India's Power Capacity to Hit 1,121 GW by 2036, Led by Solar

A New Era for India's Power Sector

India is poised for a significant expansion of its power generation capacity, projected to more than double from the current 520 GW to 1,121 GW by 2036. A report from the Central Electricity Authority (CEA), the country's apex power planning body, outlines a strategic shift towards cleaner energy. According to the "National Generation Adequacy Plan" released at the Bharat Electricity Summit, non-fossil fuel sources are expected to constitute nearly 70% of the total installed capacity within the next decade, marking a decisive move in the country's energy transition.

The Scale of the Projected Expansion

The projection indicates a substantial increase in energy infrastructure to meet rising demand. The current installed capacity of approximately 520.5 GW, as of January 2026, will see a net addition of around 600 GW over the next ten years. This expansion is designed to support India's growing economy, increasing urbanization, and the electrification of various sectors. The plan provides a clear roadmap for capacity additions until 2035-36, with numerous projects already in various stages of planning and construction.

Solar Power to Dominate the Energy Mix

Solar energy is set to become the cornerstone of India's future power system. The CEA projects solar capacity will reach an impressive 509 GW, accounting for about 45% of the total installed capacity by 2036. This highlights the central role of solar photovoltaics in meeting future electricity needs and achieving decarbonization goals. Wind power is the next largest renewable contributor, with a projected capacity of 155 GW. Other clean energy sources, including large hydro (77 GW), nuclear (22 GW), biomass (16 GW), and small hydro (6 GW), will also play important roles in diversifying the energy portfolio.

The Enduring Role of Coal

Despite the aggressive push towards renewables, coal will continue to be a critical component of India's energy security. The report projects a coal-based capacity of 315 GW by 2036, ensuring a stable supply of baseload power to the grid. While the share of coal in the total installed capacity will decrease to around 28%, it is expected to contribute approximately 50% of the total electricity generated. This underscores the strategy of using coal for grid stability while renewable sources handle a larger portion of the generation mix.

Surging Electricity Demand

The expansion is driven by a strong forecast for electricity demand. The CEA estimates that peak electricity demand will grow at a Compound Annual Growth Rate (CAGR) of 5.58% between 2024-25 and 2035-36, reaching 459 GW. The total electricity energy requirement is projected to grow even faster, at a CAGR of 6.41%, to reach 3,365 billion units in the same period. This growth is fueled by industrial expansion, rising household consumption, and the emergence of new demand drivers such as data centers and electric vehicles.

Projected Capacity Mix by 2036

The following table summarizes the projected installed capacity by energy source for the financial year 2035-36, as outlined by the CEA.

Energy Storage as a Key Enabler

To manage the intermittency of renewable sources like solar and wind, India plans a massive deployment of energy storage solutions. The report envisages a total storage capacity of 174 GW by 2036. This includes 80 GW of Battery Energy Storage Systems (BESS) and 94 GW of Pumped Storage Projects (PSP). These systems will be crucial for ensuring grid stability, managing peak loads, and providing a consistent power supply. The government is actively supporting this through policy measures, including Viability Gap Funding (VGF) schemes to make storage projects more financially viable.

Investment and Infrastructure Needs

This ambitious transformation requires substantial investment. According to the Power Secretary, the sector will need about $1.2 trillion in investments over the next two decades. A significant portion of this, approximately ₹7.93 trillion ($15.6 billion), is earmarked for expanding and upgrading the transmission infrastructure. A robust grid is essential to integrate the vast new renewable capacity and ensure the efficient flow of electricity across the country.

Addressing the Challenges

The report also acknowledges potential challenges, particularly the country's reliance on imports for key components. India currently imports a large percentage of lithium-ion cells, which are vital for BESS. Similarly, critical minerals like lithium, cobalt, and nickel are almost entirely imported. This dependency creates risks related to supply chain disruptions and price volatility, which will need to be managed through strategic sourcing and efforts to boost domestic manufacturing.

Conclusion

The CEA's projections signal a clear and determined path for India's power sector. The plan balances an accelerated transition to renewable energy, led by solar, with the practical need for reliable baseload power from coal. Supported by large-scale energy storage and significant investment in infrastructure, India is preparing to meet its future energy demands while advancing its clean energy goals. The successful execution of this plan will be fundamental to the nation's economic growth and its commitments to a sustainable future.