India’s Power Generation Sees 5.4% Growth in FY25, Driven by Rising Demand and Clean Energy Expansion – EQ
In Short : India’s power generation increased by 5.4% in FY25, driven by rising electricity demand across industries and households. The growth was fueled by higher consumption, expanding renewable energy capacity, and improved grid infrastructure. As energy needs continue to surge, the government’s focus remains on enhancing generation efficiency, boosting clean energy investments, and ensuring a reliable power supply.
In Detail : India’s power generation witnessed a 5.4% growth in FY25, driven by increasing electricity demand from industries, businesses, and households. The surge in consumption reflects the country’s expanding economy, rapid urbanization, and rising digitalization, which have placed greater reliance on a stable and efficient power supply.
A key factor contributing to this growth is the expansion of renewable energy capacity. Solar, wind, and hydro projects have played a significant role in meeting rising demand while reducing dependence on fossil fuels. Government initiatives promoting clean energy adoption and incentives for domestic manufacturing have further accelerated this transition.
Thermal power generation also saw a steady increase, ensuring grid stability during peak demand periods. While India continues to push for renewables, coal-fired power plants remain crucial for maintaining a reliable energy supply. Efforts to improve efficiency and reduce emissions from these plants are ongoing.
The power sector’s growth has also been supported by improvements in transmission and distribution infrastructure. Investments in smart grids, modern substations, and advanced metering have enhanced efficiency and reduced transmission losses. These developments are crucial for ensuring uninterrupted power supply, especially in high-demand regions.
Additionally, the government is focusing on energy storage solutions to complement the increasing share of renewables. Battery storage projects and pumped hydro initiatives are being developed to ensure power availability during fluctuations in renewable energy generation. This is expected to strengthen India’s energy security and grid resilience.
As electricity demand continues to rise, India is set to further expand its power generation capacity. Strengthening domestic manufacturing, investing in new technologies, and improving energy efficiency will be key to sustaining growth while transitioning towards a cleaner and more sustainable energy mix.
