Is India on the Path to Becoming a Power Surplus Nation with 241 GW Peak Demand Met?

New Delhi, June 10 (NationPress) The Union Power Minister Manohar Lal announced on Tuesday that India has successfully achieved its peak electricity demand of 241 GW on June 9 without any shortage. This milestone indicates that the nation has become self-sufficient in power supply and is progressing towards becoming a power surplus country.

During a press conference, the minister emphasized that India has added an unprecedented 34 GW of generation capacity in 2024-25, with renewable energy contributing 29.5 GW. The nation's total installed capacity has now reached 472.5 GW, a significant increase from 249 GW in 2014.

"The improvements in generation and transmission capacities have led to a remarkable reduction in India's national energy shortage, which has dropped to just 0.1 percent as of April 2025, a stark contrast to the 4.2 percent shortage faced in 2013-14, thus ensuring better power availability for everyone," stated Manohar Lal.

The minister further expressed that "our aim is to ensure power accessibility for all citizens at all times, with the government striving for 100 percent electrification of households across the nation."

He also revealed a significant initiative for energy security and renewable integration: the Ministry of Power has endorsed a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS), supplementing the 13.2 GWh already in progress.

This Rs 5,400 crore scheme is projected to attract Rs 33,000 crore in investments, fulfilling the nation's BESS requirements by 2028.

Additionally, the waiver for Inter-State Transmission System (ISTS) charges for storage projects has been extended until June 30, 2028, benefiting Pumped Storage Projects and Battery Energy Storage Systems commissioned by this date.

This extension is vital for addressing India’s growing storage needs and optimizing transmission line utilization.

Moreover, Manohar Lal announced the introduction of an Ultra High Voltage Alternating Current (UHV AC) Transmission System, which is set to transform power transmission in India.

Nine 1100 kV lines and ten substations have been earmarked for development, with an investment of Rs 53,000 crore by 2034, with testing facilities being established by the Central Power Research Institute, the minister disclosed.

In a groundbreaking decision, the Central government has increased compensation for land utilized in laying transmission lines to facilitate the Right of Way issues.

The compensation for the tower area has surged from 85 percent to 200 percent of the land value, and for the Right of Way (RoW) corridor from 15 percent to 30 percent, directly correlating land value with market rates. States like Haryana and Delhi have already adopted the new guidelines issued on March 21, 2025.

To foster private investment and ensure financial discipline, the Late Payment Surcharge (LPS) Rules have been expanded to cover intra-state transmission systems. This crucial reform aims to enhance intra-state transmission networks to accommodate renewable energy, the minister remarked.

Furthermore, the minister highlighted that the 250 MW first unit of the Tehri Pumped Storage Project (PSP) in Uttarakhand has been commissioned, which adds flexibility to the grid and assists in managing peak demand while integrating renewable energy.