India’s Thermal Power Capacity Expansion and Challenges

India’s energy landscape is evolving rapidly. The nation aims to enhance its thermal power capacity . However, recent reports indicate delays in project commissioning. The government plans to add 15,000 MW of thermal power capacity in the financial year. Current projections suggest only 8,000 MW may be achieved due to various challenges.

Current Thermal Power Capacity

As of now, thermal power constitutes 52.9% of India’s total installed electricity capacity. This reliance is expected to decrease. By FY27, it will drop to 42.6%. By FY32, thermal power’s share is projected to be 31.6%. This shift reflects a broader strategy to increase clean energy sources.

Recent Capacity Additions

In FY24, India added approximately 6 GW of thermal units. Two thermal units with a combined capacity of 1,320 MW were commissioned in December. The rest of the projects are slated for completion by March. Delays in commissioning have hindered progress towards meeting targets.

Challenges in Project Commissioning

Several factors contribute to the delays in thermal power project commissioning. Land acquisition issues remain hurdle. Additionally, balance of plant work and material supply problems have slowed progress. These challenges have resulted in many projects being pushed beyond their scheduled timelines.

Government’s Future Targets

The Government of India aims to add 80 GW of thermal power capacity by FY32. This ambitious target is essential to meet the growing electricity demand. Alongside thermal power, the government has set a renewable energy target of 500 GW. This dual approach seeks to balance energy needs with sustainability goals.

Electricity Demand Growth

India’s electricity demand has seen substantial growth in recent years. In FY22, demand increased by 8.2%. FY23 witnessed a rise of 9.7%, while FY24 recorded a 7.4% increase. By November FY25, electricity consumption grew by 4.4%. This trend indicates a pressing need for enhanced power generation capabilities.

Role of Renewable Energy

India has committed to sourcing 50% of its cumulative electric power from non-fossil fuel-based resources by 2030. The government is investing heavily in renewable energy projects. These initiatives are crucial for reducing dependence on fossil fuels and addressing climate change.

Projected Changes in Energy Mix

The transition towards cleaner energy sources is underway. While thermal power remains part of the energy mix, its share is expected to decline. The focus is shifting towards renewable energy and nuclear power to meet future energy demands.

Questions for UPSC:

1. Discuss the implications of India’s shift from thermal to renewable energy sources on its energy security.
2. Critically examine the role of government policies in addressing the challenges of thermal power project commissioning in India.
3. Explain the significance of electricity demand growth in shaping India’s energy policy.
4. With suitable examples, discuss the impact of land acquisition issues on infrastructure development in India.

Answer Hints:

1. Discuss the implications of India’s shift from thermal to renewable energy sources on its energy security.

1. Transitioning to renewable energy reduces dependence on fossil fuels, enhancing energy security.
2. Renewables can diversify energy sources, mitigating risks associated with supply disruptions.
3. Investment in renewable technology encourages innovation and job creation in the energy sector.
4. Increased renewable capacity contributes to climate change mitigation, aligning with global sustainability goals.
5. However, challenges like intermittency of renewable sources require reliable backup systems to maintain energy security.

2. Critically examine the role of government policies in addressing the challenges of thermal power project commissioning in India.

1. Government policies aim to streamline land acquisition processes to minimize delays in project execution.
2. Financial incentives and subsidies are provided to encourage investment in thermal power projects.
3. Regulatory frameworks are being improved to facilitate faster approvals and enhance project viability.
4. Collaboration with private sectors is encouraged to leverage expertise and resources in project development.
5. Monitoring and evaluation mechanisms are established to track progress and address challenges promptly.

3. Explain the significance of electricity demand growth in shaping India’s energy policy.

1. Rising electricity demand necessitates increased power generation capacity to avoid shortages.
2. Electricity consumption trends guide investment decisions in both thermal and renewable energy sectors.
3. Demand growth influences policy formulation to ensure a balanced energy mix for sustainability.
4. About demand patterns helps in planning infrastructure and grid enhancements to support future needs.
5. Addressing demand growth is critical for economic development and improving living standards across the country.

4. With suitable examples, discuss the impact of land acquisition issues on infrastructure development in India.

1. Land acquisition delays have stalled numerous thermal power projects, impacting energy supply (e.g., Mundra Power Project).
2. Protests and resistance from local communities often hinder the acquisition process, as seen in the POSCO steel project.
3. Legal hurdles and compensation disputes can prolong timelines for infrastructure projects (e.g., Delhi-Mumbai Expressway).
4. Government initiatives like the Right to Fair Compensation and Transparency Act aim to address these issues but face implementation challenges.
5. Successful land acquisition strategies can enhance infrastructure development, as demonstrated by the rapid completion of the Mumbai Metro project.