en.Wedoany.com Reported - Macquarie Equity Research noted that India's power system is entering a phase of synchronized reset across generation, transmission, and distribution, with transmission capital expenditure and energy storage set to take center stage over the next decade. The firm estimates installed capacity will grow from the current 538 GW to 900 GW by fiscal 2032, with coal-fired power maintaining baseload stability at a load factor exceeding 65%, while renewables will provide most of the new capacity. The research also indicated that 74 GW of energy storage will be needed by 2032 to manage intermittency and meet evening peak demand.
During the May 2026 heatwave, peak demand reached a record 271 GW. The Central Electricity Authority (CEA) expects power demand to grow at a compound annual growth rate of 6% by 2030. The International Energy Agency (IEA) forecasts average annual electricity consumption growth of 6.4% through 2030, driven primarily by cooling demand (accounting for over 20% of incremental growth) and new high-load sectors such as data centers and electric mobility. Industrial demand remains substantial.
The report highlighted a transmission-led capital expenditure super-cycle and estimated that India needs $51 billion in transmission investment by 2030 to accommodate 500 GW of non-fossil fuel capacity, and 900 GW by 2035-36. Time is a major constraint, with generation assets requiring 12 to 18 months to build, while transmission corridors take 36 to 48 months; without cross-regional development, the risk of curtailment increases. Between May and December 2025, the grid lost 2,300 GWh due to midday solar surges exceeding absorption capacity.
Under the Revamped Distribution Sector Scheme (RDSS), 2.83 trillion rupees have been approved, with plans to install 203 million smart meters to help the sector turn profitable. Aggregate technical and commercial losses have fallen from 22% in fiscal 2021 to 15%. Distribution companies (DISCOMs) reported a profit of 25 billion rupees in fiscal 2025, and overdue payables have dropped below 500 billion rupees. Regulatory reforms such as the Draft National Electricity Policy 2026 and the Electricity (Amendment) Bill 2026 aim to push the industry toward a market-based system. The brokerage stated that the next phase will depend on whether transmission and energy storage can keep pace with demand.
