In a recent development, India has unveiled ambitious intentions to augment its thermal power capacity by an additional 25-30 gigawatts (GW), atop the existing 49 GW of coal-based projects already under construction. However, this fervent drive towards thermal power expansion could precipitate a substantial surge in coal consumption by a staggering 292 million tonnes (MT) annually upon project completion.
To grasp the magnitude of this endeavor, it’s vital to comprehend that generating 1,000 megawatts (MW) of power typically necessitates the combustion of approximately 3.5-4 MT of coal, a statistic based on an average plant load factor (PLF) ranging from 65% to 75%. Calculating coal consumption at approximately 3.7 MT per GW, the envisaged plan portends a formidable 38% escalation in overall coal utilization compared to the current levels.
This announcement has raised eyebrows, especially in light of India’s recent role in championing green energy initiatives through the G20 declaration. While India has notched substantial achievements in adhering to United Nations Framework Convention on Climate Change (UNFCCC) commitments, vowing to slash emissions intensity of its GDP by 45% from 2005 levels and achieve 50% installed power capacity from non-fossil fuel sources by 2030, the decision to bolster thermal power raises questions.
At present, India boasts 212 GW of coal-based power generation capacity, a figure slated to burgeon to 260 GW by 2030. Should the additional 30 GW of thermal power capacity materialize, India will be poised to wield an extensive 290 GW of coal power by the close of the decade.
While the government has concurrently advanced initiatives in renewable energy, energy storage systems, international grid connectivity, and green hydrogen, the specter of energy shortages remains. This predicament stems from the dearth of breakthroughs in battery technology and the lagging scale-up of pumped hydro projects. Consequently, maintaining coal-based capacity appears imperative to thwart the specter of blackouts, particularly during peak evening demands.
Nonetheless, this dual approach has sparked bewilderment within the industry and muddied the communication of India’s long-term energy strategy. While industries are urged to transition to renewable energy sources, the government concurrently touts plans for enhanced coal power generation.
Prominent voices advocate channeling resources away from coal projects and into expanding the grid and transmission infrastructure for more efficient renewable energy evacuation. Yet, discussions like the energy transition partnership (JETP) have found little traction within the G20, as India seems reluctant to embrace a coal power phase-out dialogue, opting instead to accentuate the expansion of renewables.
In sum, India’s surging appetite for thermal power expansion stands at odds with its progressive strides in climate commitments and clean energy objectives, leaving stakeholders perplexed by the nation’s divergent energy pursuits.
