India’s coal capacity plans face a major rethink as power demand soars

New Delhi: India's rapidly growing demand for electricity could force it to add substantially more coal-fired power capacity than planned, the head of the power sector planner said on Tuesday.

The South Asian nation, which planned last year to add 97 GW of coal power capacity to reach 307 GW by 2035, currently has about 230 GW of capacity.

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"Now, probably it will go up to 105 GW or even 150 GW," said Ghanshyam Prasad, chairperson of the Central Electricity Authority (CEA), referring to the further capacity needed beyond last year's target.

"Demand is growing and as the demand grows we need a stable supply resources to meet this demand as well," he told an event organised by business group the Indian Chamber of Commerce.

The comments underscore how stronger-than-expected power demand is prompting India to chalk in sizeable coal expansion plans, even as it aggressively adds renewable energy capacity.

Daily peak electricity demand this year has been running about 45 GW to 50 GW higher than a year earlier, partly because weaker monsoon rains reduced hydroelectric output and increased reliance on thermal plants, Prasad added.

India's power shortages surged to 560 million kilowatt-hours (kWh) in September, the highest since August 2023, even as coal-fired plants increased output to meet strong demand.

Coal-fired generation rose 13.3% in September from a year earlier, while hydropower generation has fallen 20% from a year ago, government data showed.

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Prasad said the push for coal generation did not mean India was slowing renewable energy development.

The country added about 50 GW of renewable capacity last year and is expected to continue adding more than 50 GW annually, he said.

But renewable growth must be complemented by other sources, such as nuclear power and pumped-storage hydropower, to maintain grid stability and ensure reliable electricity supplies as demand keeps rising, Prasad added.