India May Need 150 GW More Coal Power Capacity by 2035: CEA

India may need to add between 105 gigawatts (GW) and 150 GW of coal-fired power capacity by 2035 as electricity demand grows faster than previously anticipated, Central Electricity Authority (CEA) Chairperson Ghanshyam Prasad has said. The potential requirement is higher than the earlier plan to add 97 GW of coal-based capacity by 2035. The remarks, made at the India Energy Summit organised by the Indian Chamber of Commerce, highlight the challenge of balancing India’s rising electricity needs with its renewable energy expansion and power reliability requirements.

The reassessment comes amid stronger electricity demand, reduced hydropower output and growing pressure on the country’s power system. India has continued to add renewable energy capacity, but solar and wind generation vary with weather conditions and the time of day. The CEA chief has stressed the importance of maintaining dependable electricity supplies through a combination of coal, nuclear power, pumped-storage hydropower and renewable energy. The 105–150 GW range is a potential requirement indicated by the CEA chairperson, rather than a confirmed revision of the government’s formally approved capacity plan.

Key Takeaways

• Potential coal capacity addition: India may need 105–150 GW of additional coal-based power capacity by 2035.
• Earlier plan: The previous projection envisaged adding 97 GW by 2035, taking capacity to around 307 GW.
• Current capacity: India has approximately 230 GW of coal-fired power capacity, according to recent reporting.
• Rising demand: The CEA chief said daily electricity demand was running 45–50 GW above the previous year’s level.
• Hydropower pressure: Weaker monsoon conditions and lower hydropower generation have increased reliance on thermal power.
• Renewables continue: India added around 50 GW of renewable energy capacity in the previous year and aims to sustain a rapid expansion.
• Planning status: The additional 105–150 GW range is an indicated potential requirement, not necessarily a formally approved new target.

India May Need 105–150 GW of Additional Coal Capacity

India’s electricity planners are reassessing how much dependable generation capacity the country may need over the coming decade. CEA Chairperson Ghanshyam Prasad said the earlier plan to add approximately 97 GW of coal-based capacity by 2035 could increase to between 105 GW and 150 GW as demand rises.

The earlier plan envisaged increasing coal capacity to approximately 307 GW by 2034-35. Recent reporting puts India’s current coal-based capacity at around 230 GW, although the precise baseline depends on the reference date and the capacity category being measured.

Indicator	Reported figure
Current coal-based capacity	Around 230 GW
Earlier planned addition by 2035	97 GW
Potential additional requirement	105–150 GW
Earlier projected capacity by 2035	Around 307 GW
Daily electricity demand above previous year’s level, as cited by CEA chief	45–50 GW

Source: CEA Chairperson’s remarks, as reported by Financial Express, Reuters and Business Standard. Figures are approximate, and the potential addition is not a confirmed construction programme.

The difference between the earlier 97 GW plan and the newly indicated range reflects concerns that electricity demand may grow faster than previous assumptions. However, the 105–150 GW figure should not be interpreted as an order book for power plants or evidence that all the additional capacity has received approval.

Actual additions will depend on official planning, project approvals, financing, fuel availability, construction schedules and the evolution of electricity demand.

Why India’s Electricity Demand Is Rising

Electricity consumption is increasing as economic activity, industrial production, urbanisation and household demand expand. More commercial buildings, manufacturing facilities, transport systems and digital infrastructure require reliable electricity.

Data centres and AI-related computing are also emerging as important sources of electricity demand. These facilities require continuous power for servers, networking equipment and cooling systems. Their contribution to total national demand will depend on how quickly new projects are built and how efficiently they operate.

Peak demand is especially important for power planners. A country may generate enough electricity over an entire day but still face shortages during periods when consumption rises sharply and available generation cannot respond quickly enough.

Prasad said daily demand was running approximately 45,000–50,000 MW above the previous year’s level. This indicates the scale of the pressure being experienced by the power system, although the comparison is not the same as a forecast of permanent additional capacity requirements.

Meeting higher demand requires a combination of generation capacity, transmission infrastructure, storage, fuel logistics and demand management. Building new power plants is only one part of ensuring reliable electricity supplies.

Weaker Hydropower Output Increases Reliance on Coal

Hydropower is an important source of electricity because reservoirs and certain hydroelectric facilities can provide flexibility to the power system. However, generation can be affected by rainfall, reservoir levels and water availability.

