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India may need more coal power capacity as demand rises

India's fast-growing electricity demand may push it to add much more coal-fired power capacity than previously planned, Reuters cited the head of the country's power sector planner as saying on October 13.

India had planned last year to add 97 GW of coal power capacity, reaching 307 GW by 2035. It currently has about 230 GW.

Ghanshyam Prasad, chairperson of the Central Electricity Authority (CEA), said the figure would probably rise to 105 GW or even 150 GW, referring to the additional 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 held by the Indian Chamber of Commerce.

His remarks show that stronger-than-expected power demand is leading India to plan significant coal expansion, even as it rapidly adds renewable energy.

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

India's power shortages reached 560 GWh in September, the highest since August 2023, even as coal-fired plants raised output to meet strong demand.

Coal-fired generation increased 13.3% in September from a year earlier, while hydropower generation fell 20%, government data showed.

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 keep adding more than 50 GW annually, he said.

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

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