Business News: India’s Power Generation and Transmission Sectors to Surge 2.2 Times by FY2030
India’s Power Generation and Transmission Sectors on the Rise
According to a recent report by Jefferies, India’s power generation and transmission sectors are set for remarkable growth, anticipated to reach $280 billion by FY30, which is a significant uplift from previous years comparing FY17-23.
Increased Demand and Challenges Ahead
The report underscores that, with GDP growth accelerating, power consumption is projected to increase by over 7% annually. By FY30, India’s total power generation capacity must expand from 442 GW in FY24 to 673 GW to avert power shortages. In this context, thermal power plants are expected to operate at enhanced efficiency, with the average annual plant load factor (PLF) surpassing peak levels from FY08 by FY28.
Investment in Thermal Power and Renewable Energy
- The thermal power sector is projected to witness an annual addition rate rising from 2-5 GW to 17 GW.
- Renewable energy capacity addition is also expected to surge, increasing 3.5 times from FY24 to FY27.
- India aims to achieve 450 GW of renewable energy capacity by 2030.
Power Transmission Sector Growth
In addition, the power transmission sector is gearing up for rapid expansion, with project bids skyrocketing to Rs 1 trillion from under Rs 150 billion in February 2021. This growth is integral as the government prioritizes renewable energy expansion and adapts to the rising demand for storage, green hydrogen, and electric vehicle infrastructure.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.