India may need up to 150 GW of additional coal power capacity by 2035

Summary

• Potential increase in coal capacity: India may need to add between 105 GW and 150 GW of coal-fired power capacity, compared with its earlier plan to add 97 GW by 2035, according to Central Electricity Authority (CEA) Chairperson Ghanshyam Prasad. The higher figure represents a potential requirement, not a formally approved revised target.
• Hydropower output declines: Government data cited in reports showed that hydropower generation fell 20% year-on-year in September 2026, while coal-fired generation rose 13.3%. Electricity shortages reportedly reached 560 million kilowatt-hours (kWh), the highest monthly level since August 2023.
• Rising peak demand: Increasing electricity demand and the variability of renewable generation are intensifying the need for dependable power supplies, particularly during evening peak hours.

NEW DELHI, October 13, 2026 — India may need to expand its coal-fired power generation capacity beyond previously planned levels as rising electricity demand and weaker hydropower generation put additional pressure on the country's power system, according to Central Electricity Authority (CEA) Chairperson Ghanshyam Prasad.

Speaking at an event organised by the Indian Chamber of Commerce (ICC), Prasad indicated that India's earlier plan to add 97 gigawatts (GW) of coal-fired capacity by 2035 could require revision. The earlier plan envisaged increasing coal capacity from approximately 210 GW to 307 GW, although the baseline should be confirmed against the relevant CEA planning document before publication.

Prasad said the additional coal capacity requirement could reach 105 GW to 150 GW, reflecting the growing challenge of meeting electricity demand while maintaining reliable supplies. The projection signals a potential change in capacity planning, but it should not be interpreted as a formally approved government target.

The discussion highlights a central challenge for India's energy transition: expanding renewable electricity generation while ensuring that sufficient power remains available during periods of high demand, especially when solar output declines after sunset.

Weak hydropower output increases pressure on coal generation

India's electricity system faced additional pressure in September 2026 as weaker hydropower generation coincided with elevated demand.

Government data cited in media reports showed that hydropower generation declined 20% year-on-year in September, while coal-fired electricity generation increased 13.3% compared with the same month in 2025.

Electricity shortages reportedly reached 560 million kWh during the month, the highest monthly level since August 2023. These figures underline the challenges of balancing electricity supply when hydropower output falls and demand remains strong.

Coal-fired power stations continue to provide dispatchable electricity that can help meet demand when renewable generation is insufficient. However, their ability to respond depends on fuel availability, plant maintenance, transmission capacity and operating conditions.

The pressure on the grid reinforces the importance of long-term resource-adequacy planning, which assesses whether sufficient generation and other resources will be available to meet future electricity demand.

Renewable energy growth and the need for reliable power

The potential increase in coal capacity does not necessarily indicate a slowdown in India's renewable energy expansion.

India continues to add substantial solar and wind capacity, while the government is also developing storage technologies and other sources of firm electricity. The Ministry of New and Renewable Energy reported that India added a record 55.29 GW of non-fossil fuel capacity in financial year 2025–26. This figure includes non-fossil technologies beyond renewables alone.

The challenge is not simply the total amount of electricity generated throughout the day, but whether enough power is available when consumers need it. Solar generation falls during the evening, while residential, commercial and industrial demand can remain high.

Prasad identified nuclear power and pumped-storage hydropower as complementary options that could improve the reliability of electricity supplies.

Pumped-storage projects store energy by pumping water to an upper reservoir when electricity is available and releasing it through turbines when demand rises. Their contribution will depend on project approvals, investment, construction schedules and integration with the electricity network.

India's longer-term power strategy will therefore need to balance dispatchable generation, renewable energy, storage and transmission infrastructure. The final capacity mix will depend on updated demand forecasts, project economics and government planning decisions.

Why this matters

• Power-sector investment: Additional coal capacity could create demand for power-generation equipment, engineering services, fuel supply and transmission infrastructure. Actual investment will depend on the projects approved and commissioned.
• Climate and energy policy: A larger coal fleet could complicate efforts to reduce power-sector emissions, requiring India to balance energy security and affordability with its longer-term decarbonisation objectives.
• Coal supply and logistics: An expanded coal fleet would require careful planning for mining, transportation, fuel availability and plant efficiency. The scale of these requirements will depend on the final capacity plan.
• Renewable integration and storage: Battery storage, pumped-storage hydropower, nuclear generation and grid upgrades could help meet demand during periods of low renewable output and reduce pressure on conventional power stations.

FAQs

Q1: Why is India considering adding more coal power capacity?

Rising electricity demand and fluctuations in hydropower generation are increasing the need for reliable electricity supplies. Coal-fired plants can provide dispatchable power when solar and wind generation are insufficient, although their role must be assessed alongside storage and other generation technologies.

Q2: What was India's earlier coal capacity plan?

India's earlier planning framework envisaged adding 97 GW of coal-fired capacity by 2035. CEA Chairperson Ghanshyam Prasad indicated that the potential requirement could increase to between 105 GW and 150 GW of additional capacity. The higher figure should be treated as a potential requirement rather than a formally approved revised target.

Q3: How did electricity generation change in September 2026?

Reported government data indicated that coal-fired generation rose 13.3% year-on-year, while hydropower generation fell 20%. The reported electricity shortfall reached 560 million kWh during the month.

Q4: Does a potential increase in coal capacity mean India is slowing renewable energy development?

Not necessarily. India continues to expand renewable and other non-fossil capacity. Additional dispatchable generation and storage may be needed to support electricity reliability as the share of variable renewable energy increases.

Q5: What role can energy storage play in India's power system?

Battery storage and pumped-storage hydropower can shift electricity from periods of surplus generation to periods of higher demand. Nuclear power can also provide firm electricity. Their contribution will depend on deployment, costs, project timelines and grid integration.