Apart from increasing renewable power generation, India aims to add 91 GW of thermal capacity to meet the growing energy demand from its fast-growing economy
In a significant move to cope with growing energy demands amid economic expansion and geopolitical uncertainties, India is gearing up to boost its coal-fired power projects alongside increasing its renewable generation capacity. The Union power ministry has outlined an ambitious plan to add 91 gigawatts (GW) of coal-based thermal power generation, requiring an investment of Rs 7.28 lakh crore in the coming years.
In an exclusive interview with PTI, Union Power and New & Renewable Energy Minister R. K. Singh emphasised the nation's commitment to providing 24x7 electricity supply to all citizens by 2024. "24x7 supply of power is the right of the consumer. Similarly, energy security is of paramount importance for us. You have seen what happened in Europe due to the Russia-Ukraine war," he stated.
Currently, the average power supply in India stands at 23.50 hours in urban areas and 22 hours in rural areas. Singh argued that adding coal-based thermal power capacity is crucial to insulate the country from geopolitical disruptions and ensure energy security as the economy expands.
The move comes when peak power demand in September 2023 reached an all-time high of 243.27 GW, reflecting the pressing need for additional power generation capacity. India presently has an installed power generation capacity of approximately 426 GW, including more than 213 GW from coal and lignite-based projects.
President Droupadi Murmu highlighted that while the country is reducing its dependence on fossil fuels, fossil fuel-based energy remains essential. She affirmed India's commitment to responsible practices in clean energy and the promotion of clean coal technologies for more efficient and environmentally friendly processes.
The 20th Electric Power Survey (EPS) report, published in November 2022, predicts peak power demand to rise to 366.39 GW in 2031-32, 465.53 GW in 2036-37, and 574.68 GW in 2041-42. Minister Singh emphasised the need for coal-based thermal power alongside renewable energy, stating that renewables alone cannot provide round-the-clock power without expensive energy storage.
The power ministry's ambitious plan includes 91 GW of new coal-based thermal power generation capacity, with 27 GW already under construction and 31 GW at an advanced implementation stage. Construction on 17 GW is expected to begin in 2024, with an additional 33 GW planned.
Anil Sardana, Adani Power Managing Director and Chairman of CII's National Committee on Power, acknowledged the continued role of renewables. Still, he stressed the necessity for additional thermal power capacity to meet high base load demand growth.
Looking ahead, consumers may witness changes in the electricity distribution landscape, with the possibility of choosing their electricity provider. Industry experts anticipate progress in integrating electricity markets across states by 2024, introducing market coupling mechanisms and derivatives to enhance efficiency and resilience in the electricity market.