India’s Power Sector Faces Urgent Investment Needs to Achieve 2070 Net-Zero Goals

India’s Power Sector Faces Urgent Need for Investment to Achieve 2070 Net-Zero Target

India requires significant investments in its power sector to meet the 2070 net-zero commitment, necessitating an annual allocation of 2% of GDP over the next decade. Despite progress in enhancing renewable energy capacity, coal-based power generation is projected to expand considerably to accommodate the increasing demand for electricity.

JSW Energy Awaits CCI Clearance for KSK Mahanadi Power Acquisition

JSW Energy is currently waiting for necessary approvals, including clearance from the Competition Commission of India (CCI), before moving forward with its acquisition of KSK Mahanadi Power. A recent Supreme Court ruling regarding regulatory compliance underscores the importance of obtaining CCI clearance before the approval from the Committee of Creditors, which may potentially delay the resolution process.

Peak Power Demand Surges to 238 GW

In February, an exceptionally warm month resulted in peak power demand reaching 238 GW during solar hours, exceeding the anticipated 234 GW. This represents a 6% increase in electricity consumption compared to the previous year. Coal stocks at power plants have also surged by 30%, totaling 50.8 million tonnes. The peak demand is expected to rise further to 240 GW in March during solar hours.

Transformers and Rectifiers (India) Secures Major Transformer Supply Order

Transformers and Rectifiers (India) Ltd has been awarded a contract valued at Rs 166.45 crore from Hyosung T&D India Pvt Ltd. The order pertains to the manufacturing and supply of single-phase coupling transformers for tariff-based competitive bidding (TBCB) projects, which are scheduled for completion in the upcoming financial year. The company clarified that its promoters and associated entities have no interests in the awarding parties.

Adhunik Power in Debt Refinancing Talks

Adhunik Power is pursuing refinancing for its Rs 1,500 crore debt, aiming to reduce borrowing costs from approximately 22-23% to around 18%. The company’s 540 MW power plant has faced challenges in maintaining its original debt levels, especially as valuations declined to Rs 2 crore per MW, justifying only Rs 1,100 crore in debt. However, with current valuations improving to Rs 3-Rs 3.5 crore per MW, the feasible debt level has risen to about Rs 1,600 crore.

NTPC’s Ambitious Nuclear Power Expansion Plans

NTPC intends to invest $62 billion to develop 30 gigawatts of nuclear power capacity over the next 20 years, significantly increasing its original target. This expansion follows the government’s decision to open the sector to foreign and private investments. The initiative aims to lead India’s nuclear power growth, tackling issues related to land acquisition and local resistance, with potential collaborations from international partners.

Sterlite Power Completes Nangalbibra-Bongaigaon Transmission Line

Sterlite Power has successfully commissioned the Nangalbibra-Bongaigaon transmission line project, which enhances power infrastructure in Assam and Meghalaya. The project includes a 300 cktkm transmission line and a greenfield substation, ensuring reliable electricity supply and paving the way for future regional development.

Adani Power Resumes Full Supply to Bangladesh

Adani Power plans to restore full power supply from its 1,600 MW plant to Bangladesh after a three-month reduction. This decision comes despite Dhaka’s requests for discounts and tax benefits. Power supply had previously been cut in half due to payment delays, which resulted in one unit being shut down. Adani Power has rejected all requests for concessions that could have amounted to millions of dollars.

Reliance Industries Expands Power Transmission Capabilities

Reliance Industries Limited has acquired Lakadia B Power Transmission Limited for Rs. 6.73 crore, making it a wholly owned subsidiary. This acquisition enhances Reliance’s power transmission capabilities and aligns with its strategy to lead in both traditional and renewable energy sectors.

NCLT Approves JSW Energy’s Revival Plan for KSK Mahanadi

The National Company Law Tribunal (NCLT) in Hyderabad has approved JSW Energy’s plan to revive the bankrupt KSK Mahanadi Power Company, which holds liabilities exceeding ₹32,335 crore. JSW Energy proposed a resolution amounting to ₹15,985 crore, contingent on obtaining clearance from the Competition Commission of India.

NHPC’s Capital Expenditure Plans

NHPC Ltd has outlined a capital expenditure of over ₹8,000 crore for FY26, with a focus on adding 1,620 MW in hydro and 1,490 MW in solar projects. Currently, NHPC has around 9,314 MW under construction and has plans for developing 20 GW of pumped hydro storage projects.

Karnataka’s Transmission Capacity Expansion Initiative

Karnataka plans to increase its transmission capacity to approximately 60-65 GW over the next five years, requiring an investment of ₹60,000 crore. The state government will contribute 40% of the investment, while the remainder will be managed through competitive bidding. This expansion aims to address challenges related to renewable energy intermittencies and transmission congestion.

NTPC Initiates Discussions for Small Nuclear Reactors

NTPC is in talks with foreign firms, including those from Russia and the U.S., about constructing small modular reactors. These reactors can be scaled up as demand increases. NTPC plans to commence its first nuclear project in Rajasthan soon, seeking to enhance India’s nuclear capacity to reduce its carbon footprint.

Adani Green Energy Withdraws from Sri Lanka Wind Projects

Adani Green Energy has decided to withdraw from two planned wind power projects in Sri Lanka following government suggestions to renegotiate the project terms. The company emphasized its respect for Sri Lanka’s sovereign rights. The projects were initially valued at $1 billion.

BHEL Secures Order for Koradi Thermal Power Project

BHEL has secured a contract from MAHAGENCO to establish two units of the 1320 MW Koradi supercritical thermal power station in Nagpur. The project encompasses design, engineering, manufacturing, and commissioning of the main plant, along with the supply of emission control equipment. BHEL’s contributions to Maharashtra’s coal-based power capacity exceed 75%.

India’s Nuclear Power Ambitions

India aims to significantly enhance its nuclear power capacity by 2047, with over $2 billion allocated for research and amendments in laws to attract investments. Despite the high costs and lengthy installation times associated with nuclear power, it is viewed as a crucial component in addressing climate change and improving energy reliability.