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.
