Centre plans to set up additional 97,000 MW thermal power capacity by 2034-35

New Delhi, Feb 9 (IANS) The Ministry of Power has envisaged to set up an additional minimum 97,000 MW coal and lignite-based thermal power generation capacity in the country to meet the projected electricity demand of the country, the Centre told the Parliament on Monday.

According to studies carried out by the Central Electricity Authority (CEA), the projected thermal (coal and lignite) capacity requirement by the year 2034–35 is estimated at nearly 3,07,000 MW as against the 2,11,855 MW installed capacity as on March 31, 2023.

The setting up of the new capacity will help to meet this gap, Minister of State (MoS) for Power Shripad Naik said in a written reply in the Rajya Sabha.

As against this requirement, thermal capacities of around 17,360 MW have already been commissioned since April 2023 till January 20, 2026.

“In addition, 39,545 MW of thermal capacity (including 4,845 MW of stressed thermal power projects) is currently under construction. The contracts of 22,920 MW have been awarded and are due for construction. Further, 24,020 MW of coal and lignite-based candidate capacity has been identified, which is at various stages of planning in the country,” MoS Naik added.

“The projected Plant Load Factor (PLF) of coal-based plants by the year 2031-32 is estimated to be around 61 per cent. However, PLF of coal-based power plants will depend on a number of factors like the increase in electricity demand, actual coal based and renewable energy capacity materialising,” he said.

“Generation expansion planning study is carried out by CEA to determine the optimal mix of different generation resources, including coal, hydro, solar, wind, storage and nuclear, to meet the projected electricity demand. Various parameters like the capital cost of different generation technologies, fuel cost, operations and maintenance cost, useful life, etc., are considered in the generation expansion planning study,” the MoS added.

The generation expansion planning model, while arriving at optimal capacity mix, does the comparative analysis between new coal-based plants, solar, wind, storage etc., considering the cost of different technologies, projected electricity demand, renewable energy generation profile, fuel cost, operational characteristics of different types of technologies, storage duration, etc.

The cost of the electricity generated from coal-based plants depends on various factors such as life of the plant, distance of the plant from the coal mines, type of technology (sub-critical, super-critical) etc.

The all-India Weighted Average Rate of Sale of Power (WARSP) of the electricity generated from existing coal-based plants for the past three years ranges from Rs 4.36/kWh to 4.58/kWh, with the lowest tariff being about Rs 1.52/kWh.

The tariff discovered for new coal-based thermal power projects selected through Tariff Based Competitive Bidding (TBCB) route is in the range of Rs 5.38/KWh to 6.30/kWh.

his is based on bidding carried out in the year 2025.

The tariff discovered under firm and dispatchable renewable energy (FDRE) tenders awarded by Solar Energy Corporation of India in August 2024 is in the range of Rs 4.98/kWh to 4.99/kWh.

“Although the tariff ranges appear broadly similar, a direct comparison is not appropriate on a like-to-like basis due to inherent differences in the nature, operational characteristics, risk allocation, fuel cost structure, dispatch profile, and contractual framework of coal-based thermal power and FDRE projects.

The two categories of power serve different system requirements and involve distinct cost components and performance obligations,” MoS Naik added.

–IANS

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