India's power sector is one of the most diversified in the world. India derives its power from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power and from non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly in recent years, thanks to population increase and rapid industrialization. The peak power demand in the country stood at 203.01 GW in 2021
India is ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2021. India is the third-largest producer and second-largest consumer of electricity worldwide, with an installed power capacity of 395.07 GW, as of January 2022. In 2022, India's installed renewable energy capacity stood at 152.36 GW, representing 38.56% of the overall installed power capacity.
Solar energy is estimated to contribute 50.30 GW, followed by 40.1 GW from wind power, 10.17 GW from biomass and 46.51 GW from hydropower. The renewable energy capacity addition stood at 8.2 GW for the first eight months of FY22 against 3.4 GW for the first eight months of FY21.
For FY21, electricity generation attained from conventional sources was at 1,234.44 BU, comprising 1,032.39 BU of thermal energy; hydro energy (150.30 BU) and nuclear (42.94 BU). Coal-based power installed capacity in India stood at 203.9 GW in January 2022 and is expected to reach 330-441 GW by 2040..Industry Investments
Total FDI inflow in the power sector reached US$ 15.84 billion between April 2000-December 2021, accounting for 2.77% of the total FDI inflow into India.The Road Ahead
The Government of India plans to achieve 227 GW capacity in renewable energy including 114 GW of solar power and 67 GW of wind power by 2022. The Central Electricity Authority (CEA) estimates India's power requirement to reach 817 GW by 2030. The government plans to establish renewable energy capacity of 500 GW by 2030.