Power Sector in India
India is the third largest producer and second largest consumer of electricity in the world and had an installed power capacity of 382.73 GW as of April 2021. Electricity production reached 1,252.61 billion units (BU) in FY20. India was ranked fifth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2019. India’s rank jumped to 22 in 2019 from 137 in 2014 on World Bank’s Ease of Doing Business - "Getting Electricity" rankings.
For 2020-21, electricity generation target from conventional sources was fixed at 1,330 BU, comprising 1138.533 BU of thermal energy; hydro energy (140.357 BU) and nuclear (43.880 BU); and 7.230 BU was imported from Bhutan.
According to the Ministry of Power, India's power consumption grew 41% at 119.27 billion units (BU) in April 2021, compared with 84.55 BU in April 2020.
Renewable energy is fast emerging as a major source of power in India. The Government of India has set a target to install 227 GW of renewable energy capacity by FY22. As of June 2019, the Government launched US$ 5 billion of transmission-line tenders in phases and has set a target of 175 GW by 2022. As of February 2021, India had an installed renewable energy capacity of 94.43 GW.
In the current decade (2020-2029), the Indian electricity sector is likely to witness a major transformation with respect to demand growth, energy mix and market operations.
The Cabinet Committee on Economic Affairs (CCEA) has approved commercial coal mining for private sector and the methodology of allocating coal mines via auction and allotment, thereby prioritising transparency, ease of doing business and ensuring the use of natural resources for national development.
India aims to reduce emissions intensity of its gross domestic product (GDP) by 33% to 35% by 2030 from 2005 levels and increase the share of non-fossil fuels to 40% of the total electricity generation capacity.