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India sees 1.5% drop in Q1 power supply, first decline in nearly a decade
India sees 1.5% drop in Q1 power supply, first decline in nearly a decade

Time of India

timea day ago

  • Business
  • Time of India

India sees 1.5% drop in Q1 power supply, first decline in nearly a decade

New Delhi: India's electricity supply declined by 1.5 per cent year-on-year in the first quarter of FY26, marking the first such Q1 contraction since FY16, excluding the COVID-impacted FY21, according to the SBICAPS Power Sector report for July 2025. The fall was attributed to higher-than-normal rainfall during 60 per cent of the days in Q1, which moderated temperatures and led to lower demand for cooling, the report said. In June 2025, despite isolated days of low rainfall when demand spiked, the overall energy consumption remained subdued. Peak demand touched 241 GW during these days. The report highlighted that cooling demand is becoming the dominant driver of peak electricity load in India and is expected to introduce increasing volatility due to its sensitivity to weather patterns. 'Room ACs could contribute to nearly 25-30 per cent of the total peak demand by 2035,' it said, noting that the AC ownership trajectory in India is following the pattern previously observed in China. Real-Time Market (RTM) price data showed that the peak demand hours between 8 PM and midnight, which coincide with the reduction in solar generation, had the highest pricing. In May 2025, the demand-supply gap in these hours was about 10 per cent on average and went up to 90 per cent on extreme days. Conversely, during solar generation hours (7 AM to 5 PM), power supply was 2.8 times higher than demand, pointing to excess generation without matching grid absorption. The report said this underscored the viability of storage solutions, stating, 'The differential in pricing is now on-par with BESS tariffs (without VGF) indicating that storage has become viable and necessary.' Across regions, the northern part of the country recorded the highest decline in energy supplied, largely due to excessive rainfall. Most other regions also showed a year-on-year decline in supply, except the North-East, which remained stable. Annual capacity additions are currently at around 30 GW, dominated by solar installations. However, the share of solar in new tenders dropped below 50 per cent in FY25, with greater focus on round-the-clock (RTC) and load-following bids. Despite a five-year doubling of solar generation's share, renewable electricity production continues to lag behind installed capacity. The report said the market is seeing rising interest in pumped hydro and standalone Battery Energy Storage Systems (BESS). The government's Viability Gap Funding (VGF) 2.0 scheme has allocated ₹5,400 crore to support 30 GWh of BESS capacity, offering ₹1.8 crore per MWh. The overall investment from this tranche is estimated at ₹33,000 crore. Transmission constraints are emerging as a key barrier to renewable energy integration. Some solar and wind projects remain stranded due to the absence of transmission infrastructure, and developers are now exploring microgrid and storage-linked designs to bypass grid limitations. The report also noted that credit growth for power financiers such as PFC and REC may slow down with reduced borrowing needs from distribution companies (DISCOMs), as large reform schemes like RDSS and LPS approach completion. Lending to the renewable energy sector continues but disbursements are yet to pick up to projected levels.

Pralhad Joshi inaugurates BESS in Bengaluru;  ₹5,400 cr additional VGF coming soon
Pralhad Joshi inaugurates BESS in Bengaluru;  ₹5,400 cr additional VGF coming soon

Time of India

time5 days ago

  • Business
  • Time of India

Pralhad Joshi inaugurates BESS in Bengaluru; ₹5,400 cr additional VGF coming soon

