India may need to add far more coal capacity as power demand spikes

India's power planner warned that soaring electricity demand could force a substantial increase in coal-based capacity, possibly up to 150 GW, far exceeding the 97 GW addition slated for 2035. Ghanshyam Prasad, chair of the Central Electricity Authority, made the remarks at an Indian Chamber of Commerce gathering, noting that current coal capacity stands at roughly 230 GW. Daily peak demand this year is 45-50 GW above the previous year, partly because a weak monsoon reduced hydroelectric generation, increasing reliance on thermal plants.

In September, coal-generated electricity rose 13.3% year-on-year, while hydro output dropped 20%, leading to the highest power shortfall since August 2023. Despite the push for more coal, Prasad said India added about 50 GW of renewable capacity last year and aims to add a similar amount each year, complemented by nuclear and pumped-storage projects to ensure grid stability.