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National Electricity Plan thermal capacity addition (80 GW)
What it is
The thermal capacity addition planned under the National Electricity Plan - around 80 GW of new coal-fired capacity by 2031-32, reversing years of expectation that thermal build-out had ended. India's installed capacity reached ~533 GW by Mar 2026, with coal at ~222 GW
The rationale is that peak demand keeps rising and renewables cannot yet supply firm evening power
Impact on industries
- Restores a large order pipeline for BTG equipment, EPC contractors, boilers, turbines and balance-of-plant suppliers after a long drought
- Addresses a real system need - non-fossil capacity crossed 53% of installed base by Mar 2026 but supplies far less of actual generation, and evening peak still needs firm capacity
- Asset-life risk is severe: a plant commissioned in 2031 must run into the 2060s in a system where storage costs are falling fast
- BESS competes and builds in 6-18 months against 4-5 years for thermal, so the case rests on near-term adequacy rather than long-term economics