The power sector in India is witnessing exponential growth like never before. With a total installed power generating capacity of 367.28 GW as of 31 December 2019, India remains the world’s third largest producer and third largest consumer of electricity.
Few factors that are driving the growth of electricity sector including rapid urbanisation and industrialisation, adequate last mile connectivity with 24×7 power supply, and cross border grid interconnection. The government is focussed on achieving 100 per cent household electrification along with the vision to be aligned to one of the sustainable development goals as ensured access to affordable, reliable, sustainable and modern energy for all. Even though this has been majorly accomplished through two flagship programs namely Saubhagya Scheme and Deendayal Upadhyaya Gram Jyoti Yojana, we are still to cover some distance to achieve 100 per cent household electrification for 24 hours. Last mile connectivity with regular power supply is expected to increase adoption of electricity by manifold in the country.
Further, the Indian government has demonstrated a strong commitment to encourage adoption of electric mobility and announced the ambitious plan of making India a primarily electric car driven nation by 2030 and launched a scheme for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India).
The government aims to make India a 100 per cent electric-vehicle nation by 2030. It has proposed that two-wheelers below the engine capacity of 150cc sold in the country after March 31, 2025, and three-wheelers sold after March 31, 2023, should be EVs. In 2019, this electric mobility movement has not only gained its foothold across metro cities, but also in the hinterlands. Thus, the rise of electric mobility will increase electricity consumption.
Though there is a sluggish demand in electricity, it is expected that stimulus packages to be announced by the government towards becoming a ‘$5-trillion economy by 2024’ will push the growth.