A recent report by two independent think tanks, EMBER and Climate Risk Horizons, has shed a new light on India’s energy sector. The study suggests that India may not need any additional coal capacity to meet its predicted power demand growth by Fiscal Year (FY) 2030.
Report Highlights: A Shift Towards Renewable Energy
According to the report, India’s peak power demand could reach 301 GW by 2030, growing at an annual rate of 5%. This projection is in line with forecasts made by the Central Electricity Authority. Moreover, it’s suggested that India’s planned solar capacity could cover much of this demand. Consequently, building new coal plants could result in “zombie” units – plants that exist but are rarely operational.
The report goes on to illustrate potential financial benefits of this shift towards renewable energy. By not investing in surplus coal plants, India could save nearly Rs 2.5 lakh crore. These wasted investments could lead to expensive contracts for DISCOMs and consumers and impede India’s Renewable Energy goals by generating overcapacity. By prioritizing investment in renewables and storage, India could save an estimated Rs 43,219 crore annually.
Advantages of Solar Energy Over Coal-based Power Plants
Several factors make solar energy an increasingly viable alternative to thermal power generation. A significant factor is the falling cost of solar panels, making solar energy a cost-effective solution. Additionally, advancements in technology, such as battery energy storage systems, further enhance the feasibility of solar power.
On a global level, sustainability and climate change mitigation have become central concerns, leading many countries to seek carbon-free energy sources. India has reflected these global trends, setting a target of 175 GW installed capacity from Renewable Energy Sources by March 2022. Initiatives such as the International Solar Alliance and the One Sun One World One Grid scheme illustrate India’s commitment to this target.
The Indian government has also actively promoted solar energy through schemes like PM KUSUM and the Rooftop Solar Scheme.
The Necessity of Coal-based Power Plants
Despite the potential for renewable energy, coal remains a significant component of India’s energy mix. The BP Energy Outlook 2019 suggests that by 2040, coal will contribute to 48% of India’s primary energy consumption, down from 56% in 2017. Despite the decrease, this still represents nearly half of the country’s total energy consumption.
There are numerous obstacles to replacing coal, including land acquisition, funding, and policy issues. Moreover, sectors such as steel and aluminium rely heavily on coal power. The capacity value of coal-based power plants is also critical for meeting peak load demands and providing power when renewable energy sources are unavailable.
In terms of emission control, India had set a 2017 deadline for thermal power plants to install Flue Gas Desulphurization (FGD) units. However, these deadlines have been postponed until 2022.
The Path Forward
To meet future energy demands in a cost-effective and environmentally friendly way, it’s crucial for India to achieve an optimal energy mix. This balance would incorporate a range of energy sources, including coal, hydro, natural gas, and renewables like solar and wind.
In addition, India has commissioned more efficient supercritical coal-based units and is phasing out older, less efficient coal capacity. Integrating new technologies, such as coal gasification and coal beneficiation, could make coal-fired power plants more environmentally compatible. These measures point towards a balanced and sustainable approach to India’s future power generation.
