The Indian government plans to reach 874 GW of power capacity by fiscal 2032, balancing renewable energy growth with ongoing thermal power expansion. This plan involves massive infrastructure investment to improve grid stability and reduce distribution losses, which have fallen to 15.04% as of fiscal 2025.
India is set to significantly increase its power generation infrastructure, with official targets aiming for an installed capacity of 874 GW by the end of March 2032. As of June 30, 2026, the country’s installed capacity reached 548,858 MW. This expansion strategy focuses on diversifying the energy mix while simultaneously upgrading the national grid to manage the increasing share of intermittent renewable energy.
Thermal and Renewable Energy Balancing
While the push toward green energy is central to long-term goals, coal continues to serve as a baseline power source. Currently, coal-based capacity stands at 224,158 MW. To ensure supply reliability during the transition, the government is also expanding thermal capacity, with 21,080 MW commissioned between April 2023 and June 2026. An additional 47,545 MW of thermal capacity is under construction, and tenders for another 16,000 MW have been awarded. Long-term forecasts suggest that approximately 315,000 MW of thermal capacity may be required by fiscal 2036 to meet rising electricity demand.
Renewable Energy and Storage Infrastructure
The share of non-fossil fuel sources has reached 54.18% of the total capacity. Solar energy is a major contributor at 162,152 MW. To manage the variable nature of solar and wind power, the government is focusing on storage solutions. This includes 15,870 MW of pumped storage projects and 15,754 MW of battery energy storage systems currently in development. These projects are essential to providing steady power when natural resources are unavailable.
Transmission and Distribution Efficiency
Infrastructure growth is not limited to generation; it includes a plan to add 191,474 circuit kilometers of transmission lines by fiscal 2032. Integrating these resources requires advanced technology, such as synchronous condensers and flexible AC transmission systems, to maintain grid stability. Distribution efficiency has also improved, with national Aggregate Technical & Commercial losses dropping to 15.04% in fiscal 2025, compared to 21.91% in fiscal 2021.
Investors may monitor the execution speed of these transmission and storage projects, as they are critical for maintaining the financial health of distribution companies and ensuring the profitability of power producers. Furthermore, the ability of states to implement the sanctioned 2.84 lakh crore worth of loss-reduction and smart metering projects will be a key factor in the long-term efficiency of the sector.