India's installed power generation capacity to double in 10 years

Bengaluru: India's electricity generation capacity is projected to more than double, from 520.5 GW as of January 31, 2026 to 1121 GW by March 2036, with the share of non-fossil sources expected to reach 70% of the total installed capacity, compared to 52% at present.

The latest assessment comes in the 'National Generation Adequacy Plan' released by the Central Electricity Authority.

"India has successfully demonstrated its transition towards clean energy by accelerating the pace of renewable capacity addition," the report said, pointing to the addition of 43 GW renewable energy (RE) sources in the last one year.

Going by the projected numbers, solar photovoltaic is expected to lead the transition with the installed capacity reaching 509 GW, from 176 GW in 2026-27. Wind is set to grow from 63 GW to 155 GW during the same time. Coal-dependent generation capacity is expected to jump from 237 GW to 315 GW in 10 years, a growth of 33%.

The peak electricity demand and electrical energy requirement in 2035-36 are 459 GW and 3365 billion units, respectively. The report emphasises the need to minimise the total system cost of generation while ensuring that all technical parameters associated with different power generation technologies are satisfied.

The government's non-fossil matrix also involves "likely growth" of nuclear-based generation capacity to reach 100 GW by 2047.

Emphasis on storage

Recognising the gap in energy storages, which has led to stranding of renewable energy, the CEA looked at the need for energy storage facilities. The authority has projected a requirement of 80 GW installed capacity of Battery Energy Storage System (BESS) and 94 GW of pumped storage system, which requires a massive scale up from the current numbers of 6 GW and 5 GW, respectively.

"As evident from recent tenders, the cost of BESS has reduced, and solar plus BESS has emerged as an alternative to meet electricity demand during solar hours and morning/evening peak/high demand (non-solar) hours," it said, pointing to the need for "firm power sources" in the system which can be dispatched 24X7 round the year.

"However, the real test lies not in capacity addition, but in how effectively this generation is utilised.

Vibhuti Garg, Director South Asia, Institute for Energy Economics and Financial Analysis, welcomed India's current achievements in renewable energy and the projected numbers. "However, the real test lies not in capacity addition, but in how effectively this generation is utilised.

Currently, over 37 GW of renewable energy capacity remains stranded—highlighting gaps in planning, integration, and grid readiness," she said, adding that accelerating renewable energy integration and electrification of industry will help build energy security.