Why Might India Need to Expand Coal-Fired Power Capacity Despite Its Rapid Growth in Renewable Energy?

Date: 16 October 2026

Introduction

India is making significant progress in renewable energy, particularly in solar and wind power. However, the country still faces a major challenge: how to provide a reliable electricity supply while demand continues to grow. Industries are expanding, cities are growing, and more households are using air conditioners and electrical appliances. At the same time, India’s digital economy and data centres are creating additional demand for electricity.

Despite the growth of clean energy, coal remains an important part of India’s power system. According to a Reuters report published on 13 October 2026, India’s Central Electricity Authority indicated that the country might need to add between 105 and 150 gigawatts (GW) of coal-fired power capacity by 2035. This is higher than the earlier plan for 97 GW of additional capacity. The projection highlights concerns about whether India can meet its future electricity needs while maintaining a stable power supply.

Why Is India’s Electricity Demand Increasing?

India’s electricity demand is increasing for several reasons. Rapid industrialisation, urbanisation, population growth and rising living standards are all contributing to higher consumption. Factories need electricity to operate machinery, businesses require power to run their operations, and households increasingly depend on electrical appliances.

Hotter weather also increases the use of air conditioners and cooling systems, particularly during the summer months. In addition, electric vehicles and data centres are creating new sources of electricity demand.

As a result, India needs sufficient power generation capacity to meet both everyday consumption and periods of peak demand. If electricity production cannot keep pace with consumption, the country may face shortages or greater pressure on its existing power plants.

Why Does India Still Depend on Coal?

Coal continues to play an important role because coal-fired power plants can generate electricity for long periods, regardless of whether the sun is shining or the wind is blowing, provided fuel and operating capacity are available.

Solar and wind power are essential for reducing carbon emissions, but their output depends on weather conditions and the time of day. Solar generation falls after sunset, while wind generation can fluctuate depending on local conditions. This creates a challenge when electricity demand remains high but renewable generation is low.

Energy storage, pumped-storage hydropower and other flexible power sources can help address this problem. However, these solutions require investment, suitable infrastructure and time to develop at the scale needed.

For this reason, coal may continue to provide dependable electricity while India expands its renewable energy capacity and improves its ability to store and distribute power.

How Do Weather Conditions Affect Electricity Supply?

Weather can have a significant impact on India’s electricity system. For example, weaker monsoon rainfall can reduce hydropower generation, increasing the need for electricity from other sources. During periods of extreme heat, electricity consumption can also rise sharply because of greater demand for cooling.

A Reuters report published on 13 October 2026 stated that coal-fired electricity generation in India increased by 13.3% year-on-year in September, while hydropower generation fell by 20%. The report also highlighted electricity supply shortages during the same period.

These developments show that renewable energy expansion alone does not eliminate the need for reliable power sources. India must also prepare for seasonal changes, fluctuations in demand and periods when some sources of electricity produce less power than expected.

Why Is Renewable Energy Growth Not Enough on Its Own?

India has made considerable progress in installing solar panels and wind turbines. However, generating electricity is only one part of the process. The electricity must also be transported through transmission networks and delivered to consumers when and where it is needed.

A report published by the Centre for Research on Energy and Clean Air in October 2026 estimated that approximately 1.835 billion units of renewable electricity were curtailed during July and August because of grid and operational constraints. In other words, some renewable electricity that could have been generated or supplied was not fully utilised.

This highlights an important issue: renewable energy capacity is most useful when the electricity it produces can be efficiently integrated into the power grid. India therefore needs better transmission infrastructure, more storage facilities and improved coordination between power generation and electricity demand.

What Are the Environmental and Economic Concerns?

Although additional coal capacity could help improve electricity reliability, it also comes with significant costs.

Burning coal releases carbon dioxide, which contributes to climate change. Coal-fired power plants can also produce air pollutants that harm human health and affect the environment. Coal mining and transportation create further challenges, including land disturbance, water use and environmental degradation.

There are economic concerns as well. Coal power plants require substantial investment, regular maintenance, fuel supplies and access to water. Because power plants are designed to operate for decades, building new facilities also creates the risk that some could become less economical if cleaner alternatives become cheaper or electricity demand develops differently than expected.

India must therefore consider both its immediate electricity requirements and its long-term environmental and economic goals before deciding how much additional coal capacity is necessary.

What Could Reduce India’s Dependence on Coal?

India has several options for meeting rising electricity demand while reducing its reliance on coal.

1. Battery energy storage: Batteries can store surplus renewable electricity and release it when solar or wind generation falls, particularly during evening demand peaks.

2. Pumped-storage hydropower: This technology stores energy by pumping water to a higher reservoir when electricity is available and generating power when demand increases.

3. Improved transmission networks: Expanding transmission infrastructure would help move renewable electricity from areas with strong solar and wind resources to cities and industrial centres.

4. Nuclear power: Nuclear energy can provide low-carbon electricity that is less dependent on daily weather conditions.

5. Better electricity management: Industries and other consumers can be encouraged to shift flexible electricity use to periods when renewable generation is plentiful.

6. Smarter grid technology: Improved forecasting, grid management and coordination between power plants can help reduce renewable-energy wastage and improve the reliability of electricity supply.

Developing these solutions together could help India meet its growing energy needs without depending excessively on coal.

Conclusion

India’s possible expansion of coal-fired power capacity reflects the challenge of meeting rising electricity demand while maintaining a reliable supply. Coal remains an important source of dependable power, especially when renewable generation is insufficient or hydropower output declines. However, greater dependence on coal also brings environmental, economic and climate-related challenges.

The solution is not simply to choose between coal and renewable energy. India needs a balanced approach that combines renewable power, energy storage, stronger transmission networks, reliable low-carbon generation and more efficient electricity management.

Ultimately, the country’s energy future will depend on how effectively it can meet the needs of a growing economy while making its power system cleaner, more affordable and more reliable.