India Plans 97 GW New Coal, Lignite-Based Power Capacity To Meet Rising Demand

New Delhi, Feb 9 (KNN) The government has envisaged to set up an additional 97 gigawatt (GW) coal and lignite-based (thermal) power capacity in order to meet the additional power demand which has over the years seen consistent rise.

India's projected thermal capacity requirement by the year 2034–35 is estimated at about 307 GW as against the installed capacity of nearly 212 GW installed capacity as on March 2023.

This information was provided by the Minister of State for Power Shripad Naik in  response to a question in Rajya Sabha today.

The Minister said that thermal capacity of about 17,360 MW has already been commissioned since April 2023 up to 20 January 2026. In addition, 39,545 MW of thermal capacity including 4,845 MW of stressed thermal power projects is currently under construction.

He said that contracts for 22,920 MW have been awarded and are due for construction, while a further 24,020 MW of coal- and lignite-based candidate capacity has been identified and is at various stages of planning across the country.

The projected Plant Load Factor (PLF) of coal-based power plants by 2031–32 is estimated at around 61 per cent, though actual PLF levels will depend on factors such as growth in electricity demand and the pace of capacity addition across coal-based and renewable energy sources.

In arriving at the optimal capacity mix, the generation expansion planning model compares new coal-based plants with solar, wind and storage technologies, taking into account technology costs, projected demand, renewable generation profiles, fuel costs, operational characteristics and storage duration requirements.

The cost of electricity fr0m coal-based plants varies based on factors including plant life, distance fr0m coal mines and the technology deployed, such as sub-critical or super-critical units.

The all-India weighted average rate of sale of power (WARSP) fr0m existing coal-based plants over the past three years has ranged between Rs 4.36 per kWh and Rs 4.58 per kWh, with the lowest tariff at around Rs 1.52 per kWh.

For new coal-based thermal power projects selected through the Tariff-Based Competitive Bidding (TBCB) route, the discovered tariff ranges fr0m Rs 5.38 to Rs 6.30 per kWh, based on bidding conducted in 2025.

In comparison, tariffs discovered under firm and dispatchable renewable energy (FDRE) tenders awarded by SECI in August 2024 were in the range of Rs 4.98 to Rs 4.99 per kWh.

While these tariff ranges appear broadly similar, a direct comparison is not considered appropriate due to differences in operational characteristics, risk allocation, fuel cost structures, dispatch profiles and contractual frameworks.

Coal-based thermal power and FDRE projects address distinct system requirements and involve different cost and performance considerations.

(KNN Bureau)