$1 Trillion Economy: Govt targets investment of Rs 40,000 crore in energy sector
Lucknow: The Yogi government in Uttar Pradesh has set an investment target of Rs 40,000 crores in the energy sector to expand the energy sources in the state in light of the anticipated increase in electricity consumption over the next five years due to the establishment of industries.
To reach the goal of turning the state’s economy into a trillion-dollar one, Chief Minister Yogi Adityanath has asked numerous large companies to invest in the state. For this, the Yogi government is also giving concessions, as a result of which prominent businesses from both within and outside of the country have expressed an interest in investing in the state.
Due to the arrival of new industries, the state’s electricity consumption will inevitably rise. Experts predict that the state’s peak electricity demand will be 53,000 MW in 2028, up from 26,000 MW in the present year 2022.
To increase the energy source in the state and its contribution to the $1 trillion economy, the Yogi government has set a goal of investing Rs 40,000 crores in this area.
Electricity usage will rise by 16% annually
In a high-level meeting, officials informed Chief Minister Yogi Adityanath that power will be crucial to the state’s goal of becoming a trillion-dollar economy. In fact, renowned businesses from around the nation and overseas have expressed an interest in investing in the state.
In such a situation, there will be a need for large-scale power supply for the operation of these companies, which will be met through various sources of energy.
According to the officials, due to the increase in electricity consumption in the state, energy sector companies will also come for investment to meet the need, which will also play an important role in making the state a one trillion dollar economy.
The peak demand for electricity consumption in the current year 2022 is 26,000 MW, according to officials at the meeting. This demand is predicted to increase to 53,000 MW over the course of the following five years, to 2028. Electricity demand will increase at a rate of 16 per cent every year, which will be at the rate of 11 per cent in best-in-class and 8 per cent in business-as-usual.
At the same time, the rate of electricity consumption is predicted to be 23 per cent in the commercial and industrial sectors and 14 per cent in the residential sector. In this case, the industrial consumption in the year 2028 will be 98000 million units.
In the western region, industrial electricity use will be the highest
The western area of the state is predicted to consume the most industrial electricity in the state, at 62 percent, because there are numerous companies operating there presently. Large industries may decide to invest in the state’s western region in such a circumstance. In such a scenario, the state’s total power consumption in 2028 will be 277000 million units, of which 98000 million units will be used for industrial purposes.