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GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
STARRED QUESTION NO.73
ANSWERED ON 23.07.2026
RISING ELECTRICITY DEMAND
*73. SHRI VE VAITHILINGAM:
THIRU DR. S JAGATHRATCHAKAN:
Will the Minister of POWER
be pleased to state:
(a) the challenges arising from rising electricity demand during extreme summer
conditions, adverse weather events, fuel availability concerns and global energy
supply disruptions, particularly with regard to dependence on coal-based power
generation, peak load management and ensuring reliable and uninterrupted
electricity supply across regions and their impact on the country's energy
security and power resilience;
(b) the measures and contingency mechanisms undertaken by the Government
for maintaining uninterrupted electricity supply during peak demand conditions,
including ensuring adequate coal stocks, strengthening fuel logistics, enhancing
generation capacity utilisation, improving transmission and distribution
efficiency, preventing energy shortages and strengthening overall grid resilience;
(c) the mechanisms adopted by the Government for addressing short-term energy
security concerns while supporting diversification of the country's energy mix,
reducing vulnerabilities associated with fuel dependence and balancing energy
security requirements with the increasing integration of renewable energy
sources into the national power system;
(d) the results achieved through efforts directed towards enhancing generation
capacity utilisation, improving transmission and distribution efficiency and
strengthening overall grid resilience under stress conditions; and
(e) the long-term strategy proposed by the Government for balancing energy
security objectives with the accelerated transition towards renewable energy
sources, while maintaining grid stability, reliability of supply and sustainable
growth of the power sector?
A N S W E R
THE MINISTER OF POWER
(SHRI MANOHAR LAL)
(a) to (e) : A Statement is laid on the Table of the House.
*******STATEMENT
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK
SABHA STARRED QUESTION NO. 73 FOR REPLY ON 23.07.2026 REGARDING
RISING ELECTRICITY DEMAND ASKED BY SHRI VE VAITHILINGAM AND THIRU
DR. S JAGATHRATCHAKAN
***********
(a) to (e): There is adequate availability of power in the country. Present installed
generation capacity of the country is 548.86 GW (as on June, 2026).
The country has addressed the critical issue of power deficiency by adding 324.7
GW of generation capacity since April, 2014 transforming the country from power
deficit to power sufficient. Further, as on 30.06.2026, addition of 2,18,267 circuit
kilometre (ckm) of Transmission lines, 9,47,405 MVA of Transformation capacity
and 84,390 MW of Inter-Regional capacity has been done since 2014. Thus, total
inter-regional transmission capacity has become 1,20,340 MW, enabling reliable
transfer of power across regions.
In view of development of El Nino conditions in the current year, the
requirement of electricity has risen significantly. During April to June 2026,
overall rise in electricity peak demand was around 12% as compared to
corresponding period last year and further, it is expected to remain high. As on
date, the all-time high All-India peak demand of 270.8 GW was successfully met
in the month of May 2026, and in July, 2026, further, All-India peak demand again
exceeded 270 GW twice, which was also met successfully. All-time high Variable
Renewable Energy (VRE) generation of 103.7 GW (i.e. Solar-75 GW and Wind-28.7
GW) was recorded in the month of July, 2026.
Ministry of Power has diversified its electricity generation by optimal
energy mix to strengthen the energy security and sustainable growth of power
sector. Government has taken various measures for maintaining uninterrupted
electricity supply, adequate coal stocks, strengthening fuel logistics, enhancing
capacity addition-generation, transmission & distribution, energy transition
through Renewable Energy sources and strengthening overall grid resilience &
energy security. Details of short term and long-term measures taken by
Government is given at Annexure-I and Annexure-II respectively.
The efforts already made towards enhancing generation capacity
utilisation, transmission and distribution efficiency and grid resilience have
yielded encouraging results:
(i) The coal (including Lignite) based generation capacity in the country is
about 230.8 GW and its share in the total electricity supplied from April to
June 2026 is 69.54 %. Further, the maximum generation achieved from such
power plants is about 188.8 GW (around 75% of the total generation - 251.4
GW) during non-solar peak demand hours. As on 18.07.2026, 41.4 Million
Tonnes (MT) coal stock is available at the Thermal Power Plants, sufficient
for 13 days at 85% Plant Load Factor (PLF). Also, sufficient coal is being
received by the Thermal power Plants at present to meet the daily demands.
