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Power Demand Amid Rising Temperatures
Context:
The year 2024 was the hottest on record, with global average temperatures soaring 1.5 degrees Celsius above pre-industrial levels.
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- As India braces for another intense heatwave, the power sector is gearing up to meet an unprecedented surge in electricity demand.
- Last year, the country managed a record peak demand of over 250 gigawatts (GW), surpassing all expectations.
- This year, peak demand is projected to reach 270 GW, according to the Central Electricity Authority (CEA).
- India’s power demand has been growing at a compound annual growth rate (CAGR) of 6%, but it is now expected to accelerate to 7% annually, reaching 446 GW by 2030.
Strengthening the Power Grid
- A robust national grid has been established to facilitate the transfer of power from surplus to deficit regions.
- The inter-regional transmission capacity has increased from 75,050 MW in 2016-17 to 1,18,740 MW as of December 2024.
- Currently, 71% of India’s electricity is generated from coal, followed by 29% from natural gas, 3% from nuclear energy, 8% from hydro, and 1.4% from renewable sources.
- Due to unexpectedly high demand, India is increasing coal-based capacity in the medium term, delaying the anticipated peak in fossil fuel dependency.
Challenges in Renewable Energy Adoption
- Intermittent Nature: While renewable energy capacity is expanding at a rapid pace, the intermittent nature of solar and wind power limits its ability to meet peak demand.
- Cost: Developing cost-effective energy storage solutions is crucial for balancing the country’s growing electricity needs while reducing its carbon footprint.
- Private Sector: Private power companies are also working to enhance grid resilience.
- Tata Power-Delhi Distribution (DDL) has undertaken extensive infrastructure maintenance and upgrades to ensure a reliable power supply this summer.
- Tata Power-DDL has also reaffirmed its commitment to renewable energy, stating that a significant portion of its power supply will come from sustainable sources.
Delhi’s Power Demand and Shortfalls
- On June 19, 2024, Delhi recorded its highest-ever electricity demand at 8,656 MW.
- A Tata Power-DDL spokesperson reported that within the company’s area of operation, peak demand reached 2,481 MW, with expectations that this summer’s demand could rise to 2,562 MW.
- The company has secured power supply arrangements of up to 2,850 MW through long-, medium-, and short-term contracts, along with contingency planning to prevent shortages.
- However, BSES Rajdhani Power Limited (BRPL), a joint venture between Reliance and the Delhi government, has projected a 1,900 MW shortfall in June 2025, according to a petition submitted to the Delhi Electricity Regulatory Commission.
