India's Energy Puzzle: Balancing Coal and Renewables Amidst Growing Demand

India Ratings and Research (Ind-Ra) has emphasized the continuing critical role of coal-based power for base load management in the country's medium-term energy strategy. This is taking place even as renewable capacity additions witness a strong surge, according to a statement made by the agency on Wednesday.

Experts at Ind-Ra anticipate a boost in thermal capacity by fiscal year 2026, driven by ongoing construction projects and projected energy demands up to 2032, as discussed in a recent webinar. They highlighted key operational aspects, including land acquisition, connectivity, and necessary transmission infrastructure as crucial factors for the sector.

While thermal power expects a healthy plant load factor, substantial interest in renewable energy persists. In fiscal year 2025, a significant portion of agreements was already underway, comprising over 17GW of capacity. The Ind-Ra's stable rating outlook for both thermal and renewable projects demonstrates confidence in the energy sector's resilience amidst evolving regulatory and market changes.

(With inputs from agencies.)