India Meets Record Power Demand Without Shortage, Adds 34 GW in FY25

In a major achievement for India's power sector, the Union Minister for Power, Manohar Lal, announced that the country successfully met its peak electricity demand of 241 GW on June 9, 2025, without experiencing any power shortage.

Speaking at a press conference in the capital, the minister lauded the achievement as a testament to India’s resilient and expanding power infrastructure. Highlighting 11 years of transformative growth in the power sector, the Minister declared that India has become power sufficient and is progressing toward surplus capacity. "We are committed to delivering 24x7 electricity to all households, and are on track for 100 percent electrification," Manohar Lal stated.

A significant highlight of FY2024-25 was the addition of 34 GW of new generation capacity, the highest ever in a single year. Of this, an impressive 29.5 GW came from renewable sources, pushing India’s total installed capacity to 472.5 GW, nearly doubling from 249 GW in 2014.

To meet the growing energy storage needs, the government has launched a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS), adding to the 13.2 GWh already underway. The INR 5,400 crore scheme is expected to attract INR 33,000 crore in private investment and support India’s energy security goals through 2028.

Further incentivising storage, the Ministry has extended the Inter-State Transmission System (ISTS) charge waiver for storage projects until June 30, 2028. This includes Pumped Storage Projects (PSPs) awarded and BESS commissioned before the deadline.

In a visionary move to future-proof the grid, Shri Manohar Lal unveiled plans for an Ultra High Voltage Alternating Current (UHV AC) transmission system. By 2034, India will develop nine 1100 kV lines and ten new substations, backed by Central Power Research Institute’s ongoing development of testing facilities. The estimated investment in this ambitious upgrade is pegged at INR 53,000 crore.

Landowners too stand to benefit from revised compensation norms. In a move to resolve long-standing Right of Way (RoW) disputes, compensation for land used under transmission towers has been raised from 85 percent to 200 percent of land value, and for RoW corridors from 15 percent to 30 percent States like Haryana and Delhi have already adopted the revised policy.

To enhance financial discipline and attract private participation, the government has expanded the scope of Late Payment Surcharge (LPS) rules to cover Intra-State Transmission Systems, a reform previously limited to inter-state networks.

Additionally, the 250 MW first unit of the Tehri Pumped Storage Project in Uttarakhand has been commissioned, boosting grid flexibility and helping manage peak demand.

India’s national energy shortage has also dropped dramatically to just 0.1 percent in April 2025, down from 4.2 percent in 2013-14, a clear sign of strengthened generation and transmission capacity.

These developments reaffirm India’s commitment to a clean, secure, and reliable power future, aligning with its goals under the Azadi Ka Amrit Mahotsav celebrations.