India is looking to make its thermal power fleet more flexible as renewable energy capacity surges.

Policymakers are considering incentives for thermal plants to adjust output more dynamically. This creates space for greater solar and wind integration while maintaining grid stability.

Central Electricity Authority (CEA) Chairperson Ghanshyam Prasad said record renewable additions have led to grid oscillations due to the variable nature of green power. At the same time, weaker-than-expected demand has complicated absorption. Peak load was at 245 GW against a projected 270 GW amid heavy rains between April and October 2025.

Thermal plants are often hesitant to lower their Plant Load Factor (PLF) from around 55% to 40% due to efficiency concerns. However, Prasad said greater operational flexibility is technically possible with procedural changes. A proposal to incentivise this shift has been recommended to the Ministry of Power.

He also flagged the need for stricter adherence to grid standards, noting that disturbances in Rajasthan were felt as far as Kudankulam. Meanwhile, India added 52 GW of renewable capacity in the first ten months of the financial year. Another 10–15 GW is expected soon. However, officials cautioned that transmission and demand must keep pace to avoid fresh imbalances.

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