Gas based generation is less than 2 % of overall basket of generation
resources and the geopolitical issues in Middle East has had minimum
impact on energy availability in the country.(ii) Government of India has been supporting States/ UTs through schemes like
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power
Development Scheme (IPDS), Pradhan Mantri Sahaj Bijli Har Ghar Yojana
(SAUBHAGYA) to improve access and quality of power supply to all
consumers. Under these schemes, projects worth Rs. 1.85 lakh Cr. were
executed for strengthening of power distribution infrastructure. These
schemes stand closed as on 31.03.2022. A total of 18,374 villages were
electrified under DDUGJY and a total 2.86 crore households under
SAUBHAGYA.
(iii) With the concerted efforts of Central and State Government, the average
hours of supply in rural areas have increased from 12.5 hours in FY 14 to
22.6 hours in FY 26 and in urban areas the same has increased from 22.1
hours in FY 14 to 23.4 hours in FY 26.
(iv) The Aggregate Technical and Commercial (AT&C) loss of distribution
utilities at national level have reduced from 22.62 % in FY14 to 15.04 % in
FY25.
(v) The gap between the Average Cost of Supply (ACS) and the Average
Revenue Realised (ARR), a key indicator of whether utilities are recovering
their costs, narrowed sharply from ₹0.78 per unit to ₹0.06 per unit in FY25
(vi) A defining milestone was achieved on 29 July 2025, when India recorded its
highest-ever renewable energy share in electricity generation. On that day,
renewable sources met 51.5 per cent of the country’s total electricity
demand of 203 GW.
(vii) A record generation capacity addition of 64,695 MW was achieved during
2025-26. Out of this, 50,905 MW came from renewable energy sources
(excluding large hydro) which represents the highest ever capacity addition
in a single year, surpassing the previous record of 34,054 MW achieved in
FY 2024–25.
(viii) India’s national transmission network achieved the feat of being the world’s
largest synchronous national grid on 14th January 2026. India’s transmission
network has crossed a major milestone with 5.08 lakh circuit kilometres
(ckm) of transmission lines and reaching a total transformation capacity of
1,469 gigavolt amperes (GVA).
(ix) The energy shortage declined sharply to 0.0% in FY 2025-26, compared to
4.2% in FY 2013–14, reflecting a significant improvement in supply
adequacy.
(x) India has achieved its commitment made at COP-26 by achieving the NDC
goal of 50% of its installed electric power capacity from non-fossil fuel
sources in 2025 i.e. five years ahead of the committed timeline of 2030.
***************ANNEXURE-I
ANNEXURE REFERRED TO IN PARTS (a) TO (e) OF THE STATEMENT LAID IN
REPLY TO STARRED QUESTION NO. 73 ANSWERED IN THE LOK SABHA ON
23.07.2026 REGARDING RISING ELECTRICITY DEMAND
***********
Details of short-term measures
(i) Optimal utilization of generation from all available sources for ensuring
supply of electricity to the consumers. The un-requisitioned surplus generation is
to be facilitated for sale in the power exchanges.
(ii) Ensure optimized scheduling of hydro generation for conservation of
reservoir storage and utilization mainly during peak demand periods.
(iii) All generating utilities are to ensure maximum availability of their units to
meet the growing demand.
(iv) Ensure adequate availability of fuel at power stations with regular
monitoring to resolve any incipient supply issues.
(v) Regular monitoring of outages and maintenance activities to minimize
system distress, and completion within the committed timelines to ensure
reliable system operation.
(vi) Transmission utilities to monitor the transmission system for maximum
availability.
(vii) Facilitate and expedite grid connectivity, operational clearances, and
system readiness for renewable energy projects, particularly facilitating smooth
wind-based generation integration and Battery Energy Storage Systems (BESS).
(viii) Ensure adequate and reliable power supply on agricultural feeders to
support irrigation requirements. Efforts should be made to shift the agricultural
load to day-time/Solar hours and deployment of decentralized solar pumps in
drought prone belts may be prioritized.
