India adds a record 52.5 GW of power generation capacity so far in FY26

New Delhi: Amid growing demand for power in the country, companies have installed a record power generation capacity of 52.53 GW in the country so far this financial year. The previous record was about 34 GW in FY25.

A power ministry statement said that out of the total capacity installed so far this fiscal, renewable sources comprised 39.65 GW. A total of 8.8 GW of coal-based capacity was added during the period under review.

“During the current financial year 2025–26 (up to 31 January 2026), a record 52,537 MW of generation capacity (from all sources) has been added. Of this, 39,657 MW has been added from renewable energy sources, which includes 34,955 MW of solar power, 4,613 MW of wind power,” it said.

With this addition, India’s total power generation capacity stands at about 520 GW, of which fossil fuel-based capacity, including coal and gas based power, is 248.54 GW and non-fossil capacity, including renewable and nuclear, is 271.97 GW. The government’s goal is to achieve an ambitious 500 GW of non-fossil capacity by 2030 and net zero carbon emissions by 2070.

Additionally, following the unexpected 2022 and 2023 surge in power consumption—driven by post-covid pent-up demand from industries and commercial buildings—India faced a near-crisis due to low domestic coal stocks. In response, the Centre has planned to increase thermal power capacity over the past few years to meet immediate demand, as coal remains the primary source for baseload capacity. India plans to add 97 GW of thermal power capacity by FY34.

Green energy in a tough spot

India’s green energy space is also going through a rough patch, with several states including Uttar Pradesh, Bihar, Assam and West Bengal signing coal fuelled power purchase agreements (PPA) at higher tariffs than those of renewable energy projects. Also, 43 GW green power capacity involving a ₹2.1 trillion proposed investment doesn’t have power purchase agreements (PPAs) and power supply agreements (PSAs) in place, as Mint previously reported. In addition, green power generation in Rajasthan and Gujarat, two of the largest solar power generating states in the country, has been curtailed.

The increase in capacity addition comes in the backdrop of projections of about 4% annual growth in India’s power demand in the next few years. Consumption is projected to double by 2040 from current levels. Power demand growth in FY26, however, has been subdued owing to a longer-than-anticipated monsoon.

A recent Crisil report noted that for the April-January period, power demand is estimated to have increased a marginal 0.9% year-on-year. Although summer demand growth was subdued, winter demand rose this year amid a cold wave across northern India. Power demand increased 4.5% on-year to 143 billion units (BU) in January 2026 compared with 136 BUs in the year-ago period, marking the highest January consumption since at least 2010.

“The surge was driven by severe cold wave conditions in northern and eastern regions that increased heating demand during the month. Between 8 and 14 January, the weekly average minimum temperature was below normal by 2-4ºC over parts of west and northwest India. Power demand in the northern region increased 5.5% on-year,” said the Crisil report.

January 2026 also saw peak power demand of 245 GW, surpassing the previous summer peak of 243 GW recorded in June 2025.

The growing power demand and the integration of more renewable capacity also requires strengthening of the transmission grid and setting up of energy storage capacity to maintain grid stability, given that renewable sources of power are intermittent.

Digitalizing the grid

A NITI Aayog report on scenarios for Viksit Bharat and net zero, released last week, said: “To meet the growing power demand and enable large-scale renewable integration, India must accelerate the digitalization of its grid. This includes upgrading existing infrastructure with real-time monitoring systems, automating substation operations, and adopting centralised control through Supervisory Control and Data Acquisition (SCADA) and remote monitoring tools.”

With projections of economic growth, industrial and commercial demand is set to increase. Going ahead, demand growth will also be driven by new segments such as mobility, with the adoption of more and more electric vehicles.

The NITI Aayog report also suggested that electrification across mobility, buildings, cooking, and industrial heat must become the principal pathway for low-carbon growth. This transformation can be achieved by concurrently rebuilding the power system to deliver scale, flexibility, and reliability, it said.