India to Add 8 GW Thermal Power Capacity in FY25, Below Target of 15 GW
POWER & RENEWABLE ENERGY

India to Add 8 GW Thermal Power Capacity in FY25, Below Target of 15 GW

A delay in project commissioning is expected to result in the government adding approximately 8,000 MW of thermal power capacity by the end of the financial year, falling short of the target of around 15,000 MW. In FY24, India added about 6 GW of thermal units. So far in the current fiscal year, two thermal units with a combined capacity of 1,320 MW have been commissioned in December, with the remaining units expected to be commissioned by March. The delays have been attributed to challenges in land acquisition, balance of plant work, and material supply.

The government aims to add 80 GW of thermal power capacity by FY32, along with a 500 GW renewable energy target, to meet growing electricity demand. Currently, around 30 GW of thermal power capacity is under construction, with projects expected to be commissioned in the next 4-5 years. Most of these projects have been delayed due to execution challenges, including land-related issues. The ratings agency ICRA has projected that coal-based capacity will see a 5-6 GW addition in the current fiscal year.

India's energy demand has been increasing in recent years. In FY22, energy requirements grew by 8.2 per cent, in FY23 by 9.7 per cent, and in FY24 by 7.4 per cent, according to data from the Central Electricity Authority (CEA). In FY25, electricity consumption rose by 4.4 per cent to 1.15 trillion units by November. Although India has committed to having 50 per cent of its cumulative installed electricity capacity come from non-fossil fuel-based energy sources by 2030, base load power will primarily come from coal-based and nuclear sources.

Thermal power continues to account for 52.9 per cent of India's total installed electricity capacity, though its share is expected to decrease to 42.6 per cent by FY27 and 31.6 per cent by FY32, according to CEA projections, due to the higher anticipated capacity additions in clean energy sources.

News source: The Economic Times

A delay in project commissioning is expected to result in the government adding approximately 8,000 MW of thermal power capacity by the end of the financial year, falling short of the target of around 15,000 MW. In FY24, India added about 6 GW of thermal units. So far in the current fiscal year, two thermal units with a combined capacity of 1,320 MW have been commissioned in December, with the remaining units expected to be commissioned by March. The delays have been attributed to challenges in land acquisition, balance of plant work, and material supply. The government aims to add 80 GW of thermal power capacity by FY32, along with a 500 GW renewable energy target, to meet growing electricity demand. Currently, around 30 GW of thermal power capacity is under construction, with projects expected to be commissioned in the next 4-5 years. Most of these projects have been delayed due to execution challenges, including land-related issues. The ratings agency ICRA has projected that coal-based capacity will see a 5-6 GW addition in the current fiscal year. India's energy demand has been increasing in recent years. In FY22, energy requirements grew by 8.2 per cent, in FY23 by 9.7 per cent, and in FY24 by 7.4 per cent, according to data from the Central Electricity Authority (CEA). In FY25, electricity consumption rose by 4.4 per cent to 1.15 trillion units by November. Although India has committed to having 50 per cent of its cumulative installed electricity capacity come from non-fossil fuel-based energy sources by 2030, base load power will primarily come from coal-based and nuclear sources. Thermal power continues to account for 52.9 per cent of India's total installed electricity capacity, though its share is expected to decrease to 42.6 per cent by FY27 and 31.6 per cent by FY32, according to CEA projections, due to the higher anticipated capacity additions in clean energy sources. News source: The Economic Times

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?