With day temperatures across
India set to rise by 2-5 degrees
Celsius over the next three to four
days, coal-fired power plants will
be key to meet the summer demand,
which may surpass the 2024 high to
hit 270 gigawatts (GW), the Minis-
try of Power has said.
The country is bracing for a
hotter-than-usual
summer
this
season, with the India Meteorologi-
cal Department (IMD) predicting
above-normal
temperatures
and
more heatwave days, particularly in
North India. In light of the forecast,
Centre has increased its projected
peak power demand by 20 GW from
the high of 250 GW seen.
The month of May would be ‘the
most critical’ this year as well,
according to Grid India, which is
preparing to guard against height-
ened
system
vulnerabilities
triggered by peak demands and
variation in renewable power gener-
ation.
Even though renewable energy now
accounts for 46 percent of India’s
total electricity capacity, coal would
remain the mainstay in meeting this
peak load. “We are expecting
thermal
(coal-fired)
power
to
account for 70-74 percent in meet-
ing the country’s peak demand this
year. The
share
of
renewable
energy, which usually accounts for
11-14 percent will increase margin-
ally by 2-3 percent. The contribu-
tion of hydropower is going to
remain the same ranging from 7-11
percent,”
Central
Electricity
Authority (CEA) chairperson Ghan-
shyam Prasad.
The Union government is looking
to connect all upcoming green
energy units with the national grid
at an estimated investment of Rs 4.9
lakh crore between 2027 and 2032,
according to the National Electrici-
ty Plan (Volume II: Transmission)
notified.
According to the NEP, India’s peak
power demand is expected to hit
388 GW by 2031-32, for which the
country would need a power genera-
tion capacity of 997 GW. This will
require the transmission and distri-
bution
(T&D)
network
to
be
connected from the source to the
grid to the consumer.
“An estimated Rs 4,90,920 crore
would be required for the imple-
mentation of additional transmis-
sion system in the country during
2027-32… The same for 2022-27
was projected at Rs 4,25,222 crore,”
says the NEP, prepared by the
Central Electricity Authority.
The NEP, which is a medium to
long-term plan for India's power
sector, is prepared and notified
every five years. The last NEP
(Volume
I:
Generation)
was
notified. A draft for the latest NEP
(Volume II: Transmission), seeking
comments was published in October
2024 and the final version was
issued through a gazette notifica-
tion.
N ews
AHEAD OF ANOTHER SWELTERING SUMMER, CENTRE PREPARING
THERMAL PLANTS FOR A RECORD PEAK DEMAND
NATIONAL ELECTRICITY PLAN PEGS TRANSMISSION
CAPEX AT RS 4.9 LAKH CRORE FOR 2027-2032
22 | June 2025 | www.industrialoutlook.in