Rajasthan to Add New Coal Power Capacity Despite Renewable Energy Lead
India’s top renewable energy-producing state, Rajasthan, will require 4,400 megawatts (MW) of new coal-fired capacity by 2036 to meet growing electricity demand, even as it continues to expand its clean energy base, according to a government advisory document reviewed by Reuters.
Coal Still Needed for Reliability
The Central Electricity Authority (CEA), a think tank under India’s federal power ministry, has more than doubled its earlier estimate of Rajasthan’s coal-based power requirement from 1,900 MW to 4,400 MW, citing the need to replace ageing thermal plants and ensure stable power supply.
The CEA’s letter, dated 27 November, was sent to the state’s power utility and highlighted the state’s plan to retire 1,350 MW of old coal projects. Rajasthan’s utility had previously argued that additional coal capacity was essential because renewable sources such as solar and wind could not yet provide uninterrupted power, and large-scale battery storage systems were still commercially unviable.
The CEA did not respond to a Reuters request for comment on the letter.
Balancing Renewables with Base Load
Rajasthan, one of India’s leading producers of solar and wind power, currently sources about 70% of its electricity from renewables. However, with rising industrial and residential demand, the state faces challenges in maintaining grid stability during non-solar hours and periods of low wind generation.
Following the CEA’s revised projections, the state’s power regulator has agreed to review its earlier decision to deny approval for a proposed 3,200 MW coal plant. Documents posted on the regulator’s website confirm that the reconsideration follows a request from the Rajasthan power utility.
India’s broader energy strategy also reflects similar pressures. Despite its ambitious net-zero target for 2070 and a goal of achieving 500 gigawatts of renewable capacity, the country still relies heavily on coal, which accounts for roughly one-third of its power generation.
Rising Demand Drives Coal Expansion
Government projections show that national power consumption will continue to grow alongside economic expansion, requiring a 40% increase in coal-fired capacity to over 307 gigawatts by 2035. Several states have already accelerated plans to secure new coal power supply, emphasising the need for reliable baseload energy to complement intermittent renewables.
Analysts say the dual-track approach highlights India’s challenge: expanding renewable energy while maintaining sufficient conventional capacity to ensure energy security. As Rajasthan and other states continue to balance these priorities, coal is likely to remain an integral part of the country’s power mix for at least another decade.
with inputs from Reuters
