New Delhi: Union Minister Shri Manohar Lal on Monday addressed a press conference in the national capital, spotlighting the significant strides India has made in the power sector over the past 11 years. Emphasising the government’s commitment to ensuring uninterrupted electricity access for all, he said the aim is to achieve 100% household electrification across the country. He also noted that India has not only achieved self-sufficiency in power but is steadily progressing towards becoming a power-surplus nation.
1. India Meets Peak Power Demand with Zero Shortage
The Minister announced that on June 9, 2025, India successfully met a peak power demand of 241 GW without any shortage, showcasing the resilience and capacity of the country’s growing power infrastructure.
2. Major Boost for Battery Energy Storage Systems
In a significant development towards energy security and renewable energy integration, Shri Manohar Lal revealed that the government has cleared a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS). This is in addition to 13.2 GWh already under implementation. The ₹5,400 crore scheme is expected to attract investments worth ₹33,000 crore and meet India’s battery storage needs by 2028.
3. ISTS Waiver for Storage Projects Extended
To support the rapid development of storage solutions, the Inter-State Transmission System (ISTS) charges waiver has been extended till June 30, 2028. The waiver will apply to Pumped Storage Projects and Battery Energy Storage Systems commissioned or awarded before this date. The move aims to improve transmission infrastructure utilisation and address the country’s increasing storage requirements.
4. Ultra High Voltage AC Grid to Transform Transmission by 2034
Shri Manohar Lal also announced the upcoming rollout of Ultra High Voltage Alternating Current (UHV AC) transmission infrastructure. By 2034, nine 1100 kV lines and ten substations are planned for development, with testing facilities being set up by the Central Power Research Institute. This transformative project will involve an estimated investment of ₹53,000 crore.
5. Enhanced Compensation for Transmission Infrastructure
Addressing land acquisition concerns, the government has revised compensation norms for transmission line projects. Compensation for land under tower base area has increased from 85% to 200% of land value, while for the Right of Way corridor, it has been raised from 15% to 30%. The new guidelines, issued on March 21, 2025, have already been adopted by states like Haryana and Delhi.
6. Intra-State Grids Open to Private Investment
In a move aimed at enhancing private sector participation and enforcing financial discipline, the government has extended the Late Payment Surcharge (LPS) rules to Intra-State Transmission Systems. Previously applicable only to Inter-State systems, this reform is expected to strengthen intra-state grids, especially for accommodating rising renewable energy supply.
7. India Adds Record 34 GW Generation Capacity in FY 2024-25
India witnessed an all-time high in power generation capacity addition during FY25, with 34 GW added — out of which 29.5 GW came from renewable sources. The country’s total installed capacity has now reached 472.5 GW, nearly doubling from 249 GW in 2014.
8. Tehri Pumped Storage Project Enhances Grid Stability
The commissioning of the first 250 MW unit of the Tehri Pumped Storage Project in Uttarakhand marks another milestone. The project will support grid balancing and help meet peak electricity demand while enabling efficient integration of renewable power.
9. Energy Shortage Drops to Just 0.1% Nationwide
Thanks to robust infrastructure expansion and better grid management, India’s national energy shortage has declined to a historic low of just 0.1% as of April 2025. This is a significant improvement compared to the 4.2% shortfall recorded in 2013-14, ensuring more reliable power supply across the country.
