- India’s power sector to attract Rs 4.5 lakh crore by 2032.
- Renewable energy and grid upgrades to meet rising demand.
India’s power demand is rising rapidly alongside economic growth and electrification. Consequently, the electricity sector is expected to attract about Rs 4.5 lakh crore in investments by 2032, Union Power Minister Manohar Lal announced on January 15, 2026. Over the past decade, electricity consumption has grown steadily.
Industrial expansion, urbanisation, rising household incomes, and the electrification of transport, cooking, and agriculture drive this growth. Indeed, peak power demand has already crossed 250 gigawatts. It is expected to double by 2040, putting pressure on existing infrastructure.
Speaking at the Bharat Electricity Summit 2026 curtain-raiser, Manohar Lal outlined the government’s roadmap. The plan focuses on expanding generation, transmission, and energy storage.
He explained that the projected investment will focus on new power generation capacity, the modernisation of transmission networks, and the large-scale deployment of storage solutions. These include pumped storage and battery systems. He emphasised, “Electricity demand and GDP growth go hand in hand. To sustain India’s growth, we must ensure reliable, affordable, and sustainable power for all.”
Furthermore, India has more than doubled its installed power generation capacity over the last decade, from 249 GW in 2014 to over 510 GW by late 2025. As a result, India is now the world’s third-largest producer and consumer of electricity. Total generation rose from around 1,020 billion units in 2014 to nearly 1,830 billion units in 2025. Meanwhile, per capita consumption increased by more than 50 per cent.
Significantly, clean energy has become a central pillar of India’s power expansion. Non-fossil fuel sources now contribute over 50 per cent of installed capacity. Consequently, India met its nationally determined contribution target nearly five years early. Moreover, renewable energy capacity has more than tripled since 2014. Solar power grew rapidly, while wind and large hydro saw steady additions.
However, scaling up renewables requires parallel investments in grid infrastructure and storage to ensure round-the-clock supply. India operates one of the world’s most extensive synchronous grids. Inter-regional transfer capacity is about 120 GW, with nearly 500,000 circuit kilometres of transmission lines. Meanwhile, further expansion is underway to achieve the 500 GW non-fossil target by 2030.
Energy storage is a key focus. Pumped storage projects with a potential of over 230 GW are under development. Battery storage systems are receiving policy and financial support. Estimates suggest storage alone could attract tens of billions of dollars in investment over the next decade.
In addition, the minister highlighted policy reforms aimed at attracting private and foreign capital. These include amendments to electricity laws, incentives for domestic equipment manufacturing, and support for emerging technologies such as green hydrogen and advanced nuclear energy. Notably, India aims for 100 GW of nuclear power by 2047 as part of its decarbonisation strategy.
Ultimately, as India pursues a $30-trillion economy by 2047, the power sector remains central to energy security, climate goals, and inclusive growth. The scale of investment underscores both challenges and opportunities for domestic and global players shaping India’s electricity future.