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Context:

• INDIA DOES not require additional new coal capacity to meet expected demand growth by financial year 2030, according to a report prepared by EMBER, an independent British energy think-tank.

Details of the Report:

• even if India’s power demand grows 5 per cent annually, in line with the most optimistic International Energy Agency projection, coal-fired generation in the financial year 2030 will be lower than in the financial year 2020, as long as India achieves its non-coal generation targets – its renewable energy targets.
• more coal capacity beyond what’s already under construction isn’t needed to meet the aggregate demand growth by FY 2030.
• India’s peak demand would reach 301 GW by 2030, if it grows at an annual growth rate of 5 per cent, which is also in lines with projections made by the Central Electricity Authority. 

About Zombie Coal Plants:

• development of new coal plants will lead to “zombie” units – ones which will exist, but not be operational.
• India can free up Rs 247,421 crore by “killing” the zombie coal projects, as these surplus plants, if built, will require an estimated Rs 247,421 crore investment.
• They will lock consumers into expensive contracts and jeopardise India’s RE [renewable energy] goals by adding to the system’s overcapacity.
• The smart option is to divert these resources to renewables and storage to build a cheaper, more resilient grid for the future.

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