India Invests in More Coal-Fired Power to Support Increased Need for Electricity

Core Insights - Regional areas in India are shifting focus from renewable energy incentives to long-term contracts for coal-fired power generation, with significant bids for coal capacity in Uttar Pradesh and Assam [1] - India Ratings & Research reported that over 17 GW of coal-fired generation capacity has been contracted in the past year, marking the highest level since the pandemic [1] - The demand for electricity in India is increasing due to economic growth, higher air conditioning needs, and greater electrification, indicating that coal will remain a key energy source [1] Coal-Fired Capacity Expansion - India plans to increase its coal power capacity by 46% from 210 GW to 307 GW by 2035, with a target of at least 80 GW of new coal-fired generation by 2032 [2] - The state of Madhya Pradesh has announced $3.7 billion in contracts for new coal-fired generation, including a 1.6-GW ultra-supercritical plant by Torrent Power and an 800-MW facility by Adani Power [2] - The Torrent project, valued at $2.5 billion, includes a 25-year power purchase agreement at a fixed rate of 5.829 rupees per kilowatt hour, with operations expected within 72 months [2] - Adani Power is also developing a 2.4-GW ultra-supercritical coal-fired power plant in Bihar, with an investment of $3 billion and the first unit expected to be operational by 2029 [2]