India’s peak power demand is expected to reach 345 gigawatts (GW) in the financial year (FY) 2029-30 and 388 GW in the fiscal year 2031-32, the power ministry said in a reply to the Lok Sabha on Thursday 2.
Minister of State in the Ministry of Power, Shripad Naik, also listed the measures taken by the government to meet the demand for electricity, taking into account the “peak demand levels experienced during the recent summer season”.
Notably, India witnessed a total peak demand of 250 GW in FY 2024-25.
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In his reply, Naik wrote, “According to the mid-term review of the 20th Electric Power Survey (EPS), the peak electricity demand and power requirement for FY 2029-30 is expected to be 345 GW and 2388 BU, respectively, and for FY 2031-32, the peak electricity demand and power requirement is expected to be 3708 GW and 2788 BU.”
The minister said that India has “successfully met the historic peak demand of 250 GW in the financial year (FY) 2024-25”.
He also shared details of “India’s actual power position” for the past three years and the current year i.e. 2025-26 (up to February 2026) in terms of power and peaking.
The figures showed only a marginal difference between “energy supplied” and “peak demand” and “energy required” and “peak demand”.
Financial YearPeak DemandPeak Met(MU)(MW)(MW)2022-232.15.8882.07.2312023-242.43.2712.39.9312024-252.49.8562.49.8542025 February 2026)2.45.4442.45.416 Expected India’s peak power consumption is expected to reach 345 GW.(Ministry of Power)
What measures has the government taken to meet the growing demand for energy:
The government’s statement mentioned several measures it is taking to ensure sufficient energy supply in the future. Here are a few of them:
1. RAP: The government said the installed generation capacity in 2031-32 is likely to be 874 GW as per the National Energy Plan (NEP).
To ensure that generation capacity remains above the projected peak demand, all states have prepared their “Resource Adequacy Plans (RAPs)” which are dynamic 10-year rolling plans and include both power generation and power supply planning.
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2. All states have been advised to initiate the process of creating/procurement of generation capacity; from all generation sources, according to their resource adequacy plans.
3. Capacity increase program: The power ministry said the projected thermal (coal and lignite) capacity requirement by 2034–35 is estimated at around 3,07,000 MW against 2,11,855 MW installed capacity as on March 31, 2023.
“To meet this requirement, the Ministry of Energy is counting on the creation of at least 97,000 MW of thermal capacity based on coal and lignite,” it added.
4. 12,723.50 MW of hydropower projects were under construction till 31 January 2026. Further, 4,274 MW of hydropower projects are in various stages of planning and are scheduled for completion by 2031-32.
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5. 6,600 MW of nuclear capacity is under construction by 31.01.2026 and its completion is planned for 2029-30. 7,000 MW of nuclear capacity is in various stages of planning and approval.
6. 1,54,830 MW of renewable capacity including 64,670 MW of solar, 6,490 MW of wind and 59,990 MW of hybrid power is under construction by 31 January 2026, while 47,920 MW of renewable capacity is 80 including 35,440 MW of solar power and 01 MW of various grades of Hybrid power planning and targets to be completed by 2029-30.
7. Support for renewable energy generation: The government said: “100% interstate solar and wind transmission charges have been waived for projects to be commissioned by June 30, 2025 (with exemptions tapering at 25% per year until June 2028), for joint BESS projects where BESS construction work has been allocated for PSP 2028 projects from June 2028, for green hydrogen projects commissioned by December 2030 and for offshore wind projects commissioned by December 2032.”
8. Foreign direct investment (FDI) has been allowed up to 100 percent under the automatic route.
9. The transmission plan is ready until 2032. The laying of new national transmission lines and the creation of new substation capacity is supported under the Green Energy Corridor program for the evacuation of renewable energy.
10. Government Schemes: A scheme for setting up Solar Parks and Ultra Mega Solar Power projects is being implemented.
Other schemes like Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National Program for High Efficiency Solar Photovoltaic Modules, New Solar Energy Scheme (for Tribal and PVTG Dwellings/Villages) under Pradhan Mantri Janyaya D. Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability Gap Funding. (VGF) Scheme for offshore wind projects launched.
The Green Day Ahead Market (GDAM) and Green Term Ahead Market (GTAM) were launched to facilitate the sale of renewable energy through exchanges.
In addition, the Production Linked Incentive (PLI) program has also been launched to achieve the goal of localizing the supply chain for solar PV modules.
