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					</table><p><a href="https://www.mercomindia.com/indias-power-demand-rise-sharply-256-gw-2024-25" target="_blank" rel="noopener"><strong>The Central Electricity Authority (CEA) has forecast an all-India peak power demand of 256.53 GW in financial year (FY) 2024-25, rising sharply from FY 2023-24.</strong></a> Power demand will soar above 256 GW in September 2024, according to the CEA’s prediction. Peak power demand has been rising steadily over the past few years, with September 1 this year recording 240 GW. An increase in industrial activity and an unusually dry August were among the reasons for power demand scaling new heights this year. Insufficient rain during the month led to an increase in the use of pump sets to irrigate agricultural lands with groundwater.</p>
<p><a href="https://www.mercomindia.com/jaipur-tenders-50-71-mw-solar-projects-kusum" target="_blank" rel="noopener"><strong>Jaipur Vidyut Vitran Nigam has invited bids to install and commission 50.71 MW of grid-connected solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan program for feeder-level solarization.</strong></a> The projects will be developed under the renewable energy service company model. The developer must provide a remote monitoring system and operation and maintenance of the projects for 25 years. The last date for submission of bids online is October 26, 2023. Bids will be opened on October 30.</p>
<p><a href="https://www.mercomindia.com/servokon-to-manufacture-solar-in-uttar-pradesh" target="_blank" rel="noopener"><strong>Servokon Systems, a power equipment manufacturer, plans to invest over ₹2 billion (~$24 million) in a new manufacturing facility for both transformers and solar modules in Hapur, Uttar Pradesh.</strong></a> Besides setting up a solar module manufacturing facility, Servokon will manufacture transformers up to 220 kV class. The company did not disclose the capacity of the solar manufacturing unit. The manufacturing facility, spanning an area of approximately 25,000 square meters, is expected to be operational between the end of 2024 and January 2025.</p>
<p><a href="https://www.mercomindia.com/cesl-invites-for-bids-cars-across-india" target="_blank" rel="noopener"><strong>Convergence Energy Services, a wholly owned subsidiary of Energy Efficiency Services, has invited bids to appoint a service provider to deploy 2,000 electric cars on a PAN-India basis.</strong></a> The last date for the submission of bids is October 13, 2023. Bids will be opened on the same day. The electric vehicles are to be deployed in two zones, Zone 1 and Zone 2. Bidders should submit a bid security of ₹41.38 million (~$497,849) for each zone. Bidders can quote for one zone or both zones.</p>
<p><a href="https://www.mercomindia.com/delhi-transport-electric-two-wheelers" target="_blank" rel="noopener"><strong>The Delhi Transport Department has invited bids to select service providers to deploy high-speed and low-speed electric scooters and e-bicycles to enhance last-mile connectivity to metro stations and bus stands within the Dwarka sub-city.</strong></a> The service providers must deploy a combined fleet of 2,000 high-speed and low-speed electric scooters and 1,000 e-bicycles for seven years and ten months from the agreement’s signing date. The last day to submit the bids is October 20, 2023. Bids will be opened on the same day.</p>
<p><a href="https://www.mercomindia.com/rajasthan-five-year-extension-expired-ppas-wind-projects" target="_blank" rel="noopener"><strong>The Rajasthan Electricity Regulatory Commission, in a recent order, granted approval to Rajasthan Urja Vikas Nigam (RUVNL) to extend the power purchase agreements (PPAs) with 12 wind power generators by five years.</strong></a> It said that the tariff for the extended period will be ₹2.44 (~$0.029)/kWh as mutually agreed between RUVNL and the 12 wind power generators. The state regulator said that RUVNL and the generators might sign supplementary PPAs to extend their earlier PPAs. RUVNL had filed a petition seeking the extension of PPAs with 12 wind power generators per the terms of Tariff Determination Regulations 2020.</p>
<p><a href="https://www.mercomindia.com/us-grid-scale-energy-storage-q2-2023" target="_blank" rel="noopener"><strong>The energy storage market in the United States, including grid-scale, residential and community, commercial, and industrial segments, experienced an 80% year-over-year growth in the second quarter of 2023,</strong></a> adding a total of 5,597 MWh, found the latest report by Wood Mackenzie and American Clean Power Association. The report reveals that the grid-scale energy storage segment was pivotal in driving this growth with 5,109 MWh, an impressive 172% quarter-over-quarter expansion. California emerged as the leader in this sector, contributing 738 MW and accounting for a substantial 49% share of the total installed capacity.</p>


