India will need to double the quantum of its power system over the next seven years. Even though the country has achieved much since 2014, the real challenge has just begun, noted R.K. Singh, Union power minister, in his inaugural address at ELECRAMA 2023.
Since 2014, which is when the current BJP-led government assumed charge, the power sector has fuelled the nation’s growth, noted R.K. Singh. “I am happy to say that we are doing well; and what we have done, we are proud of,” were the minister’s early words in his 30-minute address that had the large audience –mainly IEEMA members — in rapt attention.
Recounting the achievements on the last-mile electrification front, Singh said that every village, every hamlet and every home was now connected. “We have connected 2.90 crore homes in 90 months. We have transformed the country from power-deficient to power-surplus,” the minister noted.
Emphasizing on the power T&D achievement, R.K. Singh stressed on the fact that 1.74 lakh ckm of transmission lines have been added since around 2014, connecting the entire country into one single grid running at one frequency, with a transfer capacity of around 1,12,000 mw. “We are one integrated grid, and the largest integrated grid in the world,” emphasized Singh, leading to a big round of laudatory applause by the audience.
“The government has powered the country not only by providing electricity but also by being a leader in investment.”
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Facilitating investment
The government has powered the country not only by providing electricity but also by being a leader in investment. The 1.78 GW of new generation capacity (majority coming from non-fossil sources) and 1.74 lakh ckm of new transmission lines has resulted in huge investment on the ground, the minister remarked. Apart from that, Rs.2.5 trillion (Rs.2,50,000 crore) has been invested since 2014 on strengthening the power distribution system. Singh quantified the claim; 2,900-plus new substations, upgrade of over 3,900 old substations, addition of 8.5 lakh ckm of HT/LT lines, installation of 7.5 lakh new transformers, setting up 1.64 lakh ckm of agricultural feeders, etc. “We did all that!” the minister pronounced, impressing the gathering with his effortless recollection of facts and figures.
“We have done a lot and we can be proud of what we have done.”
The real challenge
“We have done a lot and we can be proud of what we have done. But, the real challenge has just begun,” noted R.K. Singh as he began to give insights on what the future holds.
India, currently growing at 7 per cent, is the fastest-growing large economy in the world. Singh expressed confidence that India will maintain this distinction for the coming two to four decades, suggesting that India was poised to become the third-largest economy by 2027.
This aggressive growth in the economy will need to be fuelled by growing power demand – estimated to rise by 10 per cent annually. Singh supported his view by explaining that India’s power demand on a daily basis is 25,000 mw to 30,000 mw more than the corresponding day of the previous year.
Even by conservative estimates, the country’s total power generation capacity would reach 800 GW by 2030, which would be nearly twice of the present 410 GW. “Doubling our power generation capacity in just seven years from now is the challenge. Imagine the transmission capacity that we have to add,” Singh observed, stressing on the fact that the country would need to add transmission infrastructure for evacuation of around 500 GW of non-fossil power generation capacity.
India would need to invest around Rs.2,44,000 crore (or Rs.2.44 trillion) between now and 2030 in doubling the current stock of transmission lines, HT/LT lines, transformers, meters, etc. This presents a huge opportunity for electrical equipment manufacturers and service providers. “Imagine doubling the present stock of what India has in the next seven years. That is what you (IEEMA members) will have to do. There is a huge demand coming before you,” the minister exhorted, stressing upon the need to significantly expand the domestic manufacturing capacity.
“Yes. I am happy that we are powering India’s growth. If we don’t succeed, the growth rate of our country will come down. We have to succeed!” were the minister’s words of encouragement. “You and we (the government) will work as a team.”
“You cannot have RTC renewable until and unless you have energy storage.”
Energy storage
R.K. Singh, whilst sharing his vision on the country’s energy landscape, stressed on a key aspect that whilst the country would endeavour to add renewable energy capacity, it will not shy away from conventional forms of power generation. Further, as round-the-clock (RTC) power would not be possible from renewable energy alone, India would need to focus on energy storage systems. For this, the country would look at various options including battery-based energy storage as well as pumped storage.
Singh highlighted the fact that the developed world has not done much in the field of energy storage, which is why the cost of storage is very high. India would therefore need to assume a prime mover role in the field of grid-scale storage. The minister observed that today several states have to back down on wind and solar capacity due to the absence of storage. “You cannot have RTC renewable until and unless you have energy storage,” he summarized.
Meanwhile, the current bidding for 1,000 MWh of energy storage has resulted in bids of Rs.10 per unit (kwh). Given that the cost of renewable energy is around Rs.2.40 per kwh, the cost of storage is nearly four times that of generation. To make energy storage viable, the government will be providing subsidy, the minister assured. Singh also observed that much of the energy storage ecosystem globally is oriented towards e-mobility whereas India would also be requiring grid-scale storage.
PLI Schemes
India is coming out with a PLI (production linked incentive) scheme for grid-scale storage, based on a two-pronged approach covering both lithium ion and sodium ion technology. Explaining the rationale, the power minister said that an estimated 85 per cent of the world’s lithium reserves have already been tied up. “We have to be conscious of supply chain security and thus will need to look at sodium ion technology, as an alternative,” Singh explained.
In the context of energy storage from green hydrogen and green ammonia, R.K. Singh projected that India would need 100 GW of electrolyzer manufacturing capacity of around 100 GW. To support this, a PLI scheme for electrolyzers is on the anvil, he said.
“We will not shy away from conventional energy.”
Conventional energy
The power minister made it very clear that the country was not shying away from conventional energy that broadly covers thermal (mainly coal-based), large hydropower and nuclear. “For giving a better standard of living for our people, we will not shy away from conventional (energy),” was how R.K. Singh put forth his point.
India today has 48 GW of thermal power capacity under construction. Further, by next year, there will be 32 GW of hydropower capacity under physical implementation that includes 14 GW already under construction. At this juncture, the minister also declared that a specially-appointed committee has established that hydropower plants are not ecologically damaging as they are sometimes made out to be. The committee has inferred that large hydropower plants, apart from providing electricity and irrigation, have also contributed to mitigation of landslides and higher resistance to floods. In the same vein, reiterating that nuclear power was a safe proposition, the minister said that 8 GW of nuclear was under construction.
Thus, a total of some 70 GW of conventional power generation capacity is currently under construction that includes 22 GW from non-fossil sources. This is in addition to 82 GW of renewable energy capacity currently under construction.
Singh was also hugely optimistic about pumped storage. “We are going to exploit every possible pumped storage site,” he stressed.
“Let us work together to make India great!”
Providing the support
As he outlined the country’s future plans in the power sector, R.K. Singh foresaw that the real challenge would lie in providing the resources domestically. “The challenge for us that we will need to provide the equipment needed for India’s growth,” he cautioned, asserting that there would be no compromise on quality. “Exports are fine but the country itself needs huge quantity (of equipment).”
R.K. Singh who had started with the words “India is great” also closed his thought-provoking and insightful address with the same sentiment “We have a huge task ahead of us but we will do it. Let us work together to make India great!”
Featured photograph shows Union power minister R.K. Singh delivering his inaugural address at ELECRAMA 2023 on February 18, 2023. (Photo: T&D India)
