India Targets 874 GW Installed Power Capacity By 2031-32

06 Aug 2026 CW Team

As of June 30, 2026 India had total installed capacity of 548,858 megawatt (MW), with non-fossil fuel sources accounting for 54.18 per cent of the total and renewable sources including hydro at 52.58 per cent. Fossil fuel-based capacity stood at 45.82 per cent, with coal the largest single source at 224,158 MW and solar capacity at 162,152 MW.

Thermal capacity expanded with about 21,080 MW commissioned since April 2023, 47,545 MW under construction and 16,000 MW with contracts awarded; the projected thermal requirement by 2035-36 is around 315,000 MW. Renewable projects of 147,720 MW are under construction, including 119,580 MW of solar and 27,720 MW of wind, while pumped storage of 15,870 MW and 95,220 MWh and battery energy storage systems of 15,754 MW and 42,530 MWh are also being built.

The transmission plan envisages about 191,474 circuit km of lines and 1,274 GVA of transformation capacity to be added between 2022-23 and 2031-32, with deployment of devices to improve voltage stability and aid renewable integration. Distribution performance has improved, with national aggregate technical and commercial (AT&C) losses falling from 21.91 per cent in FY21 to 15.04 per cent in FY25, and under the Revamped Distribution Sector Scheme Rs 1.53 tn of loss-reduction works and Rs 1.31 tn of smart-metering works have been sanctioned.

Average electricity supply in rural areas rose to 22.6 hours in FY26 from 12.5 hours in FY14 while urban supply increased to 23.4 hours from 22.1 hours, indicating improved availability. The combined expansion of generation, storage and grid measures is expected to support reliability as demand grows over the coming decade.

The government aims to expand installed power generation to 874 gigawatt (GW) by 2031-32 and is accelerating investments in generation, storage and grid infrastructure to meet rising electricity demand sustainably. Minister of State for Power Shripad Naik set out the projection in a written reply to the Rajya Sabha and outlined plans to expand thermal, hydro, nuclear and renewable sources. The plan includes measures to modernise the grid. As of June 30, 2026 India had total installed capacity of 548,858 megawatt (MW), with non-fossil fuel sources accounting for 54.18 per cent of the total and renewable sources including hydro at 52.58 per cent. Fossil fuel-based capacity stood at 45.82 per cent, with coal the largest single source at 224,158 MW and solar capacity at 162,152 MW. Thermal capacity expanded with about 21,080 MW commissioned since April 2023, 47,545 MW under construction and 16,000 MW with contracts awarded; the projected thermal requirement by 2035-36 is around 315,000 MW. Renewable projects of 147,720 MW are under construction, including 119,580 MW of solar and 27,720 MW of wind, while pumped storage of 15,870 MW and 95,220 MWh and battery energy storage systems of 15,754 MW and 42,530 MWh are also being built. The transmission plan envisages about 191,474 circuit km of lines and 1,274 GVA of transformation capacity to be added between 2022-23 and 2031-32, with deployment of devices to improve voltage stability and aid renewable integration. Distribution performance has improved, with national aggregate technical and commercial (AT&C) losses falling from 21.91 per cent in FY21 to 15.04 per cent in FY25, and under the Revamped Distribution Sector Scheme Rs 1.53 tn of loss-reduction works and Rs 1.31 tn of smart-metering works have been sanctioned. Average electricity supply in rural areas rose to 22.6 hours in FY26 from 12.5 hours in FY14 while urban supply increased to 23.4 hours from 22.1 hours, indicating improved availability. The combined expansion of generation, storage and grid measures is expected to support reliability as demand grows over the coming decade.

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