In a balancing act, India plans to add 80 GW of coal-fired capacity by 2032, as well as 500 gigawatts (GW) of renewable capacity by 2030, and add 50 GW of this capacity each year.
Around 38 GW of coal capacity has been proposed in 2024, the highest amount proposed in the last decade. India accounted for almost a third of the world’s new coal proposals in 2024, according to a report published by S&P Global Ratings on the energy transition in South and Southeast Asia.
It says India is leading the pack in South and Southeast Asia (SSEA), with good progress in adding renewable capacity and greater scale of execution, larger hybrid projects, rising storage tenders and strong private sector financing likely to contribute to these gains.
“The country added 35 GW of renewable capacity in the first nine months of 2025, putting it on track to meet its target this year. India leads its peers thanks to its low-cost renewables (with storage) and a mature tender framework,” he said.
India is seeing an increase in storage-based tenders, including batteries, which will help in the integration of renewable energy.
“The lower cost of renewables (even with storage) compared to coal is favorable, as producers will rely on storage to meet peak demand. Solar tenders involving a storage component equal to 10% of capacity are becoming the norm under government mandate,” he added.
The report highlights significant expansion spending, network investments and execution.
“More than $300 billion will be required over the 2025-2030 period, with around 45% of investments going towards grid strengthening. Grid-related spending will depend on the pace of execution. Grid delays and lack of connectivity will lead to execution risk for the country’s vast renewable project pipeline (175 GW),” it adds.
