Power Sector Spending Could Touch a Whopping Rs 65 Lakh Crore ($ 1 Trillion) in India by 2030
Power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. The existence and development of adequate infrastructure are essential for the sustained growth of the Indian economy.
India’s Power Sector
India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.
The power sector is likely to get a big boost in the coming years, as the country is expected to spend a whopping $ 1 trillion (about Rs 65 lakh crore) by 2030 on ramping up its power infrastructure as one of the world’s largest energy consumers aims to provide 24/7 electricity to its citizens.
The government has set an ambitious plan to add 175 GW of renewable energy generation capacity by 2022. The country aims to have 100 GW of solar power by 2022 along with 260 GW of thermal and nuclear generation and 62 GW of hydro generation capacity.
Image for representation only (Source: The Hindu)
Power Minister Piyush Goyal has said that the power sector in the country is at an inflection point and the focus is on developing an integrated outlook with transparent policies on tariffs and fuel pricing which enhance the ease of doing business, reports LiveMint.
“India can use Australian expertise in rooftop solar as almost a third of Australian homes in some states are using rooftop solar,” Goyal said while speaking at a round table on ‘Renewable Energy Challenges for Grid Integration’ at the University of New South Wales (UNSW), as reported by Moneycontrol.
India and Australia should come together and invest in several fields, with energy being an important dimension. India’s focus is on LNG for power plants, coal mining, clean coal technologies, renewable energy, R&D as well as tie-ups with premier research institutes, Goyal Said.
“We have to use this clean tech, but for that, we also need to ensure that the price is right. For a company or country to sell such technologies to India, it should understand that we have a very, very large market which will give them good returns in the long term,” he added.
Citing an example, he said that the price of an LED bulb has come down by as much as 40% in India as there is bulk procurement. It has already distributed almost six crores of LED bulbs. The minister said that India will concentrate on expanding R&D and is willing to invest in cutting-edge technology.
“India will lead the world in the future in one of our thrust areas of clean energy through joint initiatives in research and development (R&D). We will leverage technological innovation to improve the efficiency of our coal-based power plants at competitive costs. We are also inviting cutting-edge technology in the renewable energy space.
“My ministry is working on the holistic development across all energy generating platforms and is inviting firms to come to India and manufacture under Prime Minister Narendra Modi’s ‘Make in India’ initiative,” Goyal said.