A weaker monsoon can reduce hydropower output, forcing the grid to rely more heavily on other sources. Coal-fired power plants can provide sustained generation when sufficient fuel is available and the plants are operating reliably.

Recent reporting cited a 20% year-on-year decline in hydropower generation in September 2026, alongside a 13.3% increase in coal-fired generation. India’s electricity shortage during the month reached approximately 560 million kilowatt-hours, the highest reported monthly level since August 2023.

These figures illustrate how weather conditions and demand can affect the electricity mix over relatively short periods. They do not, on their own, establish the amount of coal capacity required over the entire period to 2035.

The longer-term capacity requirement will depend on multiple factors, including expected peak demand, the availability of existing power plants, the pace of renewable energy additions and the development of storage and other flexible generation resources.

Why Coal Remains Important for Grid Reliability

Coal-fired power plants provide dispatchable electricity, meaning they can generally generate power when required, subject to plant availability, fuel supply and operational constraints. This makes them an important source of supply during periods when solar and wind output is low.

Solar generation is concentrated in daylight hours, while wind output varies with weather patterns. Electricity demand, however, can remain high after sunset. Without sufficient storage, flexible generation or other balancing resources, the grid may need conventional power plants to meet the difference between available renewable generation and demand.

Coal plants can help provide this dependable supply, but they also face constraints. Fuel transportation, coal stock levels, equipment maintenance and the time needed to ramp generation can influence how effectively they respond to changing demand.

A larger coal fleet would therefore need to be supported by adequate mining, transport, plant maintenance and environmental compliance. Capacity on paper does not guarantee that electricity will always be available when needed.

The planning challenge is to determine how much dispatchable capacity is required while accounting for improvements in renewable generation, energy storage, grid management and demand-side flexibility.

Renewable Energy Expansion Will Continue Alongside Coal

India’s potential coal expansion does not mean renewable energy development is stopping. The country has continued adding solar and wind capacity at a rapid pace, with recent reporting indicating approximately 50 GW of renewable capacity was added during the previous year.

Renewables can reduce the need for coal generation when output is available, lower exposure to imported fossil fuels in some parts of the energy system and support India’s clean-energy objectives. Their contribution to reliable supply, however, depends on the timing of generation and the ability to move electricity from where it is produced to where it is needed.

Energy storage can help address this mismatch. Batteries can store electricity during periods of high renewable generation and release it later, while pumped-storage hydropower can shift electricity across different times of the day. Both technologies require suitable project economics, infrastructure and operating arrangements.

Transmission is equally important. Renewable power plants may be located far from major consumption centres, so the grid must be able to transport electricity efficiently. Delays in transmission construction can limit the amount of renewable energy that reaches consumers.

The future electricity mix will therefore depend not only on how much renewable capacity India installs, but also on storage, transmission, demand patterns and the availability of dependable generation.

Nuclear Power and Pumped Storage Could Support the Energy Mix

The CEA chief has highlighted coal alongside nuclear power and pumped-storage hydropower as resources that can help meet India’s electricity needs.

Nuclear power can provide sustained generation with low operational carbon emissions, but projects require long development periods, substantial investment and specialised safety and regulatory arrangements.

Pumped-storage hydropower stores energy by pumping water to an elevated reservoir when electricity is available and releasing it through turbines when demand rises. It can provide flexibility to a grid with a large share of variable renewable energy, although its deployment depends on suitable locations, environmental considerations, construction costs and approvals.

Battery storage can also help balance supply and demand, particularly over shorter durations. The most appropriate mix depends on the duration of the power shortage, the scale of demand, technology costs and the operational characteristics of the electricity system.

No single technology can address every reliability requirement. India’s capacity planning must account for both total annual electricity needs and the ability to meet demand during the most challenging hours.

What the Potential Expansion Means for the Power Sector

If a substantial portion of the potential coal capacity requirement is eventually approved and built, it could create opportunities for power equipment manufacturers, engineering and construction companies, coal suppliers, railway freight operators and transmission infrastructure providers.

However, the financial implications will depend on the projects selected, their financing structures, fuel arrangements, construction costs and the tariffs at which electricity can be sold. A higher national capacity requirement does not automatically translate into higher profits for every company associated with the sector.

