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:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

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.

Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.
ERCOT’s grid adapts to record electricity consumption by relying on the growth of solar, wind and battery storage to maintain system stability.
The French government will raise the energy savings certificate budget by 27% in 2026, leveraging more private funds to support thermal renovation and electric mobility.
Facing opposition criticism, Monique Barbut asserts that France’s energy sovereignty relies on a strategy combining civil nuclear power and renewable energy.
The European Commission is reviving efforts to abolish daylight saving time, supported by several member states, as the energy savings from the practice are now considered negligible.
Rising responses to UNEP’s satellite alerts trigger measurement, reporting and verification clauses; the European Union sets import milestones, Japan strengthens liquefied natural gas traceability; operators and steelmakers adjust budgets and contracts.
The Finance Committee has adopted an amendment to overhaul electricity pricing by removing the planned redistribution mechanism and capping producers' profit margins.
The European Commission unveils a seven-point action plan aimed at lowering energy costs, targeting energy-intensive industries and households facing persistently high utility bills.
The European Commission plans to keep energy at the heart of its 2026 agenda, with several structural reforms targeting market security, governance and simplification.
The new Liberal Democratic Party (LDP)–Japan Innovation Party (Nippon Ishin no Kai) axis combines a nuclear restart, targeted fuel tax cuts and energy subsidies, with immediate effects on prices and risk reallocations for operators. —
German authorities have ruled out market abuse by major power producers during sharp price increases caused by low renewable output in late 2024.
A new International Energy Agency report urges Maputo to accelerate energy investment to ensure universal electricity access and support its emerging industry.
Increased reliance on combined-cycle plants after the April 28 blackout pushed gas use for electricity up by about 37%, bringing total demand to 267.6 TWh and strengthening flows to France.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.