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India Needs $2.2 Trillion for Power Sector Over 20 Years
19 Mar
Summary
- India requires USD 2.2 trillion investment for its power sector.
- The nation aims for 500 GW renewable energy by 2030.
- India is integrating renewable energy with new pricing mechanisms.
India's power sector is projected to need approximately USD 2.2 trillion in investment over the next twenty years. This significant capital infusion is crucial for achieving the nation's energy goals, including a target of 500 GW of renewable energy by 2030 and the addition of 97 GW of coal-based power generation capacity by 2034-35.
The power sector has already seen remarkable growth, with installed capacity doubling to over 520 GW and peak demand deficit significantly reduced. Renewable energy, particularly solar, has been a major driver since 2016, with falling tariffs. This progress is attributed to deliberate policy design and market frameworks.
Future growth will focus on the 'software side,' including regulatory frameworks, market design, and pricing mechanisms. Initiatives like PM-Kusum empower farmers as energy producers, and integrating renewables requires new approaches such as time-of-day tariffs and demand response. India is also exploring international collaboration, including an under-sea power transmission cable with the UAE.
The nation has also made strides in household electrification, with over 3.2 million homes solarized under the PM Surya Ghar Muft Bijli Yojana. India's solar capacity has grown exponentially from 2.8 GW in 2014 to over 143 GW today, positioning it as a global leader in clean energy.
