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Thursday, January 9, 2025

India’s Electricity Generation: A 25-Year Journey of Transformation

 

India’s Electricity Generation: A 25-Year Journey of Transformation

Over the past 25 years, India has witnessed a remarkable transformation in its electricity generation sector. From being a nation grappling with power shortages to becoming the world’s third-largest electricity producer, India’s energy story is a testament to innovation, policy reforms, and the pursuit of sustainability.




Growth of Electricity Generation

India's total electricity generation has increased more than fourfold in the past quarter-century, rising from 450 billion units in 1998 to over 1,700 billion units in 2023. This growth has been fueled by:

  1. Rapid Urbanization: Rising demand from cities and industries.
  2. Rural Electrification: Government initiatives like the Saubhagya scheme brought electricity to millions of rural households.
  3. Economic Growth: Industrial and commercial sectors require substantial energy inputs.

Chart: Growth in Electricity Generation (1998–2023)

To visualize this data, here’s a line chart showing the steady rise in electricity generation over the years.

 


Diversification of Energy Sources

India has diversified its electricity generation mix significantly over the years:

1. Thermal Power

Thermal power, especially coal, has been the backbone of India’s energy sector. Despite a gradual shift towards renewables, coal-based plants still account for over 60% of total generation in 2023.

2. Renewable Energy

In the last decade, renewable energy has seen exponential growth. Installed capacity from renewable sources like solar, wind, and biomass rose from 10 GW in 2000 to over 125 GW in 2023.

  • Solar Power: With ambitious targets, India added significant solar capacity, reaching 70 GW in 2023.
  • Wind Energy: Wind power remains a strong contributor, with approximately 45 GW installed capacity.

3. Hydropower

India has a robust hydropower base, contributing approximately 15% of the total energy mix. States like Himachal Pradesh, Uttarakhand, and Jammu & Kashmir lead in hydropower generation.

4. Nuclear Energy

Nuclear power contributes a modest 2% to India’s electricity generation, but its importance is growing, with newer plants under construction in Tamil Nadu, Maharashtra, and Gujarat.


Chart: Electricity Generation by Source (1998 vs. 2023)

A comparative pie chart can highlight the transition from coal dependency to a diversified energy mix.


 


Milestones and Key Initiatives

1.      Electricity Act, 2003
A landmark reform that unbundled state electricity boards, opened the sector to private participation, and promoted renewable energy.

2.      National Solar Mission (2010)
India launched this initiative with the goal of reaching 100 GW of solar capacity by 2022 (later revised).

3.      International Solar Alliance (2015)
India, along with France, founded this global platform to promote solar energy adoption worldwide.

4.      Rural Electrification
The government achieved 100% village electrification in 2018 and has since focused on connecting every household.


Challenges

1.      Transmission and Distribution Losses
India still suffers from 20%–25% losses in transmission and distribution, higher than the global average.

2.      Coal Dependency
Despite the growth of renewables, India’s reliance on coal poses environmental challenges.

3.      Grid Integration
Managing the variability of renewable energy sources remains a challenge for the grid.


Future Outlook

India aims to achieve 500 GW of non-fossil fuel capacity by 2030, aligning with its commitment to the Paris Agreement. Key developments include:

  • Expanding energy storage systems to support renewables.
  • Boosting green hydrogen production for industrial use.
  • Decentralized renewable systems for rural areas.

Visualizing the Journey

  1. Line Chart: Total electricity generation growth (1998–2023).
  2. Pie Chart: Energy source distribution (1998 vs. 2023).
  3. Image: A solar farm, wind turbines, and a coal power plant representing the energy mix.

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