Thermal power generation employs steam power generated by the combustion of oil, liquid natural gas (LNG), coal, and other substances to turn generators and generate electricity. Thermal power plants generate electricity using a variety of fuels based on their ability to obtain them reliably, economically, and environmentally.
Market insights:
The cumulative thermal power installed capacity in India increased from 222.91 GW in FY 2018 to 236.11 GW in FY 2022, expanding at a compound annual growth rate (CAGR) of 1.45% during FY 2018 – FY 2022 period. India added a capacity of 4,485 MW through eight thermal power plants in FY 2022. India is expected to commission ten thermal power units of an aggregate 7,010 MW capacity in FY 2023.
Impact of COVID-19:
The COVID-19 pandemic hindered the steady growth of the Indian thermal power sector. The closure of business activities and industrial production resulted in a sharp decline in power consumption in the commercial and industrial sectors, while the stay-at-home order led to an increase in consumption in the residential sector.
Government initiatives:
The government has undertaken certain schemes and programs to promote and expand the indigenous renewable energy resource capacity to create a sustainable environment, as well as reduce energy costs. Due to the rising demand for electricity and the inability of domestic coal companies to meet demand, the power ministry advised all Gencos, including independent power producers (IPPs), on April 28 to blend 10% imported coal into power generation to supplement domestic coal supply.
Key growth drivers of the market:
Industrial development in recent years has strengthened the power sector which resulted in an increased demand for electricity and is expected to rise further. Evolving demographic characteristics of the country, coupled with rapid urbanization attributed to the increased demand for power in the domestic sector.

Key deterrents to the growth of the market:
Players in the Indian power sector face significant challenges owing to the struggle in acquiring raw materials. The weak infrastructure of the transmission and distribution (T&D) system also hinders the supply of power among consumers, leading to considerable transmission and distribution losses (T&D losses). The increasing usage of renewable energy also affects the growth of the market.