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Hope you loved ❤️ our previous Newsletters, as we strive to help you with the latest news and happenings across the world.

In the current article, we will throw light on the Ever Rising Demand for Electricity in BHARAT 🇮🇳

Electricity powers a wide range of devices and machines in our daily lives. In fact, we wake up to the sound of an electrically charged device each day. And we are so dependent on electricity that we can’t imagine living without it. Can you?

But have you ever wondered, which are the prime sources of electricity production in India?

With the advent of technology, electricity is generated from various conventional sources like Thermal, Nuclear and Hydro; and renewable sources like Wind, Solar, Biomass, etc. However, in India, electricity is majorly produced from coal-fired thermal power plants. 

In FY2022-23,  around 73.1% of the total power generation was produced from coal.

Large Hydroelectric Power accounted for 10%, while Wind Power accounted for 4.4% of power generation. 6.3% of power was generated from Solar Power and 2.8% from nuclear power plants. 

Biomass and other renewable sources produced 1.1%, while 1.5% was produced through gas power generation.

Renewable energy sources like Solar, Wind, and Hydro are becoming increasingly popular in India due to their lower costs compared to traditional fossil fuels. 

In 2023, during an interview, Union Cabinet Minister R. K. Singh rightly said, “India is likely to witness 25 GW of renewable energy capacity addition entailing an investment of Rs. 1,37,500 crore in 2024, which will be higher than 13.5 GW with an investment of Rs. 74,250 crore seen in 2023.” 

This means India will soon witness more than 83% increase in investments for Renewable Energy projects. With this advancement and transition, we may be in line with India’s ambitious target of having 500 GW of renewable energy by 2030.

By the way, did you know that the world’s largest Solar Power Plant is based in Rajasthan in Jodhpur district? Yep, you read that correctly! Located in Bhadla village, this solar park is spread over a total area of 14,000 acres. With average temperatures between 46-48 degrees, the solar park has a total capacity of producing a massive 2,245 MW. Mind blowing, isn’t it?

Only if the use of renewable sources of energy increases, we will be able to reduce air pollution and along with it the cost per unit too. These reasons make renewable energy sources more viable for households and businesses. Currently, the average solar power tariff in India is around Rs. 4.50 per kWh. 

Here is another interesting fact for you 👉 India is actively working on creating the world’s largest expansion plan in Renewable Energy. The non-fossil fuel capacity (including Hydro and Nuclear) of India has dramatically increased to 396% in the last 8.5 years delivering more than 190.97 GW about 44% of the country’s total capacity (as of Feb 2024). 

Did you know that the unit cost of electricity in India varies from one state to another? That’s not all, the unit cost of electricity can change depending on factors such as the source of the electricity and the time of year. 

On average, the cost of electricity per kWh in India is roughly around 6 to 8 rupees. Since coal-based power plants cough out great amounts of pollutants, the Indian government provides subsidies for energy-efficient appliances and offers various plans to promote clean energy usage.

The consumption of electricity per household has increased in recent years. Isn’t it obvious? 

We begin and end our day with the consumption of electricity. Running refrigerators, air conditioners, and water heaters consume the highest amount of electricity per household. And today, we have so many other appliances that require a constant supply of electricity. It’s a bit hard to measure the consumption of electricity per household because the usage of electricity changes with the changing seasons. 

During summers, household electrical appliances are used extensively and they use optimal electricity to generate the desired output. 

Having said that, air conditioners have become more than a necessity during summers. In India, a typical household consumes around 260 kWh of electricity per month.

The global demand for electricity is rising rapidly, driven by factors such as economic growth and population expansion. But India’s demand for electricity is significantly higher than many other countries, mainly due to its large, growing population, and rapid urbanization and industrialization. 

According to a recent study, India’s electricity demand of 100-140 TWH per annum is growing at 6-8% per year. India only uses 6% of total global energy. But guess what, last year in 2023, the electricity consumption in India grew to 8% with an increase of +120 TWH YoY. That’s huge! 

It is highly likely that India’s demand for electricity will continue to rise in the coming years. And to meet this increasing demand, it’s best to invest in New-gen Ai-powered investment product like All Rounder. Investing in such investment instruments is perhaps the most ideal way to beat inflation. So are you ready to beat the heat?

Innovage Investment Advisers Private Limited

Registered address: A 703/704, Eureka Towers, Mind Space, Malad (West), Mumbai - 400064. 

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