Union Minister for New and Renewable Energy , Pralhad Joshi , on Friday inaugurated a Battery Energy Storage Systems (BESS) manufacturing facility in the Bidadi Industrial Area, Bengaluru. With an annual manufacturing capacity of 5 GWh, this facility stands as one of the largest and most advanced BESS plants in the nation. The newly inaugurated facility has a fully automated cell-to-pack assembly line, signaling a move towards precision-driven, high-quality production with minimal human intervention. This advanced manufacturing capability is expected to significantly contribute to grid stability, facilitate renewable energy integration, manage peak demand, and aid in frequency regulation. During the inauguration, Minister Joshi emphasised the critical role of reliable energy storage in achieving India's ambitious target of 500 GW of non-fossil fuel capacity by 2030. "As more renewable energy comes into our grid, having reliable storage is more important than ever," he stated. Further demonstrating the government's commitment to energy storage, Minister Joshi announced plans to roll out an additional ₹5,400 crore as viability gap funding (VGF) to support the establishment of 30 GWh of battery storage systems. This new allocation comes on top of the existing ₹3,700 crore under the current VGF scheme, which has already facilitated the implementation of 13.2 GWh of BESS projects. "As India rolls out the VGF scheme for battery storage and works with stakeholders across sectors to grow the storage market, having world-class manufacturing like this will be very important," the minister remarked. "It will help meet rising demand, reduce imports, and make our power grid more efficient. Our renewable capacity is growing fast: we are adding 25–30 GW every year." Highlighting the immense potential of the sector, Minister Joshi cited the India Energy Storage Alliance (IESA), which projects the country's energy storage sector to attract a staggering ₹4.79 lakh crore investment by 2032. Furthermore, the Central Electricity Authority (CEA) estimates a project requirement of 411.4 GWh of energy storage systems by 2032, comprising 175.18 GWh from Pumped Storage Projects (PSP) and 236.22 GWh from BESS. "I believe that India can become a global manufacturing hub for BESS, from batteries and inverters to software and control systems," Minister Joshi added. "Between 2022 and 2032, India plans to add over 47 GW of battery storage capacity, with a total investment of around ₹3.5 lakh crore."

ACME Solar Holdings wins NHPC tender for two BESS projects in Andhra Pradesh
ACME Solar Holdings wins NHPC tender for two BESS projects in Andhra Pradesh

The Hindu

time5 days ago

  • Business
  • The Hindu

ACME Solar Holdings wins NHPC tender for two BESS projects in Andhra Pradesh

ACME Solar Holdings Limited emerged as the successful bidder for the National Hydro Power Corporation (NHPC)'s tender for a cumulative capacity of 275 MW / 550 MWh standalone Battery Energy Storage System (BESS) projects in Andhra Pradesh (A.P.) across two projects at Kuppam (Chittoor) and Gani (Kurnool). According to an official release, the company's winning bid for the Kuppam project was at a tariff of ₹2,10,000 per MW per month with a capacity of 50 MW / 100 MWh. Its bid for the Gani project was at a tariff of ₹2,22,000 per MW per month with a capacity of 225 MW / 450 MWh. The projects require system availability for two full operational cycles of two hours each every day. ACME Solar will receive a Viability Gap Funding (VGF) of ₹27 lakh per MWh or 30% of the total project cost, whichever is lower. ACME Solar Holdings Chief Commercial Officer Rahula Kashyapa has said that the projects reflect the firm's commitment to pioneer innovative clean energy solutions that strengthen India's grid reliability and accelerate the nation's renewable energy transition. 'We are proud to support A.P.'s vision for sustainable growth and energy security. We look forward to delivering the projects that set new benchmarks for reliability, efficiency and positive community impact', Mr. Kashyapa stated. ACME Solar Holdings is a leading integrated renewable energy player with a diversified portfolio of 6,970 MW and 550 MWh spanning solar, wind, storage, Firm & Dispatchable Renewable Energy (FDRE) and hybrid solutions. The operational capacity stands at 2,890 MW with another 4,080 MW and 550 MWh in various stages of implementation.

