Impending energy crisis brings coal back into play

RE pace much below target; private investments through PPP are crucial

- ARUNIMA BHARADWAJ

INDIA'S PLEDGE TO become carbon-neutral by 2070 and its national energy plan seem to fall further apart. The latest National Electricity Plan (NEP) envisages the installed capacity of coal-based thermal power to rise by 23% from the current level by 2032. However, it is becoming clear that an even higher reliance on the "dirty fuel" than estimated by the NEP may be required to avert a serious energy crisis.

The peaking and subsequent phasing out of coal-fired power may get delayed because of a sharpe than-expected rise in domestic demand, and the realisation that renewable capacity addition could lag tall targets. There are also concerns over huge intermittency and variability of renewable-based generation. Efficient integration of RE capacities to the grid to meet the peak demand is also a challenge.

The country has been jolted by the two major power crises in the last two years - October 2021 and AprilMay 2023 - as it struggled to meet peak demand in many parts and outages occurred.

Union power minister RK Singh recently said the country might add 25-30 giga watt (GW) coal-based thermal electricity, in addition to 50 GW under works, to keep pace with the recent sharp rise in demand, and projections for the future. The minister said the government hasn't formulated any plan to phase out old coal-based thermal power plants, and cited the Central Electricity Authority's (CEA) statement in January that, "no retirement or re-purposing of coal-based power stations will be done before 2030." This is not a situation unique to India. "Capital investment in the energy sector continues to flow into fossil fuels, which are responsible for 75% of global greenhouse gas emissions," the International Monetary Fund said in its report.