India's Power Surge: Meeting Future Demand with Renewable Growth

India's electricity landscape is poised for significant growth, as projected by YES Securities, predicting a compound annual growth rate (CAGR) of 4.6% between FY26 and FY30. This translates to an increase of 424 billion units of electricity demand within that timeframe. To accommodate this surge, the nation anticipates adding over 250 gigawatts of power capacity, as highlighted in the report.

The report notes a substantial rise in India's power consumption from 1,002 billion units in FY14 to 1,695 billion units in FY25. Over the past decade (FY15-FY25), demand grew at a CAGR of approximately 4.9%. In the recent five-year period (FY20-FY25), this growth accelerated to about 5.6%, spurred by rapid economic recovery post-pandemic, increased manufacturing activity, and rural and urban electrification.

Highlighting a clear upward trend in India's power consumption, the report emphasizes the growing energy intensity of the economy. The industrial sector remains the largest consumer of electricity, followed by domestic, agriculture, and commercial sectors. Renewable energy sources are increasingly contributing to meeting demand, helping offset environmental impacts. Reduced power outages underscore the improved reliability of supply. Since 2000, India's electricity consumption has tripled, driven by industrialization and urbanization. Today's per capita consumption of almost 1,400 kWh, up from 400 kWh in 2000, reflects expanding energy demands across all economic sectors.

(With inputs from agencies.)