India Achieves Power Sufficiency And Record Peak Demand: Union Power Minister

Ultra-High Voltage AC Transmission System to Reshape India's Grid by 2034

Union Minister Manohar Lal highlighted 11 years of transformative growth in power sector in a press conference in New Delhi today.

Here are the key points on which the Minister dwelt upon-

  • India successfully met a record peak power demand of 241 GW on June 9, 2025, with zero peak shortage.
  • The nation has become power sufficient, meeting all its demands, and is on track to become a power surplus country.
  • National energy shortage has drastically reduced to a record low of 0.1% as of April 2025, a significant improvement from 4.2% in 2013-14.

Historic Capacity Addition, Led by Renewables:

  • India added its highest-ever generation capacity of 34 GW during 2024-25, with renewable energy accounting for 29.5 GW.
  • The total installed capacity now stands at 472.5 GW, a substantial increase from 249 GW in 2014.

Major Push for Battery Energy Storage (BESS):

  • A Viability Gap Funding (VGF) scheme for 30 GWh of BESS has been approved, in addition to the 13.2 GWh already in progress.
  • This Rs 5,400 Crore scheme aims to attract Rs 33,000 Crore in investment to meet the country’s BESS requirement by 2028.
  • The waiver of Inter-State Transmission System (ISTS) charges for storage projects has been extended until June 30, 2028, benefiting Pumped Storage Projects and BESS commissioned before this date.

Revolutionizing Transmission Infrastructure:

  • India is set to roll out an Ultra High Voltage Alternating Current (UHV AC) Transmission System, with nine 1100 kV lines and ten substations identified for development by 2034 (investment of Rs 53,000 Cr).
  • Compensation for land used in laying transmission lines has been significantly increased: tower area compensation from 85% to 200% of land value, and Right of Way (RoW) corridor from 15% to 30%.
  • The Late Payment Surcharge (LPS) Rules have been expanded to include Intra-State Transmission Systems, aiming to attract more private investment and expand intra-state networks to absorb renewable electricity.

Other Key Developments:

  • The 250 MW first unit of Tehri Pumped Storage Project (PSP) in Uttarakhand has been commissioned, adding flexibility to the grid and aiding in peak demand management and renewable energy integration.
  • The government is aiming for 100% electrification of households across the country, making power accessible to everyone at all times.

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