New National Electricity Plan Raises Peak Demand Target To 458 GW
National Electricity Plan 2023-32 increased the peak demand target, from 380 GW earlier, as power demand grew at a compound annual growth rate of 7%.
The National Electricity Plan for the period 2023-32 has been finalised for central and state transmission systems, Union Minister of Power Manohar Lal Khattar recently divulged.
The plan aims to meet a peak demand of 458 GW by 2032 and has a total project outlay of Rs 9.15 lakh crore. This peak demand target exceeds the previous estimate of 380 GW, noted Rupesh Sankhe, senior power utilities analyst at Elara Capital.
The earlier projection was based at a conservative compound annual growth rate of 5.7%, he said. Demand is actually growing at a 7% rate, thus a revision to the estimate was necessary, Sankhe said.
The upcoming National Electricity Plan will not only meet India's rising electricity demand, but also facilitate integration of renewable energy and green hydrogen loads into the country's electricity grid.
NEP 2032: Key Features Announced
To expand India's transmission network from 4.85 lakh circuit kilometer in fiscal ended March 2024 to 6.48 lakh circuit kilometer by 2032.
To enhance the transformation capacity from 1,251 GVA to 2,342 GVA by 2032.
Plans to set up nine higher voltage direct current transmission systems with a total capacity of 33.25 GW. The new capacities will nearly double the current operational capacity of 33.50 GW.
To increase the inter-regional transfer capacity from 119 GW to 168 GW by 2032.
Inter State Transmission System Capacity (ISTS)
Power Minister Khattar announced the approval of an additional 50 GW for the Inter State Transmission System (ISTS), which connects high-voltage transmission lines across India for efficient electricity transfer. By 2030, the country plans to evacuate 335 GW of power through the ISTS, with 280 GW coming from renewable sources. Of this, 50 GW has already been approved. Currently, about transmission system for 42 GW is completed, 85 GW is under construction, and 75 GW is in the bidding process, while the remaining 82 GW will be approved later.
Achievement in First 100 Days
Transmission schemes with an aggregate capacity of 50.9 GW have been approved during the first 100 days of Modi government's third stint, with a total estimated cost of Rs 60,676 crore.
The approval covers transmission systems for Gujarat, Andhra Pradesh, Rajasthan, Tamil Nadu, Karnataka, Maharashtra, Madhya Pradesh, Jammu and Kashmir, and Chhattisgarh.
Pumped Hydro Projects
Khattar also noted that India's pumped storage project potential stands exceeds 184 GW.
The country plans to add 39 GW of PSP capacity by 2030, in order to address storage and grid stability needs. Currently the installed capacity stands at 4.7 GW, with 6.47 GW under construction, and 60 GW under various stages of survey and investigation.
Contracts for additional 3.77 GW of PSP have also been awarded in the 100 days.
Thermal Capacity
While India is aggressively focussing on renewable energy, ensuring energy security also remains paramount. Ministry of Power is prioritising thermal capacity addition to meet the peak demand, Khattar said.
Currently, the total thermal capacity from coal and lignite in India stands at 217 GW. Capacity of 28.4 GW is under construction, out of which 14 GW of capacity is to be commissioned during the current financial year. Furthermore, 58.4 GW of capacity is at various stages of planning, and bidding, informed the minister.
The Power Ministry has also awarded 12.8 GW of new coal-based thermal capacity in the last 100 days.
