India Adds 7.2 GW Thermal Capacity till December Against 12.86 GW Full-Year Target

Thermal power additions in India continued at a slower pace during the current fiscal, with capacity growth lagging annual targets despite rising electricity demand. 

Capacity Additions Trail Annual Targets 

Data from the Central Electricity Authority showed that India added 7.2 GW of thermal capacity in the first 9 months of the fiscal, compared with a full-year target of 12.86 GW. No new capacity was commissioned in December, underscoring the slowdown in thermal project execution over recent years. 

In FY25, thermal capacity additions also remained below plan, with 4.53 GW commissioned against a target of 15.4 GW. For the current fiscal, experts estimate that additions may reach only 9.4 GW, well short of the planned levels. 

Commissioning Status and Project Pipeline 

Of the 18 thermal units targeted for commissioning, only 8 were completed by December 31. These included 6 units in the central sector and 2 units in the state sector.  

The commissioned projects comprised North Karanpura STPP, Barh STPP St-I, Buxar TPP, Ghatampur TPP, Khurja SCTPP and Obra-C STPP at 660 MW each, along with Patratu STPP and Yadadri TPS at 800 MW each. 

The private sector commissioned 4 power units with a combined capacity of 1.65 GW. As of January 20, 2026, a total of 39.5 GW of thermal capacity was under construction, including 4.8 GW classified as stressed assets.  

Contracts have been awarded for 22.9 GW, while another 24 GW of coal and lignite-based capacity has been identified and is at various stages of planning. 

Demand Outlook and Long-term Capacity Plans 

India’s peak power demand reached 241 GW in 2025, compared with the CEA’s estimate of 270 GW. In 2024, peak demand stood at 250 GW in May against a projection of 260 GW.  

As of December 2025, the country’s total installed power capacity was 513.7 GW, with thermal power accounting for 246.9 GW.  

While India has committed to achieving 500 GW of renewable energy capacity by 2030, policymakers have reiterated that renewables alone cannot meet rising demand, reinforcing continued reliance on coal-based generation. 

Read More: India to Shield Steel Exports from EU Carbon Tax Impact! 

Conclusion 

With thermal additions falling short of targets and large capacity still under development, India’s power strategy continues to balance renewable expansion with sustained investment in coal and lignite-based generation to meet growing demand. 

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