India's Power Sector – A Tale of Capacity vs. Generation (2025 Snapshot)

 India's Power Sector – A Tale of Capacity vs. Generation (2025 Snapshot)

As of March 31, 2025, India’s total installed power generation capacity stands at a massive 475 GW. A big milestone indeed—but what's more interesting is the story that unfolds when we look deeper 👇

⚡ Installed Capacity vs. Actual Generation

Fossil Fuels (Coal, Gas, Diesel):

📊 52% of installed capacity → 🏭 ~75% of actual electricity generation

Renewables + Nuclear:

🌞🌬️ 48% of installed capacity → ⚡ ~25% of electricity generated

Why the gap? Because Renewables have lower Plant Load Factors (PLF). Solar & Wind typically operate at 15–25% PLF, whereas coal-based supercritical plants run at ~60–70% PLF.

🧾 Coal Demand & Generation Efficiency

Coal-based plants generated ~1,300 BU in 2023–24

Total coal required: ~963 million tonnes

On average, a 1 MW supercritical plant (PLF 70%) needs ~3,066 tonnes of coal/year (assuming GCV of 4,000 kcal/kg)

💰 Cost-Benefit Analysis: Thermal vs. Renewable Energy (Attached in pics)

➡️ While RE is now cheaper per unit, its variability makes coal necessary for grid stability, especially until energy storage becomes widely available and affordable.

📌 Conclusion

India is undergoing a strategic energy transition—scaling up RE while maintaining coal for base load. The challenge now is to balance cost, reliability, and sustainability.

🔍 Going forward, hybrid models (RE + storage + thermal) and market reforms will define the next decade of India's energy security.