In the pre-independence era, the power supply in India was primarily controlled by the private sector and limited to urban areas. The development of the power sector began with the commissioning of the first hydroelectric unit, consisting of two 65 kW generators (130 kW total), at Sidrapong in Darjeeling in 1897. This was followed by the establishment of the first steam-driven power plant with a capacity of 1,000 kW (powered by three 500 HP boilers) in Calcutta in 1899 by CESC.
Post-independence, the formation of State Electricity Boards (SEBs) in the early 1950s marked a significant step towards the systematic growth of the power supply industry across the country. This period saw the initiation of several multipurpose hydroelectric projects and the installation of thermal and nuclear power stations, leading to a substantial increase in power generation activities.
The Central Government’s participation in the power generation program began in 1975 with the establishment of two key corporations: the National Thermal Power Corporation (NTPC) for coal and gas-based capacity addition, and the National Hydro Power Corporation (NHPC) for hydroelectric development. This period also witnessed the establishment of the Nuclear Power Corporation of India Ltd. (NPCIL) to focus on nuclear-based capacity. In the transmission sector, the creation of Power Grid Corporation of India Ltd. (PGCIL) further accelerated the development of the power sector. The Central Government has historically played a pivotal role in meeting the nation’s energy needs.
To liberalize the power sector, the government enacted the Electricity Act of 2003, which came into effect in June of that year. This legislation replaced three earlier laws: the Indian Electricity Act of 1910, the Electricity (Supply) Act of 1948, and the Electricity Regulatory Commission Act of 1998. The Electricity Act of 2003 aimed to consolidate laws related to electricity generation, transmission, distribution, trading, and usage. It focused on fostering industry development, promoting competition, safeguarding consumer interests, ensuring universal electricity access, rationalizing tariffs, implementing transparent subsidy policies, encouraging environmentally sustainable practices, and establishing key regulatory bodies such as the Central Electricity Authority, Regulatory Commissions, and an Appellate Tribunal. In recent years, there has been a growing emphasis on involving private enterprises in the power sector’s development, reflecting the evolving needs of the industry.
The Private players own 50% of the total capacity but generate only about 35% of the electricity while Central and State sector with 24% and 26% generate 35% and 29% electricity respectively.
The total number of villages electrified as on 31.12.1950 was 3061. The total number of villages electrified as on 31.03.2023 rose to 597464 representing 100% of the total number of villages so far as per new definition of villages electrification reported in February 2004. The length of transmission and distribution lines which was 29271 ckt. kms as on 31.12.1950 rose to 14423639 ckt. kms as on 31st March 2023.
Every unit of electricity produced and consumed, on an average, leads to about 716 gm of CO2 release to the atmosphere. With rapid expansion & growth of the Indian economy, the demand of electricity is also witnessing an unprecedented growth. The electricity demand in India has witnessed a growth of around 9% for the years 2021-22 and 2022-23. The total emissions have increased commensurate with the increase in generation of the electricity.
However, due to increasing share of Renewable Energy in the Grid, the carbon intensity of the grid is reducing. There is significant decrease of about 9% in average carbon emission factor of the grid electricity in India from 2013-14 to 2022-23.
For reduction of emission levels of Thermal Power Plants (TPPs), number of measures have been taken by the government: Installation of efficient Ultra Supercritical/Supercritical Units, Biomass Co-firing besides inefficient and old thermal power plants having capacity of about 18,802.24 MW comprising 267 units have already been retired till 30.06.2024 NTPC Ltd. has commissioned a 20 Tonnes Per Day (TPD) capacity Pilot Carbon Capture Project at Vindhyachal Thermal Power Station.
Source: https://ourworldindata.org/co2/country/india
India in its Intended Nationally Determined Contributions (INDCs) stands committed to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. At present India has already achieved 45.5% installed capacity from non-fossil fuel-based resources.
Dr. Bibhu Prasad Rath, an Additional General Manager at NTPC Limited, holds an M.Tech from IIT Delhi and a Ph.D. in Business Administration from Aligarh Muslim University. With nearly 35 years of experience in the power sector, he specializes in energy, environment, economics, and sustainability, with extensive expertise in operations, design, procurement, feasibility studies, policy formulation, investment decisions, and carbon credits. He recently completed a 13-month tenure at the Ministry of Power’s Fuel Supply Coordination, focusing on coal supply chain improvements. He currently oversees NTPC’s 20,000 MW coal-based capacity addition project and has published numerous papers on climate change, sustainability, decision-making, and leadership.
