India Targets 874 GW Power Capacity by 2031–32

India Manufacturing Review Team
Monday, 03 August 2026

India plans to expand its installed power generation capacity to 874 GW by 2031–32 under the National Electricity Plan, with major investments in renewable energy, thermal power, storage systems, and transmission infrastructure.

India is set to significantly expand its power generation infrastructure, targeting an installed electricity generation capacity of 874 GW by 2031–32, as outlined in the National Electricity Plan (NEP) prepared by the Central Electricity Authority (CEA). The ambitious roadmap aims to ensure that power generation capacity remains ahead of the country's rapidly rising electricity demand while supporting economic growth, industrial expansion, and the clean energy transition.

The planned capacity expansion includes a balanced mix of conventional and renewable energy sources. The government intends to strengthen coal and lignite-based generation to meet baseload requirements while substantially increasing capacity from solar, wind, hydro, nuclear, and hybrid renewable energy projects. This diversified energy mix is designed to improve grid reliability, enhance energy security, and accelerate India's transition towards a low-carbon power sector.

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To meet future electricity requirements, all states, in consultation with the CEA, have prepared Resource Adequacy Plans (RAPs). These dynamic 10-year rolling plans assess projected demand and identify the generation and procurement capacity needed to ensure uninterrupted electricity supply. The plans also support coordinated investments in generation, transmission, and storage infrastructure, enabling the country to respond effectively to rising consumption and peak demand.

The expansion strategy places significant emphasis on renewable energy. Large volumes of solar, wind, and hybrid power projects are currently under construction, while additional renewable capacity is in various stages of planning. Alongside renewable generation, the government is strengthening energy storage infrastructure through Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs), which will help manage the intermittent nature of renewable energy and improve grid stability. Recent government data indicates that nearly 47 GW of battery storage and 23 GW of pumped storage projects are already in the development pipeline.

Conventional power generation will continue to play an important role in maintaining round-the-clock electricity availability. The government has identified additional coal- and lignite-based thermal capacity for development while advancing hydroelectric and nuclear power projects. Several hydroelectric projects are under construction, and new nuclear power units are expected to become operational over the coming years, contributing to a more diversified and resilient energy portfolio.

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India's electricity demand has been rising steadily due to rapid urbanisation, industrialisation, increased electrification, and the adoption of electric vehicles. According to government projections, the country's peak power demand is expected to reach around 388 GW by 2031–32, underscoring the need for timely investments in generation capacity, transmission networks, and energy storage.

The National Electricity Plan reinforces India's long-term vision of building a reliable, sustainable, and future-ready power sector. By expanding generation capacity to 874 GW, strengthening transmission infrastructure, and accelerating renewable energy deployment, the government aims to ensure affordable and uninterrupted electricity supply while supporting economic development, energy security, and the country's clean energy ambitions.

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