CEA Plan Targets 1,121 GW Capacity And 70% Clean Energy Share By 2035-36

India’s power sector is preparing for a major transformation over the next decade, according to the National Generation Adequacy Plan for 2026-27 to 2035-36 released by the Central Electricity Authority in March 2026. The report presents a detailed roadmap to meet rising electricity demand while steadily shifting towards cleaner energy sources.

Electricity demand in the country has been increasing consistently over the past five years. Peak demand reached around 250 GW in 2024-25, and it is expected to rise sharply to 459 GW by 2035-36. This growth reflects a compound annual growth rate of about 5.58%. To meet this demand, India’s total installed power generation capacity is projected to more than double, reaching 1,121 GW by the end of the forecast period.

A key focus of the plan is the rapid expansion of non-fossil fuel energy. By 2035-36, renewable and clean energy sources such as solar, wind, hydro, and nuclear are expected to contribute around 786 GW, which will account for nearly 70% of the total installed capacity. This is a significant increase compared to about 52% in early 2026. Solar power is set to play the biggest role, with projected capacity reaching 509 GW. Wind energy is expected to grow to 155 GW, while large hydropower capacity is estimated at 78 GW.

As renewable energy grows, managing its variability becomes important. The plan highlights the need for strong Energy Storage Systems (ESS) to maintain grid stability. By 2035-36, India is expected to have around 174 GW of storage capacity. This includes 80 GW of Battery Energy Storage Systems (BESS) and 94 GW of Pumped Storage Projects (PSP). These systems will store excess energy during periods of high generation, especially from solar, and supply it during peak demand hours, such as in the evening.

Even with the strong push for clean energy, coal will continue to play an important role in the power mix. Its share in total electricity generation is expected to decline from 64% to about 49% by 2035-36. However, coal-based capacity will still increase to 315 GW to ensure a reliable and continuous power supply. The report notes that coal, especially from pit-head plants, remains a cost-effective option for providing stable base load power compared to current solar and battery combinations.

The plan also considers future developments such as the growth of electric vehicles and the country’s target to produce 5 million metric tonnes of green hydrogen annually by 2030. Advanced planning tools, including the STELLAR model, have been used to ensure system reliability. The power system is designed to maintain a planning reserve margin of 13–14%, helping prevent power shortages and blackouts.

Overall, the report provides a clear pathway for building a cleaner, reliable, and future-ready power system, supporting India’s long-term goal of achieving net-zero emissions by 2070.