India Set To Add Nearly 12 GW Of Thermal Power Capacity In FY26

New Delhi, Nov 19 (KNN) India is expected to add nearly 12 GW of thermal power capacity in the current financial year, significantly higher than the 4,530 MW added in FY25, according to people familiar with the developments.

The projected increase aligns with the power ministry’s targets for the year and marks a notable shift after several consecutive years of underachievement, reported ET.

In FY25, thermal capacity addition fell 70 percent short of the target, while in FY24 and FY23 it was 63 percent and 77 percent below targets respectively.

So far this fiscal, thermal capacity additions have reached 5.8 GW, with another 2 GW likely to be commissioned shortly. 

This would take total additions to around 7 GW within the first 9–10 months. India’s existing thermal capacity stands at 244.8 GW, and the country aims to expand this by 97 GW by FY35.

Data from the Central Electricity Authority (CEA) shows that India added 32 GW of total power capacity between April and September 2025, of which 4.3 GW was thermal and the bulk came from renewable energy sources. In the same period last year, thermal additions were just 60 MW.

Currently, thermal power accounts for 49 percent of India’s installed capacity but continues to contribute roughly 65 percent of electricity generation, as coal-based plants remain the country’s primary baseload source despite a year-on-year drop in plant load factors.

Rising power demand expectations have also spurred an uptick in long-term power purchase agreements (PPAs) by state distribution companies, following nearly a decade-long pause, according to an ICRA report.

(KNN Bureau)