Ambitious Pledges on the World Stage
India has made significant commitments to decarbonise its economy. Under the Paris Agreement, it has set ambitious Nationally Determined Contributions (NDCs). The country aims to reduce the emissions intensity of its GDP by 45% by 2030 from 2005 levels.
It also pledged to achieve 50% of its cumulative electric power installed capacity from non-fossil fuel-based resources by 2030, a target it has already met years ahead of schedule. More recently, India announced new targets for 2035, aiming to cut emissions intensity by 47% and increase non-fossil fuel capacity to 60%, all part of its long-term goal to reach net-zero emissions by 2070. This progress is powered by a massive push in solar and wind energy, making India a global leader in renewable capacity addition.
The Undeniable Reality of Coal
Despite its green ambitions, India is not turning away from coal. In fact, it is leaning into it. Recent data from Global Energy Monitor reveals that India's proposed coal mine capacity nearly doubled in the last year, reaching 638 million tonnes per annum. This surge accounts for almost the entire global increase in planned coal projects. The government has set a production target of around 1.15 billion tonnes for the fiscal year 2025-26, with plans to operationalise over 20 new coal mines. A senior Coal Ministry official clarified that this expansion reflects caution, ensuring energy security as renewables are not yet able to guarantee round-the-clock power during periods of peak demand.
Surging Demand Fuels the Dilemma
The core of this apparent contradiction lies in India's explosive growth in energy demand. As one of the world's fastest-growing major economies, its electricity needs are soaring. Projections show demand is expected to grow by around 7% in 2026, driven by industrial activity, rising ownership of appliances like air conditioners, and the rapid growth of data centres. In May 2026, peak electricity demand hit a record 270.8 gigawatts. While renewable sources like solar are contributing significantly, they are intermittent. Coal-fired power plants provide the stable, baseload power required to keep the grid from failing, especially during evening peaks when solar generation drops off.
Renewables Race to Keep Up
India's renewable energy journey is remarkable. The country has crossed 300 GW of non-fossil fuel power capacity as of July 2026, which is over 60% of its 2030 target of 500 GW. In fiscal year 2025-26 alone, a record 55.29 GW of non-fossil capacity was installed, with solar power being the main driver. However, the transition is not without hurdles. Integrating this vast and variable renewable power into an aging grid is a major technical challenge. Furthermore, the financial health of state-level distribution companies (DISCOMs) often slows down the process, and a reliance on imported minerals for batteries and solar panels presents supply chain risks.
