YEAR END REVIEW - 2024
India successfully met an all-time maximum power demand of 250 GW during FY 2024-25
Per capita electricity consumption in India has surged to 1,395 kWh in 2023-24, marking a 45.8% increase (438 kWh) from 957 kWh in 2013-14
Universal Electrification Achieved
50.9 Giga Watt of Inter State Transmission Projects costing Rs. 60,676 Cr approved
Ministry of Power revised the Right of Way (RoW) guidelines in June, 2024, linking compensation to the market value of land
Posted On: 01 JAN 2025 2:37PM by PIB Delhi
The year 2024 marked a landmark period for India's power sector, with historic advancements in energy generation, transmission, and distribution. From meeting record power demand of 250 GW to reducing energy shortages at the national level to a mere 0.1% in FY 2024-25, the sector demonstrated resilience and commitment to sustainable growth. Significant strides in energy conservation, consumer empowerment, and infrastructure development underscore the government's efforts to ensure reliable, affordable, and clean energy for all.
With groundbreaking initiatives such as universal electrification, enhanced rural power availability, and the adoption of cutting-edge technologies, India is firmly on the path to becoming a global energy leader.
Improvement in Power Supply Position:
Record Demand Met: India successfully met an all-time maximum power demand of 250 GW during FY 2024-25.
Sharp Reduction in Power Shortages: Due to significant additions in generation and transmission capacities, energy shortages at the national level have reduced to a mere 0.1% in FY 2024-25, a major improvement from 4.2% in FY 2013-14.
Rise in Per Capita Electricity Consumption: Per capita electricity consumption in India has surged to 1,395 kWh in 2023-24, marking a 45.8% increase (438 kWh) from 957 kWh in 2013-14.
Universal Electrification Achieved: Villages and households across the country have been electrified, marking a significant milestone in India’s power sector.
Improved Power Availability: The average availability of electricity in rural areas has increased from 12.5 hours in 2014 to 21.9 hours, while urban areas now enjoy up to 23.4 hours of power supply, reflecting substantial improvements in the reliability and reach of electricity services.
Generation:
Significant Growth in Installed Capacity: India’s total installed power generation capacity has surged by 83.8%, increasing from 249 GW as of March 31, 2014, to 457 GW as of November 30, 2024*.
Major Expansion in Renewable Energy: Since April 2014, 129 GW of renewable energy capacity, including large hydro, has been added. This includes 91 GW of solar power, 27 GW of wind power, 3.2 GW of biomass, 1.3 GW of small hydro, and approximately 6.3 GW of large hydro generation capacity, demonstrating India’s strong commitment to clean energy.
Award of thermal projects: To address the peak demand of India’s rapidly expanding economy, the Government has awarded 19.2 GW of new coal-based thermal capacity. The total installed capacity of coal and lignite-based thermal plants now stands at 217.5 GW. An additional 29.2 GW of capacity is under construction, with 13.4 GW expected to be commissioned in FY 2024-25. A further 36.3 GW of capacity is in various stages of planning, clearances and bidding.
Coal Stock Position: As of March, 2024, Domestic Coal-Based (DCB) power plants held a coal stock of 47.8 MT. As of December, 2024, these plants hold 41.4 MT of coal which is targeted to increase to 50 MT by March 2025. Sustained coal supply during Q1 and Q2 of FY 2025 ensured meeting the peak demand of 250 GW in May 2024. With improved domestic coal availability, the Ministry of Power discontinued its advisory for blending imported coal beyond October 15, 2024.
Revision of SHAKTI Policy: The Government of India is reviewing the coal allocation policy to encourage private sector participation. The revised policy proposes two simplified windows. Window-I permits allocation of coal at "Notified Price" to Central Generating Companies and State Governments. Window-II allows allocation to all generating companies (Central, State, or Private) at a premium over the "Notified Price," irrespective of ownership or nature of PPAs. The new policy aims to support the development of an additional 80 GW of thermal capacity.
Hydro Projects. Central Government in November 2024 has approved Heo Hydro Electric Project (186 MW) in Arunachal Pradesh. The project will be completed in 50 months at a cost of ₹1939 Cr.