Daily News Wrap-Up: India’s Peak Power Demand to Spike Over 256 GW in FY 2024-25


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					</table><p>The Central Electricity Authority (<a href="https://cea.nic.in/" target="_blank" rel="noopener">CEA</a>) has forecast an all-India peak power demand of 256.53 GW in financial year (FY) 2024-25, rising sharply from FY 2023-24.</p>
<p>Power demand will soar above 256 GW in September 2024, according to the CEA’s prediction.</p>
<p>Peak power demand has been rising steadily over the past few years, with September 1 this year <a href="https://www.mercomindia.com/dry-august-sparks-demand-across-india" target="_blank" rel="noopener">recording</a> 240 GW. An increase in industrial activity and an unusually dry August were among the reasons for power demand scaling new heights this year. Insufficient rain during the month led to an increase in the use of pump sets to irrigate agricultural lands with groundwater.</p>
<p>In terms of units, the energy requirement in 2024-25 is expected to touch 1,736,357 MUs.</p>
<p>The power requirement is forecast to be above 230 GW from April 2024 to March 2025, except for three months &#8211; October, November, and December 2024.</p>
<p>The northern region will see a peak demand of 90.6 GW in August 2024, the western region 76.43 GW in March 2025, the southern region 73.11 GW in March 2025, the eastern region 36.33 GW in September 2024, and the north-eastern region 4.29 GW also in September 2024.</p>
<p>On September 1 this year, when power demand hit a new high, coal accounted for 70% of the generation, hydroelectricity 14%, and renewables 9%. Lignite, nuclear, gas, naphtha, and diesel made up for the remaining 7%.</p>
<p>The southern states accounted for the highest share of renewables in overall power generation at 18.25%, with the northern region coming in second at 11.03%.</p>
<p>The lower-than-desired share of renewables in electricity generation could once again see India leaning heavily on coal. While India has seen a steady rise of renewables in the power mix, the pace of capacity additions has left much to be desired. The government has been taking steps to ensure higher levels of coal supplies to thermal power plants this year.</p>
<p>India added a mere 1.7 GW of solar capacity in the second quarter of Q2 2023, with installations dropping nearly 10% from 1.9 GW in the previous quarter. Capacity additions fell almost 58% year-over-year from 4 GW, according to Mercom’s <a href="https://www.mercomindia.com/product/q2-2023-india-solar-market-update" target="_blank" rel="noopener">Q2 2023 India Solar Market Update</a>.</p>