Power generators must also consider the utilisation of new plants. If renewable energy output increases significantly or electricity demand grows more slowly than anticipated, some thermal plants could operate at lower utilisation rates than planned. Lower utilisation can affect project economics and the cost of recovering fixed expenses.

For distribution companies, reliable electricity is essential, but procurement costs matter too. During shortages, utilities may have to buy power from the short-term market at elevated prices. Long-term planning can help reduce supply risks, although new generation and grid infrastructure require significant investment.

Investors should therefore distinguish between a national capacity requirement, an approved project pipeline, plants under construction and assets already operating.

Environmental and Financing Challenges

A major expansion of coal-fired capacity would also raise questions about emissions, air pollution, water use and long-term financing. Coal generation releases carbon dioxide and other pollutants, making environmental controls and compliance important considerations for power plant development and operation.

New coal plants also involve substantial capital expenditure and long operating lives. Lenders and developers must consider fuel supply, tariffs, environmental requirements, demand forecasts and the possibility that future policy or technology changes could affect project economics.

Renewable energy and storage projects have their own challenges, including land acquisition, transmission access, intermittency, financing and project execution. A reliable electricity system needs to account for these practical constraints rather than assuming that one technology can replace all others immediately.

India’s challenge is to maintain sufficient dependable capacity while continuing to reduce the emissions intensity of its electricity system. The balance will depend on future demand, technology costs, infrastructure investment and government planning decisions.

The Bigger Picture

The CEA chief’s comments highlight the pressure that rising electricity demand is placing on India’s power-sector planning. A potential need for 105–150 GW of additional coal capacity by 2035 would represent a significant increase over the earlier 97 GW plan. The immediate drivers include stronger demand and reduced hydropower output, but the long-term requirement will depend on how quickly renewable generation, storage, transmission and other dependable resources expand.

For the power sector, the issue is not simply whether India should build more coal plants or add more renewables. It is how to maintain reliable and affordable electricity while meeting environmental objectives and managing the financial risks of long-lived infrastructure. The potential capacity range is a signal for planners and industry participants to examine demand assumptions and system flexibility, not proof that every gigawatt will be built.

Looking Ahead

The next important development will be whether the government and the CEA formally update their capacity plans in response to the latest demand trends. Project approvals, construction schedules, fuel arrangements and transmission investments will help establish how much additional coal capacity moves from a potential requirement into an executable programme. Electricity demand, hydropower availability and renewable generation will remain important variables in these decisions.

Over the longer term, India’s power system will need a combination of dependable generation and flexible resources to manage changing demand. Coal may remain part of that mix, while solar, wind, nuclear power, pumped storage, batteries and grid upgrades can contribute in different ways. The final balance will depend on the pace of infrastructure development, the cost and availability of technologies, and the need to deliver reliable electricity while managing emissions.

Frequently Asked Questions

1. How much additional coal power capacity might India need by 2035?

CEA Chairperson Ghanshyam Prasad said India may need 105–150 GW of additional coal-based power capacity, above the earlier planned addition of 97 GW.

2. How much coal-based power capacity does India currently have?

Recent reporting puts India’s coal-based capacity at approximately 230 GW. The exact figure depends on the reference date and the capacity category included.

3. Why is India considering more coal capacity?

Rising electricity demand, concerns about reliable supply and reduced hydropower output are among the reasons cited by the CEA chief.

4. Does this mean India is stopping renewable energy expansion?

No. India continues to add renewable energy capacity. Coal, renewables, storage, nuclear power and pumped-storage hydropower can serve different roles in the electricity system.

5. What is dispatchable power?

Dispatchable power is electricity generation that can be adjusted or scheduled to meet demand, subject to a plant’s technical capabilities and operating constraints. Coal and nuclear plants can provide sustained generation, while hydroelectric facilities may offer additional flexibility.

6. What role can battery storage play?

Batteries can store surplus electricity and release it when demand rises or renewable output falls. Their usefulness depends on storage duration, cost, location and grid requirements.

7. Is the 150 GW addition officially approved?

The 105–150 GW range was reported as a potential requirement indicated by the CEA chairperson. It should not be described as a formally approved revised target unless an official planning document confirms that change.

8. What could the expansion mean for power-sector companies?

If projects are approved and executed, they could create opportunities for power equipment suppliers, engineering companies, coal suppliers, rail freight operators and grid infrastructure providers. Actual financial benefits would depend on contracts, project economics and utilisation.