CFA for HEPs NER: Union Cabinet in its meeting held on 28th August, 2024 has approved the scheme of “Central Financial Assistance (CFA) towards equity participation by the State Govts. for development of Hydro Electric Projects (HEPs) in North Eastern Region (NER)”. Under this scheme, the equity portion of the State Government of NER (capped at 24% of the total project equity, subject to a maximum of ₹750 crore per project) would be funded through this scheme. The scheme will be implemented during the period from FY 2024-25 to FY 2031-32, with a total financial outlay of ₹4136 crores.
Enabling Infrastructure HEPs: Union Cabinet Union Cabinet in its meeting held on 11th September, 2024 has approved the scheme of “Modification of the Scheme on Budgetary Support for the Cost of Enabling Infrastructure for HEPs”. Total outlay of the scheme is ₹12461 crores for the period from FY 2024-25 to FY 2031-32. A cumulative hydro capacity of approximately 31 GW, including 15 GW of PSP capacity, would be supported under the scheme.
Pump Storage Projects (PSP): India has the potential of PSPs of about 181 GW with around 5 GW (2.6%) developed so far. Government has set an ambitious target of adding 35 GW PSP capacity by 2031-32 out of which, 6 GW is under construction and rest is under development stage.
Battery Energy Storage System (BESS): Under the Viability Gap Funding (VGF) Scheme for development of BESS, a capacity of 13,000 MWh is targeted for addition.
Transmission
National Electricity Plan: Govt. of India has finalised National Electricity Plan from 2023 to 2032 for Central and State transmission systems to meet a peak demand of 458 GW by 2032. The total cost of the plan is Rs 9.15 lakh Cr. Under the previous plan 2017-22, about 17,700 circuit kilometers (ckm) lines and 73 GVA transformation capacity were added annually. Under the new plan, transmission network in the country will be expanded from 4.91 lakh ckm in 2024 to 6.48 lakh ckm in 2032. During the same period the transformation capacity will increase from 1,290 Giga Volt Ampere (GVA) to 2,342 GVA. Nine High Voltage Direct Current (HVDC) lines of 33.25 GW capacity will be added in addition to 33.5 GW presently operating. Inter-Regional transfer capacity will increase from 119 GW to 168 GW. This plan covers the network of 220 kV and above. This plan will help in meeting the increasing electricity demand, facilitate RE integration and green hydrogen loads into the grid.
50 GW ISTS Capacity Approved: 50.9 Giga Watt of Inter State Transmission Projects costing Rs. 60,676 Cr has been approved. The transmission network required to connect 280 GW of Variable Renewable Energy (VRE) to the Inter-State Transmission System (ISTS) by 2030 is planned to be 335 GW. Out of this, 42 GW has already been completed, 85 GW is under construction, and 75 GW is under bidding. Balance 82 GW will be approved in due course.
Improvement in Transmission System: During 2024, 10,273 ckm of transmission lines (of 220 kV & above), 71,197 MVA of transformation capacity (of 220 kV & above) and 2200 MW of Inter-regional Transfer Capacity have been added.
Right of Way (RoW) compensation Guidelines: To ensure the timely development of power transmission infrastructure for evacuating 500 GW of renewable energy by 2030, the Ministry of Power revised the Right of Way (RoW) guidelines in June, 2024, linking compensation to the market value of land. For tower base area, the compensation has been increased from 85% to 200% of the land value. For the RoW Corridor, compensation has been raised from 15% to 30% of the land value.
Distribution
Revamped Distribution Sector Scheme (RDSS): Under RDSS which aimed at improving operational efficiencies and financial sustainability of Discoms, 19,79,24,902 prepaid Smart meters, 52,52,692 DT meters and 2,10,704 Feeder meter have been sanctioned at a cost of INR 1,30,670.88 Cr. Loss Reduction works of ~INR 1.46 lakh Cr. have been sanctioned and Rs 18,379.24 Cr have been released towards loss reduction works under RDSS. As a result of reform measures taken under the scheme, AT&C losses have come down to 15.37% and ACS-ARR gap has reduced to Rs. 0.45/kWh in FY2023.
All identified households from Particularly Vulnerable Tribal Groups (PVTGs) under the PM-JANMAN (Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan) and tribal households under the DA-JGUA (Dharti Aaba Janjatiya Gram Utkarsh Abhiyan) are being provided with on-grid electricity connections under RDSS. To date, a total of ₹4,355 crore has been sanctioned for the electrification of 9,61,419 households, including those from PVTGs and tribal communities, along with public places identified under the DA-JGUA initiative.
