Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Adani Power Ramps Up Thermal Expansion as Electricity Demand Accelerates

As power demand continues to climb across India, Adani Power is betting strongly on thermal energy—more aggressively than any other private-sector player. The company plans to add nearly 24 GW of new thermal capacity by FY32, representing about 30% of India’s planned thermal additions for the period.

Adani Power has allocated Rs2 lakh crore for this massive expansion, which it describes as the largest private-sector investment in the thermal segment. Its total thermal capacity is targeted to rise from 18.15 GW currently to 41.87 GW by FY32. Among private players, only state-owned NTPC has a larger capacity addition plan, aiming for 30 GW by FY32.

The company has secured a dominant share of new thermal PPAs issued by state distribution companies. Under the SHAKTI policy, cumulative coal allocations for fresh PPAs stood at 30 GW as of September 2025. Of the 17.7 GW of PPAs awarded with pre-declared coal linkages, Adani Power captured 12.3 GW, according to its investor presentation. It now has 23.72 GW of locked-in capacity across 13 upcoming projects, with 12.35 GW of PPAs already tied up.

India’s overall thermal capacity is expected to grow from 247 GW in FY25 to 309 GW by FY32, requiring an additional 80 GW of coal-based power and about $91 billion in investment. Adani argues that coal will continue to play a critical role in maintaining grid stability and meeting rising electricity demand, especially given the variability of renewable energy.

While companies like Tata Power and JSW Energy are adding thermal capacity more selectively—without committing to major targets—Adani is pushing forward at scale. Tata Power currently operates 8.9 GW of thermal capacity, whereas JSW Energy plans to expand from 5.6 GW to 9 GW by 2030.

An Adani Power spokesperson said the company has revised its growth ambitions in response to the large-scale requirement of nearly 100 GW of new thermal capacity in India by 2035. The spokesperson noted that the planned 24 GW expansion is already secured, with land acquired and equipment orders in place. Thermal power, they added, will remain essential for base load generation and energy security as the country’s power needs rise.

Industry analysts say Adani was among the first private developers to recognize the gap between renewable capacity additions and actual demand. “They sensed early on that renewables alone would not scale fast enough to meet the country’s needs,” said an analyst who requested anonymity.