India's gas-based power generation is facing significant pressure amid the ongoing Middle East crisis, with disruptions linked to the Iran war impacting gas availability and pricing, JSW Energy Ltd. CEO Sharad Mahendra told NDTV Profit in a televised address on Monday. As a result, coal-based thermal power is expected to play a dominant role in meeting the country's peak electricity demand during the upcoming summer months.
Mahendra said India's peak power demand this summer is likely to touch around 270 gigawatts, underscoring the need for reliable base-load capacity. In this backdrop, thermal power is set to become predominant, particularly as gas-based plants struggle with fuel constraints and higher costs caused by geopolitical tensions in the Gulf region.
Looking ahead, JSW Energy expects a sharp increase in coal-based capacity addition across the country. Mahendra said India could see an additional 100 GW of coal-based power capacity over the next seven to eight years, reflecting the continued relevance of thermal power in ensuring grid stability and energy security even as renewable capacity expands.
On JSW Energy's own capacity trajectory, Mahendra said the company expects to end the current financial year with 13.8 GW of installed capacity, up from 10.4 GW earlier, driven by ongoing expansions across thermal and renewable assets.
Addressing concerns around fuel costs, Mahendra said India remains largely insulated from fluctuations in international coal prices due to the huge availability of domestic coal. This, he noted, provides a structural advantage to Indian power producers and helps ensure stable electricity supply during periods of peak demand.
He added that while global volatility has increased uncertainty for gas-based generation, domestic coal availability continues to support thermal plants, making them the backbone of the power system during high-demand seasons such as summer.
On the financial front, Mahendra said JSW Energy aims to maintain a debt-to-EBITDA ratio in line with industry levels, indicating a disciplined approach to balance sheet management even as the company continues to expand capacity.
Overall, Mahendra said the current Middle East crisis has once again highlighted the vulnerability of gas-based power generation to global geopolitical shocks, reinforcing the importance of coal-based thermal power in meeting India's immediate and medium-term electricity demand.
Watch The Full Interview Here
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