Page 156 - Hitachi IR 2025

MANAGEMENT DISCUSSION & ANALYSIS
2025‑27 period. While the electricity consumption of
the advanced economies as a whole remained almost
unchanged in CY 2024 compared with CY 2021,
these economies are expected to account for 15% of
global demand growth over the CY 2025-27 period.
Most of the additional demand for electricity over the
next few years is projected to come from the emerging
economies, which is expected to make up 85% of
this growth.
More than half of the global electricity demand in
CY 2024 came from China. Overall electricity demand
in CY 2024 grew 7%, similar to CY 2023. Supported by
economic expansion and with the growing ownership
of air conditioners, the South-East Asian countries,
India and other emerging markets are recording strong
demand growth. Electricity demand in China is forecast
to increase by 6% on an average annually by 2027.
India’s electricity demand is forecast to grow at an
average 6.30% annually over the next three years till
2027, stronger than the 5% average growth rate of
demand for electricity recorded during FY 2015 to
FY 2024.
Source: Electricity 2025 Report by IEA
India power sector
On the path to becoming a global energy leader
FY 2024-25 was a landmark year for India’s
power sector, with significant progress in energy
generation, transmission, and distribution. From
meeting peak power demand of 250 GW to reducing
energy shortages at the national level to 0.10%
during FY 2024-25, India’s power sector exhibited
resilience and commitment to sustainable growth. The
government’s efforts to ensure reliable, affordable, and
clean energy for all is evident from important strides
made in energy conservation.
India is set on the path to becoming a global energy
leader with pioneering initiatives such as universal
electrification, increasing availability of rural power,
and by embracing cutting-edge technologies. India is
the third-largest producer and consumer of electricity
worldwide. Power demand has increased rapidly in India
and is projected to rise further. India’s diversified sources
of power generation range from conventional sources
(such as coal, lignite, natural gas, oil and nuclear power)
to viable non-conventional sources (such as wind, solar,
hydro, agricultural, and domestic waste). Among the
G20 nations, India is the only country to have achieved
the targets under the Paris Agreement. However, to
be able to meet the increasing demand for electricity,
there is a need for massive addition in India’s installed
generating and transmitting capacity.
During FY 2024-25, India’s total installed electricity
generation capacity increased by 4.9% to 1,821 billion
units, as per data from the Central Electricity Authority,
compared with 1,739 billion units in the previous
financial year. With 33.24 GW of new generation
capacity added in FY 2024-25, capacity addition also
witnessed a strong momentum, taking the total installed
capacity to 475 GW. Renewable energy contributed
89% to the new capacity additions, compared with
71% in FY 2023-24. As on March 31, 2025, India's
renewable energy installed capacity reached 220.10
GW, compared to 190.57 as on March 31, 2024.
Source: https://www.ibef.org/industry/power-sector-india
India – Peak electricity load amid economic growth
Following a strong 8.30% increase in 2023, electricity
demand in India grew 5.80% in 2024 amid strong
economic growth. Peak electricity load in India has
shown strong growth in recent years, rising from 148
GW in 2014 to 250 GW (+68%) in 2024, led by
the rapid expansion of its industry, development of
agriculture, enhanced electricity access and increased
use of air conditioning and appliances in residential and
commercial sectors.
Source: Electricity 2025 Report by IEA
Daily peak load in cooling season compared to average temperature in India, 2019-2027
Daily peak load and average temperature
Additional peak load per 1 °C
2,60,000
2,40,000
2,20,000
2,00,000
1,80,000
1,60,000
1,40,000
12,000
10,000
8,000
6,000
4,000
2,000
0
MW
MW
25 26 27 28 29 30 31 32
°C
2019 2024
2019 2024 2027
Source: Electricity 2025 Report by IEA
154 Hitachi Energy India Limited