India’s power sector has witnessed substantial growth over the last decade. At a press briefing in New Delhi, Union Minister Shri Manohar Lal shared key achievements and outlined the transformative developments shaping the country’s energy landscape in 2025.
India successfully fulfilled a peak power demand of 241 GW on June 9, 2025, with no peak shortage recorded. This achievement highlights the resilience and strength of the country’s expanding electricity infrastructure. It marks a significant milestone for the sector, reflecting improvements in both generation and transmission capabilities.
To ensure energy security and accelerate renewable energy integration, a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS) has been launched. This ₹5,400 crore initiative is expected to attract ₹33,000 crore in investments and support the deployment of large-scale storage solutions to meet BESS targets by 2028.
The waiver of Inter-State Transmission System (ISTS) charges for energy storage projects has been extended until 30 June 2028. This applies to Pumped Storage Projects awarded and Battery Energy Storage Systems commissioned before the deadline. The waiver is intended to reduce costs and enhance storage infrastructure, helping balance power supply during variable renewable generation periods.
India is advancing towards building an Ultra High Voltage Alternating Current (UHV AC) transmission system, designed to strengthen grid reliability and long-distance power transfer. Nine 1100 kV transmission lines and ten associated substations have been identified for development by 2034, supported by new testing facilities under the Central Power Research Institute. The total investment is projected at ₹53,000 crore.
To address right-of-way challenges, the central government has increased compensation for land used in power transmission. Compensation for tower areas has risen from 85% to 200% of the land value, while compensation for the right-of-way corridor has increased from 15% to 30%. States such as Haryana and Delhi have already implemented the updated policy as per guidelines issued on March 21, 2025.
To encourage private investment in state-level infrastructure, the scope of the Late Payment Surcharge (LPS) Rules has been extended to Intra-State Transmission Systems. This reform, which initially applied only to interstate systems, is aimed at enhancing financial discipline and attracting investment to expand local transmission capacity for renewable energy absorption.
India achieved its highest-ever annual power capacity addition of 34 GW in the fiscal year 2024–25. Of this, renewable energy contributed 29.5 GW, signifying a strong shift towards clean energy. The total installed generation capacity now stands at 472.5 GW, compared to 249 GW in 2014.
The first 250 MW unit of the Tehri Pumped Storage Project (PSP) in Uttarakhand has been successfully commissioned. This project enhances grid flexibility and supports the integration of renewable sources by providing backup during peak demand periods.
Read More: Clean Energy Shortfall: Coal India to Restart 32 Mines to Meet Power Demand!
India’s national energy shortage has significantly declined to just 0.1% as of April 2025, down from 4.2% in 2013–14. This dramatic reduction demonstrates the effectiveness of strategic capacity additions and improved grid management in ensuring a consistent electricity supply nationwide.
India’s power sector has made major strides in 2025, with zero peak shortage during record-high demand, expanded renewable capacity, large-scale energy storage initiatives, and robust grid infrastructure upgrades. These achievements underline the country’s transition towards energy sufficiency and future-ready electricity systems.
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Published on: Jun 11, 2025, 2:28 PM IST
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