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

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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

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