New Delhi, December 8, 2025 – India has no immediate plans to expand coal power capacity beyond 2035, capping it at 307 gigawatts, a top power ministry official stated on Sunday. This move addresses energy security amid grid integration challenges for renewables. The announcement comes as coal-fired output dips due to mild weather and surplus clean energy.
The policy shift holds significance for South Asia, where India‘s coal decisions influence regional energy trade and environmental pacts. Neighbouring nations like Pakistan and Bangladesh rely on Indian coal imports and shared grid visions, making this cap a potential stabiliser for subcontinental power balances. It eases pressure on cross-border fossil fuel flows while highlighting the need for collective renewable investments to avert shortages.
Coal Capacity India Targets 307 GW Milestone
India’s coal capacity India stands at 210 gigawatts currently, forming the backbone of its electricity grid. Officials project a 46 per cent rise to reach 307 gigawatts by 2035, ensuring baseload supply for industrial growth and urbanisation. This expansion aligns with projected demand surges from electric vehicles and data centres.
Pankaj Agarwal, secretary at the Ministry of Power, outlined the target during an interview. “India wants to secure its energy requirements. As on 2035, we want to have a coal capacity of 307 gigawatts,” Agarwal said. He emphasised that this figure meets near-term needs without overcommitting to fossil fuels.
The Ministry of Coal’s recent assessment supports this trajectory. Coal demand in India is set to peak between 2030 and 2035, driven by thermal power plants that account for 75 per cent of output. Beyond the peak, domestic production stabilises, reducing import dependencies that affect South Asian markets.
No New Coal India: Premature Decisions on Hold
No new coal India additions loom after 2035, as planners prioritise data over speculation. Agarwal noted it would be “premature to say what we want to do beyond 2035.” Instead, the government will assess power trends over three years, focusing on evening peak demands and renewable curtailments.
This pause stems from practical hurdles. Coal plants often idle during solar peaks, wasting capacity. Utilities hold long-term contracts with generators to cover evening loads, yet surplus daytime renewables strain the system. “India should also evaluate grid challenges and the cost of storing excess clean energy in batteries and sending it to the grid before taking decisions on adding more coal capacity beyond 2035,” Agarwal added.
In 2025, coal generation fell in seven of 11 months, the sharpest drop since 2020. Temperate weather cut cooling needs, allowing hydro and solar to fill gaps. Total installed capacity now exceeds 450 gigawatts, with coal at 210 gigawatts and non-fossil sources nearing 240 gigawatts.
India Energy Policy 2035 Balances Fossil and Clean Sources
India energy policy 2035 integrates coal with aggressive renewable targets. The nation aims to double non-fossil capacity to 500 gigawatts by 2030, up from 250 gigawatts in 2022. As of August 2025, non-fossil sources comprise 50 per cent of installed electricity capacity, a milestone achieved five years ahead of schedule.
The Press Information Bureau highlighted this progress in a release. “India has reached a significant milestone, 50 per cent of its installed electricity capacity now comes from non-fossil fuel sources,” it stated. Solar and wind lead the charge, with 175 gigawatts added since 2014.
Yet challenges persist in India coal power 2035 planning. Grid integration lags, with only 20 per cent of renewables backed by storage. Battery costs have dropped 80 per cent since 2020, but scaling remains key. The Central Electricity Authority explores pilots, attaching storage to coal plants to manage solar influxes.
South Asia benefits from this dual track. India’s renewable push could export excess power via interconnectors to Nepal and Bhutan, stabilising regional grids. For Pakistan, facing chronic shortages, aligned India energy policy 2035 reduces coal price volatility in bilateral trade.
Background: Coal’s Enduring Role in South Asian Energy
Coal has powered India’s growth for decades, fuelling 70 per cent of electricity until recent shifts. In 2024, the sector faced scrutiny at COP29, where India defended fossil use for development. The Ministry of Power’s annual report notes peak shortages at 0.001 per cent in 2024-25, down from 1.4 per cent prior.
No new coal India rhetoric echoes global trends, but execution differs. Unlike Europe’s phase-outs, India’s approach factors equity. Developing nations in South Asia share this view, advocating just transitions at forums like SAARC energy dialogues.
Data from the Ministry of Coal projects stable output post-2035, with efficiency upgrades cutting emissions 15 per cent by 2030. Captive mines for power plants ensure supply, mitigating import risks from Indonesia and Australia.
What’s Next: Monitoring Demand and Tech Advances
Planners will track power consumption growth, expected to double by 2035 from 1,500 terawatt-hours. Battery storage tenders target 10 gigawatts annually, with costs eyed below USD 100 per kilowatt-hour. India coal power 2035 evolves with pilots at NTPC plants, testing hybrid models. Regional cooperation, like the India-Pakistan grid link studies, could follow if renewables scale.
This framework positions India as a South Asian leader in balanced energy security. As India coal power 2035 takes shape, the cap at 307 gigawatts signals a pivot towards sustainable grids, fostering stability across the subcontinent.
Published in SouthAsianDesk, December 8th, 2025
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