The Central Electricity Authority (CEA) has prepared this report to analyze the Optimal Generation Capacity Mix for 2029-30 as part of India’s efforts to meet growing electricity demand while transitioning toward cleaner energy. This exercise is aligned with national goals under the Paris Agreement, the Nationally Determined Contributions (NDCs), and India’s long-term net-zero commitment by 2070. The study presents an updated capacity mix plan factoring in technological changes, policy targets, and economic feasibility, with an emphasis on large-scale integration of Renewable Energy (RE) and storage solutions into the power system.

The study uses the National Electricity Plan (NEP) demand projections as its base, which anticipates all-India peak electricity demand to reach 277.2 GW and electrical energy requirement to touch 1,877 billion units (BU) by 2029-30. In response, the report recommends a total installed generation capacity of 777 GW by 2029-30. This would include 292.6 GW of solar, 99.9 GW of wind, 63.6 GW of hydro (excluding small hydro), 94.5 GW of coal-based power, and the rest from nuclear, biomass, and gas-based generation. To manage the variability and intermittency of renewable energy, the plan incorporates 41.65 GW/208.25 GWh of Battery Energy Storage Systems (BESS) and 18.2 GW of Pumped Storage Plants (PSPs).

The primary objective of this capacity mix is to ensure energy security, grid stability, cost efficiency, and environmental sustainability. The report highlights that coal-based capacity will not increase beyond 2026-27, and further additions will be limited to under-construction plants and those needed for meeting local or seasonal demand variations. The transition will be enabled by accelerating RE deployment, particularly through hybrid and RTC (round-the-clock) models backed by BESS and flexible thermal generation. By 2029-30, about 62% of India’s installed capacity is expected to be non-fossil-based.

The study also considers the financial implications of this shift. Despite high upfront capital costs, RE paired with storage is becoming increasingly cost-competitive. It is projected that solar-battery hybrid systems will match or outperform conventional generation in terms of levelized cost by the end of the decade. Accordingly, policy support, investment in transmission infrastructure, and coordinated planning between central and state agencies will be essential.

The report emphasizes the importance of resource adequacy and system flexibility. It suggests that India must adopt a comprehensive strategy, including demand-side management, fast-ramping thermal units, gas-based peaking plants, and capacity markets to maintain system reliability. The role of new technologies such as green hydrogen, offshore wind, and long-duration energy storage is acknowledged, though these are not included in the current optimal mix due to cost and developmental timelines.

The Optimal Generation Capacity Mix 2029-30 proposed by the CEA provides a realistic and forward-looking roadmap for India’s energy transition. It balances the twin challenges of meeting rising electricity demand and reducing carbon emissions while safeguarding system reliability and affordability. The CEA urges all stakeholders, including policy makers, utilities, and private developers, to align with this vision and take proactive steps in implementing the necessary infrastructure, market reforms, and technological innovations. This will ensure a resilient and sustainable power sector for India’s future.