Energy Conservation
EV Charging Guidelines: Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024 have been issued to support creation of a nationwide connected and inter operable EV charging network. This will help increase the chargers from 34,000 presently to about 1 lakh by 2030. These guidelines are expected to create a robust, safe, reliable, and accessible EV charging network, enhance the viability of charging stations, encourage use of solar energy for electric vehicle charging, and prepare the electricity grid to handle increased demand of EV charging.
Sustainable Building Codes Issued: India has taken a major step towards a greener future with the introduction of two new building codes: the Energy Conservation and Sustainable Building Code (ECSBC) for commercial buildings and the Eco Niwas Samhita (ENS) for residential buildings. The revised codes apply to large commercial buildings and multi-storied residential complexes with a connected electricity load of 100 kW or more, which means the codes will impact big offices, shopping malls and apartment buildings, and will help in reduction of 18% electricity consumption. Additionally, it incorporates sustainability features related to natural cooling, ventilation, water, and wastewater disposal. States may adopt these building codes.
Indian Carbon Market. The Ministry of Power has notified the Carbon Credit Trading Scheme, empowering industries to reduce greenhouse gas emissions and earn carbon credits. This initiative fosters investments in transformative technologies, positioning India as a leader in global green finance. It is intended to operationalize the trading of certificates of mandatory sectors by October 2026 and of voluntary sectors by April 2026.
Unnat Jyoti by Affordable LEDs for ALL (UJALA): UJALA programme was launched in 2015 under which LED bulbs, LED Tube lights and Energy efficient fans are being sold to the domestic consumers for replacement of conventional and inefficient variants. Till date, over 36.87 crore LED bulbs, 72.18 lakh LED Tube lights and 23.59 lakh Energy efficient fans have been distributed by EESL across India. This has resulted in estimated energy savings of 48.41 billion kWh per year with avoided peak demand of 9,789 MW, GHG emission reduction of 39.22 million ton CO2 per year and estimated annual monetary savings of INR 19,335 crore in consumer electricity bills.
Street Lighting National Programme (SLNP): SLNP was launched in 2015 to replace conventional street lights with smart and energy efficient LED street lights across India. Till date, EESL has installed over 1.31 crore LED Street Lights in ULBs and Gram Panchayats across India. This has resulted in estimated energy savings of 8.82 billion kWh per year with avoided peak demand of 1,471 MW, GHG emission reduction of 6.08 million ton CO2 per year and estimated annual monetary savings of INR 6,179 crore in electricity bills of municipalities.
Reforms and Initiatives
Rights of Consumers Rules: Electricity Rules were notified in February 2024 to empower electricity consumers. This framework lays down their rights and provides mechanisms to enforce them. The rules ensure timely access to services such as new connections, grievance redressal, and billing transparency while facilitating rooftop solar adoption and electric vehicle (EV) integration. Key provisions include:
Simplifying rooftop solar installation processes with exemptions from technical
feasibility study for systems up to 10 kW.
Allowing separate connections for EV charging stations to promote clean
mobility.
Reducing timelines for new connections: 3 days in metros, 7 days in municipal areas, and 15 days in rural regions (30 days for hilly terrain).
Mandating consumer rights for separate metering and billing in residential
colonies, enhancing transparency and fairness.
Introducing mandatory check meters to verify consumption in case of
complaints.
Additional Surcharge elimination: The Electricity Rules, 2005 have been amended in 2024 to rationalise open access charges. New rules now allow large consumers (open access consumers) to buy electricity from the cheapest sources across India, not just from their local Distribution Licensee. Some State regulators charge large consumers heavily to buy electricity from other sources. In an effort to reduce these charges, the additional surcharge levied is now being gradually reduced and will be completely removed within four years. Importantly, large consumers who have never bought electricity from their distribution licensee are not required to pay additional surcharge.
Computer Security Incident Response Team – Power (CSIRT–Power): Union Minister for Power inaugurated Computer Security Incident Response Team – Power (CSIRT–Power) facility in September, 2024. Equipped with advanced infrastructure, cutting-edge cybersecurity tools, and key resources, CSIRT-Power is now well-prepared to tackle emerging cyber threats. With a dedicated team of experts, it is set to become a cornerstone of the sector's cyber defence, coordinating incident response, establishing a strong cybersecurity framework, and implementing crucial measures to enhance overall preparedness and resilience.