India’s Power Demand to Rise Sharply to Over 256 GW in FY 2024-25


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					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has devised a comprehensive strategy to ensure the availability of power during the summer.</p>
<p>In a meeting chaired by the Union Power Minister, R.K.Singh, the government outlined several steps that would be undertaken to meet the growing power demands in the coming months.</p>
<p>The Central Electricity Authority (CEA) estimates that the peak electricity demand will reach 229 GW during April.</p>
<p>The all-India peak power demand had <a href="https://mercomindia.com/peak-power-demand-touches-all-time-high-of-201-gw/" target="_blank" rel="noopener">touched</a> an all-time high of 201.1 GW on April 26, 2022, surpassing the peak power demand of 200.5 GW met on July 7, 2021.</p>
<p>As part of the strategy, the power utilities have been instructed to conduct maintenance for coal-based power plants well in advance to avoid scheduled maintenance during the crunch period.</p>
<p>Under Section-11 of the Electricity Act, directions have already been <a href="https://mercomindia.com/government-imported-coal-power-plants-full-capacity/" target="_blank" rel="noopener">issued</a> to all imported coal-based plants to operate at full capacity starting from March 16, 2023. Adequate coal supplies would be provided to the coal-based power plants.</p>
<p>The Ministry of Railways has agreed to allocate 418 railcars to various subsidiaries of Coal India and captive blocks and will increase the number to maintain sufficient coal stocks at power plants.</p>
<p>To meet any peak demand, gas-based power will also be utilized.</p>
<p>The Power Ministry has instructed NTPC to operate its 5,000 MW gas-based power stations during April and May. Other entities will add 4,000 MW of gas-based power capacity during the summer.</p>
<p>All hydropower plants have been directed to work with Regional Load Despatch Centers and State Load Despatch Centers to optimize water usage in the current month for better availability in the future.</p>
<p>Singh said new coal-based plants would be commissioned by the end of this month, with an additional capacity of 2,920 MW. Two thermal power units at Barauni (2 X 110 MW) will also be available during the period.</p>
<p>With the GDP growing at nearly 7%, the power demand in the country has been increasing at close to 10% per year. According to CEA estimates, the energy demand in April 2023 is expected to be 142,097 MU, the highest in 2023, before decreasing to 141,464 MU in May 2023 and declining further to 117,049 MU by November.</p>


Government Outlines Strategy to Meet Upcoming Peak Power Demand


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					</table><p>Energy consumption from rooftop solar installations is estimated to reach 55.8 billion units (BU) by the year 2031-32, a nine-fold jump from 6 BU in 2021-22, the latest Electric Power Survey (EPS) by the Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>) said.</p>
<p>CEA arrived at the projection by estimating the total rooftop solar installed capacity by 2031-32 to be 50 GW.</p>
<p>The report said with increasing rooftop solar installations, power demand from the grid is expected to decrease in proportion.</p>
<p>India has committed to increasing the share of installed capacity from non-fossil-fuel sources to 40% of the total by 2030.</p>
<p>CEA issued the forecast on the assumptions of the Capacity Utilization Factor (CUF) at 17% and the consumption from the installed capacity at 75%.</p>
<p><strong>Total energy demand</strong></p>
<p>India’s total energy requirement for 2031-32 is estimated to jump by 44% to 2,473 billion units from 1,381 BU in 2021-22, the Survey said.</p>
<p>The electricity demand during 2021-22 reached 203.1 GW and is set to peak at 366.39 GW by 2031-32, a jump of 45%.</p>
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand.png"><img loading="lazy" decoding="async" class="alignnone wp-image-45287 size-full" src="https://mercomindia.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand.png" alt="CEA-India's Energy Demand" width="776" height="258" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand.png 776w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand-300x100.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand-768x255.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand-650x216.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand-624x207.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/11/CEA-Indias-Energy-Demand-600x199.png 600w" sizes="(max-width: 776px) 100vw, 776px" /></a></p>
<p>The CEA survey said that the <a href="https://mercomindia.com/electric-vehicle-sales-up-1h-2022/" target="_blank" rel="noopener">sale</a> of electric vehicles (EVs) would contribute to higher electricity consumption and peak demand.</p>
<p>It estimated that 14% of all vehicles on that road will be battery-electric vehicles (BEV) by 2031-32. The energy required to sustain these vehicles would stand at 27 BU for BEV, and the peak demand generated would be 5 GW.</p>
<p><strong>Green hydrogen</strong></p>
<p>The survey projected that India will produce approximately 10 million metric tons (MMT) of green hydrogen by 2030. CEA assumed that 1 kg of hydrogen would require 50 units of electricity.</p>
<p>The additional energy required for the country on account of green hydrogen production has been estimated at 250 BU by 2031-32, the survey said.</p>
<p>The survey said that half of the energy needed to produce green hydrogen is likely to be met through remote mode, while the remaining half would be met through co-location mode, which is considered under captive power consumption.</p>
<p>The government earlier this year <a href="https://mercomindia.com/new-green-hydrogen-policy-step-net-zero-emissions/" target="_blank" rel="noopener">announced</a> the Green Hydrogen Policy, which aims to make India a green hydrogen production hub by the end of the decade.</p>
<p>As the economy stabilized from the aftermath of COVID-19 and institutions and offices reopened, India’s peak power demand hit an all-time <a href="https://mercomindia.com/peak-power-demand-touches-all-time-high-of-201-gw/" target="_blank" rel="noopener">high</a> of 201.066 GW in April this year, with an 8.9% growth in energy demand— surpassing the peak of 200.539 GW met in July 2021.</p>


