ndia will need an estimated USD 2.2 trillion investment in its power sector over the next 20 years to support rising electricity demand and the ongoing energy transition, Power Secretary Pankaj Agrawal said on Thursday. Speaking at the Bharat Electricity Summit 2026 in New Delhi, Agrawal emphasised that achieving this scale of investment would depend on maintaining a financially viable power sector. “India itself will require an investment of about USD 2.2 trillion over the next two decades. This would require a financially viable power sector to achieve,” he said.
Capacity Expansion Driven by Renewables
India’s power sector has witnessed significant growth over the past decade, with installed capacity surpassing 500 GW, largely driven by renewable energy additions.
Agrawal emphasised that solar power, in particular, has been central to this expansion, helping position India among the leading nations in clean energy adoption.
The country is also emerging as a manufacturing hub for renewable energy equipment, on the back of government initiatives
On the grid front, Agrawal pointed out that India operates one of the world’s largest integrated electricity networks, with continuous efforts underway to enhance grid resilience and reliability.
Notably, Agrawal highlighted the large-scale rollout of smart meters, which is expected to improve transparency and enable a more data-driven approach to power distribution.
Shift Towards Systemic Reforms
While India has made substantial progress in building physical infrastructure, Agrawal insisted that the next phase of development will focus on systemic improvements, like reforms in market design, pricing mechanisms, and institutional frameworks to support a more efficient and responsive power system.
The transition from traditional centralised systems to dynamic, data-driven models is expected to become increasingly important as renewable energy penetration rises.
Integrating Renewables and Emerging Opportunities
Putting emphasis on energy storage, demand response, and flexible generation, Agrawal insisted that integrating higher shares of renewable energy will require new approaches.
These developments are expected to create opportunities for innovation in business models and consumer engagement within the power sector.
Furthermore, he pointed to electric mobility as a key emerging trend, noting that aligning EV charging patterns with renewable energy generation could improve overall system efficiency.
