As India enters the next phase of its growth trajectory, its energy demand set to grow exponentially – about 335 GW by 2029-’30. The fact that demand for energy is outstripping supply can be gauged by the plant load factor of thermal plants. This measure of capacity utilization went up from 71% last year to 76% in January 2024.
The coal fired energy addition has been set very high at 80 GWs (claimed by Government as under construction) because there is unsatisfactory renewable energy generation. While tenders have exceeded targets in green energy, we have a long way to go ---- we must add about 40 GWs annually in green energy until 2030 while we are clocking a mere 10 GWs per year.
We should see this in the sharp paradoxical juxtaposition of the fact that India is committed to net zero by 2070, is accelerating thermal power generation, has slow and below target renewable energy addition and is increasing its energy demand rapidly. Clearly, the answer lies in disproportionately increasing green energy generation.
The sector must see exponential increase in investments. I hope the forthcoming Union Budget would facilitate the ecosystem for this. With a robust investment inflow enabled by policy stimulus, the sector can add 50-60 GW annually from the present 10 GWs to 15 GWs. Higher loan capital is vital for this. With financial infrastructure, and a streamlining of land acquisition, I am confident of incremental market depth and scope which has a direct bearing on the sector.
Besides this, an often-overlooked area which we should consider is dedicated transmission corridors along the lines of the Green Energy Corridor (GEC) for renewable power evacuation. This will go a long way in addressing power evacuation issues faced by hydropower developers, especially in the northeast.
