Government Raises India's Peak Power Demand Projection to 458 GW by 2032

The Power Ministry has revised India's peak power demand forecast to 458 gigawatts (GW) by 2032, up from the previous estimate of 384 GW. This revision is part of the finalised National Electricity Plan 2023-2032, which aims to meet the growing energy needs of the country. Power Minister Manohar Lal, addressing the media during a briefing on the Ministry's 100-day achievements, emphasized the significance of this update, reflecting the surge in power demand in recent years.

The Central Electricity Authority (CEA) had earlier issued the National Electricity Plan (Vol-I Generation) for 2022-32 in May 2023, but the ongoing rise in peak demand, particularly over the last two years, prompted further revisions. In July, Power Secretary Pankaj Agarwal noted a "sharp" increase in demand across several states, warning that the previous estimate of 384 GW might be exceeded sooner than expected. He projected that by 2031-32, India would require a total installed capacity of 900 GW to meet its electricity needs.

Unprecedented weather conditions in 2024, including severe heat waves from April to June, have significantly driven up energy consumption, particularly for cooling, exacerbating the strain on the power grid.

To address this, the government plans to expand the country's transmission network from 4.85 lakh circuit kilometers (ckm) in 2024 to 6.48 lakh ckm by 2032. The transformation capacity will also rise from 1,251 GVA to 2,342 GVA. The expansion will include nine new High Voltage Direct Current (HVDC) lines with a total capacity of 33.25 GW, in addition to the existing 33.5 GW. The Inter-Regional transfer capacity will increase from 119 GW to 168 GW, covering transmission systems of 220 kV and above.

The plan, with a total cost of Rs 9.15 lakh crore, will not only cater to the rising electricity demand but also support the integration of renewable energy and green hydrogen loads into the national grid. Under the previous 2017-22 plan, about 17,700 ckm lines and 73 GVA transformation capacity were added annually.

HBL