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The Great India Power Challenge

Fortune India

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December 2023

CEA data shows why India will remain substantially dependent on fossil fuels to meet energy needs.

- P.B. JAYAKUMAR

The Great India Power Challenge

INDIA'S POWER regulator, Central Electricity Authority (CEA), celebrated its 50th foundation day on October 15. It recently released data on growth of India's electricity sector since Independence which is an eye-opener for policymakers, industry and the public. It shows the country's steady progress, but also reveals why its power sector is still struggling with fundamental issues, especially in transitioning to clean energy. The data shows that India's dependence on fossil fuels has not come down much despite its rapid renewable capacity addition. Further, growth in capacity in most conventional segments has stagnated since 2017.

Generation capacity grew from 1.3 gigawatts (GW) in 1947 to 105 GW in 2002. It further grew to 399 GW in 2022 and 416 GW in FY23. In 1950, India had only 3,061 electrified villages. Now, the number is 5,97,464. Per capita consumption, 16 kilowatt hours (kWh) in 1947, was 1,327 kWh in 2023, well below the global average of 3,210 kWh (2020) and way lower than 10,000 kWh in Canada, U.S., Korea and Australia.

Fossil Fuels Go On

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