Investments must take place in power sector for economy to grow at 7.5%: RK Singh

Minister for Power and New & Renewable Energy RK Singh said that investment must take place in the power sector for the Indian economy to grow at 7.5 percent
A file photo of Minister for Power and New and Renewable Energy RK Singh
A file photo of Minister for Power and New and Renewable Energy RK SinghEnergy Watch

New Delhi: At an event on Friday, Minister for Power and New and Renewable Energy RK Singh said that investment must take place in the power sector for the Indian economy to grow at 7.5 percent and the power sector must also become viable to attract investment. "Investments are required since if the economy is to grow at 7.5 percent, our power sector needs to grow at 8.5 percent. Every industry wants to have resources which are slightly in excess of current demand. If the peak demand today is 243 GW, then the contract demand will be in excess of 340 GW,” a statement released by the Power Ministry quoted Singh as saying.

Addressing the employees of REC, officers and staff of his ministry, Singh said in 2017, the power sector was in doldrums and outstanding dues of gencos were more than Rs 1.4 lakh crore. Most discoms were heavily indebted and did not have money even for buying power or for maintaining the systems. He added that that viability of the system is an essential requirement for growth of the sector.

The Power Minister said that the contract demand will grow faster than the country’s economy and that so the power capacity has to grow at that rate, for which REC and PFC will have to make an important contribution. “REC and PFC are key to helping this growth. Can you imagine a power system as big as ours which grew at 9 percent last year and is still growing at same rate? In the present year, the rate of growth in terms of peak demand is almost around 10.5-11 percent and it will continue at this rate. Huge amount of funds will be necessary for capacity addition, part of which REC and PFC have to provide.”

"As per the 20th Electric Power Survey (EPS) report published in November 2022, the peak electricity demand in the country in 2030-31 is expected to be 3,50,670 MW. We have taken steps to meet the increased demand for power in the country," Singh said.

Total thermal capacity addition by 2031-32 will be 88 GW: RK Singh

At least 88 GW of additional thermal capacity is likely to be installed in the country to meet the rising electricity demand, Singh said on December 21 in the Lok Sabha. The minister said 27,180 MW of thermal capacity is under construction, another 12,000 MW has been bid out and 19,000 MW is under clearance. The total anticipated thermal capacity addition by 2031-2032 will be 87,910 MW. Thus, the total capacity under construction, including thermal, renewable, hydro and nuclear, stands at 1,32,148.5 MW, while the total capacity addition by 2031-32 is likely to be 4,64,124 MW, Singh told the House.

A file photo of Minister for Power and New and Renewable Energy RK Singh
Suzlon secures another wind power project of 193.2 MW from KP Group

The nation has 161 GW of electricity capacity under construction which will go up to 239 GW and that we will have 100 GW of capacity under construction consistently for the next two decades, for which REC and PFC will have to mobilise funds, he said.

Related Stories

No stories found.
logo
Energy Watch
www.energywatch.in