Centre pegs FY35 peak power demand at 446 GW; calls for prepaid meters, transmission upgrades

Time of India

16 hours ago

New Delhi: The Centre on Friday said that India's peak electricity demand is projected to reach 446 GW by 2034–35 and called on States to ensure timely tie-ups of power generation capacity, complete installation of prepaid smart meters in government offices by August 2025, and resolve transmission-related issues to meet future demand sustainably.
Union Minister of Power and Housing & Urban Affairs Manohar Lal, chairing the Regional Conference for Northern Region States and Union Territories in Chandigarh, said India successfully met a peak demand of 250 GW in May 2024 and the peak demand shortage is currently zero. He said India's power system has evolved into a unified national grid, fulfilling the vision of 'One Nation-One Grid', and stressed on coordinated action between the Centre and States to achieve the goal of Viksit Bharat by 2047.
The meeting was attended by Anil Vij (Energy Minister, Haryana), Harbhajan Singh (Power Minister, Punjab), Subodh Uniyal (Forest Minister, Uttarakhand), A K Sharma (Energy Minister, Uttar Pradesh), Ashish Sood (Power Minister, Delhi), Javed Ahmad Rana (Minister of Jal Shakti, Environment & Forest & Tribal Affairs, Jammu & Kashmir), and Heeralal Nagar (Minister of State for Energy, Rajasthan), along with the Union Power Secretary, state energy secretaries, CMDs of Central and State utilities, and senior officials from the Ministry of Power.
The Union Minister emphasised the need to ensure resource adequacy and long-term
power generation capacity tie-ups
, including addition of nuclear power. He said States should work towards resolving issues in intra-state transmission projects, including Right of Way (RoW) constraints, and explore financing options such as multilateral institutions. He informed that ₹1.5 lakh crore has been allocated in the Union Budget 2025–26 as 50-year interest-free loans to support capital expenditure by States, which can be utilised to strengthen transmission infrastructure.
He advised States to promote renewable energy with storage to ensure reliable power supply and implement Renewable Purchase Obligation (RPO) Guidelines. He said the share of renewable energy in India's total installed capacity has increased from 32 per cent in 2014 to 49 per cent in April 2025 and recommended formation of dedicated teams in States for critical renewable planning.
He also highlighted the importance of cyber-security protocols and islanding schemes as preventive measures to ensure grid resilience and mitigate cyber threats.
On the distribution sector, the Minister said it remains the most critical link in the power value chain but faces challenges due to poor tariff structures, inefficient billing and collection, and delays in payment of government dues and subsidies. He said reducing AT&C losses and the gap between Average Cost of Supply and Average Revenue is essential, and asked States to engage with Electricity Regulatory Commissions (ERCs) for cost-reflective tariffs and timely issuance of tariff and true-up orders.
He said that losses incurred by utilities raise the cost of power for consumers and weaken service delivery, with cascading financial impact. He asked distribution utilities to expedite infrastructure and smart metering works under the Revamped Distribution Sector Scheme. He added that several States have pending dues from FY24 and gaps are more apparent in FY25, calling for timely settlement of dues to support the financial health of utilities.
The minister said pre-paid smart meters are key to timely realisation of government department dues and asked States to saturate installation of prepaid smart meters in all government establishments, including government colonies, by August 2025. He also directed States to complete installation of smart meters for commercial, industrial, and high-load consumers by November 2025. He said smart meters can transform consumer-utility interactions using data analytics based on AI and ML tools and enable consumers to benefit from inbuilt features in the smart meter application.
He assured States of continued support from the Central Government and said that all stakeholders must work together to ensure 'Power for All, at All Times'.
Secretary (Power), Government of India, said States must ensure necessary generation capacity tie-ups aligned with resource adequacy plans till FY2035. He said arrangements must also be made to develop intra-state and inter-state transmission capacity through financing models such as Tariff-Based Competitive Bidding (TBCB), Regulated Tariff Mechanism (RTM), infrastructure support under Budget 2026, or monetisation of assets.
He said power sector infrastructure, including transmission and distribution systems, must be secured against cyber threats and that States should implement cyber-security protocols and islanding schemes. He also advised States to work towards ensuring the financial viability of distribution utilities.