India’s non-fossil power capacity is set to reach 70% by 2035-36, driven by rapid solar expansion, but grid constraints, storage gaps and utilisation challenges could shape the energy transition.
India is preparing for one of the most dramatic transformations in its energy sector, with the Central Electricity Authority outlining a future where clean energy dominates installed capacity but fossil fuels continue to underpin supply reliability.
The National Generation Adequacy Plan (2026-27 to 2035-36) presents the most detailed roadmap yet of how India’s electricity system will evolve over the next decade. It projects that India’s installed power capacity will reach 1,121 GW by 2035-36, with 70% (786 GW) coming from non-fossil sources, signalling a structural shift in the country’s energy mix.
At the same time, the report highlights a more complex reality: capacity expansion alone will not define the transition—utilisation, storage, and grid readiness will.
India Power Capacity 2035-36 to Cross 1,100 GW
India’s electricity system is expected to nearly double in scale over the next decade.
According to the report, net electricity generation is projected to rise from around 1,725 billion units today to 3,450 billion units by 2035-36, reflecting the country’s rapid economic growth and electrification push.
Solar energy is set to emerge as the dominant force in India’s power mix. Installed solar capacity alone is expected to exceed 500 GW, accounting for nearly 45% of total capacity, making it the single largest contributor to India’s energy basket.
The detailed breakdown of projected capacity includes:
- 315 GW coal
- 509 GW solar
- 155 GW wind
- 78 GW large hydro
- 20 GW gas
- 22 GW nuclear
These figures underline a system where renewables dominate capacity, but conventional sources remain critical to stability.
India Power Capacity 2035-36 vs Actual Generation Gap
One of the most important insights from the report is the divergence between installed capacity and actual electricity generation.
Despite renewables making up 70% of capacity, coal is expected to remain the backbone of electricity supply. The report projects coal will still account for 51% of total electricity generation (1,819 BU), while solar will contribute around 27% (984 BU).
This gap reflects the intermittent nature of renewable energy and the continued need for firm, dispatchable power.
As the report notes, “the source of firm power at present is predominantly coal-based generation.”
This highlights a key transition challenge: while India can rapidly build renewable capacity, replacing coal’s role in ensuring round-the-clock supply will require deeper systemic changes.
India Power Capacity 2035-36 Faces Grid Bottlenecks
While India’s renewable expansion has been rapid, the system’s ability to absorb this capacity remains constrained.
A major concern flagged in the analysis is the issue of stranded renewable capacity—power that is generated but cannot be transmitted due to grid limitations.
Vibhuti Garg, Director South Asia at the Institute for Energy Economics and Financial Analysis, said: “It is encouraging to see the national generation adequacy plan taking shape. India has made remarkable progress in expanding renewable energy capacity, with clean sources now accounting for more than 50% of installed capacity.
However, the real test lies not in capacity addition, but in how effectively this generation is utilised. Currently, over 37 GW of renewable energy capacity remains stranded—highlighting gaps in planning, integration, and grid readiness.
This underscores the urgent need to shift focus from merely adding capacity to ensuring efficient evacuation and utilisation. Strengthening transmission infrastructure and aligning it with demand centres is critical. As supply and demand increasingly diverge geographically, coordinated planning becomes essential.”
The report also notes that renewable energy generation is becoming more geographically dispersed, increasing the need for robust transmission networks to connect generation hubs with consumption centres.
India Power Capacity 2035-36 Needs Massive Storage Push
Energy storage emerges as the single most critical enabler of India’s clean energy transition.
The plan estimates that India will require 174 GW / 888 GWh of energy storage capacity by 2035-36, including battery storage and pumped hydro.
However, the current pipeline is far from sufficient:
- Only 10.6 GW of battery storage is under construction
- Additional capacity remains in tendering or early planning stages
This gap between projected need and current deployment highlights a major financing and policy challenge.
The report also emphasises that solar-plus-storage systems are emerging as an alternative, particularly for meeting peak demand during non-solar hours, but are yet to fully replace coal-based baseload generation.
India Power Capacity 2035-36 and Energy Security
The timing of the plan is significant, coming amid global energy market disruptions and geopolitical tensions.
Vibhuti Garg noted:“At a time when India remains exposed to global fuel supply disruptions due to geopolitical tensions, accelerating renewable energy integration is not just a climate imperative—it is an economic and energy security necessity.”
The report positions renewable energy not just as a climate solution, but as a strategic tool for reducing dependence on imported fuels.
EVs and Data Centres as New Demand Drivers
The plan also identifies electric vehicles and data centres as emerging sources of electricity demand.
These loads are expected to be geographically concentrated, requiring careful coordination between energy supply and demand planning.
Vibhuti Garg added: “This challenge will intensify with the rise of new demand drivers such as electric vehicles and data centres. These loads are often geographically concentrated, making it even more important to strategically plan clean energy supply in tandem with demand clusters.”
India’s power sector is entering a defining decade.
The National Generation Adequacy Plan makes it clear that the country is on track to build one of the world’s largest clean energy systems. But it also underscores that capacity alone is not enough.
The real transition will depend on:
- Grid infrastructure
- Energy storage deployment
- Demand-side planning
- Policy alignment with emerging technologies
As the report emphasises, the goal is not just to expand capacity, but to ensure a reliable, resilient, and cost-effective power system capable of meeting India’s rapidly growing electricity demand.