India’s peak power demand could reach 300 GW next year: Power Minister

“India’s peak power demand is set to reach 300 GW next year, driven by the rapid expansion of data centers, artificial intelligence, and electric vehicles,” said Manohar Lal, power minister, at the 12th India Energy Storage Week (IESW) 2026 in New Delhi. He added that peak demand has already reached 271 GW and the peak may rise even further this year.

India’s installed power generation capacity has grown from 249 GW in 2014 to 543 GW, while solar capacity has surged more than fifty-fold over the past twelve years to more than 162 GW.

“As our [power] needs rise, energy storage becomes a national imperative, ensuring the power generated can be used whenever and wherever it’s needed,” noted the minister. “While earlier consumption happened instantly upon generation, now, through advanced storage and grid solutions, we can shift and utilize energy according to our needs.”

The minister highlighted India’s leadership in pumped storage projects since 1923 and the growing importance of storage in bridging the gap between variable renewable generation and round-the-clock demand. He also highlighted India’s efforts to build transnational green energy corridors, including a proposed 1,600-kilometre undersea cable to the UAE with an estimated cost of INR 40,000 crore, and expansion plans for connections to Sri Lanka, Singapore, and even Europe.

The Minister said government policy initiatives such as the ISTS charges waiver, streamlined building guidelines, Time of Day tariffs, and green open access rules are all designed to encourage renewable energy adoption, support market access for generators, and benefit consumers.

Ghanshyam Prasad, Chairperson, Central Electricity Authority (CEA), said, “India is targeting around 160 GW of storage by 2035, with clear roadmaps for both battery and pumped hydro storage. With robust infrastructure, strong private sector participation, and a renewed focus on domestic content and standardisation, we are laying the foundation for reliable, round-the-clock renewable energy.”