Charge Ahead: Why India Must Supercharge Its Electricity Strategy Now

India's energy sector has undergone a dynamic transformation over the past decade, characterised by surging demand, advancements in efficiency, and a growing commitment to renewable energy. As the country navigates the complexities of economic growth and sustainability, the ‘Energy Statistics India 2025’ report offers an in-depth assessment of these shifts, showcasing key achievements and trends shaping the sector's future.

The report highlights that India’s per capita electricity consumption has witnessed a substantial rise, increasing by 47.9% to reach 1,106 kWh per person (this figure has now risen further to 1,395 kWh per person)1. Despite this progress, India's per capita consumption remains significantly below the global average of 3,700 kWh (2023), highlighting the potential for growth in electricity demand as economic development and living standards improve.

Several key factors will drive the future evolution of India's per capita electricity consumption. Government initiatives, such as the Revamped Distribution Sector Scheme (RDSS) and Saubhagya Yojana, are improving access and the reliability of power supply, ensuring uninterrupted electricity across urban and rural areas. 

Additionally, India's ambitious push toward electric mobility, with a target of 30 per cent EV penetration by 2030, is set to increase power demand significantly. The growing industrial sector, currently accounting for over 40 per cent of total electricity consumption, will remain a major driver, with industries like steel, cement, and green hydrogen production requiring higher electricity inputs. By 2047, India's per capita electricity consumption is expected to rise substantially, potentially reaching 3,000–4,000 kWh, aligning with its goal of becoming a developed economy.

According to the report, the installed capacity for grid-interactive renewable power increased from 125,160 MW to 143,645 MW, reflecting a 14.77 per cent growth and constituting about 28 per cent of the total installed capacity in the country by 2023-24. Certain states play a pivotal role in shaping India’s renewable energy landscape. 

 

As of 31 March 2024, Rajasthan, Maharashtra, Gujarat, and Karnataka collectively account for over 52 per cent of the country’s total renewable energy capacity, driven by favourable geographic and climatic conditions. However, maximising the benefits of this regional concentration requires a strategic and balanced approach to infrastructure development and energy distribution.

Green energy corridors are already facilitating inter-state transmission, ensuring that surplus power from resource-rich states reaches high-demand regions efficiently. To further enhance grid stability, India must accelerate the development of pumped hydro storage and battery energy storage systems (BESS) to mitigate intermittency issues. 

Additionally, establishing clear policies for renewable energy export will allow states with surplus generation to supply deficit regions, reducing curtailment risks and optimising utilisation. Introducing differential tariff mechanisms can ensure fair pricing and encourage more robust inter-state renewable energy trade.

By leveraging regional strengths through targeted planning, policy interventions, and advanced storage solutions, India can unlock its full renewable energy potential. Strengthening these frameworks will be crucial in driving the nation toward a net-zero power sector, ensuring sustainable, reliable, and inclusive energy growth.

Another notable improvement highlighted in the report is the 24.6 per cent reduction in transmission and distribution losses, which fell from 21.50 per cent in 2014-15 to 16.22 per cent in 2023-24. A key enabler of this improvement is the smart meter deployment under the RDSS. Smart meters enable real-time monitoring, improve billing efficiency, reduce power theft, and enhance load management, ultimately helping utilities cut down losses. 

States like Gujarat and Maharashtra, which have implemented advanced metering and grid automation, have already demonstrated significant reductions in losses. Moving forward, the integration of Artificial Intelligence (AI) and predictive analytics in grid management can help further optimise power distribution and detect anomalies in consumption patterns. 

Addressing distribution losses and improving energy efficiency through demand-side management will be critical to ensuring sustainable growth.

With continued policy support, infrastructure investments, and advancements in energy storage and grid modernisation, India can significantly close the gap with global benchmarks while maintaining its commitment to a clean energy transition. Additionally, strengthening inter-state transmission infrastructure, promoting smart grid technologies, and advancing regulatory frameworks for renewable energy integration will be essential in achieving a resilient and efficient power sector. 

The combination of these efforts will enable India to sustain its rapid economic growth while ensuring energy security, affordability, and environmental sustainability for future generations.

Source:- Business World