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Thermal Power Capacity Addition Misses FY25 Target by Nearly 70%

India added only 4.53 GW of thermal power capacity in FY2024-25 against a target of 15.4 GW, marking a shortfall of over 70%, according to the Central Electricity Authority (CEA). This continues the trend from FY24, when only 5.4 GW was added versus a 14.7 GW goal. Out of 22 planned units for FY25, only six were commissioned, including Ghatampur, Khurja, Jawaharpur, Bhusawal, Panki, and Yadadri power plants. The commissioning of the remaining 16 units has been pushed to FY26, which now targets 12.86 GW of thermal additions.

India currently has 46 supercritical/ultra-supercritical units under construction with a cumulative capacity of 34.56 GW. The government aims to add 80 GW of new thermal capacity by 2031-32 to address growing power demand, which reached a record 250 GW in May 2024. Analysts note that thermal plant commissioning is often delayed due to challenges like land acquisition, equipment delays, and lack of supporting infrastructure such as coal transport, transmission lines, and water pipelines.

Experts emphasize that to meet the 80 GW target, project groundwork and approvals must commence by 2026-27, given the five-year average timeline for plant commissioning. Meanwhile, the majority of the 33 GW capacity added in FY25 came from renewable sources, which are variable in nature, highlighting the need for firm power like thermal to balance grid reliability amidst rising peak demand, expected to touch 277 GW in FY26.