UPEX 2026

Ministry of Power: India Capacity Hits 524 GW, Targets 874 GW by 2032

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Representational image. Credit: Canva

India has achieved a significant milestone in its power sector, with an installed electricity generation capacity of 524 GW as of February 28, 2026, marking a transition from a power-deficit to a power-sufficient nation, according to government data.

Since April 2014, the country has added nearly 300 GW of new generation capacity, addressing long-standing supply gaps and enabling it to meet rising electricity demand. India successfully recorded its highest-ever peak power demand of 250 GW during the financial year 2024–25, with supply largely matching demand and only marginal shortfalls attributed to transmission and distribution constraints at the state level.

The country’s energy supply position has steadily improved over recent years. Data indicates that unmet energy demand declined from 0.5% in 2022–23 to nearly negligible levels in 2025–26 (up to February), reflecting improved grid reliability and planning.

Coal availability, a critical factor in thermal power generation, also remains stable. As of March 22, 2026, coal-based power plants held approximately 58.2 million tonnes of stock, sufficient to operate for around 19 days at 85% plant load factor.

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Looking ahead, the government has outlined an ambitious roadmap under the National Electricity Plan, projecting total installed capacity to reach 874 GW by 2031–32. To support this growth, states have developed Resource Adequacy Plans (RAPs), which provide a rolling 10-year outlook for capacity addition and procurement.

In the thermal segment, the government estimates a requirement of around 307 GW by 2034–35 and has planned an additional 97 GW of coal and lignite-based capacity. Since April 2023, over 18 GW of thermal capacity has been commissioned, with nearly 39 GW under construction and additional projects in the pipeline.

Renewable energy continues to play a central role in capacity expansion. As of January 2026, more than 154 GW of renewable capacity is under construction, including solar, wind, and hybrid projects, while an additional 47 GW is in the planning stage. The government is also scaling up energy storage infrastructure, with pumped storage and battery energy storage systems (BESS) under development to support grid stability.

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Hydropower and nuclear energy are also being expanded, with over 12 GW of hydro projects and 6.6 GW of nuclear capacity currently under construction.

To strengthen transmission infrastructure, the government plans to add over 191,000 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity by 2032, ensuring seamless integration of new generation capacity.

Policy measures such as waivers on inter-state transmission charges for renewable energy, promotion of green hydrogen under the National Green Hydrogen Mission, and schemes like PM-KUSUM and PM Surya Ghar Muft Bijli Yojana are further driving clean energy adoption.

Additionally, initiatives including Renewable Purchase Obligations (RPO), Green Energy Corridors, and competitive bidding frameworks are supporting the rapid scale-up of renewable energy deployment across the country.

The government stated that these combined efforts aim to ensure reliable, affordable, and sustainable power supply while supporting India’s long-term energy security and decarbonisation goals.


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