In the not-too-distant future, India’s economy will rise to the position of third biggest worldwide. India’s electricity industry is undergoing radical change as a result of the country’s rapidly increasing economic activity and population. Energy is the lifeblood of this expansion project, keeping the machine chugging forward.
While India is now ranked third in overall world power consumption, it lags far behind in per capita consumption. As the new growth has brought about a steady demand of power, and as more and more Indians have begun getting access to more reliable power and continue to demand this in all spheres of life, it stands to reason that this will drive substantial growth of power consumption.
The new domestic consumer sector, such as the new Indian consumer, has a relatively high reliance on energy today, and this need for energy will continue to infiltrate not only via the industrial demand centers but also in the new domestic consumer segment.
The Rise of Renewable Energy
The strong power supply and demand dynamic in India is fueling the country’s power industry. The government’s drive for a larger industrial sector contribution to GDP, the rise of EVs, the electrification of transportation networks like trains, and the pursuit of energy independence at the expense of imports are all factors that will increase demand for electricity in the future.
The dedication to sustainability in India is a major driver of this momentum, as is the country’s affirmation of the shift away from fossil fuels and its lofty goal of generating 500 GW of renewable energy by 2030. India is a prime location for renewable energy investment due to its vast solar and wind potential.
Up from 20% in only five years, renewables currently account for over 31% of total generating capacity (July 2023). Over 75% of the additional capacity at this time came from renewable sources, totaling 60GW. India is now the fourth biggest and one of the most promising renewable energy markets in the world because to its robust solar PV module manufacturing industry and production-linked incentives.