Key Achievements in FY 2025‑26

  • Record Supply & Reliability: Peak demand of 242.49 GW met; energy shortage reduced to 0.03 % (down from 4.2 % in 2013‑14). Rural and urban power availability increased to 22.6 hrs and 23.4 hrs respectively.
  • Capacity Expansion: Total installed capacity reached ≈509 GW (as of Nov 2025), a 104.4 % rise since 2014. Added 55.57 GW in 2025 alone.
  • Renewable Additions: Since 2014, 178 GW of renewable capacity added – 130 GW solar, 33 GW wind.
  • Thermal & Coal Security: New coal capacity of 13.32 GW; total thermal capacity 226.23 GW. Coal stocks at 51.7 MT under the revised SHAKTI Policy 2025.
  • Storage & Transmission:
  • Target of 57 GW Pump Storage Projects (PSP) by 2031‑32.
  • 43,220 MWh Battery Energy Storage System (BESS) under VGF.
  • Transmission network to reach 6.48 lakh circuit km by 2032 (currently ~5 lakh ckm).
  • Distribution Reforms: Under Revamped Distribution Sector Scheme (RDSS), 19.79 crore prepaid smart meters installed; AT&C losses cut to 16.16 %; gap between ACS & ARR reduced to ₹0.11/kWh.
  • Consumer Outreach: 13.65 lakh households electrified under PM‑JANMAN and DA‑JGUA.
  • Energy Efficiency & Carbon Market:
  • Launch of Carbon Credit Trading Scheme (CCTS) covering sectors like aluminium, cement, steel.
  • Expansion of Standards & Labelling to 41 appliances.
  • ADEETIE scheme for MSME energy efficiency.
  • Regulatory Reforms: Late Payment Surcharge Rules, 2022 reduced DISCOM dues from ₹1,39,947 cr to ₹8,005 cr. Electricity (Amendment) Rules, 2025 enabled consumer‑owned storage.
  • Climate Commitment: Achieved NDC target of 50 % cumulative non‑fossil capacity five years early; share rose from 32 % (2014) to 51 % (Oct 2025).

Carbon Credit Trading Scheme (CCTS)

  • Objective: Price GHG emissions and create a national carbon market to meet India’s climate goals.
  • Transition from PAT: Moves from energy‑efficiency‑focused Perform, Achieve and Trade (PAT) to direct GHG intensity reduction.
  • Instrument: Carbon Credit Certificates (CCC) – each represents 1 tCO₂e reduction.
  • Mechanisms:
  1. Compliance – Mandatory for energy‑intensive sectors (aluminium, cement, fertilizers, iron & steel) to meet sector‑specific emission targets.
  2. Offset – Voluntary participation for entities outside the compliance framework.
  • Coverage: Initially 16 % of India’s total emissions; power sector (≈40 %) may be added later.
  • Governance: Managed by Bureau of Energy Efficiency (BEE) and National Steering Committee for Indian Carbon Market (NSCICM).
  • Strategic Importance: Supports the target of 45 % emission‑intensity reduction by 2030 and attracts private investment in clean tech, renewables, and carbon capture.

Significance for India

  • Energy Security: Robust capacity and storage reduce reliance on imports and mitigate peak‑load stresses.
  • Economic Growth: Investment of USD 450 bn projected by 2032; improved transmission and distribution efficiency lower costs for industry and consumers.
  • Climate Action: Early achievement of NDCs and CCTS position India as a leader in the emerging global green finance market.
  • Policy Implications: Demonstrates integrated approach – infrastructure expansion, regulatory reforms, and market‑based mechanisms – essential for sustainable development.

Related Constitutional/Legal Provisions

  • Article 48A (Directive Principle) – State to protect and improve environment.
  • Electricity Act, 2003 – Provides framework for generation, transmission, distribution; amended in 2025 to allow consumer‑owned storage.
  • National Electricity Policy (2023‑32) – Guides capacity, transmission, and renewable targets.

Potential UPSC Questions

  • Mains: Examine the role of the Indian Carbon Market and CCTS in driving industrial decarbonisation and positioning India in the global green finance landscape.
  • Prelims: Facts on peak demand, installed capacity, renewable additions, and AT&C loss reduction.

Prepared for UPSC aspirants – Drishti IAS