(ix) Facilitate utilization of the available renewable capacity in the power
market beyond the contracted/PPA capacity.
(x) Distribution licensees to promote and implement energy efficiency
measures to ensure optimal utilization of electricity among consumers
specifically for the optimization of the predominant cooling, pumping loads etc.
and charging of Electric Vehicle (EV) during day time/Solar hours.
(xi) Close monitoring of the progress of under-construction generating units and
facilitate necessary coordination for timely commissioning.(xii) Power stations to implement conservation of fuel, water etc. by adopting
the best operational practices.
(xiii) Close coordination be maintained among National Load Dispatch Center
(NLDC), Regional Load Dispatch Centers (RLDC)s, State Load Dispatch Centers
(SLDCs), DISCOMs, generating and transmission utilities for contingency
preparedness.
(xiv) To address the issues of coal supplies to power sector, an Inter-Ministerial
Sub Group comprising of representatives from Ministries of Power, Coal,
Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and
Singareni Collieries Company Limited (SCCL) meet regularly to take various
operational decisions to enhance supply of coal to thermal power plants as well
as for meeting any contingent situations relating to Power Sector including to
alleviate critical coal stock position in power plants.
(xv) Inter Ministerial Committee (IMC) comprising Chairman, Railway Board;
Secretary, Ministry of Coal and Secretary, Ministry of Power, meeting is being
held regularly to closely review coal supplies to Thermal Power Plants.
(xvi) The scheduled maintenance of thermal units is planned in advance by
taking into consideration the demand scenario for different months. It is a
standard practice to minimize scheduled maintenance during the peak months.
Central Electricity Authority (CEA) further monitors & permits deferment on case-
to-case basis based on the technical parameters of the plant if increased demand
necessitates so.
******************ANNEXURE-II
ANNEXURE REFERRED TO IN PARTS (a) TO (e) OF THE STATEMENT LAID IN
REPLY TO STARRED QUESTION NO. 73 ANSWERED IN THE LOK SABHA ON
23.07.2026 REGARDING RISING ELECTRICITY DEMAND
***********
Details of long-term measures
(i) Capacity addition from non-fossil Sources: Thrust is on capacity addition
from non-fossil sources, which now exceeds 54% of the total installed electricity
generation capacity. Further, Government has planned to achieve 500 GW of non-
fossil fuel based installed generation capacity by 2030. As per the National
Generation Adequacy Plan prepared by CEA in March 2026, the non-fossil fuel
based installed capacity is likely to increase to 786 GW by 2035-36.
(ii) Capacity addition from Conventional Sources: It is projected to increase
the installed capacity of coal-based plants to 315 GW by 2035-36. Keeping in view
energy security, no new imported coal-based power plants have been planned.
(iii) Nuclear power has huge potential to ensure long term energy security and
is vital for India’s clean energy transition towards Net Zero by 2070. It is a clean
and environment friendly source of base load power. The lifecycle emissions of
nuclear power are comparable to those of renewables like hydro and wind. The
Government of India has set an ambitious target of 100 GW nuclear power
capacity by 2047.
(iv) Energy Storage Systems are being encouraged. Roadmap to 100 GW of
Hydro Pumped Storage Projects by 2035-36 has been prepared. As per the
National Generation Adequacy Plan prepared by CEA in March 2026, the likely
BESS installed capacity and PSP installed capacity in 2035-36 is 80 GW and 94
GW respectively
(v) 100% Inter State Transmission System (ISTS) charges have been waived
for inter-state sale of solar and wind power for projects to be commissioned by
30th June 2025 (with waiver tapering off 25% annually till June 2028), for co-
located BESS projects commissioned by June 2028, for Hydro PSP projects where
construction work awarded by June 2028, for Green Hydrogen Projects
commissioned till December 2030 and for offshore wind projects commissioned
till December 2032.
(vi) Standard Bidding Guidelines for tariff based competitive bidding process
for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and
Firm & Dispatchable RE (FDRE) projects have been issued.
(vii) Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory
for issuance of RE power procurement bids of 50 GW per annum by ‘Renewable
Energy Implementing Agencies’ (REIAs) from FY 2023-24 to FY 2027-28.
