India becomes third largest electricity producer

With a production of 1,423 TWh, India has become the third largest producer of electricity in the world, right after China and the USA, as per a report by an affiliate of the Ministry of Commerce and Industry

March 26, 2018

India is also the fourth largest consumer of electricity in the world, with the installed power capacity recorded at 334.4 GW as of January 2018 - the fifth largest in the world

India is targeting capacity addition of 100 GW under the 13th Five-Year Plan (2017–22); Output to be further boosted by addition of 175 GW of renewable energy capacity by 2022

Power consumption is estimated to increase from 1160.1 TWh in 2016 to 1,894.7 TWh in 2022; Alongside increasing electrification, Government has encouraged power conservation

Driven by Government initiatives, India is touted to become the world's first country to use LEDs for all lighting needs by 2019, thereby saving US$6.2 billion on an annual basis

India has come up as the third largest producer of electricity in the world with annual output of 1,423 TWh, according to a report by the India Brand Equity Foundation (IBEF), an affiliate of the Department of Commerce, Ministry of Commerce and Industry. The report listed the world’s top five power producers as – China, the USA, India, Russia and Japan. India is also the fourth largest consumer of electricity in the world, with the installed power capacity recorded at 334.4 GW as of January 2018 – the fifth largest in the world. On top of this, the Government is targeting capacity addition of around 100 GW under the 13th Five-Year Plan (2017–22). The production will be further boosted by addition of 175 GW of renewable energy capacity by 2022.

Although power generation has grown more than 100-fold since India’s independence, growth in demand has been even higher due to accelerating economic activity. India’s power consumption, driven by increasing industrial activity, growing population as well as increasing electricity penetration and per capita usage, have called for additional capacity. Schemes such as Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) have been implemented for rural and urban areas, respectively, to boost electricity uptake. Power consumption is estimated to increase from 1160.1 TWh in 2016 to 1,894.7 TWh in 2022. Alongside increasing electrification, the Government has encouraged power conservation.

Driven by Government initiatives, India is touted to become the world’s first country to use LEDs for all lighting needs by 2019, thereby saving US$6.2 billion on an annual basis. Increasing foreign and private participation in the sector – aided by 100 per cent FDI under the automatic route in the power segment and renewable energy – has also helped raising capacity. Total FDI inflows in the power sector reached US$13 billion during April 2000 to December 2017, accounting for 3.52 per cent of total FDI inflows in India. Going ahead, investment for seven new power transmission systems that includes strengthening of the national power grid have been sanctioned. This is crucial as the government is targeting 100 per cent electrification in India by May 2018.

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