India’s Power Sector: Hydropower Expansion, Cybersecurity Initiatives, and Energy Consumption Trends

As per Section 177 of the Electricity Act 2003, the Central Electricity Authority (CEA) issued a draft Cyber Security Notification on August 20, 2024. The draft outlines the roles and responsibilities of various stakeholders in the power sector—including regional power committees, training institutes, commissions, governments, and vendors—in maintaining cybersecurity. It mandates collaboration with CERT-In and NCIIPC and prescribes the establishment of an Information Security Division (ISD) under the leadership of the Division CISO to ensure the safety and security of the sector’s cyber infrastructure.

The Ministry of Power has updated the country’s hydropower potential based on a re-evaluation study conducted by the Centre. This study estimates that between 2017 and 2023, India will have a hydropower capacity of 133,410 MW and 176,280 MW of pumped storage potential.

The Kakrapar Atomic Power Station (KAPS), managed by NPCIL, will soon operate at its full capacity of 700 MW following approval from the Atomic Energy Regulatory Board. Previously, the station had been functioning at 90% capacity.

PM-Suryagarh Initiative The Ministry of New and Renewable Energy (MNRE) has introduced guidelines for implementing the “Model Solar Village” under the Mufti Bijili Yojana. This initiative aims to establish a model solar village in every district nationwide.

Decline in Electricity Consumption In August 2024, electricity consumption fell by 4.7% compared to the previous year, with total usage recorded at 144.21 billion units. This decrease was primarily due to widespread rainfall across the country, which led to reduced air conditioning use. Peak electricity demand also saw a reduction, dropping to 216.58 GW from 236.29 GW last year. The average daily electricity price declined to Rs. 4.3 per unit, with regional variations in demand. The northwestern states, including Madhya Pradesh and Rajasthan, received 14% to 44% more rainfall, resulting in a 25% decrease in demand.

Overall electricity production also declined by 3%, with the largest reductions seen in coal and renewable energy sources, where output dropped by 13%. In contrast, hydropower generation increased by 7.6%, driven by insufficient rainfall in some regions. The price in the real-time electricity market fell to Rs. 3.3 per unit, compared to Rs. 6 per unit in August 2023.

Budgetary Support for Hydropower Projects The Union Cabinet has approved the Ministry of Power’s proposal to amend the infrastructure development plan for hydropower projects, allocating Rs. 61 billion for the period 2024-25 to 2031-32. This budget will be used to develop ancillary infrastructures such as roads, bridges, transmission lines, and communication networks for hydropower projects. The plan includes a capacity expansion of 3,935 MW.

Launch of Three Online Portals The Ministry of Power has launched three online portals to enhance project management and disaster resilience in the energy sector:

1. PROMPT (Portal for Online Monitoring of Projects) – Designed to monitor and analyze thermal power projects, this portal enables early detection of issues, facilitating timely decision-making and crisis management to ensure projects are completed on schedule.
2. JAL VIDYUT DPR – This portal supports hydropower and pumped storage projects by assisting developers and agencies in coordinating efforts for the smooth execution of projects.
3. DRIPS (Disaster Resilient Infrastructure for the Power Sector) – This platform enables rapid assessment of damage and recovery in the event of a disaster, ensuring resilience in the power infrastructure.