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India will need cumulative investments of USD 14.23 trillion in its power sector by 2070 to achieve its net-zero emissions target, with non-fossil fuel sources accounting for 98% of electricity generation, according to a new report released by NITI Aayog on Tuesday.The report, titled “Scenarios Towards Viksit Bharat and Net Zero: Sectoral Insights – Power”, highlights that India’s development and climate ambitions are increasingly dependent on the electricity sector. As the country moves toward Viksit Bharat 2047 and Net Zero 2070, the pace and quality of power sector growth will determine whether economic expansion remains inclusive and sustainable.It notes that reliable, affordable, and cleaner electricity is essential to improve living standards,
boost productivity, and enable decarbonisation across transport, industry, and buildings.As of December 2025, India had installed nearly 258 GW of renewable energy capacity, making it the world’s fourth-largest renewable energy market. However, the next phase of growth will be more complex, with electricity demand set to rise sharply due to urbanisation, increased cooling needs, digitalisation, electric vehicles, and green hydrogen.The report stresses that meeting future demand will require not just adding generation capacity, but also strengthening energy storage, transmission networks, modern grid operations, and improving the financial health of distribution companies to ensure reliable and affordable clean power at scale.To assess future pathways, the study models India’s power sector under two scenarios: a Current Policy Scenario (CPS) and a more ambitious Net Zero Scenario (NZS) aligned with the 2070 target. Electricity’s share in final energy consumption is projected to rise from 21% in 2025 to nearly 40% under CPS and 60% under NZS by 2070.Per-capita electricity consumption is expected to increase from 1,400 kWh in 2025 to 7,000–10,000 kWh by 2070, approaching levels seen in advanced economies such as France and South Korea.By 2070, total installed power capacity is projected to rise ninefold under CPS and fourteenfold under NZS. Renewable energy will dominate the mix, with its share growing from about 43% in 2025 to 90–93% by 2070. Solar power will form the backbone, with capacity reaching 3,250–5,500 GW, while onshore wind is expected to exceed 1,000 GW, alongside 50–70 GW of offshore wind.Energy storage will play a critical role, with battery storage capacity projected at 2,500–3,000 GW under the net-zero scenario, and pumped hydro storage reaching around 150–160 GW. Nuclear power is also expected to emerge as a strategic pillar, expanding from 8.8 GW in 2025 to over 300 GW by 2070, providing firm and low-carbon electricity.While land requirements for renewable energy will increase, the report notes they will remain modest—around 12% of current wasteland even under the net-zero scenario.Overall, NITI Aayog describes India’s power sector transition as unprecedented and highly capital-intensive, with total investment needs estimated at USD 8.79 trillion under current policies and USD 14.23 trillion under the net-zero pathway by 2070.
