NEW DELHI: India, meanwhile, is aiming to achieve 500 GW of installed capacity from non-fossil fuel sources by 2030 and plans to add nearly 97,000 MW of new coal and lignite capacity to meet expected electricity demand by 2034-35, the Ministry of New and Renewable Energy has informed Rajya Sabha.
Responding to Congress Member Syed Naseer Hussain’s questions on installed capacity, progress towards renewable energy targets, and steps needed to reduce dependence on coal, Shripad Yesu Naik, Minister of State in-charge of Renewable Energy and Power, said that to meet electricity demand by 2034-35, the projected thermal capacity requirement – coal and lignite – is estimated at around 3,07,000 MW.
The installed coal and lignite-based capacity as of March 31, 2023 was 211,855 MW. The minimum additional thermal capacity required to meet the expected demand is approximately 97,000 MW. About 18,160 MW of thermal capacity was commissioned from April 2023 to February 2026, and as of February 28, 2026, another 40,865 MW of thermal capacity is under construction.
On the renewable side, the total installed energy capacity is 513.72 GW, of which the renewable energy capacity, including large hydro, is 258.00 GW, or 50.22% of the total. Non-fossil fuel capacity, which includes nuclear and other clean, non-renewable sources, stands at 275.45 GW as of February 28, 2026. Non-fossil fuel projects with a capacity of 189.15 GW have been awarded, and bids have been invited for projects with a capacity of 54.70 GW. “India is on track to achieve its non-fossil fuel capacity goals by 2030,” Naik said.
The Ministry of Energy and the National Generation Efficiency Plan of the Central Electricity Authority for the years 2026-27 to 2035-36 expect electricity demand to reach 459 gigawatts and power requirements of 3.365 billion units by 2035-36.
The expected installed capacity by the end of 2035-2036 is 1,121 GW, including 315 GW of coal, 20 GW of gas, 22 GW of nuclear, 77 GW of large hydro, 509 GW of solar, 155 GW of wind, 16 GW of biomass and 6 GW of small hydro, with an energy storage capacity of 174 GW. Gigawatt/888 gigawatt-hour. “The installed capacity based on non-fossil fuels will reach about 786 gigawatts, or 70% of the total installed capacity, by 2035-2036,” the plan said.
Renewable energy grid integration will be critical to achieving this path. “The readiness and stability of the grid to integrate large shares of renewable energy is continuously evaluated through system studies, including load flow studies, dynamic stability studies, and contingency analysis. These studies evaluate the impact of renewable energy variability, intermittency, and peak load requirements on the grid,” Naik said in a written response.
The transmission system is planned to integrate more than 500 GW of renewable capacity by 2030, with schemes to be implemented in phases. This includes development of intra-state transmission networks and inter-state transmission system schemes, along with the Green Energy Corridor scheme, under which central financial assistance is being provided to 10 states. The intra-state transmission system has already been commissioned to evacuate 24 GW of renewable energy under the first phase of the Green Energy Corridor.
A major challenge in grid integration is that renewable energy is not generated at constant or predictable levels, as solar and wind energy production varies with weather and time of day, leading to mismatches with demand patterns. HT reported in January that while 2025 saw an increase in solar additions in India, it also saw solar power being regularly curtailed as an emergency measure to ensure grid stability, a report by energy research center Ember noted. The report found that India had to curtail 2.3 terawatt-hours of solar generation between late May and December 2025, prompting compensation to generators.
Meeting rising aggregate demand will require increased installed capacity of coal, hydroelectric and nuclear power. About 6,600 MW of nuclear capacity is under construction, scheduled for completion by 2029-2030, while 7,000 MW is in various stages of planning and approval. There are about 1,57,800 MW of renewable energy under construction, including 67,280 MW of solar power, 6,500 MW of wind power, and 60,040 MW of hybrid power.
“India has performed admirably in adding renewable energy capacity to its grid, with over 215 GW of renewable capacity. In 2025, the country added nearly 50 GW of commendable non-fossil capacity – doubling the additions from the previous year. As we plan to expand capacity to meet growing demand in the coming years, India needs to focus on cost-effective sourcing and integration of clean, dispatchable energy, guided by robust resource adequacy planning. At its core, there are three Challenges “The integration of renewables into the grid is hampered,” said Shalu Agrawal, Program Director at the Council for Energy, Environment and Water (CEEW). First, the intermittency and volatility of renewable energy generation. Second, there is a mismatch between renewables generation and the demand profile, especially during the peak summer months. Third, there is a mismatch in the time it takes to build a solar or wind power plant versus building a transmission grid.”
“Our analysis at CEEW shows that integrating 500-600 GW of non-fossil capacity by 2030 will increase system densification requirements five- to six-fold compared to 2022 levels. Overreliance on a few states to deploy renewable energy has led to transmission bottlenecks, while much transmission capacity remains underutilized during non-solar hours. This poses additional costs for integrating renewables into the grid.”
The government’s response stated that nuclear energy has great potential for long-term energy security, noting that its life cycle emissions are similar to those of hydropower and wind energy. The government has set a goal of reaching 100 gigawatts of nuclear capacity by 2047.
