India is preparing to commission power generation capacity of 300 gigawatts in the coming year to keep pace with surging electricity demand driven by data centres, electric vehicles, and artificial intelligence, Union Power Minister Manohar Lal Khattar said on Monday, 29 June. The minister made the announcement while addressing the inaugural session of the Vibrant Gujarat Regional Conference (VGRC) for Central Gujarat in Vadodara.

Record Demand and How India Met It

Khattar disclosed that India recorded its highest-ever peak electricity demand since Independence this summer, with peak load reaching approximately 271 gigawatts. The country not only met that demand but had pre-positioned capacity of up to 284 gigawatts to ensure there were no supply shortfalls.

'As summers have become increasingly intense this year, India recorded its highest-ever peak electricity demand. Peak power demand across the country reached about 271 gigawatts, and we successfully met it. Not only that, we had prepared capacity of up to 284 gigawatts to ensure that there would be no shortage,' Khattar said.

Why Demand Is Set to Climb Further

The minister projected an additional 30 gigawatts of demand growth in the near term, attributing it specifically to the rapid expansion of data centres, EV adoption, and AI infrastructure. Accordingly, the government has already planned for a 300 GW capacity base for the next year — a figure that reflects proactive rather than reactive grid management.

'Over the coming years, we estimate that electricity demand will increase by another 30 gigawatts because of data centres, electric vehicles and artificial intelligence. Accordingly, we have already prepared for a capacity of 300 gigawatts for next year,' Khattar said.

A Decade of Transformation: 2014 to Today

Khattar drew a sharp contrast with India's power position in 2014, when peak demand stood at around 136 gigawatts — demand that the grid could not reliably meet at the time. India's installed generation capacity has since grown from 249 gigawatts in 2014 to 542 gigawatts today, effectively doubling while demand itself doubled. The minister attributed this transformation to long-term planning and reforms undertaken over the past 12 years under Prime Minister Narendra Modi.

On the access front, the Saubhagya Scheme has delivered electricity connections to nearly three crore households, while the PM Surya Ghar Muft Bijli Yojana is expanding rooftop solar adoption. The government's 'One Nation, One Grid, One Frequency' principle is also deepening grid integration across states.

Gujarat's Role as a National Power Leader

Khattar singled out Gujarat as a power-surplus state and a national frontrunner in renewable energy, noting that the state has already installed more than 50 gigawatts of renewable capacity. He cited the Renewable Energy Park in Kutch as a flagship example of the state's ability to balance industrial growth with environmental sustainability.

The minister also highlighted Gujarat's leading role in the National Green Hydrogen Mission, describing the state as rapidly emerging as one of the world's most competitive green manufacturing hubs at a time when global industry is pivoting toward low-carbon production.

Investor Confidence and the Road to Viksit Bharat 2047

Khattar framed reliable electricity as a prerequisite for investment, arguing that industrial decisions are made long before the first machine is installed — contingent on assurance of power availability, modern infrastructure, and stable policy. He said continued investment in the power sector would support India's goal of becoming a developed nation by 2047 and reinforce Gujarat's standing as a premier industrial destination.