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Thermal Power Falls Short as India Surpasses Clean Energy Milestone

India has achieved a landmark clean energy milestone by reaching 50.08% installed capacity from non-fossil fuel sources — five years ahead of its 2030 target. As of March 2025, India boasts 242.8 GW of non-fossil capacity against 242 GW from fossil-based sources, totaling 484.8 GW of power capacity. This shift marks a pivotal moment in India's energy transition, with the country now deriving the majority of its capacity from clean sources such as solar, wind, hydro, and nuclear.

However, this green success contrasts sharply with setbacks in the thermal power sector. According to the Central Electricity Authority (CEA), India added just 4.53 GW of thermal power in FY25, missing its target of 15.4 GW by a wide margin. Only six out of 22 planned units were commissioned, with delays attributed to issues such as equipment supply and land acquisition. The rest have been deferred to FY26, which now carries a target of 12.86 GW.

Despite the slowdown in coal project execution, India remains committed to adding 80 GW of thermal capacity by 2031-32 to meet surging power demands. Analysts warn that reaching this target will require immediate project clearances and infrastructure readiness. Peak power demand surged to 250 GW in May 2024, and is projected to touch 277 GW by FY26.

While renewable energy's growth has been robust — accounting for nearly all 33 GW of new capacity added in FY25 — its variable nature underscores the continued relevance of firm, dispatchable thermal power. Balancing this energy mix will be critical as India navigates rising demand, climate goals, and grid reliability.