Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

India Misses FY25 Thermal Power Target by a Wide Margin

In FY25, India added only 4.53 GW of new thermal power capacity, falling significantly short of its target of 15.4 GW, as per the Central Electricity Authority (CEA). Only 6 out of the planned 22 thermal units were commissioned. These included plants like Ghatampur, Khurja, Jawaharpur, Bhusawal, Panki Extension, and Yadadri, with the rest pushed to FY26. The government now expects to add 12.86 GW of thermal capacity next year.

Project delays are largely due to issues in equipment supply, land acquisition, and other logistical hurdles. As of March 2025, 46 large supercritical or ultra-supercritical thermal units with a combined capacity of 34.56 GW are still under construction. This continues the trend from FY24, where only 5.4 GW was added against a target of 14.7 GW.

Despite India’s push for renewable energy, thermal (coal-based) power remains crucial due to rising electricity demand. The country recorded a peak power demand of 250 GW in May 2024 — its highest ever. Demand is expected to reach 277 GW by FY26. Analysts warn that to meet the 80 GW thermal target by 2032, construction must begin by 2026-27, with all approvals in place. Delays in supporting infrastructure like coal transport and transmission lines further complicate the situation.