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.