A few key facts
- The Indian power system is the 4th largest in the world with current installed capacity of 228 GW (as on Sep 2013), which has almost doubled in the last 10 years and will continue to grow at 8-10% CAGR for several decades.
- Despite this, India is still an energy deficit country, on an average, urban India faces a peak power deficit of about 12.9% as per CEA report in 2011. Over the last 10 years, energy and peak demand shortage averaged around 8% and 12%, respectively. A recent study estimates about 40 % of the Indian population has no direct access to electricity, i.e., a staggering 350 million population in 75 million households[v] especially in the bottom of the pyramid population at semi urban and remote areas where electricity grid is yet to reach.
- Current generation capacity is predominantly thermal power stations depend on imported fuel –coal, oil & gas. With an installed capacity of 156 GW, Thermal power plants accounts to 68% out of 228 GW installed capacity. Hydro power with 40 GW at 17% installed and Renewables with 28 GW at 12.3% and Nuclear power with 4.7 GW at 2% of overall installed capacity as per Ministry of Power (MoP) sources.
- Clean energy investments in India are on the upsurge. Growth of installed capacity of clean energy has been around 20% CAGR attracting an investment of €9.5 bn in 2011, 62% higher than 2010. This was the highest growth figure of any significant economy in the world. In the subsequent years, even though investments declined, India is still amongst the top five nations in terms of highest installed capacity in RE technologies.
- According to The India Energy [R]evolution report jointly commissioned by environmental group Greenpeace, the Global Wind Energy Council and the European Renewable Energy Council, India’s renewable energy sector can create up to 2.4 million jobs by 2020. The study projects that the country will experience immediate market development, with high annual growth rates achieving renewable electricity share of 32 % already by 2020 and 62 % by 2030. Moreover, the installed capacity of renewable energy will reach 548 GW in 2030 and 1,356 by 2050.