Full Breakdown
India and Vietnam's Thermal Power Developments: A Comparative Analysis
10/10/2025, 1:20:09 PM
Major Investments in India's Thermal Power Sector
India's leading power companies, including Adani Power, NTPC, Torrent Power, and JSW Energy, are poised to invest over Rs 5.5 lakh crore to expand thermal power capacity by more than 50 GW by 2032. This initiative is driven by the need to meet increasing electricity demand, projected to reach peak levels of 400 GW by 2031-32 and over 700 GW by 2047. Adani Power plans to increase its coal-based capacity from 18.15 GW to 41.87 GW, with an investment of Rs 2 lakh crore. NTPC aims to add 27 GW of thermal capacity by 2031-32, potentially requiring over Rs 2.25 lakh crore. Torrent Power is evaluating 5-7 GW of new coal-based plants, while JSW Energy is considering selective thermal additions within its broader renewable focus.
Vietnam's Cancellation of Thermal Power Projects
In contrast, Vietnam has recently canceled the land lease for the $3.2 billion Song Hau 2 thermal power project, led by Malaysia’s Toyo Ink Group Berhad. The decision, made by authorities in Can Tho, follows years of delays attributed to land clearance and financing issues. The project, which was intended to supply 2,120 megawatts to the regional grid, faced significant setbacks, prompting local officials to reclaim the land for new investors. This cancellation reflects Vietnam's shifting energy strategy amid increasing focus on renewable energy sources.
Official Statements & Responses
Adani Power emphasized that thermal power remains essential for energy security, stating, "Thermal power, with its inherent ability to provide large-scale, reliable, and round-the-clock power, will continue to remain the backbone of our energy security." Similarly, Torrent Power highlighted that its coal-based capacity addition aims to balance growing power demand while maintaining a commitment to renewable energy. In Vietnam, the cancellation of the Song Hau 2 project was framed as a necessary step to attract investors capable of utilizing existing infrastructure effectively.
Criticism & Opposition in India
In India, the proposed thermal power expansion has faced opposition from local communities, particularly in the Chelam Hill region of Andhra Pradesh. Tribal groups, including the Savara and Jatapu tribes, are protesting against a planned 3,200 MW coal-based thermal power plant, citing concerns over environmental degradation and loss of agricultural land. Activists argue that the project threatens their livelihoods and the ecological balance of the region, with historical precedents of violent clashes over similar projects in the area.
Conflicting Reports & Gaps
While India's thermal power capacity is set for significant expansion, the situation in Vietnam indicates a potential pivot away from coal. The contrasting approaches raise questions about the future of thermal power in both countries. In India, the Central Electricity Authority has targeted a total thermal capacity addition of 80-90 GW by FY32, while Vietnam's cancellation of major projects suggests a reevaluation of its energy strategy.
What's Next
As India moves forward with its thermal power investments, the focus will be on balancing energy demands with environmental considerations. In Vietnam, the government is expected to expedite other energy projects, including LNG-to-power initiatives, to ensure energy security while transitioning towards more sustainable energy sources. The outcomes of these developments will significantly shape the energy landscapes of both nations in the coming years.
