A goodbye to climate action? Policy analyst slam 97,000 MW coal expansion plan

By A Representative 

On the first day of the Hindu Lunar New Year, "Parabhava" samvatsara, a prominent energy and climate policy analyst has issued a sharp critique of the Union Government’s newly announced plan to add 97,000 MW of coal and lignite-based thermal power capacity by 2035. In a formal communication addressed to Prime Minister Narendra Modi, analyst Shankar Sharma characterized the move as a potential "goodbye" to effective climate action, arguing that the policy lacks strategic foresight and ignores the rapidly evolving realities of India’s energy landscape.

The controversy stems from a statement made in Parliament by Union Minister Shripad Naik, confirming that the government aims to reach 307 GW of thermal capacity by 2034–35 to meet rising demand. Sharma and other sector observers argue this expansion is contradictory to recent data showing a structural shift away from fossil fuels. In 2025, India’s coal-fired power generation fell by 3%, marking only the second such decline in half a century. This drop was driven by a record 38 GW surge in solar capacity, which has begun to reshape the national electricity mix.

​Central to the criticism is the increasing "curtailment" of clean energy. Reports indicate that in 2025, approximately 2.3 TWh of solar power was wasted—essentially switched off—because the existing grid and the rigid coal fleet could not flex enough to accommodate midday solar peaks. This resulted in an estimated loss of ₹5,750–₹6,900 crore in compensation to generators for power that was paid for but never used, while failing to avoid over 2 million tonnes of CO2 emissions.

​Critics point out that the Central Electricity Authority (CEA) previously suggested no new coal plants would be needed beyond those already under construction. Current data shows that 32.3 GW of thermal capacity is already being built, and when combined with "stressed" assets, the total capacity would exceed projected requirements. Furthermore, on India’s highest demand day in May 2024, the peak was met with only 188 GW of thermal power online, demonstrating that the existing fleet, supported by solar, is already capable of handling extreme loads.

​The appeal to the Prime Minister raises fundamental questions about resource optimization and the socio-ecological costs of coal. Sharma argues that diverting land and fresh water for new coal plants is unsustainable for a population already grappling with pollution and climate-induced water stress. He advocates for a "National Energy Policy" that prioritizes the lowest Levelized Cost of Energy (LCOE)—which now favors solar and storage—and shifts more demand to sunshine hours to minimize the need for expensive peak-hour backup.

​As the government moves forward with its Draft National Electricity Policy 2026, the analyst warns that an over-reliance on high GDP growth figures may be negated by the long-term ecological and financial costs of stranded coal assets. The communication calls for a holistic review of the power sector to ensure that India’s transition to a green economy is not undermined by an "unsubstantiated" return to coal expansion.