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Business Standard
14 hours ago
- Business
- Business Standard
India's electricity demand to grow just 4% in 2025 amid cooler summer: IEA
India's electricity demand is expected to grow by a moderate 4 per cent in 2025, after cooler summer temperatures in the first half of the year reduced consumption and shifted peak load to September, the International Energy Agency (IEA) said. In its mid-year update on electricity, IEA said while global power demand is rising much faster than the forecast for the 2025-2026 period than it did during the past decade, electricity demand in China and India is expected to rise at a more moderate pace in 2025 than the rapid growth seen in 2024. "After 6 per cent growth in 2024, electricity demand in India is forecast to rise by 4 per cent this year," it said. IEA projected Chinese consumption to rise 5 per cent in 2025, down from 7 per cent in the previous year. However, China alone will account for 50 per cent of global electricity demand growth, as it did in 2024. "In India, the impact of global economic uncertainties on industrial activity and cooler summer temperatures compared to 2024 led to electricity demand increasing by 1.4 per cent year-on-year in H1 2025. Demand is forecast to rise at a higher rate for the remainder of the year, reaching an annual growth rate of 4 per cent," IEA said, projecting a robust 6.6 per cent growth in 2026, driven by stronger activity in industry and services, and increasing AC stock. Citing estimates from the Ministry of Power for 2025, the Paris-based agency said peak load could reach 270 GW (8 per cent increase y-o-y) and shift to September instead of summer this year, although this should be fully met by rising generation capacity. To manage peak load growth, the government is mulling a proposal on AC standards that would cap temperature settings between 20 and 28 degrees Celsius, potentially reducing peak load by up to 60 gigawatt (GW) in 2035. On generation, IEA said the combined output from solar PV and wind was 20 per cent higher in H1 2025 y-o-y, which reached an almost 14 per cent share in the mix, up from 11 per cent in H1, 2024. Solar PV generation grew 25 per cent and wind by slightly less than 30 per cent. A significant improvement in hydro conditions since mid-2024 resulted in hydropower generation increasing 16 per cent y-o-y between January and June. Additional capacity, including the 700 MW Unit-7 at the Rajasthan nuclear power station that connected with the Northern grid in March, contributed to the 14 per cent rise in nuclear generation for the same period. A twin unit, RAPP-8, is expected to start operations in 2025-26 as part of plans to reach a nuclear capacity of 100 GW by 2047 announced under the Nuclear Energy Mission by the Government of India. "Amid strong rise in output of low-emissions sources and more moderate demand growth, coal-fired generation decreased by 3 per cent in the first six months of the year -- the first decline in the first half of the year since 2020. Gas-fired generation dropped by around 30 per cent in H1 2025, falling back to 2023 levels," it said. IEA expected coal-fired generation to rise again in H2 2025, registering around 0.5 per cent growth for the full year, followed by a 1.6 per cent increase in 2026. Gas-fired generation is forecast to decline by 3 per cent in 2025 before rebounding by 7 per cent in 2026. Capacity additions for nuclear power are expected to drive generation from this source higher, up 15 per cent this year, and 19 per cent in 2026. "Output from renewable energy sources is set to continue growing in H2 2025, with solar PV rising by 40 per cent y-o-y in 2025 and 28 per cent in 2026, while wind is projected to post more moderate growth of around 10 per cent both in 2025 and 2026. Hydropower output is forecast to continue rising as well in H2 2025, resulting in an increase of 7 per cent y-o-y this year before reaching a growth of 10 per cent in 2026," it said. India's emissions intensity is expected to fall 3.8 per cent annually. A drop in seaborne thermal coal prices to a four-year low eased input costs for coal-fired generation. On the supply-side, increased availability from thermal and renewable capacity additions strengthened market liquidity and exerted downward pressure on prices, IEA added.


