Sector map: power
Intuition
India still generates most of its electricity from coal, but it now adds far more solar and wind capacity each year, and reached 50% non-fossil installed capacity in June 2025. For a power company, the generation mix decides its emissions, its exposure to future carbon policy, its pollution control capex and its growth story. Thermal plants also use large amounts of water and produce fly ash, while renewable projects need land and face community issues of their own.
Mechanics
Material issues
| Issue | Financial channel | Where to find data | Metric to track |
|---|---|---|---|
| Coal dependence and transition | Stranded asset risk, future carbon costs, cost of capital | Annual report capacity mix; BRSR Principle 6 | tCO2 per MWh; share of renewable capacity and generation |
| Air pollution (SO2, NOx, particulates) | Pollution control capex, penalties | Pollution control board data; company disclosures | Emissions per MWh; FGD installation status |
| Water | Output loss in droughts | BRSR Principle 6 | Specific water consumption per MWh |
| Fly ash | Disposal costs, compliance | Company disclosures; BRSR Principle 6 | Ash utilisation rate |
| Land and communities for renewables | Project delays | Project disclosures | Grievances; land acquisition status |
Indian rules to know
- SO2 rules (July 2025): plants near the NCR and million-plus cities must comply by December 2027; plants near critically polluted areas by December 2028 or seek an exemption; other plants do not need flue gas desulphurisation if their stack heights meet the limits.
- Renewable consumption obligation: distribution companies and large users must meet a renewable share that rises from 29.91% in FY 2024-25 to 43.33% by FY 2029-30.
- Battery storage VGF (June 2025): ₹5,400 crore of viability gap funding for 30 GWh of battery storage, at ₹18 lakh per MWh.
- CCTS: thermal power is not among the sectors with notified intensity targets so far.
Sources
From the research
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