The Indian power sector has witnessed substantial growth in generation capacity, with 420 GW (as of May 2024) meeting the energy needs of more than 1.4 billion people. The growth has been primarily driven by policy reforms such as the Electricity Act, 2003, and efficiency improvements. However, the Central Electricity Authority (CEA) predicted a night-time peak shortage of 14 GW in June 2024. Further, energy demand is soaring due to the country’s high economic growth rate and ecosystem development for new technologies such as electric vehicles.
In this scenario, the fact that some discoms are surrendering their allocations from central generating stations (CGSs) or power plants seems counterintuitive and requires a closer examination.
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Cover photo by Bernd 📷 Dittrich on Unsplash
