The Central Electricity Authority chief says India may need 105–150 GW of additional coal capacity beyond earlier plans as electricity demand rises and hydropower output falls.
India | October 13, 2026
India may need to add 105–150 gigawatts (GW) of coal-fired power capacity beyond an earlier expansion plan, as electricity demand rises faster than expected and weaker monsoon conditions reduce hydropower output, Reuters reported on Tuesday, citing Central Electricity Authority (CEA) chairperson Ghanshyam Prasad.
India had previously planned to add 97 GW of coal capacity to reach 307 GW by 2035. Prasad said the additional requirement could be substantially higher. The figure is a planning estimate discussed by the CEA chief, not a final approved construction programme.
Why the outlook is changing
According to Reuters, peak electricity demand has been running around 45–50 GW above the level a year earlier. September coal-fired generation rose 13.3% year on year, while hydropower generation fell 20%. Power shortages reached 560 million kilowatt-hours in September, the highest level since August 2023, government data cited by Reuters showed.
Reduced hydropower output and higher demand can increase reliance on dispatchable thermal generation, particularly when electricity systems must meet peak loads. However, the precise future mix will depend on demand growth, renewable-energy additions, storage, transmission capacity, nuclear power and pumped-storage projects.
Does this mean India is abandoning renewables?
No. Reuters reported that Prasad said the coal-capacity discussion did not mean India was slowing renewable-energy development. India added about 50 GW of renewable capacity last year and expects to continue adding substantial renewable capacity annually. The CEA chief argued that variable renewable output needs to be supported by reliable resources, including nuclear power and pumped-storage hydropower.
Climate and policy trade-offs
More coal capacity could improve supply security if demand continues to grow, but it also raises questions about emissions, air pollution, water use, fuel logistics and the risk of long-lived assets becoming less economical as cleaner technologies advance. The eventual outcome will depend on which projects are approved, how quickly storage and grid infrastructure expand, and how electricity demand evolves.
Source
Reporting note: The 105–150 GW figure is an estimate cited by the CEA chairperson and should not be interpreted as a final government-approved build-out target.
Related MarketNex coverage
One thought on “India May Need 105–150 GW More Coal Capacity as Power Demand Surges”