Move aim at securing supply during non-solar hours

India’s power planning is entering a new phase of complexity, where the need to secure a reliable supply is prompting policymakers to reconsider coal, even as the country advances on its renewable energy targets. At the same time, the Central Electricity Regulatory Commission (CERC) is warning that upcoming demand from green hydrogen, data centres, and industry decarbonisation will pose unprecedented challenges for the grid.

97 GW Of New Coal Till 2035
S.K. Chatterjee, Chief of Regulatory Affairs at CERC, said that while the long-term trajectory remains focused on clean energy, coal has been brought back into the planning framework to ensure stability during non-solar hours.

“We have revised our strategy… in order to have stable supply to our customers, particularly during non-solar hours. We have decided to add around 97 gigawatt of fossil fuel capacity up to 2035. Of this, nearly 70 GW is already in the pipeline, with projects either commissioned or under construction,” he said.

These plants, with lifespans of about 35 years, are expected to operate in tandem with renewable growth, not in opposition to it. Chatterjee stressed that this “will not decrease the pace of renewable additions”, noting that India has already met its 50 per cent non-fossil capacity target five years ahead of schedule.

Renewable Race Stays On Track
India’s clean energy pathway is still being scaled up aggressively: 500 GW by 2030, 600 GW by 2032, and over 2,000 GW by 2047. Nuclear and pumped storage are also being built into the long-term mix, with nuclear planned to rise from 8.8 GW today to 100 GW by 2047, and pumped hydro from 4.7 GW to 57–60 GW in the same period.

The regulatory body has also begun annual and even half-yearly reviews of transmission adequacy, with state-level resource adequacy plans being rolled out across India. “These building blocks give visibility not just at the national level but at the intrastate level, helping discoms, manufacturers, and investors plan with greater clarity,” Chatterjee said.

Beyond generation, the regulator sees fresh stress points emerging on the demand side. Green hydrogen and green ammonia – key pillars of India’s energy transition and export competitiveness – remain difficult to scale up in a fully renewable-powered manner.

“This challenge of feeding green hydrogen and ammonia will prove to be more difficult in the long-term horizon. The bigger challenge is how to make it green and take up a viable plan,” Chatterjee noted.

India’s industrial sector, particularly export-oriented manufacturers, is also pressing to decarbonise rapidly in order to meet compliance requirements like the European Union’s Carbon Border Adjustment Mechanism (CBAM). “The question is how quickly we can make them green so that they do not face barriers in global markets,” he said.

Data Centres Add New demand
Another emerging load comes from large-scale data centres, with early demand estimates at about 12 MW across the country, concentrated in Maharashtra and Tamil Nadu, as of now. While relatively modest today, CERC expects the segment to grow sharply, creating new pressure points for the grid.

“This is going to throw a bigger challenge, particularly from the demand side, and the more difficult part is how to make it green,” Chatterjee cautioned.

Balancing Act Ahead
CERC’s stance reflects the delicate balancing act India faces: shoring up coal-based capacity to secure short-term reliability, while pushing forward on renewables and preparing for disruptive demand from new technologies.

With manufacturers aligning capacity expansion plans to long-term visibility and private players investing in pumped storage, the regulatory framework is being reshaped to be more dynamic, with rolling reviews rather than static targets.

Chatterjee summed up the direction of travel, “The long-term planning has given good visibility to suppliers and manufacturers. With Make in India and growing domestic content, we are on the right path – but the challenges of green hydrogen, data centres, and green industry mean the sector has to stay adaptive.”