New Delhi, Jan 09 The Ministry of Power plans to add at least 97,000 MW of coal- and lignite-based thermal power capacity by 2034–35 to bridge the projected demand-supply gap, the Centre informed Parliament on Monday.
According to the Central Electricity Authority (CEA), thermal capacity requirement is projected at around 3,07,000 MW by FY35, compared with an installed base of 2,11,855 MW as of March 31, 2023. The proposed capacity addition aims to address this shortfall.
Since April 2023, around 17,360 MW of thermal capacity has been commissioned. An additional 39,545 MW is under construction, including 4,845 MW of stressed projects, while contracts for 22,920 MW have been awarded. Further, 24,020 MW has been identified at various planning stages, Minister of State for Power Shripad Naik said in a written reply in the Rajya Sabha.
The projected Plant Load Factor (PLF) for coal-based plants is estimated at around 61 per cent by 2031–32, subject to demand growth and renewable capacity additions.
CEA’s generation expansion planning model evaluates the optimal mix of coal, hydro, solar, wind, storage and nuclear capacity, factoring in capital costs, fuel expenses, O&M costs, plant life and operational characteristics.
The all-India weighted average rate of sale of power (WARSP) from existing coal plants has ranged between Rs 4.36 and Rs 4.58 per kWh over the past three years, with the lowest tariff at about Rs 1.52 per kWh.
New coal-based projects awarded through tariff-based competitive bidding in 2025 have discovered tariffs in the range of Rs 5.38–6.30 per kWh.
By comparison, firm and dispatchable renewable energy (FDRE) projects awarded by SECI in August 2024 discovered tariffs in the Rs 4.98–4.99 per kWh range.
However, the government noted that direct tariff comparisons are not appropriate due to differences in operational characteristics, fuel cost structures, risk allocation and system requirements between coal-based and renewable projects.
