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India’s Green Shift to Speed Up Coal Plant Retirement by 2030?

Written by: Team Angel OneUpdated on: 28 Oct 2025, 6:10 pm IST
India aims to retire old coal plants by 2030, driven by rising renewable energy capacity and grid storage technology.
Coal Plant Retirement
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India’s growing commitment to clean energy may lead to the retirement of ageing, inefficient coal plants by 2030. With new renewable power capacity rapidly expanding, supported by storage technology, the country could significantly reduce its dependence on coal sooner than expected.

Ageing Coal Plants to Be Replaced Amid Renewable Surge

India plans to phase out its oldest coal-based power plants, especially those over 40 years old, as they are highly inefficient and polluting. Currently, nearly 25% of the country’s 290 coal power stations have already crossed 25 years of operation. This transition will be accelerated by the addition of over 220 gigawatts of clean energy projects, with plans to double this by 2030.

Renewable Energy to Drive Grid Stability and Decarbonisation

India’s investment in hybrid renewable systems, combining energy generation with storage, is key to ensuring grid stability. These systems are expected to help balance the grid as renewable capacity increases, enabling a smoother exit from coal without compromising energy availability. While coal still fulfils around 66% of India’s power demand currently, changing technology and policy support may shift this dynamic.

Read More: NTPC Green Energy 9.9 MW Wind Project to Expand its Renewable Energy Capacity!

Challenges from Demand Growth and Climate Variability

Despite the rapid growth in renewables, India faces challenges from rising electricity demand and unpredictable climate conditions. Periods of low wind or weak solar intensity may still require short-term coal use. Another constraint is the country’s reliance on Chinese imports for solar equipment, which may affect cost efficiency and deployment timing.

Supply Chain Resilience Holds the Key to Future Transition

Building a robust local supply chain for renewable components remains critical. Doing so will ensure that India can maintain its clean energy momentum without over-relying on external sources. Strengthened domestic manufacturing will support affordability and enable the adoption of emerging energy technologies in future.

Conclusion

India’s target to retire older coal plants by 2030 reflects a major stride towards clean energy. With rising renewable capacity, improved storage, and focused efforts on energy security, the country is positioning itself for a greener electricity future, despite operational hurdles and high demand growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 28, 2025, 12:38 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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