What Happened
- Union Power Secretary Pankaj Agarwal stated that India will require approximately $2.2 trillion in power sector investment over the next two decades to meet its projected electricity demand and clean energy transition targets.
- India's installed power capacity stood at approximately 520 GW as of early 2026, and the Central Electricity Authority (CEA) projects this to more than double to 1,121 GW by 2035-36, with solar PV becoming the dominant source at 509 GW (45% of total capacity).
- Officials highlighted PM-Kusum (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan) as a key rural energy program — which has accelerated solarization of agriculture pumps and aims to solarize 32 lakh homes as part of its latest expansion.
- Plans for an undersea power link with the UAE — a proposed HVDC (High Voltage Direct Current) interconnector of approximately 2,000–2,500 MW capacity — were referenced as part of India's "One Sun One World One Grid" (OSOWOG) vision for cross-border renewable energy sharing.
- Market reforms and technological innovation — including battery energy storage, demand-side management, and green hydrogen — were identified as essential enablers for sustainable power sector growth alongside capital investment.
Static Topic Bridges
Central Electricity Authority (CEA) and Electric Power Survey
The Central Electricity Authority (CEA) is a statutory body under the Ministry of Power, established under the Electricity (Supply) Act, 1948. It functions as the technical advisory body for India's power sector — preparing the National Electricity Plan, conducting the periodic Electric Power Survey, advising on grid standards, and assessing generation capacity requirements. The Electric Power Survey (EPS) is conducted periodically to project India's electricity demand and supply requirements over a 10-15 year horizon, informing investment and policy planning.
- CEA operates under the Electricity Act, 2003 (which replaced the 1948 Act)
- The 20th EPS Midterm Review (released March 2026) projects peak demand to reach 459 GW by 2035-36 and total electricity requirement of 3,365 billion units
- Peak demand is projected to grow at 5.58% annually; overall energy requirement at 6.41% annually
- Non-fossil fuel capacity is projected to reach ~70% of total by 2035-36
Connection to this news: The $2.2 trillion investment figure cited by the Power Secretary is derived from CEA's demand-supply projections in the 20th EPS Midterm Review — which forms the analytical basis for India's power sector investment planning.
PM-Kusum Scheme — Solarizing Agriculture
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-Kusum) is a centrally sponsored scheme launched in 2019 under the Ministry of New and Renewable Energy (MNRE) aimed at ensuring energy security for farmers while promoting renewable energy in the agriculture sector. It has three components: decentralized solar plants (Component A), stand-alone solar pumps (Component B), and solarization of grid-connected agriculture pumps (Component C).
- Total target: 34,800 MW solar capacity with central financial support of ₹34,422 crore
- Component B: 14 lakh stand-alone solar agriculture pumps; 4.4 lakh installed in FY25 (4.2x jump over previous year)
- Component C: 35 lakh grid-connected pumps to be solarized; 2.6 lakh solarized in FY25 (25x over FY24)
- Budget allocation for PM-Kusum in FY26: ₹2,600 crore (26% increase over FY25 actuals)
- Dual benefit: reduces agricultural diesel subsidy burden + increases renewable generation
Connection to this news: PM-Kusum is one of the flagship programs cited by officials as evidence of India's multi-pronged approach to power sector investment — combining decentralized generation at the farm level with the large-scale capacity additions projected by CEA.
One Sun One World One Grid (OSOWOG) and India–UAE Undersea Power Link
OSOWOG is India's initiative — endorsed at COP26 in 2021 and jointly promoted with the International Solar Alliance (ISA) — to create a globally interconnected renewable energy grid that allows solar power to be shared across time zones and continents, effectively making solar dispatchable at a global scale. The India–UAE undersea HVDC cable is a flagship project under this vision, with a proposed capacity of 2,000–2,500 MW and a route through the Arabian Sea. This would be among the longest undersea power transmission projects undertaken by India.
- OSOWOG vision: "The Sun Never Sets" — using time-zone differences to share solar across regions
- India–UAE HVDC interconnector proposed capacity: 2,000–2,500 MW
- Total estimated investment for India's cross-border undersea grid projects: approximately ₹40,000 crore
- HVDC (High Voltage Direct Current) technology is preferred for long-distance submarine transmission due to lower losses
- International Solar Alliance (ISA) — headquartered in Gurugram — is the multilateral body advancing OSOWOG
Connection to this news: The Power Secretary's mention of the UAE undersea power link situates the bilateral project within India's larger energy diplomacy agenda, aimed at creating resilient cross-border energy ties with Gulf nations even as the West Asia crisis strains trade relations.
India's Energy Transition: Coal Alongside Renewables
India's energy transition is distinctive in that it does not involve a near-term phase-out of coal. The CEA's projections reflect this: while solar will become the dominant installed capacity source by 2035-36, coal is projected to remain the largest source of electricity generation (51% of gross generation at 1,819 billion units). This "energy addition" model — growing renewables rapidly while maintaining coal for reliability — is driven by India's large unmet energy demand, grid stability concerns, and the economic stakes of coal-dependent regions and workers.
- Installed coal capacity projected to reach 315 GW by 2035-36 (up from ~230 GW today)
- Coal's share in electricity generation expected to decline from 64% (FY27) to ~49% (FY36) even as absolute generation rises
- Energy storage requirement: 174 GW/888 GWh by 2035-36 (80 GW BESS + 94 GW pumped storage)
- India needs to add ~97 GW of new coal capacity by 2035 to meet demand alongside renewables
- India's NDC target: 500 GW non-fossil capacity by 2030
Connection to this news: The $2.2 trillion investment figure encompasses this entire transition — coal capacity additions, renewable buildout, grid infrastructure, storage systems, and transmission — reflecting the scale of India's energy challenge.
Key Facts & Data
- India's current installed capacity: ~520 GW (as of early 2026)
- Projected capacity by 2035-36: 1,121 GW (CEA 20th EPS Midterm Review)
- Solar PV share: 509 GW (45% of total) by 2035-36
- Non-fossil fuel capacity: ~70% of total by 2035-36
- Total investment required: $2.2 trillion over 20 years
- Peak demand projection: 459 GW by 2035-36 (growth rate: 5.58% p.a.)
- Electricity requirement: 3,365 BU by 2035-36 (growth rate: 6.41% p.a.)
- Energy storage target: 174 GW/888 GWh (80 GW BESS + 94 GW pumped storage)
- PM-Kusum FY26 budget: ₹2,600 crore; Component B installed 4.4 lakh pumps in FY25
- India–UAE undersea HVDC cable: 2,000–2,500 MW proposed capacity