Centre ready to set up first nuclear power plant in Bihar
Centre ready to set up first nuclear power plant in Bihar

United News of India

time24-06-2025

  • Business
  • United News of India

Centre ready to set up first nuclear power plant in Bihar

Patna, 24 June (UNI) Taking a major step towards promoting nuclear energy across the country, the central government today approved the Bihar government's proposal to set up a nuclear power plant in the state. Union Power Minister Manohar Lal made this announcement at the Power Ministers' Conference here. The Minister said: 'If the Bihar government sets up a nuclear power plant, the Central Government is fully prepared to provide support. We aim to set up a nuclear power plant in every state to ensure the country's energy security.' He added: 'There is also a request from Bihar government for a 1,000 MW battery storage project under Viability Gap Funding (VGF), and we have given in-principle approval for that as well.' He said India is fulfilling whatever power requirement is there in the country. Until a few years ago, India was known as a power-deficient country. However, today, India is not only fulfilling its needs but also exporting power to countries like Myanmar, Bhutan and Bangladesh. He noted that India successfully met a peak power demand of 250 GW in May 2024 and 242 GW thus far in 2025. But the peak demand is projected to rise further, reaching approximately 270 GW later this year. He said: 'India's peak electricity demand is projected to reach 446 GW by 2034–35 and meeting this sustainably requires proactive planning and continued coordination between the centre, states, and other stakeholders.' The Minister laid emphasis on ensuring Resource Adequacy and necessary power generation capacity tie-ups and advised states to ensure a balanced and diversified power generation mix. This should include the addition of nuclear generation capacity, with an aim to establish at least one nuclear power project in each state. The minister remarked that states should promote renewable energy coupled with energy storage systems in order to ensure reliability of supply of power. He mentioned India is moving towards having an increased share of renewable energy and the same has increased from 32% in 2014 to 49% in April 2025. He also highlighted the national ambition to achieve 100 GW of nuclear energy by 2047. He urged the states for reinforced implementation of Renewable Purchase Obligation (RPO) mandates and called upon them to form dedicated teams for these critical planning. A vision paper- 2035 was also prepared for the power sector, the Minister said adding that the country was already extensively working on Thermal Power, Solar Energy, wind power and projects related to storage of energy. UNI XC RS SSP

Bihar seeks Centre's nod for Rs 617 cr power infra upgrade, 2000 MW battery storage
Bihar seeks Centre's nod for Rs 617 cr power infra upgrade, 2000 MW battery storage

Time of India

time24-06-2025

  • Business
  • Time of India

Bihar seeks Centre's nod for Rs 617 cr power infra upgrade, 2000 MW battery storage

Patna: The state govt presented several key proposals to Union energy minister Manohar Lal Khattar at the 5th regional conference of eastern region energy ministers in Patna on Tuesday to further boost the state's power infrastructure. Among the major demands was the approval of Viability Gap Funding (VGF) for a 2000 MW Battery Energy Storage System (BESS) project to support grid stability and renewable integration. The state also sought approval of the revised detailed project report (DPR) worth Rs 617.73 crore for Scada-based real-time monitoring of power substations in Patna and other identified urban areas and rural regions. Implementation of this project will enable both Discoms to monitor all 33 KV and 11 KV feeders across Bihar from the central Scada centre in Patna, ensuring timely intervention and improved maintenance of power infrastructure, a press statement from state energy department stated. You Can Also Check: Patna AQI | Weather in Patna | Bank Holidays in Patna | Public Holidays in Patna The state govt also requested the Centre for immediate allocation of its 40.46% share (206 MW) of electricity from Bhutan's hydropower project, as notified by the ministry of power in Dec 2024 and June 2025, to be facilitated through NTPC Vidyut Vyapar Nigam. Further, the state raised concerns over limited allocation of hydropower from the central PSUs. Despite giving consent to procure 3,926 MW from projects operated by NHPC, SJVN, THDC, and NEEPCO, Bihar currently receives only 159 MW. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo The state requested additional joint allocation of 1,426 MW from upcoming projects like Kala HE, Tato I, and Arun III HEPs. Regarding a nuclear project in the state, it said NTPC teams have already surveyed potential sites in Banka (Badua Bagh) and are scheduled to visit Siwan. Another important proposal included the "islanding" of Patna city through the Nabinagar Power Generating Station, which has been technically identified as suitable for the purpose. The estimated cost of the project is Rs 9.79 crore and it includes supply, construction, commissioning, and minor civil works. This project should be funded through the Power System Development Fund (PSDF), it added.

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