India to Add 97 GW New Coal Capacity by 2035 Amid Looming Climate Concerns

India plans to revamp its power market design and add 97 gigawatts (GW) of new coal-based capacity by 2035, amid grid reliability challenges posed by surging renewable energy, senior officials from the Central Electricity Authority (CEA) and regulator Central Electricity Regulatory Commission (CERC) revealed, according to Down To Earth.

In addition, CEA chairperson Ghanshyam Prasad told an energy dialogue by consulting agency KPMG that India has approved plans for around 97 GW of new coal-based power capacity by 2035 to ensure round-the-clock supply as renewable penetration accelerates.

Prasad said the government has recalibrated its resource mix strategy after identifying risks to stability during non-solar hours. “We saw challenges coming ahead and that is how we devised our strategy,” Prasad said, adding that 70 GW will be located in renewable-rich states, with another 27 GW rolled out gradually, reported Down To Earth.

Expected to run until 2050, these plants will be providing firm backup as India pursues its 500 GW renewable energy target for 2030 and its net zero goal for 2070. The country’s installed non-fossil fuel capacity already stands at 252 GW.

In a written reply to Lok Sabha on August 7, Minister of State for Power Shripad Yesso Naik said that the projected thermal (coal and lignite) capacity requirement by the year 2034-35 is estimated at approximately 3,07,000 MW as against the 2,11,855 MW installed capacity as on March 31, 2023.

Climate Concerns Remain Strong

This move comes at a time when countries across the globe are looking for ways to phase out fossil fuels to ensure uninterrupted power. The International Energy Agency (IEA) has underscored that prolonged dependence on coal could undermine global climate goals, especially for large economies like India that are central to emissions reductions.

According to IEA’s India Energy Outlook 2021 report, India’s per capita energy use remains far below the global average, making reliable electricity vital for economic growth and poverty alleviation. As outlined by the 2023 Observer Research Foundation report, striking the right balance between clean energy targets and environmental sustainability will define the credibility of India’s energy transition.

These concerns have taken stage at a global level, where agencies and analysts continue to stress the risks of locking in coal dependence.
The IEA’s Coal in Net Zero Transitions report published in 2022 warns that continued reliance on coal severely undermines India’s goal of achieving net zero emissions. The report also urged rapid scaling up of renewable resources and investment in storage infrastructure.