Energy Consumption from Rooftop Solar Systems to Grow Nine Times by 2031-32: CEA

<p>India&#8217;s energy supply deficit for the financial year (FY) 2020-21 stood at 0.4%, with the peak power deficit also narrowing down to 0.4% during the year, according to the data released by the Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>).</p>
<p>In FY 2019-20, the country&#8217;s energy supply deficit <a href="https://mercomindia.com/india-power-supply-deficit-fy-2019-20/" target="_blank" rel="noopener">stood</a> at 0.5%, while the peak power deficit was 0.7%.</p>
<p>For the FY ending March 31, 2021, the total power supplied was 1.271 trillion units (TU), against the demand of 1.275 TU, a shortfall of 0.4%. For the fiscal year 2021, the country met the peak power demand of 190.19 GW with 189.39 GW, a deficit of 0.4%.</p>
<p>In March 2021, 120.64 MW of energy was supplied against the demand of 121.21 MW, a shortfall of 0.5%. The country met the peak power demand of 186.39 MW for the month with 185.89 MW.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-27005 size-full" src="https://mercomindia.com/wp-content/uploads/2021/06/Region-wise-Energy-Supply-Position-and-Peak-Demand-for.png" alt="Region-wise Energy Supply Position and Peak Demand for Apr-Mar 2021 " width="579" height="406" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/06/Region-wise-Energy-Supply-Position-and-Peak-Demand-for.png 579w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/06/Region-wise-Energy-Supply-Position-and-Peak-Demand-for-300x210.png 300w" sizes="(max-width: 579px) 100vw, 579px" /></p>
<p>The northeastern region, comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura, recorded the highest energy supply deficit for 2.5% for the FY 2020-21, and the peak power deficit stood at 5.7%.</p>
<p>The region was supplied 16.53 BU of energy against a demand of 16.96 BU between April 2020 and March 2021. In terms of peak power deficit, the region met 3.29 GW of peak demand with 3.1 GW of power.</p>
<p>The western region, which consists of Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Daman &amp; Diu, and Dadra and Nagar Haveli, completely met 387.98 BU of energy demand and 61.77 GW peak power demand during the period.</p>
<p>Similarly, the southern region, comprising Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Puducherry, and Lakshadweep, also entirely met the energy demand of 326.84 BU and peak power demand of 58.39 GW.</p>
<p>In the northern region, which consists of Chandigarh, Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Ladakh, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand, 392.32 BU of energy was supplied against its requirement of 396.15 BU, representing a deficit of 1%. In terms of peak power demand, the region met 68.29 GW of demand with 67,81 MW – a 0.7% deficit.</p>
<p>The eastern region, comprising Bihar, Damodar Valley Corporation, Jharkhand, Odisha, West Bengal, Sikkim, and Andaman &amp; Nicobar Islands, met the energy demand of 147.53 BU with 146.99 BU, a shortfall of 0.4%. The region fully met the peak power demand of 24.01 GW.</p>
<p>India&#8217;s power supply deficit had <a href="https://mercomindia.com/indias-power-supply-deficit-narrows/" target="_blank" rel="noopener">narrowed</a> down to 0.3% between April and December 2020, while its peak power deficit had slipped to 0.6% during the period.</p>
<p>In December last year, the Cabinet committee on economic affairs had <a href="https://mercomindia.com/cabinet-approves-plan-for-power-infrastructure/" target="_blank" rel="noopener">approved</a> the revised cost estimate (RCE) for the North Eastern Region Power System Improvement Project with an estimated cost of ₹67 billion (~$910 million). The RCE approval is a significant step towards the economic development of India&#8217;s northeastern region by strengthening the intrastate transmission and distribution systems.</p>


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