India Signals No New Coal Power Capacity Plans Beyond 2035

India currently does not foresee adding new coal-fired power generation capacity after 2035, according to Power Ministry Secretary Pankaj Agarwal. Speaking at a government event, he emphasized that the nation aims to maintain coal capacity at around 307 gigawatts by 2035, ensuring energy security while continuing to expand alternative sources.

The government’s updated energy expansion roadmap includes a 46% increase in coal power capacity from the present 210 GW, alongside its broader goal of doubling non-fossil fuel capacity to 500 GW by 2030. Authorities insist that coal will continue playing a significant role in meeting India’s rising electricity demand, especially during peak hours when renewable energy cannot fully meet grid requirements.

However, India is currently experiencing challenges related to integrating large volumes of renewable energy into the national grid, leading to curtailed power output for several months this year. Before committing to future coal expansion beyond 2035, the country plans to closely monitor demand growth, battery storage costs, and the pace at which renewable energy infrastructure can be seamlessly merged into the system.

Despite coal-fired power generation falling in most months this year due to milder weather and reduced cooling demand, utilities continue to secure long-term coal power contracts. This move reflects expectations of higher evening consumption and the need for reliable baseload power as India transitions to a more renewable-heavy electricity ecosystem.

The 307 GW coal cap by 2035 is one of the more important quiet signals in India's transition story - it defines the outer boundary of coal exposure that lenders, insurers and offtakers should be planning around. Our energy-transition and responsible-investment teams help clients evaluate what this cap means for stranded-asset risk, thermal-plant transition options and disclosure under BRSR and ISSB.