Uttar Pradesh has set a target of Rs 40,000 crore investments in the energy sector to meet an estimated peak demand of 53,000 megawatt (Mw) by 2028. The bulk of these investments will be by private sector companies, officials have said.
The state’s peak energy demand stands at 26,000 Mw now. The steep proliferation in the state energy demand is attributed to the projected setting up of new industries and manufacturing plants over the next five years.
“Due to an increase in electricity consumption, energy sector majors will make big-ticket investments in the sector, thus will play an important role in making the state a trillion-dollar economy,” a senior state official said.
The state is aiming to achieve the trillion-dollar economy tag by 2027.
To spur fresh investments in the energy landscape, the government is offering a number of incentives, such as stamp duty waiver and capital interest subsidies. Officials said a bunch of big companies had already evinced interest in partnering with the state.
In a recent review meeting, Chief Minister Yogi Adityanath had stressed that power would be crucial to the state becoming a trillion-dollar economy, since greenfield and brownfield projects would require huge quantities of energy, which would be met through different sources, including thermal and solar.
By 2028, the state’s total power consumption will be 277,000 million units (MU), of which 98,000 MU will be used for industrial purposes.
“The state’s electricity demand is expected to increase at an annual rate of 16 per cent. This would push the peak hour energy demand from 26,000 Mw to 53,000 Mw by 2028,” he underlined.
At the same time, the rate of electricity consumption is predicted to be 23 per cent in the commercial and industrial spaces, and 14 per cent in the residential vertical. As such, the industrial consumption in 2028 is estimated at 98,000 MU.
Meanwhile, the western region of UP is expected to witness much higher levels of industrial electricity use compared to other parts of the state. The western region is predicted to consume the highest 62 per cent of energy because of a greater concentration of industries and commercial establishments.
Besides, the state is targeting 22,000 Mw of solar energy generation in the next five years to supplement the thermal power generation and consumption.