Coal, lignite capacity being upgraded: Govt
New Delhi, March 30 -- India is simultaneously pursuing 500 GW of installed capacity from non-fossil fuel sources by 2030 and planning to add approximately 97,000 MW of new coal and lignite capacity to meet projected electricity demand by 2034-35, the ministry of new and renewable energy has informed Rajya Sabha.
Responding to questions by Congress MP Syed Naseer Hussain on installed capacity, progress toward renewable targets, and steps to reduce coal dependence, Shripad Yesso Naik, minister of state holding charge of both renewable energy and power, said that to meet electricity demand by 2034-35, projected thermal - coal and lignite - capacity requirement is estimated at approximately 3,07,000 MW.
The installed coal and lignite-based capacity as on March 31, 2023 was 211,855MW. The minimum additional thermal capacity required to meet projected demand works out to around 97,000 MW. Thermal capacities of around 18,160 MW have been commissioned from April 2023 till February 2026, and as on February 28, 2026, a further 40,865 MW of thermal capacity is under construction.
On the renewable side, total installed power capacity stands at 513.72 GW, of which renewable energy capacity including large hydro is 258.00 GW, or 50.22% of the total. Non-fossil fuel capacity, which includes nuclear and other non-renewable clean sources in addition to renewables, stands at 275.45 GW as of February 28, 2026. Non-fossil fuel projects of 189.15 GW have been awarded and projects of 54.70 GW have been tendered. "India is on track to achieving its non-fossil fuel capacity targets by 2030," Naik said.
The ministry of power and the Central Electricity Authority's National Generation Adequacy Plan for 2026-27 to 2035-36 projects peak electricity demand of 459 GW and energy requirements of 3,365 billion units by 2035-36.
Projected installed capacity by end of 2035-36 is 1,121 GW, comprising 315 GW coal, 20GW gas, 22GW nuclear, 77 GW large hydro, 509 GW solar, 155 GW wind, 16 GW biomass and 6 GW small hydro, with energy storage capacity of 174 GW/888 GWh. "The non-fossil fuel-based installed capacity would be about 786 GW, i.e. 70% of the total installed capacity by 2035-36," the plan said.
Grid integration of renewable energy will be critical to meeting that trajectory. "Grid-readiness and stability for integrating large shares of renewable energy are continuously assessed through system studies, including load flow studies, dynamic stability studies, and contingency analysis. These studies evaluate the impact of renewable energy variability, intermittency and peak-load requirements on the grid," Naik said in a written response.
The transmission system has been planned for integration of over 500 GW of renewable capacity by 2030, with schemes being implemented in phases. These include development of intra-state transmission networks and inter-state transmission system schemes, alongside the Green Energy Corridor scheme, under which Central Financial Assistance is being provided to 10 states. The intra-state transmission system for evacuation of 24 GW of renewable energy under Green Energy Corridor Phase-I is already commissioned.
A central challenge in grid integration is that renewable energy does not generate at constant or predictable levels - solar and wind output varies with weather and time of day, creating mismatches with demand patterns. HT reported in January that while 2025 saw a surge in solar capacity additions in India, it also regularly saw curtailment of solar power as an emergency measure to ensure grid stability, flagged by a report by Ember, an energy think tank. The report found that India had to curtail 2.3 terawatt hours of solar generation between late May and December 2025, for which compensation had to be paid to generators.
Meeting increasing overall demand will involve increasing installed capacity from coal, hydropower and nuclear. Around 6,600 MW of nuclear capacity is under construction, targeted for completion by 2029-30, while 7,000 MW is at various stages of planning and approval. Around 1,57,800 MW of renewable capacity, including 67,280 MW solar, 6,500 MW wind and 60,040 MW hybrid, is under construction.
"India has done phenomenally well in adding renewable energy capacity to its grid, with 215 GW-plus of renewable capacity. In 2025, the country added a commendable approximately 50 GW of non-fossil capacity - doubling the additions from the previous year. As we plan capacity expansion to meet the rising demand for the coming years, India needs to focus on cost-effective sourcing and integration of clean, dispatchable power, guided by robust resource adequacy planning. At its core, three challenges hinder renewables integration with the grid. One, the intermittency and variability of renewable generation. Two, a mismatch between renewables generation and demand profile, especially during peak summer months. Three, a mismatch in the time it takes to build a solar or wind power plant versus building the transmission grid," said Shalu Agrawal, director of programmes at the Council on Energy, Environment and Water (CEEW).
"Our analysis at CEEW shows that integrating 500-600 GW of non-fossil capacity by 2030 will increase system ramping requirements five- to six-fold over 2022 levels. Over-reliance on a few states for renewable energy deployment has led to transmission bottlenecks, while a lot of transmission capacity remains underutilised during non-solar hours. These pose additional costs of integrating renewables with the grid," she said.
Nuclear power has significant potential for long-term energy security, the government's response said, noting that lifecycle emissions of nuclear power are comparable to those of hydro and wind. The government has set a target of 100 GW of nuclear capacity by 2047....
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