,340 MW during 2023-24.
The Central Electricity Authority’s 20th Electric Power Survey Report estimates peak demand and energy requirement to be around 335 GW and 2,280 BUs, respectively, by 2029-30. A technical report by the University of California’s Indian Energy and Climate Center suggests that rapid growth in India’s power demand could result in significant power shortages of about 20-40 GW by 2027, even if all the under-construction hydro and thermal power plants come online. Addressing these challenges will require not only continued investment in renewable energy infrastructure but also advancements in grid integration, energy storage solutions and policy frameworks that support a just and equitable transition.
Addressing the energy gap
As the nation’s power demand continues to escalate amidst these transformations, we need a shift in the exploration of innovative ways to strengthen renewable energy infrastructure. To begin with, we need to increase installed renewable energy capacity to cater to the demand surge. Technologies such as rooftop solar can be deployed to decentralise the grid and reduce load. Simultaneously, efficiency standards for appliances need to be revised. Renewable intermittency needs to be addressed with power storage options such as battery energy storage systems (BESSs) or other power capacities that can respond to grid fluctuations almost instantaneously. To advance BESS development in India, GEAPP partnered with BSES Rajdhani Private Limited, IndiGrid and AmpereHour Energy to set up a utility-scale BESS pilot, a first of its kind, in India.
Future outlook
The clean energy transition requires more than just technological advancements–it demands behavioural shifts, mindful consumption, widespread public awareness and a concerted effort to integrate renewable solutions into every facet of our energy use.
As we look to the future, research and development, entrepreneurship and investments in renewable technologies will be the key drivers of sustainable growth. Global collaborations can be leveraged to further strengthen the sector’s resilience and introduce relevant policy reforms. By embracing a holistic strategy that combines sustainable consumption, technological innovation, supportive policies and international collaboration, the nation can meet its burgeoning power demand and set a precedent for sustainable development worldwide.