Under the government's 2023-2027 National Electricity Plan, India will not build any new fossil fuel power plants in the utility sector, aside from those currently under construction.
Regional grids were initially interconnected by asynchronous high-voltage direct current (HVDC) back-to-back links facilitating the limited exchange of regulated power.
[28][29][30] The calendar year 2016 started with steep falls in the international price of energy commodities such as coal, diesel oil, naphtha, bunker fuel, and liquefied natural gas (LNG), which are used in electricity generation in India.
The major states leading in captive power generation are Odisha, Gujarat, Chhattisgarh, Karnataka, Uttar Pradesh and Rajasthan which are producing nearly 66% of the total.
The technologies and fuel sources India adopts as it adds this electricity generation capacity may have a significant impact on global resource usage and environmental issues.
[67] According to the analysis presented in the India Cooling Action Plan (ICAP) released by the Ministry of Environment, Forests and Climate Change, only 8 percent of Indian households own air-conditioning units.
[71][72][73] The World Health Organization estimates that 300,000 to 400,000 people in India die of indoor air pollution and carbon monoxide poisoning every year because of biomass burning and use of chulahs.
Uncollected waste accumulates in urban areas, causing unhygienic conditions, and release heavy metals and pollutants that leaches to surface and groundwater.
As reported by the Grid Controller of India Ltd. in April, coal's share in the total power generation mix increased to 77% in the first week of the month, compared to the previous year.
This shift to coal is a strategic response to meet the rising electricity demands anticipated during the summer season and ahead of the upcoming elections.
[104] India's Ministry of Environment and Forests has therefore mandated the use of coals whose ash content has been reduced to 34% (or lower) in power plants in urban, ecologically sensitive and other critically polluted areas.
][citation needed] Before a thermal power plant is approved for construction and commissioning in India it must undergo an extensive review process that includes environmental impact assessment.
[105] The Ministry of Environment and Forests has produced a technical guidance manual to help project proposers avoid environmental pollution from thermal power plants.
[12] India's coal-fired, oil-fired and natural gas-fired thermal power plants are inefficient and replacing them with cheaper renewable technologies offers significant potential for greenhouse gas (CO2) emission reduction.
[129] Grid-forming inverters can also restart a downed grid by providing black start power from inverter-based resources like solar, wind and batteries.
[149] First 700 MWe PHWR unit under phase II of Kakrapar Atomic Power Station achieved first criticality in July 2020 and expected to begin commercial operation by December 2022.
The estimated amount of viable hydropower including off-the-stream pumped storage hydroelectric potential varies with improved technology and the cost of electricity generation from other sources.
[170] In April 2024, the Grid Controller of India Ltd. noted an 11% drop in March hydropower production from the previous year, leading to a greater dependence on coal to meet energy demands.
Some state governments are exploring innovative ways to address land availability, for example, by deploying solar capacity above irrigation canals.
[209][210] Instead of shutting down/ retirement of coal-fired power plants due to concerns over pollution, it has been argued that these units can be retrofitted economically to produce electricity from biomass.
In 2003, NIOT attempted to build and deploy a 1 MW demonstration plant with Saga University of Japan,[238] but mechanical problems prevented success.
[246][247] This has led to the initiation of detailed forensic engineering studies, with a plan to make capital investments in a smart grid that maximizes the utility of the existing transmission infrastructure.
A high proportion of non-technical losses are caused by illegal tapping of lines, faulty electric meters and fictitious power generation that underestimates actual consumption and also contributes to reduced payment collection.
[265] To disseminate information to the public on power purchases by the distribution companies (discoms), the government of India recently started posting data on its website on a daily basis.
[266] Bulk power purchasers can buy electricity on a daily basis for short, medium, and long-term durations from a reverse e-auction facility.
[citation needed] Education and availability of skilled workers are expected to be a key challenge in India's effort to expand its electricity sector.
The possible additional net electricity generation at 85% PLF is nearly 450 billion kWh which is enough to replace all the LPG, PNG, and kerosene consumption in the domestic sector.
[307] Substantial scope is also present in micro, small, and medium enterprises (MSME) to switch over to electricity from fossil fuels to reduce the cost of production provided uninterrupted power supply is ensured.
After considering distribution costs and losses, solar power appears to be a viable economic option for replacing the LPG, PNG, kerosene, etc.
[311] Electricity-driven vehicles are expected to become popular in India when energy storage/battery technology offers improved range, longer life, and lower maintenance.