India's power sector has achieved significant milestones, as highlighted by Union Minister Shri Manohar Lal. On June 9, 2025, the nation successfully met a peak power demand of 241 GW with zero shortage. A record 34 GW of generation capacity was added in FY25, with renewables contributing 29.5 GW. Key initiatives include a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS) to attract ₹33,000 Crore in investment and an extension of Inter-State Transmission System (ISTS) charge waivers for storage projects until June 30, 2028. The development of an Ultra-High Voltage AC (UHV AC) Transmission System by 2034, with an investment of ₹53,000 Cr, is underway. Compensation for land used for power transmission lines has been increased, and Late Payment Surcharge (LPS) rules have been expanded to include Intra-State Transmission Systems to encourage private investment. The first 250 MW unit of the Tehri Pumped Storage Project (PSP) in Uttarakhand has been commissioned, and national energy shortages have fallen to a record low of 0.1%.
Key Entities Referenced
Ministry of Power India: The government ministry responsible for power in India.
241 GW: Peak power demand met on 9th June, 2025.
9th June, 2025: Date on which peak power demand of 241 GW was successfully met.
Shri Manohar Lal: Union Minister highlighting achievements in the power sector; his specific portfolio is not explicitly stated but implied to be related to power.
34 GW: Total generation capacity added during 2024-25.
202425: Fiscal year during which 34 GW of generation capacity was added.
29.5 GW: Renewable energy capacity added during 2024-25.
Battery Energy Storage: A focus area, with a 30 GWh VGF Scheme Launched.
30 GWh VGF Scheme: Viability Gap Funding scheme for 30 GWh of Battery Energy Storage Systems.
UltraHigh Voltage AC Transmission System: A system to reshape India's Grid by 2034.
2034: Year by which the Ultra High Voltage AC Transmission System is expected to reshape India's grid.
ISTS Waiver: Waiver of Inter-State Transmission System charges extended for storage projects.
10 JUN 2025: Date the information was posted.
PIB Delhi: Press Information Bureau, Delhi - the source of the information.
New Delhi: Location of the press conference.
Viability Gap Funding VGF scheme: Scheme approved for 30 GWh of Battery Energy Storage Systems BESS.
BESS: Battery Energy Storage Systems.
Rs 5,400 Crore: The amount of the Viability Gap Funding scheme.
Rs 33,000 Crore: Expected investment to be attracted by the VGF scheme.
2028: Year by which the country's BESS requirement is expected to be met.
InterState Transmission System ISTS: Transmission system for which charges are being waived for storage projects.
30 June, 2028: Date until which the ISTS charges waiver is extended.
Pumped Storage Projects: Projects benefitting from the ISTS waiver extension.
Ultra High Voltage Alternating Current UHV AC Transmission System: System being rolled out to revolutionize power transmission in India.
1100 kV: Voltage level of the lines being developed as part of the UHV AC Transmission System.
Central Power Research Institute: Organization developing testing facilities for the UHV AC Transmission System.
Rs 53,000 Cr: Investment in Ultra High Voltage Alternating Current UHV AC Transmission System.
Right of Way: Refers to land used for transmission lines.
Haryana: State which has adopted the new guidelines for land compensation
Delhi: State which has adopted the new guidelines for land compensation
March 21, 2025: Date on which new land compensation guidelines were issued.
Late Payment Surcharge LPS Rules: Rules expanded to include IntraState Transmission Systems.
IntraState Transmission Systems: Transmission networks being expanded to absorb Renewable Electricity.
472.5 GW: Nation's total installed capacity of power.
2014: Reference year for comparison of installed capacity.
250 MW: Capacity of the first unit of Tehri Pumped Storage Project PSP commissioned.
Tehri Pumped Storage Project PSP: Project in Uttarakhand commissioned to add flexibility to the grid.
Uttarakhand: Location of Tehri Pumped Storage Project PSP.
April 2025: Reference month and year for energy shortage data.
201314: Reference year for comparison of energy shortage data.
SK Release ID: 2135450: Release identification number.
