Daily News Analysis

Thermal Power Scenario

8th September, 2021 Economy

Figure 2: No copyright Infringement intended



  • 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.