India’s Peak Electricity Demand Projected to Reach 446 GW by 2034–35: Power Minister
India’s peak power demand is projected to reach 446 GW by 2034–35, necessitating coordinated planning, diversified generation, and stronger distribution reforms, Union Power Minister Manohar Lal said at the Eastern Region States Conference in Patna, further adding that the power sector requires an estimated INR 42 lakh crore investment by 2032.
June 25, 2025. By Mrinmoy Dey
He said that the peak demand is projected to rise to approximately 270 GW later this year, up from 250 GW recorded in May 2024 and 242 GW recorded so far in 2025. Lal emphasised ensuring Resource Adequacy and necessary power generation capacity tie-ups.
“While formulating their Resource Adequacy Plans, States should also ensure a balanced and diversified power generation mix. This should include the addition of nuclear generation capacity, with an aim to establish at least one nuclear power project in each State,” he said
Lal further mentioned that the distribution sector is the most critical link in the power sector value chain, noting that the power sector requires an estimated INR 42 lakh crore investment by 2032. “However, it faces challenges due to poor tariff structures, sub-optimal billing and collection, and delayed payments of Government department dues and subsidies,” he said.
Lal emphasised the importance of reducing the AT&C losses and the gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR). He requested the States to engage with the Electricity Regulatory Commissions for ensuring cost-reflective tariffs and the timely issuance of tariff and true-up orders.
“Distribution utilities should further strive to improve efficiency through expediting infrastructure and smart metering works under RDSS. Smart meters have huge potential in transforming the way consumers interact with Utilities using data analytics based on AI/ML tools,” he said.
The Union Minister remarked that States should promote renewable energy coupled with energy storage systems in order to ensure the reliability of the supply of power. He mentioned India is moving towards having an increased share of renewable energy, and the same has increased from 32 percent in 2014 to 49 percent in April 2025. He urged the States to reinforce implementation of Renewable Purchase Obligation (RPO) mandates and urged States to form dedicated teams for this critical planning.
Lal also underscored the importance of cybersecurity in the power sector and spoke about Islanding Schemes as an effective measure to prevent power outages owing to cyber incidents and enable the resilience of the grid.
Shripad Yesso Naik, Minister of State for Power and Renewable Energy, in his address, discussed about the execution of the PM KUSUM scheme and requested the states to complete the projects by December 2025. He also emphasised the need for accelerated implementation of the PM Surya Ghar Muft Bijli Yojana.
please contact: contact@energetica-india.net.
Shilpy Dewan
VP – Markets, Operations & Digital
Digital Innovation and Storage will Drive India’s Green Future: Serentica’s Shilpy Dewan
Er. Neha Sakka
Electrical Engineer
She Matters: Women Remain Severely Underrepresented in EV and Green Workforces
Satish Talmale
CEO
India is Well-placed to Become a Global Leader in Energy Storage: EnerGrid CEO Satish Talmale
Anand Sri Ganesh, CEO, NSRCEL
Sapna Bhawnani
Alstom and NSRCEL on Empowering the Green Mobility Disruptors
Vasudha Madhavan
Founder & CEO
She Matters: Targeted Training and Mentorship Can Propel Women’s Careers in Energy