(viii) Foreign Direct Investment (FDI) has been permitted up to 100 percent under
the automatic route(ix) Laying of new transmission lines and creating new sub-station capacity has
been funded under the Green Energy Corridor Scheme for evacuation of
renewable power.
(x) To augment transmission infrastructure needed for steep RE trajectory,
transmission plan has been prepared till 2032.
(xi) To boost RE consumption, Renewable Purchase Obligation (RPO) followed
by Renewable Consumption Obligation (RCO) trajectory has been notified till
2029-30. The RCO which is applicable to all designated consumers under the
Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also
includes specified quantum of consumption from Decentralized Renewable
Energy sources.
(xii) Development of intra-state transmission network is being planned to keep
pace with RE capacity addition. Strong inter connection of Inter-State
Transmission System (ISTS) RE schemes with the intra-state network to ensure
better reliability in terms of anchoring voltage stability, angular stability, losses
reduction etc. is being done.
(xiii) Encouraging setting up of RE projects with storage facilities for optimal
utilization of transmission facilities.
(xiv) CEA (Technical Standards for Connectivity to the Grid) Regulations lay
down the minimum technical requirements for the RE generating plants to ensure
safe, secure and reliable operation of the grid
(xv) “Strategy for Establishments of Offshore Wind Energy Projects” has been
issued.
(xvi) To achieve the objective of increased domestic production of Solar PV
Modules, the Govt. of India is implementing the Production Linked Incentive (PLI)
scheme for High Efficiency Solar PV Modules.
(xvii) The Ministry of Heavy Industries has launched the PLI scheme namely
“National Programme on Advanced Chemistry Cell (ACC) Battery Storage,”
approved in May 2021 with a total outlay of ₹18,100 crore to establish 50 GWh of
domestic Advanced Chemistry Cell manufacturing capacity, out of which 10 GWh
is earmarked for Grid Scale Stationary Storage (GSSS) applications.
(xviii) Ministry of Power has issued guidelines for the installation and operation of
EV charging infrastructure in Sep’24 and guidelines for installation and operation
of battery swapping and battery charging stations in Jan’25, facilitating the
development of a robust, accessible charging network for electric vehicles.
(xix) Ministry of Power (MoP) has notified Electricity (Amendment) Rules 2022,
for enabling Energy Storage System (ESS).(xx) MoP in March, 2022 notified the Guidelines for Procurement and Utilization
of Battery Energy Storage Systems as part of Generation, Transmission and
Distribution assets, along with Ancillary Services.
(xxi) MoP has notified Guidelines to promote development of Pumped Storage
Projects in the country on 10th April, 2023.
(xxii) Government of India, in September 2023, approved a Viability Gap Funding
(VGF) scheme for development of Battery Energy Storage Systems (BESS). BESS
capacity of 13.22 GWh is under implementation with a budgetary allocation of Rs
3,760 Cr. under this scheme. Considering the increasing demand of BESS, Ministry
of Power, in June 2025, has approved another VGF scheme for development of 30
GWh BESS capacity with a financial support of Rs 5,400 Cr from Power System
Development Fund (PSDF).
(xxiii) MoP, vide order dated 01.08.2025, has increased the limit for concurrence
of hydro generating stations, off- stream open loop and on-stream PSP by Central
Electricity Authority from ₹1,000 crore to ₹3,000 crore. Further, off-stream closed
loop PSPs has been exempted from the requirement of concurrence from the
Authority.
(xxiv) Tariff Based Competitive Bidding (TBCB) guidelines have been issued for
procurement of power from Pumped Storage Projects.
(xxv) Central Electricity Authority (CEA) issued an advisory on 18.02.2025
recommending the co-location of Energy Storage Systems (ESS) with solar power
projects to enhance grid stability and cost efficiency.
(xxvi) CEA (Measures Relating to Safety and Electric Supply) (First Amendment)
Regulations, 2025 has been notified on 30.03.2026, which includes the safety
requirements for BESS.
(xxvii) CEA’s (Technical Standards for Construction of Electrical Plants and
Electric Lines) Amendment Regulations, 2026 has been notified to specify the
construction standards for BESS.
**************