India's installed power generation capacity crosses 530 GW, may reach 600 GW next year: Power Ministry

"With this battery storage, we already are at right now more than 530 gigawatt of installed capacity. Next year we are looking at somewhere close to 600 is what we will have. And a major chunk coming from the batteries, energy security is in good and safe hands," Raj told ANI in an exclusive interview on the sidelines of the PHDCCI's event on Carbon Capture, Utilisation and Storage (CCUS).

Raj said India's power sector is growing at more than 7-8 per cent annually, making it one of the fastest-growing electricity markets in the world. He said the country is adding renewable energy capacity at the rate of around 30-40 GW every year to meet rising electricity demand while strengthening overall energy security.

The Joint Secretary said the Ministry of Power will present a detailed proposal to the Finance Minister on the utilisation of the Rs 20,000 crore support announced by the government for Carbon Capture, Utilisation and Storage (CCUS).

"Tomorrow we are going to present the entire proposal for the budgeting of Rs 20,000 crores that the government has announced, how we would like to spend it in the next five years, different allocations that we will do and how we will go ahead with it. So that's a meeting that we have tomorrow with the Finance Minister," he said.

According to Raj, the government plans to create a complete CCUS ecosystem in the country by promoting research and development, carbon capture technologies, storage infrastructure and carbon utilisation projects.

He said the objective is to build a circular carbon economy in which captured carbon can be converted into useful products with the help of hydrogen and sequestration technologies, creating opportunities for industries and entrepreneurs.

Speaking on India's energy security, Raj said the country successfully met an all-time high power demand of around 270 GW despite ongoing geopolitical tensions and uncertainties in global energy markets.

He noted that every power demand across the country was met even as gas-based power plants remained largely in reserve due to fuel supply constraints.

On future capacity additions, Raj said the government has a roadmap to add around 97 GW of thermal power capacity over the next five years. Around 7-8 GW of thermal power capacity is expected to be added during the current financial year. He added that the government is also pursuing a roadmap for around 100 GW of nuclear power capacity over the next five to ten years.

Highlighting the growing importance of energy storage, Raj said India is focusing on both battery energy storage systems and pumped storage projects to manage surplus solar power generated during daytime hours and meet evening peak demand.

He said more than 44 GW of battery storage projects are being supported through viability gap funding, while over 5 GW of battery storage projects by NTPC are currently in the pipeline. The government is also promoting domestically manufactured batteries to strengthen the energy storage ecosystem.

On power distribution reforms, Raj said DISCOMs have reported positive financial outcomes after years of losses. "For the first time we had a positive outturn from the DISCOMs and the financials and hopefully in times to come the DISCOMs will be financially viable and profitable," he said.

He attributed the improvement to private sector investments, public-private partnership models and reforms in the distribution segment.

On smart metering, Raj described it as a critical requirement for the future power system, particularly for grid stability, rooftop solar integration and implementation of time-of-day tariffs.

He said smart meter deployment is progressing across the country, with industrial and commercial consumers already covered in many areas, while government buildings and domestic consumers are being brought under the programme in phases. (ANI)