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India’s installed electricity generation capacity is 485 GW as of June 2025, and the government plans to increase it to about 870 GW in 2031-32 to meet the growing demand for power in the country, the Parliament was informed on Thursday. 

There has been an increase in electricity demand in the country due to rapid economic growth, expanded household electrification, increasing urbanisation, rising living standards, and the growing use of energy-intensive technologies like air conditioners and electric vehicles, Minister of State for Power Shripad Naik said in a written reply to a question in the Lok Sabha.

The Centre has projected thermal (coal and lignite) capacity requirement by the year 2034–35 at approximately 3,07,000 MW as against the 2,11,855 MW installed capacity as on March 31, 2023. To meet this requirement, the Ministry of Power has envisaged setting up an additional minimum of 97,000 MW of coal and lignite-based thermal capacity, the minister said.

Thermal capacities of around 11,680 MW have already been commissioned since April 2023 till June 2025. In addition, 38,935 MW of thermal capacity is currently under construction. Further, contracts for 15,440 MW thermal capacity have been awarded in FY 2024-25 and are due for construction. To meet the projected demand in the country, 35,460 MW of coal and lignite-based candidate capacity has been identified, which is at various stages of planning in the country, he added.

The minister further stated that 13,463.5 MW of hydroelectric projects are under construction. Further, 9,802 MW of hydroelectric projects are under various stages of planning and targeted to be completed by 2031-32.

He also said that 6,600 MW of nuclear capacity is under construction and targeted to be completed by 2029-30. Another 7,000 MW of nuclear capacity is under various stages of planning and approval.

Besides, 1,58,450 MW renewable capacity, including 74,150 MW of solar, 30,080 MW of wind, and 53,750 MW of hybrid power, is under construction, while 62,000 MW of renewable capacity, including 46,010 MW of solar and 15,990 MW of hybrid power, is at various stages of planning and targeted to be completed by 2029-30.

Naik also pointed out that in energy storage systems, 8,250 MW/49,500 MWh pumped storage projects (PSPs) are under construction. Further, a total of 5,780 MW/34,680 MWh capacity of PSPs are concurred and yet to be taken up for construction. Out of these, 3,500 MW/21,000 MWh capacity of PSPs are under bidding, and 15,829 MW/51,106 MWh battery energy storage system (BESS) are currently under various stages of construction and bidding.