Electricity Generation vs Installed Capacity: Unraveling the Power Puzzle

In the realm of electricity production, two puzzling terms often leave us scratching our heads: installed capacity and actual electricity generation. While they may appear similar at first glance, they hold distinct meanings that significantly impact our understanding of the power landscape. Unravelling the mysteries behind installed capacity and actual electricity generation is crucial for comprehending the actual energy landscape. Let us look at these two terms in detail.

Installed capacity is the maximum electric output an electricity generator can produce under specific conditions. And electricity generation is the amount of electric energy produced during a specific period of time. That is, if a power plant has 100 MW capacity and it runs at full capacity for 1 hour, it will produce 100 MWh (MegaWatt hour) of energy. If it runs at half the capacity, it will produce only 50 MWh of energy. Most power plants do not operate at their full capacity all the time. This causes the disparity in installed capacity and electricity generation of different sources when we look at the percentage contributions.

India has 416,591 MW of installed capacity. Out of this, 237,269 MW (57 %) is from fossil fuel sources. The rest, 179,322 MW (43 %), is from renewable sources. You can read more about installed capacity in India here. And 43% sounds like a great number, but is this the reality? Do renewable sources contribute 43 % of the total energy produced in the country? The short answer is No.

Electricity Generation

If all the power plants in India, that is 416,591 MW of capacity, are used for 24 hours and 365 days, we can produce a whopping 3,650,000 GWh (1 GWh = 1,000 MWh) of electricity. But this is not true, as power plants don't operate at full capacity all day, every day. The actual electricity generation in the country is about 1,719,226 GWh. Here is the actual breakdown of electricity generated by sources (for 2021-22).

Avenue	Electricity Generation (GWh)
Coal	1,282,444 (74.6 %)
Gas	56,193 (3.3 %)
Oil	2215 (0.1 %)
Total Fossil Fuel	1,340,852 (78.0 %)
Hydro	151,945 (8.8 %)
Small Hydro Power	10,463 (0.6 %)
Wind	68,640 (4.0 %)
Solar	73,483 (4.3 %)
Biomass Power/Cogeneration	16,056 (0.9 %)
Other	2,268 (0.1 %)
Nuclear	47,019 (2.7 %)
Other Captive Renewable	8,500
Total Non-Fossil	378,374 (22.0 %)
Total Electricity Generation	1,719,226 (100.0 %)

Conclusion

In India, while non-fossil fuels contribute 43% to the installed capacity, only 22% of the actual electricity generation comes from renewable sources. A concerning 74% is generated from coal, a highly polluting source. This disparity highlights the urgent need to accelerate the transition to cleaner energy sources and reduce reliance on coal. It is crucial to invest in renewables, implement supportive policies, and prioritize sustainability to ensure a greener future for India. There is a long way to go, and together, we can drive the necessary changes and pave the way for a cleaner and more sustainable energy landscape.