Fuelled by solar, India’s power capacity to double

India’s power capacity to double to 1121 GW by 2035-36 led by a huge transition to solar energy, according to the Central Electricity Authority (CEA)’s midterm review of the 20th Electric Power Survey (EPS) released recently. India's peak electricity demand will grow at a compound annual growth rate (CAGR) of 5.58 per cent between (financial year) 2024-25 and 2035-36 Overall electricity energy requirement will expand at a 6.41 per cent CAGR during the same period, says he review.

The Executive Summary of the report states that the global transition towards green energy is gaining momentum as countries worldwide plan to reduce carbon emissions and mitigate climate change impacts. This transition encompasses a shift from fossil fuel-based energy sources to non-fossil fuel-based energy alternatives such as solar, wind, hydro, nuclear and geothermal, coupled with Energy Storage Systems.

The Summary highlights that the installed generation capacity in India as on 31 January 2026, stands at 520.5 GW, of which 52% is from non-fossil generation sources. Moreover, during the current financial year 2025–26 (up to 31 January 2026), a record 52.5 GW of generation capacity (from all sources) has been added. Of this, about 43 GW has been from Renewable Energy sources. This is the highest ever capacity addition in a single year. Therefore, India has successfully demonstrated its transition towards clean energy by accelerating the pace of renewable capacity addition. The non-fossil fuel-based installed capacity would be about 786 GW, i.e., 70 per cent of the total installed capacity by 2035-36, as compared to about 52% in January 2026. Similarly, the fossil fuel-based installed capacity would be about 30% in 2035-36 as compared to 48% in January 2026. This long-term study has been conducted to determine the least-cost option for generation capacity expansion from 2026-27 to 2035-36 in order to reliably meet the projected electricity demand. The objective is to minimize the total system cost of generation, which includes the cost of future investments, the cost of operating the entire generation fleet, etc., while ensuring that all technical parameters associated with different power generation technologies are satisfied.

As a Down to Earth (DTE) analysis of the review points out, solar photovoltaic (PV) capacity is expected to become the backbone of India’s energy transition, accounting for 509 GW or around 45 per cent of total installed capacity, while coal remains the second-largest source with 315 GW (28 per cent). Wind power is projected to contribute 155 GW (14 per cent) and hydropower 77 GW (7 per cent), while nuclear, gas, and biomass together account for smaller shares. Overall, non-fossil fuel-based capacity is projected to reach around 786 GW, or nearly 70 per cent of the country’s total installed capacity by 2035-36, indicating a decisive shift towards clean energy sources.

The study has been undertaken, in line with the non-fossil fuel-based installed generation capacity target of 500 GW in the country by 2030, the DTE analysis adds. It aims to identify the least-cost pathway for expanding generation capacity between 2026-27 and 2035-36, aiming to minimise the overall system cost of electricity generation, including both future investment costs and the operational costs of the existing and planned generation fleet, while ensuring that all technical parameters of different generation technologies are met and the projected electricity demand is reliably served.

The CEA Summary adds that the installed generation capacity projection in 2035-36 shows that the country is moving toward a strong transition to non-fossil energy. Renewable sources, especially solar PV, wind, and hydro, will dominate future capacity, supported by energy storage systems. With this, India will significantly increase its clean energy capacity and strengthen energy security. Reliability studies are an important part of resource adequacy planning, as they help assess whether the power system can consistently meet electricity demand under different uncertain conditions. Variations in electricity demand, variations in renewable energy generation (solar, wind, hydro), and possible outages of thermal power plants have also been considered.

The DTE analysis concludes that, according to the CEA review, over the past five years, India’s power sector has seen significant capacity expansion, particularly in renewable energy. India’s power sector is transitioning toward a cleaner, more flexible and resilient electricity system.