Rising Power Demand Exposes Supply Fault Lines In States

Context:

Despite coal and hydropower units operating at maximum capacity and experiencing significant growth, several states, including industrial hubs like Maharashtra, Karnataka, and Gujarat, face energy supply shortages due to extended hot weather.

More on News:

• Widening Shortages: States like Rajasthan, Haryana, and Bihar, which typically contend with supply deficits, have seen these deficits increase compared to the previous year.
• Peak Power Supply Deficit: On September 1, the peak power supply deficit reached 10 Gw as the country’s peak demand approached 240 Gw.
• Hydropower Growth: Hydropower, contributing nearly 13% of the national energy supply, recently reported record generation, with a 9% increase compared to the previous year.
• Coal Dominance: Coal remains the largest energy supplier, representing 70% of the total supply, while renewable energy sources contribute 11%.
• Coal Production Surge: Coal India (CIL) experienced double-digit growth in both production and offtake in August 2023, reaching 67.65 million tonnes, a YoY increase of 12.85%.
• Grid Challenges: Experts note that while the national grid efficiently manages load, weak transmission networks and limited capacity to purchase surplus electricity in states pose challenges.
• Demand Drivers: Rising GDP, emerging sectors like electric mobility, data centers, and increased industrial activities drive power demand growth.

Way Forward:

• Capacity Expansion: Power sector planners must prepare for 8–10% growth in power demand and expand the total transfer capability (TTC) of the Power Grid Corporation of India, expected to reach 150 Gw by 2030.
  • TTC refers to the maximum power that can be transferred on an intercon- nected transmission network. 
• Mitigating Supply Gaps: Solutions include constructing more substations, demand-side management, and leveraging energy storage technologies such as batteries and pump storage.

News Source: Business Standard

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