India to boost coal power generation

It is part of a plan to add about 27GW of coal-fuelled capacity, according to two people with knowledge of the matter. 1.89 trillion, to be executed by power generation companies run by central and state governments. The development comes in the backdrop of general elections due next year, with the government committed to provide quality, reliable and affordable power to all round the clock.

Responding to a question, Union Power Secretary Alok Kumar said, “India is fully achieving its energy transition targets and will continue to do so.” years to achieve the target of 500GW by 2030. At the same time, India must ensure that it has the necessary energy security to enable its growth and development.”

India’s electricity demand is growing at around 10% a year, with coal demand expected to peak between 2030 and 2035. Electricity from renewable sources is intermittent and insufficient to meet such demand, the demand for coal power which also helps maintain grid stability. It also means that fossil fuels will remain the mainstay of India’s energy mix for years, even though the country hosts the world’s fourth largest coal reserves and is the second largest coal producer.

Capacity addition is led by central public sector units (PSUs), including NTPC Ltd (8.620GW), NLC (1.980GW), SJVNL (1.32GW), THDC India Ltd (1.32GW), and state government-run firms . Tamil Nadu Generation and Distribution Corporation (3.44GW), Uttar Pradesh State Power Generation Corporation Limited (3.3GW), Andhra Pradesh Power Generation Corporation Limited (1.6GW), Telangana State Power Generation Corporation Limited (4GW), Maharashtra State Power Generation Company Limited ( 660MW) and West Bengal Power Development Corporation Ltd (660MW), said the people cited above.

“The country needs more coal-fired power generation capacity to meet the growing power demand and supply 24X7 quality power to all,” said a government official.

Queries sent to spokespersons of NTPC Ltd, NLC, SJVNL, THDC, TANGEDCO, UPRVUNL, APGENCO, TSGENCO, MAHAGENCO and WBPDCL late on Sunday night remained unanswered till press time.

A total of 205.235 GW of coal power capacity remains the backbone of India’s baseload, accounting for more than half of India’s total electricity generation capacity of 416.06 GW. Analysts expect India’s dependence on coal-fired power to continue.

“India Ratings and Research (Ind-Ra) has maintained a neutral outlook for the power sector for FY24, as it believes that the overall plant load factor (PLF) of thermal power plants will continue to improve and reach 65 during the year. % will be reached. , This supports continued dependence on coal-based generation in the absence of a steady increase in electricity demand, expected at 6.5% yoy for FY24 and FY25, and any major increase in capacity addition in any other sectors except renewable energy ,” Ind-Ra wrote in an April 10 report.

The Central Electricity Authority (CEA), the country’s apex power sector planning body, expects peak electricity demand to reach 229GW in April before monsoon rains reduce demand. The highest power demand in the country was recorded at 212GW in the last financial year.

“In FY2024, rising temperatures and resilient economic activities are expected to drive electricity demand. “On an average, the first quarter of the financial year should see a 4% growth in power demand over the previous year’s higher base,” Crisil wrote in a recent report.

Keeping in view the fossil fuel demand, India’s largest coal miner Coal India Limited has been given a supply target of 610 million tonnes (MT) to the power sector in FY24, compared to supplies in FY23. million tonnes more.

“In fiscal year 2024, the peak demand for electricity should touch a record level, given the predictions of heat waves that will increase the use of air conditioners, fans and refrigeration units. India’s peak electricity demand is expected to grow to 230GW in the first quarter of FY2024, growing 6.5% annually, the Crisil report said.

The Union power ministry has issued several directives to meet peak summer demand in the country, including asking power generation firms to mix up to 6% of their coal needs with imports by September, the Electricity Act on all imported Invoking section 11 of Cr. To operate coal-fired power plants at full capacity, and except for planned maintenance during crunch periods.