Lok Sabha Question No. 3215 (UNSTARRED), answered on 2020-03-12
Subject: Increasing Demand of Electricity
Ministry: POWER
Asked by: Bharatiben Dhirubhai Shyal, Chandra Sekhar Sahu

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3215 TO BE ANSWERED ON 12.03.2020

## INCREASING DEMAND OF ELECTRICITY

†3215. DR. BHARATIBEN DHIRUBHAI SHIYAL: SHRI SHANKAR LALWANI:

Will the Minister of POWER be pleased to state:

(a) whether the demand of power would rise three times by the year 2040 and if so, the details thereof;

(b) whether the Government has formulated any plan to meet the rising demand of power;

- (c) if so, the details thereof;

(d) whether the under investment in transmission, electricity, higher losses to power  distribution utilities  and  depletion  of  ground  water  due  to  cheaper electricity  resulting  from  the  power  plants  owned  by  State  Government  are  the major challenges of the power generation sector of the country; and

(e) if  so,  the  steps  taken/proposed  to  be  taken  by  the  Government  in  this regard?

## A N S W E R

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  NEW  & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

(a) : As  per  the  19 th   Electric  Power  Survey  (EPS)  report  brought  out  by Central Electricity Authority, the demand of electricity is likely to increase by 231 percent in terms of energy and 237 percent in terms of peak demand respectively by the year 2036-37, the period uptill which the survey has been conducted, as compared to 2018-19.

………..2.

(b) & (c) : As per the National Electricity Plan (Generation) notified in 2018, the all India power generation installed capacity by the end of 2026-27 is projected to be  6,19,066  MW  which  includes  both  conventional  and  renewable  sources.  This projected installed generation capacity is expected to meet the  demand projection  for  the  year  2026-27  made  by  the  19 th   Electric  Power  Survey.  The technology is fast changing and so is the generation mix. The optimum generation mix  for  2026-27  will  depend  on  the  development  of  Storage  technology  and Renewable energy.

(d) & (e) : India has gradually moved from energy deficit country to near power surplus  country.  Country  has  power  generation  installed  capacity  of  369  GW against the peak demand of 183 GW occurred during the current year 2019-2020 (upto  February  2020).  We  have  developed  adequate  transmission  system  to transfer electricity across the country. Power generation sector in the country is facing  challenges  because  of  poor  financial  health  of  Discoms  mainly  due  to higher  losses  of  power  distribution  utilities.  To  improve  financial  position  of Discoms,  Government  of  India  has  taken  various  reform  initiatives  like  UDAY (Ujjawal  Discom  Assurance  Yojana),  Integrated  Power  Development  Scheme (IPDS) and Deen Dayal Upadhyaya Gramin Jyoti Yojana (DDUGJY).

Electricity tariff for different class of consumers is determined by the State  Commissions  after  considering  all  costs  including  power  purchase  costs from  state  generating  plants.    As  per  provisions  of  section  65  of  the  Electricity Act, State Governments can provide subsidy to consumers on determined by the State Commissions. Issue of depletion of ground water due to wasteful consumption of electricity has been recognized in the Tariff Policy issued by the Central Government. It recognizes the need for levy of reasonable user charges to the  consumers.  It  provides  that  the  subsidized  rates  of  electricity  should  be permitted  only  up  to  a  pre-identified  level  of  consumption  beyond  which  tariffs reflecting efficient cost of service should be charged from consumers.

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