Autobayng News Team
EVs are emerging as a key structural demand driver, prompting the need for both thermal and renewable capacity expansion.“>
India’s energy demand is poised for 6 per cent growth per annum, owing to rapid adoption of electric vehicles, alongside demand from data centres and green hydrogen, according to CareEdge Ratings.
The report noted that the power sector is witnessing strong growth momentum, with demand rising between 7.7 per cent and 9.4 per cent during FY22–FY24, as the country’s economic expansion and new energy use cases add pressure on existing infrastructure.
EVs are emerging as a key structural demand driver, prompting the need for both thermal and renewable capacity expansion. The government has already targeted 100 GW of new thermal capacity by FY32, with 33.2 GW under construction, to provide stability as renewable and storage solutions scale up.Non-fossil sources to boost power generation
The report projects the share of non-fossil sources in India’s power generation mix to increase from 25 per cent in FY25 to more than 35 per cent by FY30, led by solar, followed by wind. EV charging infrastructure, along with grid-ready storage, is expected to be a catalyst for this transition.
Plant Load Factors (PLFs) for thermal plants have improved from 56 per cent in FY20 to 70 per cent in FY25, reflecting strong demand from emerging segments such as electric mobility. Meanwhile, domestic coal supply has risen at a 9 per cent compounded annual growth rate over the last five years, reducing import dependence.CareEdge added that falling battery storage costs, coupled with reforms in distribution and improved financial health of discoms, will support reliable grid expansion to meet the rising electricity demand from EVs and other new-age industries.
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