Key Points
- 35 per cent of Indian power generation firms have already adopted AI in core operations
- AI adoption in power plants projected to surge 65 per cent by 2030
- Data centre electricity demand forecast to reach 13.56 GW by FY2031-32
Artificial intelligence adoption in India’s power generation sector is projected to increase 65 per cent by 2030, with 35 per cent of generation companies already deploying the technology in core operations, according to a survey released on Thursday (6 August).
The survey, conducted by The Energy and Climate Initiatives Society (ENCIS), a think tank focused on global energy and climate policy, found that nearly seven out of ten professionals believe power generation offers the best opportunity for efficiency gains using AI over the next five years.
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The findings come as India’s electricity infrastructure faces rising demand from the country’s expanding digital economy. Data centre capacity is projected to grow from 1.5 gigawatts in 2025 to 7 GW by 2030, while electricity demand from data centres alone is forecast to reach 13.56 GW by FY2031-32.
Predictive maintenance
The survey, which covered 250 professionals from utilities and technology companies across Delhi NCR, Mumbai, Pune, Bengaluru and Chennai, identified predictive asset management, where AI systems analyse equipment data to forecast failures before they occur, as the most promising application. Some 54 per cent of respondents said these technologies would help power producers catch faults early, reduce outages and extend equipment life.
Bhupinder Singh Bhalla, honorary chairman, Bharat Electricity Council at ENCIS and former secretary of the Ministry of New and Renewable Energy, said the technology could transform plant operations.
“By 2030, the decisive divide will not be between conventional and renewable generation; it will be between assets that learn and assets that merely operate,” he said.
“India is adding capacity at historic scale, but the next productivity frontier lies in extracting greater availability, flexibility, safety and operating life from every asset. AI can enable this, but only when it is built on trusted data, sound engineering, cyber-secure architecture and accountable human judgement,” he added.
The survey found efficiency gains are the primary driver for investment, with 61 per cent of respondents naming operational efficiency as their top reason for adopting AI. A further 22 per cent cited the need to accelerate the transition to clean energy, while only 9 per cent selected regulatory compliance as their main motivation.
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Skill shortages
The findings also revealed barriers to adoption. More than 37 per cent of respondents identified a shortage of skilled professionals as the most significant challenge. Integration with ageing infrastructure was cited by 23 per cent, while 18 per cent pointed to data privacy and security concerns.
Abhishek Bhatnagar, director general of ENCIS, said the survey showed industry conviction outpaced readiness. “The survey reveals a sector with conviction, but not yet complete readiness. Industry sees the value; the execution architecture, skills, data, legacy integration and governance must now catch up,” he said.
By the numbers
- 65%
- projected increase in AI adoption by 2030
- 35%
- power firms already using AI in operations
- 13.56 GW
- data centre electricity demand by FY2031-32
“Fragmented pilots will not create national advantage. India requires a shared agenda that links policymakers, generating companies, technology leaders, research institutions and capital providers around trusted data, responsible AI and scalable deployment.”
Based on the survey findings, ENCIS outlined five priorities for accelerating AI adoption in the sector: focusing on applications that improve availability, efficiency, emissions and safety; building standardised data systems across plants; designing AI systems with built-in validation and cybersecurity; scaling proven solutions beyond pilot projects; and developing hybrid talent combining engineering and data science skills.
Your Questions, Answered
What percentage of Indian power generation companies currently use AI?
According to the ENCIS survey, approximately 35 per cent of Indian power generation firms have adopted artificial intelligence in their core operations as of August 2026.
How much is AI adoption expected to grow in India’s power sector?
The ENCIS survey projects AI adoption in India’s power plants and generation assets will surge 65 per cent by 2030.
What is the most promising AI application in power generation?
Predictive asset management and proactive maintenance are identified as the most promising areas, with 54 per cent of survey respondents saying these technologies help catch faults early and reduce outages.
What are the main barriers to AI adoption in India’s power sector?
The survey identified three main barriers: shortage of skilled professionals (37 per cent), integrating new technology with ageing infrastructure (23 per cent) and data privacy and security concerns (18 per cent).