Whalesbook
Ambitious Construction Pipeline
India's commitment to bolstering its energy infrastructure is evident, with 39,545 megawatts (MW) of thermal power projects actively under various stages of construction. This includes 4,845 MW of stressed projects, signaling a determined effort to overcome existing hurdles and bring capacity online. The government's forward-looking approach aims to bridge a significant gap between current installed capacity and future requirements.
Bridging the Demand Gap
Studies project a substantial increase in thermal energy needs by 2034-35, estimating a requirement of approximately 3,07,000 MW. This contrasts with the 2,11,855 MW installed capacity as of March 2023. To address this looming demand, the Power Ministry intends to establish an additional 97,000 MW of coal and lignite-based thermal capacity. Contracts for 22,920 MW have already been awarded and are slated for construction, with another 24,020 MW of candidate capacity identified in planning stages. Since April 2023, an impressive 17,360 MW of thermal capacity has been commissioned.
Tariff Landscape
The cost of electricity generated from coal-based plants is influenced by factors like plant life, proximity to coal mines, and technology employed. Over the past three years, the all-India Weighted Average Rate of Sale of Power (WARSP) from existing coal plants has fluctuated between ₹4.36/kWh and ₹4.58/kWh, with the lowest recorded tariff at approximately ₹1.52/kWh. New coal-based thermal projects secured through Tariff Based Competitive Bidding (TBCB) in 2025 show discovered tariffs ranging from ₹5.38 to ₹6.30/kWh. In comparison, tariffs discovered under firm and dispatchable renewable energy (FDRE) tenders awarded by SECI in August 2024 were notably lower, between ₹4.98-₹4.99/kWh.