New Indian Express
3 days ago
- Business
- New Indian Express
Centre launches Rs 1,000-crore ADEETIE scheme to boost energy efficiency in MSMEs
VIJAYAWADA: The Ministry of Power has launched the Assistance in Deploying Energy Efficient Technologies in Industries and Establishments (ADEETIE) scheme, a Rs 1,000-crore initiative to promote advanced energy efficiency in India's Micro, Small, and Medium Enterprises (MSMEs). Launched nationally from Panipat and implemented by the Bureau of Energy Efficiency (BEE), the scheme aims to modernise MSMEs — a backbone of India's economy — through the adoption of cutting-edge, energy-saving technologies. Of the total, Rs 875 crore is earmarked for interest subvention, enabling affordable financing for MSMEs to upgrade infrastructure. An additional Rs 50 crore will support implementation and capacity-building. The scheme is expected to mobilise over Rs 9,000 crore in total investments, drawing participation from the MSME sector. It offers a comprehensive support system including Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs), financial facilitation, and Monitoring & Verification (M&V) to ensure measurable improvements in energy savings, production costs, and overall efficiency. Akash Tripathi, Additional Secretary, Ministry of Power and Director General, BEE, termed the scheme 'a game-changer' for the sector. 'We urge all states to take early initiative to unlock the full benefits of this scheme,' he said. The State governments have been asked to activate their State Designated Agencies (SDAs) to identify eligible industrial clusters, promote awareness, and assist MSMEs in transitioning to energy-efficient systems. BEE Secretary Milind Deore stressed the importance of state-level engagement to scale up the programme. ADEETIE targets 60 industrial clusters and 14 high-energy-consuming sectors, including textiles, food processing, and foundries, using a cluster-based approach. In AP, West Godavari is selected for the fisheries sector, while EG and WG, Ambala, Firozabad, and Chirkunda are among those selected for glass sectors.


Indian Express
23-07-2025
- Business
- Indian Express
The reform India's power sector needed
In 2015, the Union Ministry of Environment, Forest and Climate Change notified SO2 norms for coal-based thermal power plants. The establishment of flue gas desulphurisation (FGD system) for all 600-odd power plants in the country was made compulsory. The schedule for the implementation of this system was challenging. Most professionals associated with the power sector, technical experts, researchers and policymakers raised valid concerns. Since Indian coal has a low sulphur content, these experts argued that an FGD system was not necessary for most of these plants. The implementation of the system was, however, initiated in several plants. It was estimated that the capital expenditure on FGD in the old and the new plants would tax finance resources and lead to a tariff burden in the order of Rs 0.25 – 0.30 per KWhr. Power generators were worried, but more concerned were the distribution companies and consumers of power, who would have to finally bear the burden of the additional tariff. Apart from the commercial implication in terms of heavy capital expenditure and the financial burden on consumers, the issue in question was also about the technical necessity of the system in view of the very low sulphur content of Indian coal. This needed more research. A study initiated by the Ministry of Power and carried out by IIT Delhi concluded that there was a need for more comprehensive analysis of SO2 emissions and whether FGDs are necessary for all thermal power plants in the country. Niti Aayog initiated a comprehensive study, carried out by NEERI. The researchers studied all aspects of Indian coal and the extent of SO2 emissions vis-à-vis the norm. They prepared a comprehensive report and made recommendations. Their analysis suggests that 'ambient SO2 concentration in all the monitoring stations is well below the prescribed Norms of 80 micrograms per cubic meter. This is even though most of the thermal power plants have not installed FGDs'. They also recommended that, 'there is a need to revisit the stack emission norms for SO2… with the consideration of India's latitudinal position, (being) close to the equator compared to European countries, the US… who have given guidelines for SO2 emission control. India has higher and stronger solar insolation leading to high ground level heating, vertical convection, high mixing height, high ventilation.' The FGD system utilises limestone and water as its main input materials. The mining and transport of limestone to power plants leave a large carbon footprint. The atmospheric lifetime of CO2 is significantly longer than that of SO2. The revised notification does not mandate a complete withdrawal of FGD. It is now based on sound scientific studies and analysis, which have enabled 600-odd power plants of the country to be classified into three categories — those which are close to very large cities, the ones in heavily polluted areas, and others. An analysis of data collected reveals that about 78 per cent of the power plants do not require an FGD system. This means a saving of large capital expenditure, which can now be deployed for creating more power-generation capacities, primarily through the renewable route. The notification has also allayed fears of tariff burden on power consumers. In India's long-term energy transition plan, renewables will play a big role. However, the transition will need to respect energy security considerations. Domestic coal will, therefore, continue to play a meaningful role in the coming few decades. The notification not only provides relief for consumers at large, but also provides clarity on how to plan for domestic coal-based power. The writer is former power secretary, Government of India and president, India Energy Forum


