India Weighs Aggressive Coal Capacity Expansion Amid Demand Surge

The Central Electricity Authority is currently re-evaluating the national plan that previously targeted 97 gigawatts of new coal-fired power. Ghanshyam Prasad, chair of the authority, indicated that the target could climb to between 105 and 150 gigawatts to ensure a reliable supply. This shift reflects the reality of a country where peak load requirements often exceed current grid capabilities despite a significant transition toward cleaner alternatives.

As of August, coal and lignite maintained a 42% share of India's power capacity at 231 gigawatts. Simultaneously, renewable energy capacity has surged to 243 gigawatts, marking a milestone where non-hydro renewables now represent the largest portion of the national mix. However, the government maintains that the variability of solar and wind necessitates continued reliance on thermal power. Beyond coal, India is also diversifying its long-term strategy by opening the nuclear sector to private investment, aiming for 100 gigawatts of nuclear capacity by 2047 alongside the development of small modular reactors.