MoP notified regarding the Thermal (coal and lignite) Installed Capacity Requirement, estimated at 3,07,000 MW by 2024-35

Feb 10, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Ministry of Power (MoP) on February 09, 2026, issued the Thermal (coal and lignite) Installed Capacity Requirement, estimated at 3,07,000 MW by 2024-35.

The following has been stated:

• The Central Electricity Authority (CEA) undertakes generation expansion planning to determine the optimal mix of power sources—such as coal, hydro, solar, wind, storage, and nuclear—based on projected electricity demand and factors like capital cost, fuel cost, O&M expenses, plant life, and operational characteristics.

• As per projections, thermal (coal and lignite) capacity is expected to reach about 3,07,000 MW by 2034–35, compared to 2,11,855 MW installed as of March 31, 2023. To bridge this gap, the Ministry of Power has envisaged adding at least 97,000 MW of new coal/lignite-based capacity. Since April 2023, around 17,360 MW has been commissioned, 39,545 MW is under construction (including 4,845 MW of stressed projects), 22,920 MW has been awarded for construction, and 24,020 MW is at various planning stages.

• The projected Plant Load Factor (PLF) of coal-based plants by 2031–32 is around 61%, subject to actual demand growth and renewable energy additions. Tariffs from existing coal plants (WARSP) range between ₹4.36–₹4.58/kWh, with the lowest at ₹1.52/kWh. New coal-based projects bid in 2025 under TBCB show tariffs of ₹5.38–₹6.30/kWh. In comparison, FDRE projects awarded by SECI in August 2024 have tariffs of ₹4.98–₹4.99/kWh.

• However, a direct tariff comparison between coal-based and FDRE projects is not appropriate due to differences in fuel cost structure, dispatch profile, operational flexibility, risk allocation, and contractual framework, as both serve distinct system requirements.

[Press Release ID: 2225430]


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