India successfully met a peak power demand of 241 gigawatts (GW) on 9th June 2025 without any shortage, marking a milestone in the country’s energy infrastructure. Union Minister Shri Manohar Lal described the development as a reflection of India’s strengthened power systems, resilience, and planning. The achievement underscores the shift toward surplus power availability and increased reliability for consumers.
National energy shortages have also fallen sharply to 0.1% as of April 2025, compared to 4.2% in 2013-14. The country’s installed capacity now stands at 472.5 GW—up from 249 GW in 2014—with renewable sources contributing 29.5 GW out of the 34 GW added during FY 2024–25.
Strong push for battery storage and grid expansion
As part of its long-term energy strategy, the Ministry of Power has launched a Viability Gap Funding (VGF) scheme to support 30 GWh of Battery Energy Storage Systems (BESS). The scheme, valued at ₹5,400 crore, is expected to attract ₹33,000 crore in investments and help meet India’s storage needs by 2028. Additionally, the government has extended the Inter-State Transmission System (ISTS) charge waiver for storage projects until 30 June 2028.
Plans are also underway to reshape India’s electricity grid with the deployment of Ultra-High Voltage Alternating Current (UHV AC) systems. The initiative will involve the development of nine 1100 kV lines and ten substations by 2034, supported by testing infrastructure from the Central Power Research Institute. The total investment for this grid upgrade is estimated at ₹53,000 crore.
To support land acquisition for transmission infrastructure, compensation rates have been revised. Tower area compensation has increased from 85% to 200% of land value, while the Right of Way (RoW) corridor compensation has doubled from 15% to 30%.
Also read: IEA Urges India to Accelerate Electric Mobility Shift
Reforms to attract private investment and boost flexibility
The Late Payment Surcharge (LPS) Rules have now been extended to cover intra-state transmission systems, a move aimed at improving payment discipline and encouraging private investment in state-level grid development. This reform is expected to accelerate infrastructure expansion required to absorb growing volumes of renewable electricity.
India also commissioned the first 250 MW unit of the Tehri Pumped Storage Project in Uttarakhand, enhancing the grid’s ability to manage peak loads and integrate variable energy sources.
Together, these developments represent a major step toward ensuring 100% household electrification and a transition to a power-surplus nation. The announcements mark 11 years of transformative growth in the Indian power sector and reflect an aggressive push towards secure, reliable, and sustainable energy systems.
