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India's power demand is expected to rise by an additional 26.3 GW by 2031-32 due to the growing number of AI data centres, with much of the new electricity demand likely to be met through renewable energy, the government informed Parliament.
In a written reply in Rajya Sabha, Shripad Naik, Minister of State in the Ministry of Power, stated that India has achieved its Nationally Determined Contribution (NDC) target of sourcing 50 per cent of its installed electric power capacity from non-fossil fuel sources, reaching the milestone five years ahead of its 2030 commitment and marking a significant step in the country's energy transition. He noted that the transmission network is being expanded in phases to keep pace with rising electricity demand and planned additions to power generation capacity, including renewable energy projects. "The National Electricity Plan envisages development of the transmission system with an estimated investment of about Rs 9,16,142 crore during the plan period (2022-32)," he said. Naik noted that grid modernisation efforts are also being planned, including the deployment of Static Synchronous Compensators (STATCOMs), Battery Energy Storage Systems (BESS), synchronous condensers and other advanced grid-support technologies to improve grid reliability and flexibility while enabling greater integration of renewable energy. He said, "An additional load of 26.3 GW from Artificial Intelligence (AI) Data Centres is projected by 2031-32, which is expected to be integrated into the grid and primarily served by renewable energy capacity." As of now, 154 Inter-State Transmission System (ISTS) projects are under construction across the country, which also involve 39,792 circuit kilometres (ckm) of transmission lines and 4,01,510 MVA of transformation capacity, he said. Additionally, Intra-State Transmission System (InSTS) projects of 220 kV and above under construction include 30,387 ckm of transmission lines and 1,18,194 MVA of transformation capacity. He further stated that around 21,080 MW of thermal coal-based capacity was added between FY 2023-24 and FY 2026-27 (up to June 2026). During the same period, renewable energy capacity, including large hydro, increased by 1,16,487 MW, comprising 5,130 MW of large hydro, 95,372 MW of solar, 14,810 MW of wind, 229 MW of small hydro, and 946 MW from biomass and other sources. "The share of Non-Fossil Fuel sources has increased from 43.0 % to 54.2% in this period." (ANI)
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