The government will unveil new policies to boost hydropower and electricity from biomass, biofuels.
Energy Minister Piyush Goyal said, "The government will also correct transmission bottlenecks, improve last-mile grid connectivity and take steps to increase demand for electricity as many power plants are running at a low capacity."
He said the country can also expect initiatives to correct transmission bottlenecks and replacement of diesel generators with reliable supply, which would generate demand for electricity from underutilised power stations and reduce the use of standby generation that is often very polluting.
The ministry is banking on large scale rural electrification, correcting transmission bottlenecks, improvement in last mile connectivity, and replacement of diesel generators to increase the demand, Goyal said.
Goyal said lack of adequate transmission capacity in many states results in reduced power supply despite substantial demand. He said improved last mile connectivity would lead to reduced usage of diesel generator sets.
Share of hydropower generation in India has shrunk to just 15%, though the country ranks fifth in the world in hydroelectric potential.
Long construction period, lack of transport infrastructure, geological risks, land acquisition and environmental and religious concerns have slowed hydropower projects including 50,000 Mw being allocated to private companies in north and northeast India.
The power ministry is working on a plan to shift to electric vehicles by 2030, and has significantly stepped up the use of energy-efficient LED lighting.