What Happened
- The Central Electricity Authority (CEA) released the Midterm Review of the 20th Electric Power Survey on March 19, 2026, projecting India's installed power generation capacity to more than double from approximately 520 GW to 1,121 GW by 2035-36.
- Solar photovoltaic (PV) capacity is projected to reach 509 GW by 2035-36 — about 45% of total installed capacity — making solar the backbone of India's energy transition.
- The capacity mix by 2035-36 will include coal at 315 GW, wind at 155 GW, hydropower at 77 GW, with non-fossil fuel sources constituting nearly 70% of total installed capacity.
- Peak electricity demand is projected to grow at 5.58% annually to reach 459 GW by 2035-36, while total electricity energy requirements will grow at 6.41% annually to reach 3,365 billion units (BU).
- Despite renewable expansion, coal will continue to supply 51% of gross electricity generation (approximately 1,819 BU) — reflecting India's model of energy addition rather than near-term energy substitution.
- India will need approximately 174 GW/888 GWh of energy storage capacity by 2035-36, comprising 80 GW of battery energy storage systems (BESS) and 94 GW of pumped storage plants, to manage renewable variability.
Static Topic Bridges
Central Electricity Authority and National Electricity Planning
The Central Electricity Authority (CEA) is India's apex technical advisory body for the power sector, established under the Electricity (Supply) Act, 1948, and now functioning under the Electricity Act, 2003. It prepares the National Electricity Plan (NEP), conducts the periodic Electric Power Survey (EPS), advises on grid code standards, and evaluates major power projects for techno-economic clearance. The EPS — last issued as the 20th edition in 2022 — is the foundational demand projection document used to guide generation, transmission, and distribution investments across the country.
- CEA is headquartered in New Delhi and functions under the Ministry of Power
- The 20th EPS covered projections through 2029-30; the Midterm Review (2026) extends these to 2035-36
- CEA's capacity projections inform the Ministry of Power's planning, CERC tariff determinations, and state-level distribution planning
- NEP 2022-32 set India's trajectory for non-fossil capacity expansion; the EPS Midterm Review reassesses demand in light of actual growth since then
Connection to this news: The 20th EPS Midterm Review is the primary document establishing the 1,121 GW capacity target and 2035-36 demand projections — its release is a significant event in India's energy planning calendar.
India's Renewable Energy Targets and Climate Commitments
India's renewable energy push is anchored in its Nationally Determined Contributions (NDCs) under the Paris Agreement, updated in 2022 to commit to: 500 GW of non-fossil-based installed electricity capacity by 2030, 50% of cumulative electricity from non-fossil sources by 2030, and reduction of emissions intensity of GDP by 45% over 2005 levels. The CEA survey confirms that the 500 GW 2030 target is on track and extends the trajectory to 2035-36, where non-fossil capacity will constitute nearly 70% of total installed base.
- India's 2030 NDC target: 500 GW non-fossil installed capacity
- India's current renewable capacity: ~210 GW solar + ~47 GW wind (as of early 2026)
- India is the third-largest solar power producer in the world
- The International Solar Alliance (ISA), headquartered in Gurugram, was co-founded by India and France in 2015
Connection to this news: The CEA's 2035-36 projection of 786 GW non-fossil capacity (70% of total) significantly exceeds India's 2030 NDC commitment — demonstrating how the medium-term trajectory builds on and goes beyond the near-term climate pledge.
Battery Energy Storage Systems (BESS) and Grid Stability
Battery Energy Storage Systems (BESS) store electricity generated during periods of excess supply — typically daytime solar — and discharge it during periods of high demand or low generation. They are essential for integrating large shares of variable renewable energy (wind and solar) into the grid without compromising reliability. India's BESS industry is nascent, and domestic manufacturing is being encouraged through Production-Linked Incentive (PLI) schemes under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage.
- CEA projects 80 GW of BESS needed by 2035-36 (alongside 94 GW of pumped hydro storage)
- 174 GW total storage = one of the world's largest planned storage buildouts
- National Programme on ACC Battery Storage: PLI scheme with ₹18,100 crore outlay to build 50 GWh of domestic manufacturing capacity
- BESS costs have fallen approximately 90% globally since 2010 and are approaching grid parity
- Without adequate storage, high renewable penetration leads to "curtailment" — wasted generation
Connection to this news: The CEA's 174 GW storage target by 2035-36 is one of the most consequential numbers in the survey — signaling that the energy transition cannot be achieved by capacity addition alone; the storage buildout must match the solar surge.
Pumped Storage Hydropower
Pumped Storage Plants (PSPs) are the oldest and most mature form of large-scale electricity storage. They work by pumping water uphill to a reservoir during low-demand periods and releasing it through turbines to generate power during high demand. PSPs provide large-scale, long-duration storage that BESS cannot yet match economically, making them an essential complement to batteries in a high-renewable grid.
- CEA projects 94 GW of pumped storage by 2035-36 — the largest component of India's storage plan
- India's current pumped storage capacity: approximately 4.7 GW (highly underutilized)
- The Ministry of Power's Pumped Storage Policy (2023) streamlined clearances and introduced must-run status for pumped hydro
- India has an estimated 96,500 MW of pumped storage potential identified by CEA
- Pumped storage has an operational life of 50-100 years, making it a long-duration, capital-efficient investment
Connection to this news: The CEA's 94 GW pumped storage target by 2035-36 represents a massive scale-up from India's current 4.7 GW — one of the most under-recognized infrastructure challenges in India's energy transition, alongside the solar and coal capacity buildout.
Key Facts & Data
- Current installed capacity: ~520 GW (as of January 31, 2026)
- Projected capacity by 2035-36: 1,121 GW
- Solar PV: 509 GW (45%), Coal: 315 GW (28%), Wind: 155 GW (14%), Hydro: 77 GW (7%)
- Non-fossil fuel share of installed capacity: ~70% by 2035-36
- Coal's share of electricity generation: declining from 64% (FY27) to ~51% (FY36)
- Peak demand: 459 GW by 2035-36 (5.58% annual growth)
- Total electricity requirement: 3,365 BU by 2035-36 (6.41% annual growth)
- Energy storage requirement: 174 GW/888 GWh (80 GW BESS + 94 GW pumped storage)
- Gross electricity generation: 3,596 BU by 2035-36 (coal: 1,819 BU, solar: 984 BU, wind: 320 BU, hydro: 256 BU)
- India's NDC target: 500 GW non-fossil capacity by 2030