Rajasthan May Need 4,400 MW New Coal Capacity by 2036 Despite Being Top Renewables Producer – Here’s Why

Rajasthan will require 4,400 megawatts (MW) of new coal-fired power capacity by 2036 to meet increasing electricity demand. Despite being top renewable energy–producing state of India, adding more clean energy takes place in the state as it prepares to retire 1,350 MW of its existing ageing thermal plants, reported Reuters.

The Central Electricity Authority, a think tank of the power ministry, has more than doubled its earlier estimates of 1,900 MW coal-fired power for Rajasthan, according to a letter dated November 27 that was addressed to the state power utility and reviewed by Reuters.

Rajasthan is preparing to retire its existing 1,350 MW old coal power projects, the document showed.

The Central Electricity Authority did not respond to a Reuters request for comment on the letter.

India, which meets about a third of its power demand through thermal projects, has set a 2070 net-zero goal, which includes more than doubling national renewable capacity to 500 gigawatts (GW).

Power consumption in the South Asian nation is expected to rise as its economy expands, requiring a 40% increase in coal-fired capacity to more than 307 GW by 2035, as per government data.

With the upwards revision in the state's coal-based power needs, Rajasthan's power regulator has decided to review its November decision denying a permit for a new 3,200 MW coal power plant, according to a document posted on the regulator's website.

The Rajasthan power utility had asked the regulator to review its decision, according to a separate document reviewed by Reuters.

The company said additional coal capacity was needed because solar and wind energy was not available round the clock and battery storage systems were not yet ready. The state gets about 70% of its power from renewable sources.

Grid Reliability Challenges

Rajasthan’s push for more coal indicates a broader issue—renewable energy intermittency and limited storage which make grid reliability difficult without backup.

According to a 2023 report published by the Institute for Energy Economics and Financial Analysis, solar and wind power, being variable and dependent on weather conditions, create supply-demand imbalances. For handling such imbalances, the grid needs a fast-responding backup power resource to even out the short and sudden variability in renewable energy generation of less than four hours. Incumbent thermal generators meet longer and more predictable variability of renewables.

This backup plan enables a gradual phase-out of India's relatively new coal fleet, in keeping with India's goal of reaching net zero by 2070, in contrast to many developed nations with net-zero commitments by 2050 or earlier, where coal generation must completely cease.