E-Paper
Per capita power use to grow to 4,000kWh by 2047: Draft policy
India's per-capita electricity consumption is set to rise from 1395 kWh in 2023-24 to 4000 kWh by 2047, requiring significant GDP growth and a shift to low-carbon energy.
New Delhi: India’s per-capita consumption of electricity will increase from 1395 units (kilo watt hour or kWh) in 2023-24 to 2000 units by 2030 and over 4000 units by 2047, when India is a $30 trillion economy, the power ministry said in its draft National Electricity Policy 2026, released on Wednesday.
To be sure, this will require the country’s GDP to grow by over 10% a year.
The policy also reaffirms India’s climate commitments under the Paris Agreement. India has committed to cut emissions intensity by 45% below 2005 levels by 2030. It has also committed to achieve net-zero emissions by 2070, requiring a shift to low-carbon energy.
India has already achieved over 250 GW renewable energy capacity, including 50 GW of large hydro, which is more than 50% of the total installed generation capacity,according to the draft. India’s energy independence, aligned with low-carbon pathways, hinges on three approaches, it added: maximizing non-fossil fuel based generation; electrifying end-use sectors such as industry, transport and cooking using clean electricity; and encouraging energy efficiency and demand side management.
To be sure, coal will continue to play a significant role in meeting base load demand, the policy stated, and ensure the country’s energy security. Existing coal-based plants, wherever feasible, should be retrofitted to enable flexible operation and equipped with storage systems to support integration of variable renewable energy, it said.
By 2047, over 80% of the installed capacity and nearly two thirds of total electricity generation in the country will be from non-fossil sources, according to the draft. The share of electricity in total energy consumption is also projected to double. Variable renewable energy (VRE), primarily solar and wind, now account for around 37% of the total installed generation capacity in India. However, their intermittent nature necessitates integration with firm sources and energy storage systems. “There is an urgent need to expand and augment intra-state transmission networks to facilitate integration of variable renewable energy within the state. This will help reduce reliance on the expansion of costly inter-state transmission networks, needed to procure renewable energy from distant locations,” the draft added.
The draft also sheds light on India’s nuclear energy targets.
Nuclear power is a clean, reliable, and sustainable energy source with significant potential for India’s long-term energy security, it said, adding that in an effort to expand nuclear capacity to 100 GW by 2047, the Centre will collaborate with the private sector for setting up modular reactors and developing small reactors and advanced nuclear technologies. Nuclear projects should be eligible for green bond funding and retired thermal plant sites may also be re-purposed for nuclear power wherever feasible, the draft said.
It also pointed to the untapped potential of hydropower, pointing out that while it is a renewable, reliable, and flexible energy source, India has harnessed only 32% of its 133 GW potential.
Hydropower development is hindered by geological risks, delays in environment and forest clearances, land acquisition difficulties, funding constraints, and procedural bottlenecks, the document stated.
To address these challenges, the policy recommends that advanced technology be used for site assessments and enhanced baseline geological, and seismic surveys, be carried out to de-risk hydropower projects. It also calls for further streamlining of environment and forest clearances .
“State governments will establish mechanisms to expedite project clearances and project execution issues,” the draft states.
Against the backdrop of climate change and declining per capita storage capacity for water and energy needs, there is an urgent need to undertake climate adaptation measures to safeguard lives and the economy, the draft policy said.
“In this context, accelerating the development of storage-based hydroelectric projects is critical for flood moderation, irrigation, and energy security. Appropriate financing mechanisms will be put in place to support such projects and strengthen the nation’s water and energy security,” it added.
The power ministry has sought comments to the draft policy within 30 days from January 20.
“The demand for electricity could well outpace projections over the next 5-7 years. Several states are already anticipating growth rates above historical averages,” Disha Agarwal, Senior Programme Lead, Council on Energy, Environment and Water (CEEW) said. “In 2047, we will consume four times as much electricity as we did in 2024. States, therefore, need to plan for and add new capacities quickly. However, the choice of capacity is crucial and must be governed by robust demand forecasting, followed by integrated generation and transmission adequacy planning. New investments in any technology, whether thermal, hydro, renewables, or nuclear, must be evaluated for delivering four outcomes simultaneously: minimising the cost of supply to consumers, rapid deployment, reduced exposure to imported fuels, and maximising social and environmental benefits. These are the outcomes which the NEP must guide all stakeholders to ensure.”
