CEA Recommends 62 Percent Non-Fossil Share in 777 GW Installed Capacity by 2029-30

In a significant step toward India’s energy transition goals, the Central Electricity Authority (CEA) has released its updated Optimal Generation Capacity Mix report for 2029-30, proposing a total installed capacity of 777 GW by the end of the decade, with 62 percent coming from non-fossil fuel sources.

The report is anchored in the demand projections from the National Electricity Plan (NEP), which anticipates a nationwide peak electricity demand of 277.2 GW and total energy requirement of 1,877 billion units (BU) by 2029-30.

To meet this growing demand, the CEA recommends a diversified generation portfolio, including 292.6 GW from solar, 99.9 GW from wind, 63.6 GW from large hydro (excluding small hydro), and 94.5 GW from coal-based power, limited to under-construction and seasonal-demand-based projects. The remainder will come from nuclear, biomass, and gas-based generation sources.

Acknowledging the challenges posed by the variability of renewable energy, the CEA has proposed deploying 41.65 GW/208.25 GWh of Battery Energy Storage Systems (BESS) along with 18.2 GW of Pumped Storage Plants (PSPs) to provide grid flexibility and ensure system reliability.

The report also highlights the cost competitiveness of solar-plus-storage hybrids, which are projected to reach price parity with coal-based generation before the decade ends. It emphasises the need for ongoing policy support, transmission infrastructure investment, and coordination between central and state agencies to realise this vision.

Although the current roadmap does not yet incorporate technologies like green hydrogen, offshore wind, or long-duration storage, the CEA recognises their future relevance and calls for early-stage investment in these emerging sectors.

Framing the plan as 'realistic and forward-looking,' the CEA urged policymakers, utilities, and developers to align with the roadmap to build a resilient, reliable, and low-carbon power system by 2030.