India’s power generation mix is undergoing a rapid transformation. With an installed capacity of 221 GW, thermal (coal and lignite) continues to play a pivotal role. However, with the growing share of renewable energy, thermal power plants are evolving to focus on maintaining performance under flexible operations and reducing emissions.
Given the growing power demand, thermal (coal and lignite) capacity requirements are projected at around 307 GW by 2034–35. An additional 86 GW is expected to be commissioned over current levels. At present, about 39 GW of capacity (including 5,695 MW from stressed assets) is under construction.
Notably, India’s clean energy transition has reached a milestone. In June 2025, for the first time, more than half of the installed generation capacity came from non-fossil sources. Meanwhile, total renewable capacity (excluding hydro) stood at 184 GW, a 28 per cent increase since March 2024. This growth was driven by strong capacity additions in solar (34 GW) and wind (5.7 GW), supported by favourable policies, competitive tariffs and steady capital inflows.
That said, in the renewable energy segment, execution challenges remain significant. Over 70 projects, aggregating about 12 GW and originally slated for commissioning before 2025, continue to face delays due to land acquisition hurdles, transmission constraints and regulatory bottlenecks.
Despite these risks, India’s targets remain firm — 507 GW of renewable capacity by 2031–32, accounting for 56 per cent of total capacity. Strong project pipelines, hybrid solutions and storage integration are expected to play a crucial role in meeting these targets.
Going forward, both thermal and renewable energy will remain indispensable pillars of India’s power sector, each undergoing its own transformation to ensure reliability, sustainability and energy security.
In this issue, Power Line’s Infocus and Special Section on thermal generation and renewable energy, respectively, examine the key trends and developments, challenges and the outlook for these segments.