‘AI, data centres & EVs may push peak power demand by 30 GW’, Pg14

Key Highlights:

• India's peak power demand is projected to increase by 30 GW in the next 5-6 years due to AI, data centers, and EVs.
• In 2024-25, the country's peak power demand reached 250 GW.
• Government estimates suggest peak demand could reach 459 GW by 2035-36, with total energy needs climbing to 3,365 billion units.
• Installed capacity is expected to more than double to around 1,121 GW, with about 786 GW from non-fossil fuel sources.

Detailed Insights:

• The Union Power Minister highlighted the importance of meeting the rising power demand and the ministry's readiness to supply power if peak demand touches 270 GW this year.
• The Union Minister for New and Renewable Energy emphasized the importance of energy transition for India to become a global manufacturing hub and the challenges posed by mechanisms like the Carbon Border Adjustment Mechanism (CBAM).
• Affordable power is critical for sustaining growth momentum, and renewable energy (RE) offers a viable pathway to reducing power costs, with declining costs of RE technologies and battery energy storage systems (BESS).
• India's power sector has undergone significant transformation, with installed capacity more than doubling to 520 GW, and the next phase will depend on strengthening regulatory frameworks, market design, and pricing mechanisms.
• Integrating large shares of RE requires new approaches such as time-of-day tariff, demand response, flexible generation, and storage solutions.

Key Concepts Involved:

• Peak Power Demand: The maximum amount of electricity required at a specific time.
• Energy Transition: Shift from fossil-based energy systems to renewable energy sources.
• Carbon Border Adjustment Mechanism (CBAM): A carbon tariff on imports based on their carbon content.