AI To Be Part Of India’s Power Generation, Adoption To Rise To 65% By 2030: ENCIS Study

Adoption of artificial intelligence (AI) by the power generation sector in India will rise from 35% to 65%  by 2030 and will be its core operating capability, according to a study.

Around 35%  of Indian power generation firms have adopted AI in their core operations, and that number is set to climb quickly, the study by The Energy & Climate Initiative Society (ENCIS) said.

The study, conducted among 250 professionals from utilities and technology companies across Delhi NCR, Mumbai, Pune, Bangalore, and Chennai, revealed that nearly seven out of ten respondents believe that power generation offers the best opportunity for efficiency gains using AI over the next five years.

These findings coincide with India’s unprecedented expansion of digital infrastructure; as data centre capacity is projected to soar from 1.5 GW in 2025 to 7 GW by 2030, while electricity demand from data centres alone is forecast to reach 13.56 GW by FY2031-32.

At the same time, energy giants like Adani and Reliance have already committed over $210 billion to AI-driven infrastructure and renewable energy through 2035, marking a significant shift toward smarter, sustainable power.

Bringing this transformation into focus, the ENCIS is organising Bharat Electricity, POWERGEN India & Indian Utility Week from September 1 to 3, 2026 at Yashobhoomi (IICC), New Delhi.

With over 15,000 professionals, 250-plus exhibitors from more than 30 countries, and 150-plus industry visionaries and policymakers expected to attend, the week will connect the entire power sector ecosystem and foster direct collaboration at a critical juncture for India’s energy transition.

Bhupinder Singh Bhalla, Honorary Chairman, Bharat Electricity Council at ENCIS said, "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." Participants pointed to predictive asset management and proactive maintenance as the most promising areas for AI application, with 54%  saying these technologies will help power producers catch faults early, reduce outages, and get more life out of expensive equipment.

While grid management and renewable integration were also mentioned, most see the fastest and most significant benefits coming from digitalising core plant operations.

Abhishek Bhatnagar, Director General, ENCIS, stated that 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.

The findings further revealed that efficiency is the primary goal for most organisations; 61%  of those surveyed named it as their top reason for investing in AI, while 22%  are motivated by the need to speed up the shift to clean energy.

Only 9%  selected regulatory compliance, highlighting a strong belief that AI is now a business imperative, not just a matter of meeting requirements.