India Plans to Double Power Capacity to 1,121 GW by 2035

India's installed electricity generation capacity is projected to more than double from around 520 GW to 1,121 GW by 2035-36, with solar photovoltaic energy set to become the dominant source, according to the Central Electricity Authority's midterm review of the 20th Electric Power Survey. The plan charts a decisive shift toward clean energy, with non-fossil fuel capacity expected to reach roughly 786 GW, or nearly 70 per cent of total installed capacity, by the end of the projection period.

The CEA's National Generation Adequacy Plan for 2026-27 to 2035-36 projects peak electricity demand to grow at a CAGR of 5.58 per cent, reaching 459 GW by 2035-36, while total electricity requirement rises to 3,365 billion units. Solar PV is projected to account for 509 GW, or approximately 45 per cent of total installed capacity. Coal remains the second-largest contributor at 315 GW, followed by wind at 155 GW, large hydro at 77 GW and nuclear at 22 GW. India will also require around 174 GW of energy storage, comprising 80 GW of battery systems and 94 GW of pumped storage plants.

The scale of the transition carries both opportunity and risk. Analysts from the Institute for Energy Economics and Financial Analysis warn that more than 37 GW of renewable capacity is already stranded due to gaps in transmission infrastructure and grid integration. Investments totalling approximately $2.2 trillion will be needed in the power sector over the next two decades, Union Power Secretary Pankaj Agarwal said. India imports 75-80 per cent of its lithium-ion cells, which represent around 80 per cent of battery storage system costs, creating supply chain vulnerabilities tied to concentrated Asian manufacturing.

The government has introduced policy measures to accelerate storage deployment, including a Rs 3,760 crore Viability Gap Funding scheme approved in March 2024 for 13,220 MWh of battery storage and a Rs 5,400 crore follow-on scheme in June 2025 for 30 GWh of additional capacity. Solar installations are expected to grow at 30-40 GW per year through 2035-36. An alternative scenario in the review, accounting for slower demand growth, reduces projected peak demand to 446 GW and total installed capacity to around 1,054 GW, reflecting continued uncertainty in demand projections.

Key figure — 1,121 GW projected installed capacity by 2035-36