India’s power generation sector is rapidly embracing artificial intelligence (AI), with adoption expected to accelerate significantly over the coming years. According to a new survey released by The Energy & Climate Initiatives Society (ENCIS), AI is set to evolve from a supporting technology into a core operational capability, with adoption across India’s power generation companies projected to reach 65% by 2030, compared to around 35% today.
The survey, conducted among 250 professionals representing utilities and technology companies across Delhi NCR, Mumbai, Pune, Bengaluru and Chennai, indicates growing confidence in AI’s ability to transform power generation. Nearly 70% of respondents believe the greatest efficiency gains over the next five years will come from deploying AI across generation assets, reflecting the sector’s increasing focus on digitalisation and intelligent asset management.
The findings come as India’s digital infrastructure continues to expand at an unprecedented pace. Data centre capacity is projected to increase from 1.5 GW in 2025 to 7 GW by 2030, while electricity demand from data centres alone is expected to touch 13.56 GW by FY2031-32. Simultaneously, major energy companies including Adani and Reliance have committed more than US$210 billion towards AI-driven infrastructure and renewable energy investments through 2035, highlighting the strategic importance of intelligent energy systems.
Commenting on the findings, Shri Bhupinder Singh Bhalla, IAS (Retd.), Honorary Chairman, Bharat Electricity Council at ENCIS and Former Secretary, Ministry of New & Renewable Energy, said that by 2030 the defining difference in the power sector will not be between renewable and conventional generation, but between assets capable of learning through AI and those operating conventionally. He emphasised that trusted data, cybersecurity, engineering excellence and human oversight will remain fundamental to deploying AI responsibly.
The survey identifies predictive asset management and preventive maintenance as the most impactful applications, with 54% of respondents expecting AI to help detect equipment failures early, minimise outages and extend the operational life of critical assets. While respondents also recognised AI’s role in renewable integration and grid management, they believe immediate value lies in improving plant operations and reliability.
According to Shri Abhishek Bhatnagar, Director General, ENCIS, the industry has embraced AI’s potential, but large-scale deployment will require stronger digital infrastructure, skilled talent, interoperable data systems and robust governance. The survey further reveals that 61% of organisations are investing in AI primarily to improve operational efficiency, while 22% view it as a catalyst for accelerating the clean energy transition. However, skill shortages, ageing infrastructure and cybersecurity concerns continue to remain key barriers.
Based on its findings, ENCIS has outlined five priorities to accelerate responsible AI adoption: focusing on measurable operational outcomes, building trusted and interoperable data ecosystems, developing AI specifically for critical infrastructure, scaling proven digital solutions beyond pilot projects, and nurturing a workforce equipped with both engineering and AI capabilities.
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