India has emerged as the global leader in new coal power proposals in 2024, accounting for one- third of the total capacity planned worldwide. India proposed 38.4 gigawatts (GW) of new coal capacity this year—the highest since 2015.
This surge has led to a 75% increase in India’s total pre-construction coal plant capacity compared to 2023, bringing it to 81.4 GW. A significant portion of these new proposals, approximately 60%, is backed by state-owned entities utilizing public funds.
Despite the country’s stated ambitions to reduce its reliance on coal and phase out imports by 2025–26, coal remains the dominant source of energy in India. It continues to supply nearly 75% of the nation’s electricity needs.
The increase in new coal proposals comes as India surpasses a major milestone in coal production. In the fiscal year 2024–25, the country produced over 1 billion tonnes of coal for the first time.
On a global scale, India and China together accounted for 92% of all newly proposed coal power capacity in 2024. This underscores the continued reliance of major economies on coal despite global efforts to transition towards renewable energy sources.
The findings highlight the ongoing challenge for India as it seeks to balance its energy demands with climate commitments. While the government has been pushing for renewable energy development, coal remains a key pillar of the country’s power sector, driven by economic and energy security concerns.