India invests in 457 GW to meet growing energy demand

India reaches an installed energy capacity of 457 GW in 2023, doubling in a decade. This growth highlights the delicate balance between energy transition and the need to meet rising electricity demand.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

India’s installed energy capacity reached 457 gigawatts (GW) in November 2023, according to figures released by the Federal Ministry of Energy. This represents a significant increase from the 249 GW recorded in 2014, demonstrating the country’s ambitions in the energy sector.

Growth driven by renewables

Since 2014, 129 GW of renewable energy, including hydropower, has been added to India’s energy mix. These additions include 91 GW of solar energy and 27 GW of wind energy. These figures underscore the political will to encourage low-carbon energy sources while ensuring national energy security.

However, this transition to renewable energy is accompanied by a persistent reliance on coal. The country has approved 19.2 GW of new coal-fired thermal plants to meet peak consumption needs. Currently, coal and lignite-based thermal capacity represents 217.5 GW, with an additional 29.2 GW under construction and 36.3 GW in the planning stages.

Massive investments in infrastructure

To address the expected increase in demand, which could reach 458 GW by 2032 compared to around 250 GW in 2024, India is making significant investments in its transmission infrastructure. The national grid will expand to 648,000 circuit kilometers (ckm) by 2032, up from the current 491,000 ckm.

Furthermore, interregional transfer capacity will rise to 168 GW, allowing for better integration of the 280 GW of Variable Renewable Energy (VRE) planned by 2030. To date, 42 GW have been completed, 85 GW are under construction, and 75 GW are in the bidding phase.

Untapped potential of pumped storage projects

India has a potential of 181 GW for pumped storage projects (PSP), though only 5 GW have been developed so far. The government aims to add 35 GW by 2032, of which 6 GW are already under construction. These projects are essential for managing fluctuations associated with intermittent renewable energy sources and ensuring a stable supply.

With annual energy demand increasing by 5% to 6%, the government must continue to balance investments between economic growth, energy transition, and political stability.

A sudden fault on the national grid cut electricity supply to several regions of Nigeria, reigniting concerns about the stability of the transmission system.
Re-elected president Irfaan Ali announces stricter production-sharing agreements to increase national economic returns.
Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.

Log in to read this article

You'll also have access to a selection of our best content.