Power share in energy consumption to hit 60% by 2070: Niti Aayog report

Electricity will become the backbone of India’s development and climate strategy over the next five decades, with its share in final energy consumption projected to rise from 21% in 2025 to nearly 60% by 2070, according to a new NITI Aayog report.

Titled 'Scenarios Towards Viksit Bharat and Net Zero – Sectoral Insights: Power', the report outlines how the power sector will anchor economic growth and India’s 2070 net-zero target. It projects non-fossil fuel sources in power generation rising from 23% today to 80–85% by 2070.

Electricity demand will surge due to urbanisation, cooling needs, digitalisation, electric mobility and green hydrogen production. As mobility, industry and buildings electrify, electricity will dominate India’s energy mix. Under the Current Policy Scenario (CPS), its share reaches 40% by 2070; under the Net Zero Scenario (NZS), it hits 60%.

Per capita consumption is forecast to leap from 1,400 kWh in 2025 to 7,000–10,000 kWh by 2070, nearing levels in France and South Korea. India, already the world’s fourth-largest renewable market with 258 GW installed capacity, eyes massive scale-up. Total power capacity will grow nine-fold under CPS and 14-fold under NZS, with renewables (utility-scale and captive) comprising 90–93% by 2070, up from 43% in 2025.

Solar PV capacity could reach 3,250–5,500 GW by 2070, onshore wind over 1,000 GW and offshore wind 50–70 GW. Grid stability amid variable renewables demands vast storage. Battery storage capacity is projected to rise to 1,300–1,400 GW (CPS) or 2,500–3,000 GW (NZS), plus 150–160 GW pumped hydro. Nuclear capacity will expand from 8.8 GW to over 300 GW, aided by Small Modular Reactors for flexible clean power.

Cumulative investments are estimated at $8.79 trillion (CPS) and $14.23 trillion (NZS) by 2070. Spending will cover storage systems, transmission, distribution expansion and grid modernisation.

The policy blueprint recommends making solar-wind-storage hybrids the default procurement model, supported by priority hybrid zones and streamlined clearances. It also calls for implementing the proposed SHANTI Act to scale nuclear capacity to 100 GW by 2047 and 200–300 GW by 2070.

To ease land pressures and reduce transmission losses, the report advocates mainstreaming decentralised renewables such as rooftop solar, floating solar and building-integrated PV, backed by Viability Gap Funding (VGF) and standardised Renewable Energy Service Company (RESCO) models.