In a move to meet soaring power demand and prevent potential outages, the Indian government is set to accelerate coal-based power generation, aiming to add 17 gigawatts of capacity over the next 16 months. This initiative comes ahead of the U.N. climate summit COP28, where France and the United States are anticipated to tighten financing for coal plants.
India, heavily reliant on coal for 73% of its power generation, is witnessing an unprecedented rise in demand. While the country has been progressively incorporating renewable energy, officials argue that additional coal plants are necessary to avoid power shortages.
Over the next four months, India plans to introduce nearly 3 gigawatts of coal-fired generation. Subsequently, in the fiscal year starting April 1, 2025, the nation is slated to add 14 gigawatts, marking the highest level in eight years, as per internal government documents obtained by Reuters.
The Power Ministry is yet to respond to Reuters’ queries regarding this development.
To expedite project completion, the government is reviewing 38 coal generation plants that have faced delays due to equipment and land acquisition issues. It anticipates that 28 of these projects will become operational within the next 18 months, a presentation to power producers on Nov. 21 revealed.
Among the projects under review is NTPC’s 660-megawatt unit in Bihar, stalled for 13 years, and two projects in Jharkhand, delayed for five years. Power Minister R. K. Singh emphasized the necessity of adding coal-based thermal capacity to meet the surging demand, urging private companies to contribute to the expansion.
This call to action marks a significant shift, as private investments in the coal-fired power sector had diminished around 2012, partly due to India’s emphasis on green energy.
While the coal expansion aims to address a projected 10% rise in demand during peak hours in fiscal year 2024-25, India remains committed to achieving half of its fuel generation capacity from non-fossil fuels by 2030.
India’s approach involves revising its estimate of coal-based power requirements to 283 gigawatts by fiscal year 2031/32, up 9% from previous projections. This adjustment accounts for potential delays in commissioning 86 gigawatts of non-fossil capacity by fiscal 2031/32.
As global discussions on tripling renewable energy by 2030 gain momentum, India’s stance on expanding coal-fired capacity aligns with its pressing need for power stability amid surging demand.