Ministry of Power
India successfully met peak power demand of 241
GW on 9th June, 2025 with zero peak shortage: Shri
Manohar Lal
India added its highest-ever generation capacity of
34 GW during 2024-25, with renewable energy
accounting for 29.5 GW: Shri Manohar Lal
Big Push for Battery Energy Storage: 30 GWh VGF
Scheme Launched
Ultra-High Voltage AC Transmission System to
Reshape India's Grid by 2034
Compensation for Power Transmission Lines
Increased
Boost for Storage: ISTS Waiver Extended for
Storage Projects
Posted On: 10 JUN 2025 6:22PM by PIB Delhi
Union Minister Shri Manohar Lal highlights 11 years of transformative growth in power sector in a press
conference in New Delhi today.
Union Minister Shri Manohar Lal said that it is our goal to make power accessible to everyone and at all times
and the government is aiming for 100% electrification of households across the country. Union Minister Shri
Manohar declared that India has become power sufficient meeting all its power demands and well on the path
of power surplus country.1. India Meets Peak Demand with Zero Shortage
Union Minister Shri Manohar Lal informed that demonstrating remarkable growth and resilience, India
th
successfully met peak power demand of 241 GW on 9 June, 2025.
This achievement, underscores the nation's robust power infrastructure, with zero peak shortage reported.
2. Big Push to Battery Energy Storage: VGF Scheme for 30 GWh Battery Storage
Shri Manohar Lal announced that in a massive push for energy security and renewable integration, the
Ministry of Power has approved a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy
Storage Systems (BESS), in addition to the 13.2 GWh already underway.
This Rs 5,400 Crore scheme aims to attract Rs 33,000 Crore in investment, meeting the country's BESS
requirement by 2028.
3. Boost for Storage: ISTS Waiver Extended for Storage Projects
Union Minister Shri Manohar Lal in the press conference stated that the waiver of Inter-State Transmission
th
System (ISTS) charges for storage projects has been extended until 30 June, 2028, benefitting Pumped
Storage Projects awarded and Battery Energy Storage Systems commissioned before this date.This extension is crucial for meeting India's growing storage needs and optimising the utilisation of
transmission lines.
4. UHV AC Transmission System to Reshape India's Grid by 2034
Shri Manohar Lal said that India is set to revolutionize its power transmission with the rollout of an Ultra
High Voltage Alternating Current (UHV AC) Transmission System.
Nine 1100 kV lines and ten substations have been identified for development by 2034, with testing facilities
under development by the Central Power Research Institute. Investment would be Rs 53,000 Cr
5. Compensation for Power Transmission Lines Increased
Shri Manohar Lal said that in a landmark move, the central government has increased the compensation for
land used in laying transmission lines to ease the Right of Way issues.
Compensation for the tower area has jumped from 85% to 200% of the land value, and for the Right of Way
(RoW) corridor from 15% to 30%, directly linking land value to market rates. Haryana and Delhi have
already adopted the new guidelines issued on March 21, 2025.
6. More Private Investments in State Transmission Grids
In a move set to attract more private investment and ensure financial discipline, the Late Payment Surcharge
(LPS) Rules have been expanded to include Intra-State Transmission Systems. This crucial reform,
previously applied only to Inter-State Transmission Systems, aims to expand the Intra-State Transmission
networks to absorb Renewable Electricity.
7. India Adds Historic 34 GW Generation Capacity in FY25, Led by Renewables
Shri Manohar Lal also stated that in an unprecedented feat, India added its highest-ever generation capacity of
34 GW during 2024-25, with renewable energy accounting for 29.5 GW. The nation's total installed capacity
now stands at 472.5 GW, up from 249 GW in 2014.
8. 250 MW Tehri Pumped Storage Project (PSP) Commissioned
Adding flexibility to the grid, 250 MW first unit of Tehri Pumped Storage Project (PSP) in Uttarakhand has
been commissioned. This project will help in managing peak demand and integrating renewable energy.
9. Energy Shortages Plummet to Record Low of 0.1% Nationally
A testament to significant additions in generation and transmission capacities, India's national energy shortage
has drastically reduced to a mere 0.1% as of April 2025. This marks a monumental improvement from the
4.2% shortage experienced in 2013-14, ensuring greater power availability for all.
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SK
(Release ID: 2135450)