India Achieves Major Milestones in Power Sector: Meets Record Peak Demand of 241 GW with Zero Shortage
New Delhi : In a landmark announcement, Union Minister for Power, Shri Manohar Lal, highlighted India’s remarkable strides in the power sector, declaring that the nation successfully met its record peak power demand of 241 GW on June 9, 2025 — with zero peak shortage. This marks a significant milestone in India’s journey towards becoming a power-surplus nation.
Unprecedented Growth in Generation Capacity
India added an all-time high 34 GW of power generation capacity during FY 2024–25, with renewable energy leading the way by contributing 29.5 GW. The country’s total installed capacity now stands at 472.5 GW, up from 249 GW in 2014 — a near doubling in just over a decade.
Battery Energy Storage Push: ₹5,400 Cr VGF Scheme
In a bid to strengthen grid reliability and support renewable integration, the government has launched a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS). This initiative is expected to draw ₹33,000 crore in investments, supplementing the 13.2 GWh already in progress, with a national target of meeting storage needs by 2028.
Storage Incentives and Infrastructure Support
To further incentivize storage:
The Inter-State Transmission System (ISTS) charges waiver has been extended till June 30, 2028, covering Pumped Storage Projects (PSPs) and BESS commissioned before the deadline.
The first 250 MW unit of the Tehri PSP in Uttarakhand has also been commissioned, enhancing grid flexibility.
Next-Gen Transmission: UHV AC by 2034
India’s grid is set for a transformational upgrade with the planned rollout of the Ultra High Voltage Alternating Current (UHV AC) Transmission System. The initiative includes:
Nine 1100 kV transmission lines
Ten substations
₹53,000 crore investment, with testing support by the Central Power Research Institute
Enhanced Compensation for Landowners
To address Right of Way (RoW) issues, the Centre has significantly increased compensation for land acquisition related to transmission infrastructure:
Tower area: from 85% to 200% of land value
RoW corridor: from 15% to 30% Haryana and Delhi have already implemented the new norms issued on March 21, 2025.
State Grid Reforms and Private Sector Boost
The Late Payment Surcharge (LPS) Rules, previously limited to Inter-State systems, have now been extended to Intra-State Transmission Systems. This key reform is expected to:
Attract private investment in state grids
Improve financial discipline
Expand grid capacity to handle renewable power
Energy Shortage Falls to Record Low
India’s energy shortage has plummeted to a historic 0.1%, down from 4.2% in 2013-14. This dramatic improvement reflects strategic expansion in both generation and transmission sectors.
“India is now power sufficient and steadily moving toward a future of energy surplus. Our vision is to ensure 24×7 reliable electricity for every household,” said Shri Manohar Lal.
With these historic reforms and achievements, India has taken a significant leap toward ensuring clean, reliable, and inclusive energy access, aligning with its climate commitments and development goals.
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