India Finalises National Electricity Plan, Targets 458 GW Peak Demand by 2032

The Ministry of Power has finalised the National Electricity Plan for 2023-2032 which aims to expand both central and state transmission systems to meet a projected peak electricity demand of 458 GW by 2032. 

The plan was announced by Union Minister for Power and Housing & Urban Affairs, Manohar Lal, during a recent press conference in New Delhi, where he dwelled on the Ministry's achievements in the first 100 days of the new government.

As per the plan, with a planned investment of INR 9.15 lakh crore, India’s transmission network will undergo a massive upgrade, expanding from 4.85 lakh circuit kilometres (ckm) in 2024 to 6.48 lakh ckm by 2032.

The transformation capacity will rise from 1,251 GVA to 2,342 GVA, and nine High Voltage Direct Current (HVDC) lines with a combined capacity of 33.25 GW will be added. These upgrades will support the integration of renewable energy sources, such as offshore wind and solar power, into the grid. The plan also focusses on enhancing the Inter-State Transmission System (ISTS) to evacuate 280 GW of Variable Renewable Energy (VRE) by 2030.

A total of 50 GW of ISTS capacity has been approved, with 42 GW completed, 85 GW under construction, and 75 GW currently under bidding. The remaining 82 GW will be approved in the future. In the electrification of remote areas, particularly for the Particularly Vulnerable Tribal Groups (PVTGs), 83,596 homes have been connected to the grid. 

Anurag Jain, Joint Secretary at the Ministry of Power, also announced the segregation of agricultural feeders, noting that 49,512 of the 80,631 total agricultural feeders—where the load exceeds 30 percent—have been segregated to ensure daytime power for farmers. An additional INR 43,169 crore has been sanctioned to segregate the remaining 31,119 feeders.

The Ministry has also  introduced a robust cybersecurity initiative for the power sector with the establishment of the Computer Security Incident Response Team for the power sector (CSIRT-Power), designed to address evolving cyber threats.

Dwelling on the revised guidelines for electric vehicle (EV) charging infrastructure were also introduced, as Alok Kumar, Chairperson of the Central Electricity Authority (CEA), stated that India expects to have 1 lakh EV charging stations by 2030.

Additionally, two new building codes—the Energy Conservation and Sustainable Building Code (ECSBC) for commercial buildings and the Eco Niwas Samhita (ENS) for residential buildings—were launched to regulate electricity consumption in buildings with a connected load of 100 kW or more, potentially reducing energy use by 18 percent.

In the field of renewable energy storage, India plans to add 39 GW of Pumped Storage Project (PSP) capacity by 2030.  Around 4.7 GW of this capacity is already installed, 6.47 GW is under construction, and 60 GW is in the planning stages. In the last 100 days alone, contracts for an additional 3.77 GW of PSP have been awarded.

On the thermal energy front, India currently has 217 GW of coal and lignite-based thermal capacity, with 28.4 GW under construction. Lal also announced that 14 GW of thermal power capacity is expected to be commissioned by FY 2025, with 12.8 GW of new coal-based thermal capacity awarded in the last 100 days.

To boost hydroelectric capacity, a new Central Financial Assistance (CFA) scheme worth INR 4,136 crore was approved for developing 15 GW of hydro potential in the North Eastern states. Pankaj Batra, Director General of the Central Electricity Authority (CEA), noted that the scheme provides equity assistance of up to 24 percent per project, with a cap of INR 750 crore per project. This support will expand India’s hydro capacity, with a total outlay of INR 12,461 crore aimed at covering 31 GW of hydro potential, including 15 GW of PSPs.

Internationally, the Government of India approved the Lower Arun Hydro Electric Project in Nepal, a 669 MW project with a budget of INR 5,792 crore. This was confirmed by Pankaj Bansal, Director (Technical) at NHPC, who stated that the project is expected to be completed in 60 months.

The Ministry of Power also established a framework for the Indian Carbon Market to facilitate the trading of carbon credit certificates by 2026. Under the Perform Achieve Trade (PAT) scheme, industrial consumers will be incentivised to reduce their greenhouse gas emissions, with voluntary sectors participating by 2026 and mandatory sectors following soon after.

These developments, outlined by key figures from the Ministry of Power, mark critical progress in India’s energy transition while ensuring energy security for the nation’s growing economy.