India may need to add substantially more coal-fired power capacity than previously planned as rapidly rising electricity demand strains supply, according to Ghanshyam Prasad, chairperson of the Central Electricity Authority (CEA). The country had planned to add 97 GW of coal power capacity by 2035, taking its total to 307 GW, compared with about 230 GW currently.

Prasad indicated that the additional requirement beyond the existing plan could rise to between 105 GW and 150 GW. He attributed the potential increase to accelerating power consumption and the need for stable resources to meet demand. The remarks were made at an event organised by the Indian Chamber of Commerce.

Daily peak electricity demand this year has been running about 45 GW to 50 GW above the levels recorded a year earlier. Weaker monsoon rains reduced hydropower output and increased dependence on thermal generation, contributing to tighter conditions across the electricity system.

Power shortages reached 560 mn kWh in September, the highest level since August 2023, even as coal-fired plants increased production. Coal-based generation rose 13.3 per cent from a year earlier, while hydropower generation declined 20 per cent, according to government data.

The possible expansion of coal generation does not indicate a slowdown in renewable energy development. India added about 50 GW of renewable capacity last year and is expected to add more than 50 GW annually. However, Prasad said renewable energy would need to be supported by nuclear power and pumped-storage hydropower to maintain grid stability and reliable electricity supplies as consumption continues to grow.