INDIAN POWER INDUSTRY AT A GLANCE IN 2022 - 2023
The demand for electricity in India has increased rapidly in recent years and is expected to rise in the years to come thanks to a growing population, rise in disposal income and increased per capita usage of power. India was ranked fourth in wind power capacity and solar power capacity and fourth in renewable power installed capacity.
India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416.59 GW in 2022- 2023. Power consumption in India in FY23 logged a 9.5% growth to 1,503.65 billion units (BU). Total FDI inflow in the power sector reached US$ 16.57 billion between April- December 2022.
Market sizeAs of 2023, India’s installed renewable energy capacity stood at 172.54 GW, representing 41.4% of the overall installed power capacity. Solar energy contributed 67.07 GW, followed by 42.86 GW from wind power, 10.24 GW from biomass, 4.94 GW from small hydropower, 0.55 from waste to energy, and 46.85 GW from hydropower.
India's power generation witnessed its highest growth rate in over 30 years in FY23. Power generation in India increased by 8.87% to 1,624.15 billion kilowatt-hours (kWh) in FY23. According to data from the Ministry of Power, India's power consumption stood at 130.57 BU in April, 2023. The peak power demand in the country stood at 226.87 GW in April, 2023.
Future ProspectsIndia plans to set up 21 new nuclear power reactors with a total installed capacity of 15,700 MW by 2031. Thermal power plant load is estimated to improve by 63% in FY24.
The Central Electricity Authority (CEA) estimates India’s power requirement to grow to reach 817 GW by 2030. And by 2030, CEA estimates that the share of renewable energy generation would increase from 18% to 44%, while that of thermal energy is expected to reduce from 78% to 52%. The government of India plans to establish renewable energy capacity of 500 GW by 2030.
