India is preparing to build 300 GW of power generation capacity next year to meet rising electricity demand driven by data centres, electric vehicles (EVs) and artificial intelligence (AI), Union Power Minister Manohar Lal Khattar said. Speaking at the Vibrant Gujarat Regional Conference in Vadodara, he highlighted India’s record peak power demand of 271 GW and the country’s expanding energy infrastructure to support economic growth.
Key Highlights
✅ India plans to prepare 300 GW power generation capacity next year to meet rising electricity demand.
✅ Power demand is expected to increase by 30 GW due to AI, data centres and electric vehicles.
✅ India successfully met a record peak electricity demand of 271 GW this summer.
✅ Installed power generation capacity has increased from 249 GW in 2014 to 542 GW today.
New Delhi, June 29: India is gearing up to significantly expand its electricity generation capacity, with plans to prepare 300 gigawatts (GW) of power generation capacity next year to meet rapidly growing demand from data centres, electric vehicles (EVs), artificial intelligence (AI) and expanding industrial activity, Union Minister for Power, Housing and Urban Affairs Manohar Lal Khattar announced on Monday.
Speaking at the inaugural session of the Vibrant Gujarat Regional Conference (VGRC) for Central Gujarat in Vadodara, the Minister said the government has adopted a long-term strategy to ensure that rising electricity demand does not become a bottleneck for India’s economic growth.
Reliable Power Driving Economic Growth
Highlighting the critical role of electricity in economic development, Khattar said reliable power supply is one of the strongest foundations of a robust economy.
He noted that industries, MSMEs, metro rail systems, hospitals, data centres and emerging digital technologies all depend on uninterrupted electricity supply, making continuous investments in the power sector essential for sustaining India’s growth trajectory.
The Minister added that the Centre has proactively expanded generation capacity to meet future demand rather than reacting after shortages arise.
Record Peak Power Demand Successfully Met
Khattar pointed out that India recorded its highest-ever peak electricity demand since Independence during the recent summer season.
Despite the unprecedented demand, the country successfully met a peak requirement of 271 GW, while maintaining preparedness with an available capacity of 284 GW, ensuring there were no major power shortages.
He said the achievement reflects years of planning, infrastructure development and reforms undertaken by the government.
300 GW Capacity Planned for Next Year
According to the Minister, India’s electricity demand is projected to increase by another 30 GW in the coming years, driven primarily by the rapid expansion of:
- Artificial Intelligence (AI)
- Data Centres
- Electric Vehicles (EVs)
- Digital Infrastructure
- Industrial Manufacturing
To meet this anticipated growth, the government has already planned for 300 GW of power generation capacity next year, ensuring adequate electricity supply for India’s fast-growing economy.
Khattar described the expansion as the result of strategic planning rather than a short-term response to increasing demand.
India’s Power Sector Transformation
The Union Minister highlighted the remarkable transformation of India’s electricity sector over the past decade.
He noted that in 2014, India’s electricity demand stood at approximately 136 GW, and even that demand could not always be fully met.
Today, demand has nearly doubled, yet India is consistently meeting the energy requirements of one of the world’s fastest-growing economies.
Similarly, the country’s installed power generation capacity has increased significantly—from 249 GW in 2014 to approximately 542 GW today—providing a strong foundation for future industrial and economic expansion.
Expanding Electricity Access
Khattar also highlighted the government’s efforts to provide universal electricity access through flagship initiatives.
Under the Saubhagya Scheme, nearly three crore households have received electricity connections over the past few years, significantly improving rural electrification and quality of life.
He added that the PM Surya Ghar Muft Bijli Yojana is further expanding clean energy adoption by promoting rooftop solar installations across the country.
The government is also strengthening the national transmission network through the “One Nation, One Grid, One Frequency” initiative, enabling seamless integration of electricity generation and transmission across states.
Gujarat Emerging as Renewable Energy Leader
Praising Gujarat’s achievements, Khattar described the state as one of India’s leading power-surplus states and a frontrunner in renewable energy development.
He said Gujarat has already installed more than 50 GW of renewable energy capacity, making it one of the country’s largest clean energy producers.
From the Renewable Energy Park in Kutch to its rapidly expanding industrial corridors, Gujarat has demonstrated that economic development and environmental sustainability can progress together.
Driving the Green Hydrogen Economy
The Minister also highlighted Gujarat’s leadership under the National Green Hydrogen Mission, stating that the state is rapidly developing the renewable energy capacity, transmission infrastructure and industrial ecosystem required to become a global hub for green hydrogen production.
As countries worldwide accelerate the transition towards low-carbon manufacturing, Gujarat is emerging as one of the world’s most competitive destinations for sustainable industrial growth.
Khattar emphasized that reliable electricity, stable government policies and modern infrastructure together provide investors with the confidence needed to establish industries and expand manufacturing operations.
He concluded by stating that continued investments in the power sector will play a crucial role in supporting India’s ambition of becoming a Viksit Bharat (Developed India) by 2047, while strengthening Gujarat’s position as a leading industrial and renewable energy hub.
Conclusion
India’s plan to prepare 300 GW of power generation capacity reflects the government’s forward-looking strategy to support rising electricity demand from emerging technologies, clean mobility and industrial expansion. Combined with rapid renewable energy growth, nationwide grid integration and continued infrastructure investment, the initiative will strengthen India’s energy security and accelerate its journey towards becoming a developed nation by 2047.
