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India’s green shift may accelerate coal power retirement by 2030

Coal still meets about two thirds of India’s electricity demand, and the government announced plans to add nearly 90 gigawatts of additional capacity through 2032

October 27, 2025 / 22:50 IST
India has been a staunch advocate for the right of developing nations to prioritize energy security over environmental concerns, emphasizing the low per-capita emissions of its citizens

India may be ready to replace some of the country’s oldest and most polluting coal-fired power plants by the end of the decade, according to Tata Power Co. Chief Executive Officer Praveer Sinha.

The country’s rapidly expanding renewable energy fleet, including facilities that combine generation and storage, that are slated to come online within five years, will bolster the stability of the national grid, Sinha said in an interview.

“It’s a matter of time,” he said. “There are a large number of plants in India which are more than 40 years old, and they are the first that need to go because not only are they polluting more but they’re also very inefficient.”

Praveer Sinha, chief executive officer of Tata Power. Bloomberg Praveer Sinha, chief executive officer of Tata Power. Bloomberg

Coal still meets about two thirds of India’s electricity demand, and the government announced plans to add nearly 90 gigawatts of additional capacity through 2032. Almost a fourth of the 290 plants that run on the fossil fuel are more than 25 years old, according to Global Energy Monitor. That is typically the age when coal generation plants start to lose efficiency.

India has been a staunch advocate for the right of developing nations to prioritize energy security over environmental concerns, emphasizing the low per-capita emissions of its citizens.

The south Asian nation is deploying more than 220 gigawatts of clean energy, and the government has plans to more than double that by 2030. However, electricity demand is growing rapidly, outpacing its ability to inject renewable power into the grid. Climate change is adding to the challenge, complicating predictions. The country’s solar and wind sectors also remain heavily dependent on Chinese imports to stay competitive.

Climate variability is part of the reason why “there have been certain decisions to ramp up coal, which may not have been required otherwise,” Sinha said.

The scale needed to keep renewable power affordable will be difficult for India to achieve on its own, he said. Still, efforts to build a more resilient supply chain “will be a critical factor,” as they will create an enabling environment for future technologies that are currently being explored, he added.

Bloomberg
first published: Oct 27, 2025 10:50 pm

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