Time of India
22-07-2025
- Business
- Time of India
India completes 48 GW inter-state transmission network for renewable energy
About 48 GW inter-state transmission system (ISTS) network has been installed for evacuation of solar and wind power , while 159 GW is under construction, Parliament was informed on Monday. A 340 Giga Watt (GW) Inter-State Transmission System (ISTS) network has been planned to evacuate 230 GW of solar and wind power connected to ISTS, Minister of State of Power Shripad Naik said in a reply to Rajya Sabha. "As of now, out of the total planned capacity, 48 GW has been completed, 159 GW is under construction, 21 GW is under bidding, and 112 GW is under planning. "Transmission schemes are approved by the Ministry of Power or the competent authority in line with the scheduled commissioning dates of renewable energy capacities," he said. For Intra-State Transmission System (InSTS), the Minister said Green Energy Corridor (GEC)-I Scheme is under implementation in Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu, Andhra Pradesh, Gujarat, Himachal Pradesh, and Maharashtra with a cost of ₹10,141.68 crore. The GEC-II scheme is under implementation in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh at a cost of ₹12,031.33 crore. Further, the states have been advised to prepare respective plans for InSTS with a 10-year horizon, Naik said. On power demand, the Minister said in June the peak demand touched the level of 2,43,118 MW and peak demand met was at 2,42,493 MW having a difference of 625 MW.


Time of India
18-07-2025
- Business
- Time of India
Energy efficiency push: Electronic appliances to soon carry detailed labels for transparency; what it means for you
Consumers will soon be able to verify star rating claims on electronic appliances such as air-conditioners, refrigerators, televisions, and washing machines, as they will carry detailed energy efficiency labels aimed to help people make informed choices. According to people familiar with the development,the updated labels are a part of the upcoming 'Bureau of Energy Efficiency (Appliance Labelling) Regulations, 2025.' The Bureau of Energy Efficiency (BEE) under the Ministry of Power said in a notification dated 10 July, that the new labels will offer greater transparency, specifying the product's country of origin, power consumption in easy-to-understand language, a unique serial number and a QR code for traceability. Industry executives cited by ET said that current energy efficiency labels do not provide enough information and are not consumer-friendly. There have also been instances where companies were found making false claims about energy performance. The new labelling system aims to encourage consumers to pick low power-consuming models and curb misleading claims, they added. Apart from common household appliances, manufacturers will also be required to affix these new labels on deep freezers, chillers, ceiling fans, geysers, solar photovoltaic modules, and certain commercial products. The regulations will lay out the process for applying for and obtaining label authorisation, as well as compliance testing and applicable label fees, the BEE said. The rules also mandate that the new labels be prominently displayed on the product itself and at retail stores. BEE has already proposed scrapping older label design rules for certain white goods like air-conditioners, refrigerators and televisions. 'There is a revision going on regarding label design. There are altogether five notifications on that,' a government official was quoted as saying. Under BEE's existing star-rating system, appliances are rated from one star (least efficient) to five stars (most efficient). These ratings are revised every two to four years to reflect updated energy efficiency benchmarks. As per the new norms, each label must display a unique label number, equipment name, brand name, model number, energy performance parameter, label year, rated capacity, star level, validity, country of origin, and the appliance's serial number. A QR code will also be included for digital verification. ET had earlier reported that the power ministry is working on a plan to incentivise consumers to replace air-conditioners that are 10 years or older with new five-star models, offering them scrapping benefits and discounted prices to support the energy efficiency push. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now